2020 LITEON CSR Report

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2020 LITEON CSR Report 20 20 LITEON CSR REPORT GRI Standards Index | Contents LITEON CSR REPORT 1 2 3 4 5 Table of Contents About This Report Company Overview 7 2020 LITEON ESG Achievements GRI Standards Index 118 Message from the Chairman and the President Third-party Assurance Statement 124 1. Sustainability Management at LITEON 10 4 LITEON and Employees 74 1.1 Corporate Sustainability Perspective and Commitment 11 4.1 Employee Policy 75 1.2 Strategic Planning for Sustainability 12 4.2 Employee Profile 77 1.3 LITEON Corporate Sustainability Committee 16 4.3 Employee Development and Training 84 1.4 Stakeholders and Material Topics 17 4.4 Protection of Employee Interest 88 4.5 Employee Relations 91 2 Corporate Governance 30 4.6 LOHAS LITEON 94 2.1 LITEON Corporate Values and Governance 31 2.2 Organization Structure of Corporate Governance 33 5 LITEON and Society 102 2.3 Corporate Risk Management 37 5.1 Social Inclusion Policy 103 2.4 Compliance, Ethics and Anti-Corruption 47 5.2 2020 LITEON Award 104 2.5 Information Security and Privacy Management 49 5.3 LITEON Plain Jade Project 105 2.6 Sustainable Supply Chain 52 5.4 SEA HOPE Project 106 2.7 Customer Service and Satisfaction 56 5.5 LITEON Volunteers 109 5.6 LITEON Cultural Foundation 110 3 LITEON and the Environment 58 5.6.1 Promoting Community Learning Activities 110 3.1 Environmental Sustainability Commitment and Policy 59 5.6.2 Taipei Xinyi Community College 113 3.2 Climate Change and Energy Management 61 3.3 Water Resource Management 67 3.4 Waste Management, Recycling and Reuse 68 3.5 Product Green Design & Management 69 GRI Standards Index | Contents LITEON CSR REPORT 1 2 3 4 5 About This Report Reporting Time Frame and Scope of Report Data verification: Time frame: From January 01, 2020 to December 31, 2020 Category Contents Verification / Certification Scope: Financial data presented in this report reflects performance of the parent company and its Economic Financial data Deloitte & Touche subsidiaries. Greenhouse gas emissions ISO 14064-1 SGS Taiwan Ltd. For nonfinancial data, the report covers the nine business units, namely, Power Module Solutions , Cloud Infrastructure Power Solution, Optoelectronics Product Solution, Intelligent Environmental management Environmental Peripheral Solution, Mechanical Electronic Solution, Smart Application Solutions, Automotive international standards ISO 14001 Each factory obtained the verification by Electronics Applications, LEOTEK, and Networking. Comparing to the financial performance, Hazardous substance process the third party individually management system IECQ QC 080000 the nonfinancial performance disclosures are focus on the major operation and manufacturing locations, such as Taiwan, Mainland China, Thailand, Vietnam, and India while excluding the Occupational safety management Each factory obtained the verification by Social IPO/OTC subsidiary, Silitech. Unless elsewhere specified, information will be disclosed in the OHSAS 18001 or ISO 45001 the third party individually report. In 2020, In order to focus on transformation development, LITEON transferred its Solid State Compilation Basis Drives Business (SSD) to Kioxia Holdings Corporation on July 1st, 2020. The sustainability issues as well as strategies, goals and practices of the report are drafted based on GRI Standards 2016 published by Global Reporting Initiative while responding to Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and Sustainable Development Customers Suppliers Goals (SDGs). Moreover, contents of this report have been discussed and categorized using AA1000 APS Branded electronic Electronic components equipment (mobile devices, manufacturers procedures. computers, and networking Packing material devices, home appliance manufacturers etc.) and automotive or Raw materials (i.e., steel, Report Assurance automotive parts Publically- coppers, and tin etc.) An independent third party (SGS Taiwan Ltd.) has been engaged to manufacturers listed processing manufacturers Subsidiaries provide assurance for AA1000 AS v3 type-2, high-level accountability Electronic equipment and Subsidiaries Production equipment home appliances contract manufactures and GRI Standard disclosure in accordance with Comprehensive Option. manufacturers A Third-party Assurance Statement has been attached as an appendix to Community Subcontractors this report. LITEON's headquarters Electronic components and business locations manufacturers Construction companies Release Overview First issue: 2007 Within the Outside the Current issue: Published in June 2021 Organization Organization Next issue: Expected to be published in June 2022 Previous issue: June 2020 The report is issued in Chinese and English annually, and the annual CSR Reports The Report Management are posted on LITEON company website Issues presented in this report have been identified with materiality analysis through stakeholder https://www.liteon.com/en-us/globalcitizenship/365 engagement progress and discussed in "LITEON Corporate Sustainability (CSR) Committee" meetings Contact Information with the approval of chairman of the committee. LITEON CSR Office Data calculation basis: All financial figures in this report are presented in New Taiwan Dollars (NTD), Address: No. 392 Ruiguang Road, Neihu District, Taipei 114 occupational safety and health performance data are using globally accepted indicators. Any estimates Tel: +886-2-87982888 or assumptio ns are elaborated in the respective sections. Any change of disclosures made in this report E-mail: [email protected] as compared to the previous report have also been highlighted. Company website: www.liteon.com WWW.LITEON.COM 2 GRI Standards Index | Contents LITEON CSR REPORT 1 2 3 4 5 20 20 LITEON ESG ACHIEVEMENTS Consecutively being a A constituent of MSCI ESG A member of Dow Jones constituent in the FTSE4Good Leaders Indexes for seven Sustainability Indices (DJSI) for Emerging Index and FTSE4Good consecutive years ten consecutive years TIP Taiwan ESG Index 2020 Taiwan Corporate Sustainable Awards (TCSA): Top 10 Domestic Companies Sustainability Model Award (Manufacturing Industry) Won the Corporate Citizen Won the First Prize of the annual Corporate Sustainability Report Platinum Award overall CSR survey in 2020 Corporate The Best Practice Awards of Creativity in Award of CommonWealth Social Responsibility Award from Communication, Climate Leadership, Circular Economy Magazine for the fourteen Global Views Magazine Leadership, Social Inclusion, Information Security years in a row Received the highest rating of "Leaderboard" in 2020 2020 Taiwan Circular Certified as a Sports Enterprise CDP Supplier Engagement Economy Awards "Product (2020-2023) by Sports Rating (SER) Excellence Award'' Administration of the Ministry of Education for the third time 3 GRI Standards Index | Contents LITEON CSR REPORT 1 2 3 4 5 20 20 LITEON ESG ACHIEVEMENTS % ISO 27001 4.31NTD 82 EPS of NTD 4.31, a Built up the "Nomination An 82% of overall employees' ISO 27001 Information historical record high Committee" directly average recognition rate Security Management reporting to Board of resulted in Employee Certification Directors Satisfaction Survey CO2e 11.44% 21.07% 16.53% ISO 14067 Waste generation reduced Total greenhouse gas emissions Renewable energy usage LED vehicle lighting by 2,688 tonnes from the decreased by 61,216 tonnes of 57,097 MWh product passed carbon base year, a decrease of CO2e from the base year, and the reached the ratio of footprint certification 11.44% intensity decreased by 21.07% 16.53% (ISO 14067) 4.56% 805 excellence Energy conversion Donated the world's first A total of 805 works Taipei Xinyi Community efficiency for power supply marine waste Styrofoam container to the participated in College was ranked products improved by Penghu and Kinmen county governments LITEON Award "excellence" by Department 4.56% from the base year via the SEAHOPE Project based on the of Education, Taipei City concept of circular economy Government 4 GRI Standards Index | Contents LITEON CSR REPORT 1 2 3 4 5 Message from the Chairman and the President Dear friends and supporters of sustainability at LITEON, The global economy and industry faced many challenges in 2020. Nevertheless, the reduce the transportation volume of Styrofoam marine waste. LITEON also succeeded diligent efforts of everyone at LITEON made it possible for LITEON to report a global in using modified recycled plastics in LITEON's own keyboard and mouse products and consolidated revenue of NTD 157.13 billion and operating profits of NTD 10.21 billion, up production lines, batch pans and packaging materials. LITEON is the world's first company 9% YoY. The net profits were NTD 10.02 billion with EPS of NTD 4.31, up 7% YoY, posting to put Styrofoam marine waste in electronic products. Furthermore, LITEON obtained record high annual profit margins and EPS. The achievement demonstrates LITEON's certification of 76% use of post-consumer recycled content and certification of origin. We ongoing success in developing core competencies, creating stronger operations, and plan to extend the use to other products and domains with the aim to reduce the use of increasing profitability. fossil fuel derived plastics. In terms of operations, LITEON continues to develop products in cloud computing, 5G/ In terms of governance, the Corporate Sustainability Committee (CSR Committee) reports AIoT, opto-electronic, automotive electronic and other key products. We also continue directly to the board of directors. LITEON
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