Product Green Design and Sustainable Supply Chain
LITE-ON has adhered to the Life Cycle Thinking (LCT) approach for conducting analysis and management of hot spots on the environment during the product life cycle. We use 3Rs (Reduce, Reuse, and Recycle) as the product green design principle to improve our green product design for hot spots by using the design strategies of environmental toxicity reduction, materials saving, reuse improvement, energy efficiency increasing, easy assembly, easy disassembly and recycling, and circular economy implement to fulfill our “2025 Energy Saving and Waste Reduction" target which list below:
1. 20% reduction of plastic in packaging (from 1,000 tonnes down to 800 tonnes)
2. 3,300 tonnes reduction of waste production (from 351,000 tonnes down to 28,800 tonnes)
3. 2% energy conversion efficiency improvement for power supply products compared to 2016
4. 30% energy efficiency improvement in LED(from 180lm/w up to 235lm/w)
2018 Green Designs and Achievements
▪ Since the LS301 standards were implemented in 2010, LITE-ON has been keeping up-to-date on restricted substances under international guidelines and brand name clients' requirements. The LS301 standards currently list 218 substances. In addition, the company requires that upstream suppliers submit evidence to prove that their materials comply with the requirements for LITE-ON certified suppliers and for LITE-ON to complete acknowledgment and internal control procedures. LITE-ON takes an active approach to reduce the toxic effects of products on the human body or the environment and ensure effective management and utilization of environmentally friendly materials.
▪ Green product volume, material, and weight reducing designs for LITE-ON products (e.g. power supply units, road lighting and traffic signals, and enclosure products) work with packaging material allocation and logistics optimization to reduce not only use of materials and the impact on the environment, but also carbon emissions during shipping. For power supply products for laptop computers, for example, LITE-ON works with upstream IC suppliers to develop a new generation of synchronous rectification IC. It combines components including resistors, multilayer ceramic capacitors (MLCC), and metal-oxide-semiconductor field-effect transistor (MOSEFT) in one unit to cut 33 million or more pieces of active and passive components and reduce carbon emissions from raw materials by 1000 tonnes CO2 or more at the same time.
▪ The PCR content in products and packaging materials (e.g. switching power supplies, PC and server enclosures, and street lighting products) was increased to reduce use of crude materials. The cumulative carbon reduction in 2018 was 1,660 tonnes CO2e. A number of products have also helped brand name clients obtain the EPEAT label.
◦ Plastics in products: PCR usage reached 170 tonnes or above, and carbon reduction reached 1,430 tonnes CO2e.
◦ Cardboard boxes: Recycled pulp usage reached 51 tonnes or above, and carbon reduction reached 274 tonnes CO2e.
▪ LITE-ON works with companies and collaborates with industry and academia in innovative technologies to recycle and transform Styrofoam marine waste and develop new PCR materials. LITE-ON also develops applications in sample products manufactured in large quantities (e.g. keyboard and mouse) and completes successful tests. Moreover, as part of its medium- and long-term goals toward a circular economy, LITE-ON tries to encourage downstream brand name clients to switch to these products.
The 3Rs design principles are used to optimize the packaging material input during and after production or to reuse or recycle the materials in order to reduce one-time packaging material and supplies input and achieve waste and carbon reduction during production at the same time.
● Reduce： Improvements on energy efficiency are made to air conditioning, compressor and boiler systems that share production processes.
● Reuse： For example, cardboard boxes used for energy saving LED streetlight products for road lighting are reused throughout production to reduce waste. Total carbon reduction in the area is 4.2 tonnes CO2e.
Shipping and distribution
Following the product design principles of volume, material, and weight reduction, LITE-ON brings in the in-house smart logistics management system to increase quantity and efficiency of shipping and reduce carbon emissions in the process.
● Smart logistics: LITE-ON developed the in-house MFG Portal system based on years of experience in making shipping decisions. Big data analytics enables the system to automatically recommend suitable models and vehicles. The MFG Portal system and SAP shipping documents are combined to effectively manage packaging and logistics. The integration also improves dispatch efficiency in shipping, and increases 20% to 50% loading on trucks to 90% or higher. It helps reduce energy consumption and carbon emissions during distribution and shipping.
● Volume reduction design: The packaging volume of office machines, for example, is made smaller to reduce the use of cardboard boxes and dividers by 34.8% and total carbon emissions by 1.83 tonnes CO2e.
● Weight reduction design: Parts integration and system microminiaturization reduces product volume and weight in order to lower shipping load and carbon emissions. For power supply products, for example, LITE-ON works with upstream IC suppliers to combine resistors, MLCC, and MOSEFT and create a new generation of ICs. The result reduced component usage and product weight by 38.1%, which, based on the shipping data in 2018, translates to a weight reduction of 81 tonnes or more and lower carbon emission during shipping.
Energy efficiency is the inevitable end to electronic products. LITE-ON, as an electronics manufacturer, continues to work on the reduce principle and develop more energy efficient and more environmentally friendly products.
● World's first battery free wireless keyboard: The latest radio frequency identification (RFID) technology and independent built-in antennas offer the following features:
▪ Perpetual use of products: Reduced use of consumables extends the life of products.
▪ Zero power consumption and battery free: Approximately 4 million wireless keyboards are shipped worldwide every year. Compared to the traditional wireless keyboards that require 2 AAA batteries each, carbon reduction allowed by the new keyboard is estimated at 680 tonnes CO2e.
▪ 100% waterproof: The microcurrent circuit prevents malfunction due to water induced short circuiting.
● Power supply products: Collaboration with upstream IC suppliers to develop a new generation of synchronous rectification IC that combines resistors, MLCC, and MOSEFT and improvement of existing integrated circuits have improved energy conversion efficiency. Compared to the previous generation, the new generation consumes at least 20.5% less energy on standby. Based on the total shipment of more than 8 million units in 2018, power consumption can be reduced by 10.9 GWh and carbon emissions by 6,000 tonnes CO2e.
● LED lighting and sensor components: Enhancement of wall plug efficiency (WPE) and refractive index matching between packaging materials and chips optimize first order optics and increase luminous efficacy by 27.7% or more (based on products and technologies in 2014). Based on the total shipment of 200 million units in 2018, power consumption can be reduced by 105.7 GWh and carbon emissions by 58,500 tonnes CO2e.
● Energy efficient LED streetlights: Provided luminous flux is identical, LED lighting is used to replace traditional fluorescent lighting. Products are used in streetlights and traffic signals. Energy efficiency is improved significantly by 54% or more. For example, the TM series offer an energy saving of 63.3%, which, based on the total shipment of 230,000 units in 2018, translates to 254.9 GWh in power saving and 141,200 tonnes CO2e in carbon emissions a year.
ODM products are recycled at the end of their lives with brand name clients' products. Nevertheless, LITE-ON adheres to the reduce principle in product development in order to reduce electronic waste.
● Waste reduction design: For power supply products for laptop computers, for example, LITE-ON works with upstream IC suppliers to develop a new generation of synchronous rectification IC that improves the average energy conversion efficiency by 1.31% and reduces full load loss by 7.69%. As a result, less heat is generated during use, and the use of non-recyclable heatsink paste is reduced by 34.4% per unit and the number of components by 4 pieces. Based on the total shipment of more than 8 million units in 2018, heatsink paste consumption can be reduced by 37.3 tonnes and electronic component waste by 33 million pieces or more. Products are made more recyclable, while the total carbon reduction rose to 360 tonnes CO2e or more.
● Design for disassembly: For example, the removal of complex structures such as 2.5" hard disk driver (HDD) caddy, optical disk drive (ODD) latch, and headwall rotation bay and the adoption of tool-less thumb screws or snap-fits in PC or server enclosures allow tool-less disassembly and easier sorting and recycling.
Innovative Applications of Smart and Energy Saving Products
With years of work and investment in a number of smart and energy saving products as well as systemic integration of three or seven applications, LITE-ON tries to create a safer, friendlier, and more energy efficient user experience and establish itself as the best partner for users of its products
1. Smart traffic applications
This category covers "smart city solutions", "smart Internet of Vehicles solutions", and "electric car charging solutions". These applications combine "app activated energy saving smart street lights" and "IoT and cloud module based platforms" and work with development in "IoV and automated driving systems" and electric vehicle charging stations (IC3) to provide a safer, more comfortable, and more energy efficient experience on the road.
2. Smart living applications
This category covers "smart home solutions", "smart office solutions", and "smart care solutions". These applications are built on cloud core devices, mobile apps, smart outlets, social media and community based and high performance office equipment, and security monitoring terminal sensors, and utilize cloud automation to control electrical appliances, such as lighting, air conditioning, or security and surveillance, to create a safe, smart, and energy efficient lifestyle.
3. Smart manufacturing applications
This category consists mainly of "industrial automation solutions". The approach of "focusing on Industry 4.0 and big data analytics" is taken to develop variable-frequency drives (VFD) that are essential to the plants, and smart, energy saving, and high performance equipment such as programmable logic controllers (PLC) or industrial PCs (IPC) are used in combination with apps to achieve high performance, high speed, and short process.
All LITE-ON products are consistent with their respective descriptions and comply with the labeling requirements. In 2018, LITE-ON did not violate any product or service information or labeling regulations or receive any customer complaint regarding health and safety regulations for products and services.
LITE-ON not only commits itself to complying with product safety and environmental policies of local governments, but also makes an active effort to obtain product certification.
● Product environmental footprint: LITE-ON completed Asia Pacific's first set of product category rules (PCR), "The Chassis for Products of Information and Communications Technology", in December 2018. The rules are released on the Green Electronics Portal's EuP integrated platform (http://www.eup.org.tw/Notice/NewsDisplay.jsp?no=21293). Later in January 2019, LITE-ON G558L07B desktop PC enclosure passed third party certification and received statements of compliance with ISO14040 and ISO 14025. It was also the first product in Asia Pacific in this category to achieve the feat. LITE-ON will build on the impartial LCA data and identify environmental impact hotspots in order to make further improvement.
● Automotive product review: The LTX-353 opto-isolator passed the AEC-Q102 LED Qualification Review by the Automotive Electronics Committee (AEC). The review covers more than 20 rigorous tests, including temperature cycling between -55℃ and 125℃, environmental stress, and sulfurization. The product meets the automotive aftermarket requirements. By being first to receive certification, LITE-ON becomes the world's first opto-isolator manufacturer.
Environmental Sustainability ▸