Green Product Design

The important core value of LITE-ON's research and development is green design. The idea of being green has affected the products’ entire life cycle. This includes the selection of raw materials, the suppliers and LITE-ON's own manufacturing processes, product packaging, transportation and logistics, product use stage, product end of life, the process of dismantling and recycling, etc. Each business unit is capable of using skills and technology that are environmentally friendly to product design. This includes but not limited to using less raw materials and resources, increasing energy efficiency, reducing the toxic emission into the environment, and the ease to disassemble and recycle. Even a small breakthrough and improvement on a single product design; it can be a significant contribution to the environment. The green design products of 2014 include the following categories: Desktop PC Power Supply, Notebook PC Adaptor, High Performance LED Lighting, Multifunction Peripherals, Multifunction Scanner, Micro Projector, DT/Server Chassis, USB Internet Camera Built in Portable PC, Tablet PC and Smart Phone,wireless internet products, home gateway, Veterinary Clinical Chemistry Analyzer, etc..
LITE-ON's major business is focusing on ODM/OEM; therefore, we seldom tackle product stewardship at the end-of-life stage. However, we initiated green product design and make it being in compliance with WEEE and OBM customer’s requirements. For OBM business (less than 1% revenue), we engaged with local governments and authorized recycling/treatment agencies for EOL product management.

Brief Summary of Green Design 2016

This includes but not limited to using less raw materials and resources, increasing energy efficiency, reducing the toxic emission into the environment, and the ease to disassemble and recycle. We believe that even a small breakthrough or improvement on a single product design can be a significant contribution to the environment. Aside from designing and manufacturing green products for our global customers, LITE-ON is trying to lead the industry unanimously to the engagement in and promotion of product life cycle assessment (LCA), in hopes to reduce the hazard to environment, safety, and health, and then fulfill our corporate social responsibility.

Adoption of Environmental Product Declaration and Carbon Footprint Declaration for LITE-ON LED Products

Since its lead in the same sector in completing the first Optoelectronic Semiconductor Product Category Rule (PCR) applicable globally in October 2010, and the PLCC SMD LED’s Optoelectronic Semiconductor Product Carbon Footprint Declaration and Environmental Product Declaration Type III, LITE-ON has completed photocoupler (LTV-817 series)’s Optoelectronic Semiconductor Product Carbon Footprint Declaration and Environmental Product Declaration Type III, as certified by the third-party Environmental and Development Foundation. The Environmental Product Declaration and Carbon Footprint Declaration for LITE-ON LED Products are prepared primarily to deal with the impact on environment and energy/resource consumption arising in the process of upstream suppliers’ extraction of raw materials, chips and production of main raw materials for optoelectronic semiconductor products and during the life cycle of LED products assembly and testing, covering carbon footprint, raw material utilization, energy utilization, water resources utilization and pollutions, wastes and air pollutions, making them be comprehensive environmental product declarations. Additionally, according to the carbon footprint data for LED products, the carbon dioxide emissions during production of raw material accounted for 50%, the highest, and then 29% during packaging and testing of LED product, and 21% during extraction of raw materials, the lowest. According to these results, LITE-ON may provide customers with applications in an early response to consumers’ needs for the establishment of product eco-label and carbon footprint disclosure as well as use as an effective basis showing the continuous improvement of environmental impact by LITE-ON's LED production process.

LITE-ON Technology Corp. completed the worldwide first Desktop Computer Product Category Rule (PCR). This PCR complies with ISO 14025 standards addressing the characteristics of Desktop Computer Product manufacturing, with inputs from major companies of the industry. The Desktop Computer PCR can act as a reference for global electronics and electrical machinery applications when completing Product Carbon Footprint Declaration and Environmental Product Declaration Type III (EPD). Taking into consideration of its Global Corporate Citizenship responsibility to produce environment-friendly products, LITE-ON invited the Foundation of Taiwan Industry Service to cooperate on completing the Desktop Computer PCR. The Desktop Computer PCR was certified by the Environment and Development Foundation authorized by the Global Environmental Declarations Network (GEDnet). The Desktop Computer PCR has been posted on the GEDnet website (http://gednet.org/ ).

Eco-efficiency Assessment of Product Systems and its Verification

To align with the trends in international environmental protection, LITE-ON has completed the Product Category Rule (PCR) for Optoelectronic Semiconductor, and the Environmental Product Declarations (Type III) and Product Carbon Footprint Declaration for 2 types of LED since 2010. In September 2012, LITE-ON followed the ISO 14045 standard, and completed the eco-efficiency assessment of product systems for its white PLCC SMD LED (LTW-089 series & LTW-006 series), with certification from a third party, SGS Taiwan Ltd.

This white LED eco-efficiency assessment uses Life Cycle Assessment (LCA) methodology to examine energy/resources and pollutant emission data from the LTW-089 and LTW-006 series product life cycle process and systematically quantifies the environmental impact. By linking the products' before and after values, the ratios of eco-efficiency indicators are used to analyze the new products in both economic and ecological efficiency.

The assessment of the eco-efficiency indicators include the products' luminous intensity, the height of the package and the carbon footprint, resulting in a before and after eco-efficiency ratio of 2.78 for the LTW-089 series & LTW-006 series. LITE-ON will continuously put more effort into product development in order to gain an even higher eco-efficiency.

Sustainable technologies & products development:

LITE-ON continues to develop sustainable products, our sustainable products can help customers save more than 73 billion kWh which is equivalent to 3.83 million tonnes of carbon dioxide emission. The product category and it revenue contribution:

• Greener Impact technologies: greater than 31%

-Social impact technologies: greater than 2%

E-Waste Take-back Program

We fully understand the EU WEEE (waste from electrical and electronic equipment) and worldwide e-waste take-back regulatory requirements are intended to protect the environment and human health by preventing or reducing the adverse impacts of the generation and management of WEEE and by reducing overall impacts of resource use and improving the efficiency of such use, thereby contributing to sustainable development. LITE-ON is mainly running ODM/OEM business (greater than 99% of revenue in general) and the major products we supply are components, accessories, or modular level assemblies. We manufacture few end-user products now and we run few OBM business (less than 1% of revenue share). For product EOL (End of Life) take back requirements, it’s our practice in place.

1. For ODM/OEM Business: According to EU WEEE or world-wide WEEE regulations, LITE-ON is not legally defined as “Producer” by the law who should take the responsibility for registration and take back program establishment; therefore, we did not register or build up a take-back system for these products (components, accessories, modular assemblies and non-OBM end products) in the world. However, we timely help our OBM customers to assess the take-back initiative or survey the local recyclers in order to meet the WEEE requirements.
2. For OBM Business: There’re two major practices we’re doing in aligned with our business model. We registered as the WEEE producer for those products we directly sell to consumers. We monthly report the weights of product shipment and annually pay for the WEEE treatment and recycling. Besides, for the business model we sell to distributors, we’ve reached an agreement that the distributors are taking the “Producer” responsibility for WEEE since it’s more practical for such business cooperation. Some devices were took-back for recycling or refurbish by reverse material or RMA.

Moreover, all of our products (majorly for component or modules) are design for easy take-back of WEEE, it includes but not limited to: - Elimination of hazardous substances prohibited in RoHS or REACH. - Reduction of halogenated materials (such as BFR). - Material designation following ISO 11469 and ISO 1043 standards. - Easy for disassembly (less connection and indication of disjoint). - Certain mechanical parts made of recycled or bio-based plastics. - Recycling and recovery rates are assessed as compliant to WEEE requirement, 70% and 80%, respectively.