The LITEON Corporate Social Responsibility Report complies with the Global Reporting
Initiative (GRI) Standards. Material topics are analyzed by following the process of identification, prioritization, validation, and review to validate the scope of the disclosure in the report as well as major internal/external sustainability challenges faced by the company. The process serves also as a comprehensive review of business performance.
LITEON's material topic identification work is conducted at least every three years, and the last implementation year of the stakeholder sustainability issue survey is 2023. Material topics of the year and stakeholders will be examined on an ongoing basis and modified as needed at least annually by the Corporate Sustainability Committee.
Identification
A list of 22 sustainability issues was compiled through the channels below to provide the
scope of material topics identification in the 2022 LITEON Sustainability Report.
List sustainability issues that would be of interest to different stakeholders based on the
experience of employees from everyday business activities and previous assignments.
Material topics for leading competitors around the world and international trends in
sustainability were examined.
To maintain the objectivity, integrity, and inclusiveness of material topics, the company
also looked back on the material topic matrix in the previous reports.
Prioritization
The process of sustainability topic prioritization by materiality is described as follows.
Based on various ESG issues, we used "the impact of the activities and business relationships of LITEON on the economic, environ-
mental, and social population during the process of providing prod ucts or services" as the main evaluation criteria and ranked them accordingly. An impact level of 4.55 or above is considered a material impact.
We referenced the EU's double materiality evaluation framework and evaluated "financial materiality," i.e., evaluating the impact of environmental, economic, and social issues on the Company's internal financial and accounting reports. Topics with an impact of 4.3 and above are included in the scope of material topics.
In 2022 , a total of 691 valid results were received in an internal and external questionnaire. The opinions of key stakeholders were studied through external communication meetings with key customers, suppliers and experts as well as internal subcommittee meetings to make the assessment results more representative.
The degree of influence and impact of individual issues were measured and quantified to create a preliminary material issue matrix.
Description of Qualitative Communication
Validation
To ensure compliance with the GRI and stakeholder inclusiveness principles, and to strengthen the link between material topics of the year and core competencies, results of the preliminary identification of material topics are reviewed by the LITEON CS Committee and nine sub-committees. The committee also raises the degree of materiality for two topics, "Circular economy" and "Financialization of ESG information" based on results of international benchmarking analysis, trends in sustainability, and LITEON's business development strategies. In 2022, material topic of "Talent training and education labor relations and friendly workplace" was deleted and "Innovation development and application" was added.
A total of 15 sustainability topics were selected from the "Significant Impact" and "Financially Significant" to be the
scope of material disclosure in this report. We also identified and responded to the GRI topics corresponding to
the material topics in the 2022 LITEON Sustainability Report.
Review
In the next report, we will continue to review the material topic matrix and engage stakeholders in further communication to determine if the material topic matrix for the coming year is reasonable or in need of adjustment.
2022 Material topics
Impact Description of Material Topics
Impact on LITEON operations
Impact on external stakeholders
LITEON first conducted a impact valuation in 2023. The assessment results will be included in LITEON's material topic identification process and timely included in the Corporate Sustainability Committee's report agenda as a reference for the executive decision-making process. We will continue to work with our partners, using technological innovation as a driver, to achieve a greener, healthier, and fairer future. We believe that through joint efforts, LITEON will be able to achieve both excellent financial and non-financial performance, becoming a leading brand with an even more substantial impact.
Progress towards our targets for material issues
For all the material issues, LITEON set mid to long term targets and strive to reach the goal. All the information are spread in our the Sustainability Report and here we list 3 major ones as follows.
Green Product Design
Target : All product categories conduct LCA by 2023 (completed)
Target : Reduce carbon emissions by 5% for the next generation of all products (ongoing)
Target : 20% reduction of plastic in the packaging (from 1,000 tonnes down to 800 tonnes (on track, 203.1 metric tons reduced in 2022)
Target : Achieve 98% waste conversion rate (UL2799 Gold) by 2024 (on track, 8 site completed in 2023)
Target : Recycle 50% of steel by 2024 and achieve the goal of using recycled materials for more than 95 % of steel eventually (ongoing)
Target : All three kinds of marine wastes to be 100% certified in 2025. (1 certified, ongoing)
Target: Increase 2% energy conversion efficiency of power supply products compares with 2016 by 2025.
● 2022 performance: 5.6%
● 2021 performance: 5.31%
● 2020 performance: 4.56%
● 2019 performance: 1.80%
Targets: UV-LED energy efficiency to increase by 60% by 2025 compared to 2018
● 2022 performance: 31.25%
● 2021 performance: 28.85%
● 2020 performance: 25%
● 2019 performance: 21.15%
Please refer to Green Product Management
Information security and personal Information Protection
Target : Re-inspected to maintain the validity of the ISO 27001 certificate each year (2023 renewed)
Target : 100% of sites introduced to NIST8286 Standard with a maturity level of 4 (ongoing)
Target : Provide the production environment that is 100% in accordance with IEC 62443 and NIST CSF information security (on going)
Target : Provide comprehensive information security analysis and early warning environment to 100% of LITEON's global factories and offices (on track)
Enhance factory's production machines with strong protection against viruses and hacking. (completed in 2023)
Target: Zero complaints regarding the invasion of client privacy or loss of client data was received
● 2022 performance: No complaint was received in 2022.
Target: 100% information environment in line with GDPR by 2025
● 2022 performance: In addition to incorporating the Personal Data Protection Act and GDPR into LITEON's management system, and paying attention to new privacy protection trends and their possible impact on LITEON, we will improve the depth and breadth of protection management in the information security management system. LITEON's Privacy Data Protection Management Organization and Management please refer to Information Security and Privacy Management
Climate change strategy and Energy management
Target: LITEON Carbon Reduction targets: Project 555 - Carbon Intensity -5% per year, Carbon Footprint -5% next generation, 2050 Net Zero (kicked off)
Target: RE100 committed (RE 26.8% in 2022)
Target: All sites with ISO 50001 (6 sited in 2022)
Target: Reduce carbon emission per unit of revenue by 39.3% by 2025 compared to the base year 2014
● 2022 performance: -39.08%
● 2021 performance: -25.16%
● 2020 performance: -21.07%
● 2019 performance: -23.07%
Please refer to Environmental Commitment and Policy
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