Policy and Commitment

LITE-ON reformulated its low carbon strategy after the Paris Agreement to achieve environmental sustainability through low-carbon products and green operations. The company continues to improve its green design, climate change and energy management, water resource management, waste and resource management, and green factory abilities in order to respond appropriately to stakeholder expectations on environmental issues and build up LITE-ON's resilience in sustainability issues.

We commit to adopting science-based targets (SBTs) in the calculation of reasonable emissions for LITE-ON given the Global Carbon Budget. In 2018, we set a target to reduce carbon emission per unit of revenue by 39.3% by 2025 and to increase the energy conversion efficiency of our power supply products by 2% by 2023. We performed a SBTi compliance review on the target to support the Paris Agreement goal of keeping a global temperature rise this century well below 2 degrees Celsius.

We commit to support the Task Force on Climate-Related Financial Disclosures (TCFD) and follow the TCFD framework to disclose climate change information and related risks and opportunities. The commitment is made also in support of the Commit to Action campaign launched by the Carbon Disclosure Project (CDP) and We Mean Business Coalition.

Green Operations Action Plans

To achieve green operations and counter the uncertainty created by climate change, LITE-ON works on improving environmental management performance and environmental risk management. The goals include reducing the impact of manufacturing activities on the environment and facilitating the development of a circular economy so to counter the challenges of global climate change risks and emerging technologies. In 2018, LITE-ON spent NT$352 million on environmental protection, and did not encounter any major incidents of environmental pollution.

The green operations action plan includes
Setting aggressive carbon reduction targets
 ● We adopt the Sector Based Approach of the SBT setting approach and use the Sectoral Decarbonization Approach (SDA) Tool to calculate our carbon emission allowance given the two-degree scenario (IEA 2DS). We have set a target to reduce carbon emission per unit of revenue by 39.3% by 2025 with 2014 as the base year
 ●We identify and quantify emission sources on the GHG value chain, and set carbon reduction targets for emission hotspots on the value chain. We have set a value chain carbon reduction target of a 2% improvement of energy conversion efficiency for power supply products by 2023 which is equivalent to a 28.8% reduction of GHG emissions per unit product, with the products and technologies developed in 2016 as the baseline.
 ● This target have been approved by SBTi (Science-Based Targets initiative) in April 2019, becoming one of the SBTi approved 50 Asian companies.

Reducing the environmental impact of own business activities
 ● As part of the effort to improve environmental management performance, LITE-ON continues to develop optimized production processes and better plant operations. The aim is to improve energy efficiency and the effective use of water resources throughout the process of products development, production, consumption, and disposal. The company also tries to achieve minimum waste and maximum resource recycling and reuse in order to achieve low pollution, low energy consumption, easy recycling, and other environmental-related targets.
 ● As part of the commitment to better transparency in environmental information, LITE-ON expanded the scope of the environmental information disclosure to include the LITE-ON (Longtan) Leotek Lighting Department and the LITE-ON (Guangzhou) Auto Electronics Department in 2018. The disclosure covers 24 main operation sites in Taiwan, Mainland China, and Thailand, which were generated 95% of LITE-ON's total revenue in 2018.

Promoting circular economy
 ● As a responsible corporate citizen, LITE-ON also supports SDG 14, which calls for reduction of marine pollution. The Penghu Coastal Styrofoam Waste Cleanup, organized in partnership with the Penghu County Government, was launched in 2018. The campaign expects to remove 20 tonnes or more of Styrofoam marine waste every year and transform the recycled polystyrene (PS) materials from the waste into high impact polystyrene (HIPS). The campaign also involves developing products that use these raw materials.
 ● Based on the removal of 20 tonnes of Styrofoam marine waste from incineration in Penghu every year, it is estimated that the campaign will reduce carbon emissions by 2.5 tonnes CO2e. Going forward, the campaign may proceed in the direction of making a contribution in Taiwan by treating all 100 tonnes of Styrofoam marine waste generated across the island every year and reducing carbon emissions by 12.5 tonnes CO2e.

Environmental Management Goals

LITE-ON set new short-, medium-, and long-term environmental management targets for use of energy and resources and discharge of pollutants in 2018. LITE-ON submitted the carbon reduction targets for a formal SBT compliance review to demonstrate its support for the effort to keep global temperature increase below 2 degrees Celsius. The waste reduction targets include a long-term target to reduce waste by 3,300 tonnes on an absolute basis by 2025. It is consistent with LITE-ON's campaign for a circular economy.

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Note:
1. Given ownership of LITE-ON's camera modules department and mobile devices department were transferred in 2018, the environmental data for the camera modules department are available up to the end of June 2018, and those for the mobile devices department are available up to the end of October 2018.
2. Product energy saving efficiency measures and practices are disclosed under 3.1.2 2018 Green Designs and Achievements of 2018 LITE-ON CSR report.

Environmental Sustainability ?

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