Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Prosperity

Environmental Achievements

• Reduced greenhouse gas emissions by 8.1% compared to the previous year (716,658 tons in 2008)
• Reduced annual energy consumption of refrigerators by 39% with linear compressor technology
• Reduced annual energy consumption of washing machines by 21% with DD motor technology
• Reduced GHG emissions by 19% (16,844 tons a year) through greener cell phone packaging
• Improved Eco Index by 23% on average through cost-effective eco-technology for refrigerators and washing machines
• First Korean electronics company to obtain international verification for Greenhouse gas inventory (2005-2007)
• Steam washing machine certified by the government's carbon labeling program

Social Achievements

• Launched a safety campaign for drum washing machine users, distributing 40,000 safety devices
• Conducted free checkups and replacements of notebook batteries
• 19 consecutive years of dispute-free negotiations on wages and collective agreements
• Increased supplier satisfaction by 5.1 percentage points
• Contributed KRW 1.2 billion through Salary Fund (1997-2008)
• LG IT Angels provided IT education for 23 people over 454 hours
• Mobile Electronic Classroom benefited 20,298 students at 41 schools
• Let's Go Volunteer Corps benefited 25,000 people
• First private corporation to host an international environmental conference

Governance Achievements

• Established a Corporate Sustainability Management Committee under the Senior Executive Management Council
• Revised and distributed Code of Ethics in 14 languages
• Implemented Jeong-do Management training for over 12,000 employees
• Announced Subcontractor Fair Trade Agreement
• Received an A rating for the execution of the Subcontractor Fair Trade Agreement

Climate Goals & Targets

Environmental Challenges

• Global economic crisis
• Rise in raw material prices
• Intensified competition
• Tougher regulations related to the recovery of waste home appliances
• Possibility of greenhouse gas regulation being a trade barrier in certain countries
• Economic crisis making financial support for suppliers difficult
• Increased need for reinforcing protection of human rights for employees
• Need to establish personnel management system for managing various types of manpower

Mitigation Strategies

• Cost-saving measures and productivity improvements
• Cost reduction project to save KRW 3.2 trillion by 2009
• Waste Elimination Activities
• Hiring of foreign executives and professionals
• Business Continuity Plan (BCP) system
• Global EESH instructions and standards
• Global procurement policy
• Support for suppliers through personnel, training, and funding
• Fair Trade Compliance Program
• Development of training programs to improve employee job capabilities
• Expansion of health and safety education

Supply Chain Management

Responsible Procurement

• Code of Ethics
• Subcontractor Fair Trade Agreement
• Jeong-do Management
• Global Procurement Policy (planned)

Climate-Related Risks & Opportunities

Transition Risks

• Possibility of greenhouse gas regulation being a trade barrier

Opportunities

• Development of renewable energy technology
• Development of energy-efficient products
• Securing carbon emission credit

Reporting Standards

Frameworks Used: GRI G3

Third-party Assurance: Two Tomorrows

Sustainable Products & Innovation

• Linear Compressor refrigerator
• LED BLU notebook
• Solar-powered mobile phones
• Eco-friendly washing machines
• Eco-friendly refrigerators

Awards & Recognition

• CES Innovations Awards (13 categories)
• iF Design Award (11 categories)
• Red dot Design Award (11 categories)
• Energy Winner Award
• CDP Woorim Award
• Top Foreign Enterprise of Investment award in Indonesia
• UL Leader in World Safety Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced 199K tons of GHG emissions associated with production (compared to 2008)
• Reduced 38 million tons of GHG emissions associated with product use (compared to 2007)
• Improved 13.0% of water use compared to 2012
• Collected 183,182 tons of e-waste
• Reduced package usage by 27.6%, saving KRW 69.9 billion

Social Achievements

• Global social contribution activities (53 sites from 35 countries)
• Support Program for Start-up Social Enterprises in the Environment Sector (27 enterprises, 1.75 billion KRW)
• Introduced Workday Volunteer Program (Korea, 773 employees/4,208 hours)
• Improved 33 production facilities (85%) to “low” risk level

Governance Achievements

• Expanded and transferred the Compliance Office to directly under the CEO
• 97% of business staff completed online compliance training
• Amended the Code of Ethics to strengthen provisions pertaining to receipt of cash or valuables from interested parties
• 98.5% of employees completed the “Jeong-Do Management” pledge

Climate Goals & Targets

Environmental Challenges

• Intensifying price competition
• Rising prices of some commodities
• Increases in overall R&D costs
• Inadequate supply chain CSR risk management
• Growing concerns about breaches of personal information

Mitigation Strategies

• Improving cost structure through cost management efforts
• Implementing the risk management system based on the EICC standard
• Strengthening related measures and activities to eliminate risks
• Minimizing the number of websites and systems that collect and store personal information
• Strengthening internal control efforts toward preventing compliance risks

Supply Chain Management

Supplier Audits: 201 suppliers (paper audit), 9 suppliers (onsite consulting)

Responsible Procurement

• Supplier Code of Conduct
• Green Program Plus
• CSR requirements in Master Purchase Agreement

Climate-Related Risks & Opportunities

Physical Risks

• Increase in natural disasters

Transition Risks

• Stronger standards on product energy efficiency
• Rise in energy prices

Opportunities

• Growing demand for renewable energy use
• Growing demand for low carbon products

Reporting Standards

Frameworks Used: GRI G4, UNGC

Certifications: ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: Korea Productivity Center

Sustainable Products & Innovation

• Mosquito Away air conditioner
• ENERGY STAR certified products

Awards & Recognition

• ENERGY STAR Partner of the Year Award
• Korea Green Company Awards
• Presidential Commendation on Product Safety Day
• CES Innovation Awards

Environmental Metrics

ESG Focus Areas

• Product safety & personal information protection
• Products with greener features
• EESH management
• CSR in supply chain & management of conflict minerals
• Social contribution activities
• Corporate culture & protection of labor/human rights

Environmental Achievements

• Awarded top honor—the Sustained Excellence Award—at the 2015 Energy Star Partner of the Year Awards for a second year in a row
• Acquisition of carbon labeling and increased reduction in product use-level of GHG emissions
• Expanding the scope of Green Packaging Design Guidelines to all products
• 213,758 tons of e-waste collected
• Reducing 184,000 tons CO2e in GHG emissions from the production process
• Reducing water use by 5.4 percent compared to 2013 (intensity use)
• The first Korean home appliances maker to acquire carbon credits (6,954 tons) for contribution to the UNFCCC CDM project (manufacturing and sales of high-efficiency refrigerators in India)
• Obtained ISO 22301 certification on the mobile phone assembly line at LGE’s Pyeongtaek plant
• Named to the Honors Club by CDP Korea for top performance in addressing climate change
• Changwon Site received the National Assembly Forum on Climate Change’s top prize at the Korea Green Company Awards
• Received the 2015 Design for Recycling Award from the Institute of Scrap Recycling Industries (ISRI)

Social Achievements

• In-class quality training (142 sessions, 3,453 employees)
• Scrapping 8 million people’s personal information
• Employee training on privacy protection (97% of Korean staffs, 93% of global staffs already completed)
• Global Customer Satisfaction Index (CSI) results: 104.1 points
• Social contribution programs by using our products/technologies
• Social contribute activities in the vicinity of our operations (220,000 employees from 90 operations in 56 countries)
• CSR slogans at 25 subsidiaries in 20 countries
• Workday Volunteer Program (Korea, 739 employees/4,476 hours)
• 90% of all our production sites have achieved a low risk level
• On-site audits about CSR risks at 11 production sites in China and Asia
• Six cases of EICC third party auditing

Governance Achievements

• Implemented the Corporate Information Security Rules and the Personal Information Protection Rules
• Disposed of more than eight million sets of personal information collected from registered website users
• Strengthened accountability for product quality management
• Established the Product Testing Laboratory under the Quality Center
• Established the Development Quality Testing Lab at all our business companies
• Strengthened Global Product liability (PL) Response
• Conducted a voluntary recall of PC power cord (650,000 units)

Climate Goals & Targets

Environmental Challenges

• Rising social needs and regulations on low-carbon and eco-friendly management practices
• Growing need for cutting risk factors regarding the environment and safety issues in advance
• Minimizing the negative impact on the environment and promoting CSR activities alongside local community development
• Rising customer awareness and rights for the environment and safety issues
• Social demand for win-win growth between large companies and SMEs
• Contributing to the Korean government’s creative economy drive through partnerships that realize new technologies
• Negative public sentiment in the event of suppliers’ CSR risks
• Increasing of social risks concerning illegal mining and child labor

Mitigation Strategies

• Established the Global EESH Management System
• Enhancing EESH management at overseas operations
• Strengthening suppliers’ self-management capacity of CSR risks
• Implementing a risk management system based on EICC standards
• Establishing a system for regulatory responses to conflict minerals issues
• Contributing to achieve UN Millennium Development Goals(MDGs)
• Contributing to community issues by using our products/infrastructure
• Establishing a system to support employee participation in social contribute activities
• Establishing a corporate culture that promotes a healthy work & life balance
• Bringing the risk level down to low at all production sites
• Strengthening internal regulations to meet all EICC standards

Supply Chain Management

Supplier Audits: 126 major suppliers (EICC self-assessment), 69 suppliers (CSR audit in China/Asia)

Responsible Procurement

• Supplier Code of Conduct
• Jeong-Do Management agreement
• Conflict Minerals Management System
• Green Program Plus (GP+)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines, UN Global Compact

Certifications: ISO 14001, ISO 22301, ISO 50001, ENERGY STAR

Third-party Assurance: Korea Productivity Center

Sustainable Products & Innovation

• Energy Star certified products
• EcoHybrid Heat Pump Dryer
• Products with reduced GHG emissions
• Products using recycled materials
• PVC-free products

Awards & Recognition

• 2015 ENERGY STAR Partner of the Year-Sustained Excellence Award
• 2015 ENERGY STAR Partner of the Year-Climate Communications Award
• 2014 ENERGY STAR Emerging Technology Award
• DJSI World Indices Industry Leader
• Davos World Economic Forum’s Global 100 Most Sustainable Corporations
• Asia Future Forum’s East Asia 30
• ISRI Design for Recycling Award
• Korea Green Company Awards

Environmental Metrics

ESG Focus Areas

• Product Stewardship
• Protection of Customers’ Personal Information
• GHG Emissions Reduction
• Development of Highly Energy-Efficient Products
• Establishing Fair Trade
• Raising Supplier Awareness on CSR
• Sustainable Economic Development of Communities
• Expanding Social Contribution Programs
• Protection of Basic Labor Rights
• Promotion of Labor-Management Relations

Environmental Achievements

• Reduced GHG emissions by 353,000 tons compared to 2008
• Reduced use-level GHG emissions by 41 million tons compared to 2007
• Collected and processed 212,496 tons of e-waste
• Increased the use of post-consumer recycled plastics to 6,730 tons
• Removed HBCD from all products for European markets

Social Achievements

• 93,659 employees participated in social contribution initiatives
• Launched LG Hope Village and LG Hope Screen programs
• Expanded social contribution programs leveraging products and technologies
• Partnered with government agencies and international organizations for social programs

Governance Achievements

• Established CSR as an official duty of the Board of Directors
• Implemented a compliance risk management system
• Conducted annual compliance surveys
• Revised LG Electronics Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Growing stakeholder expectations for CSR
• Toughening environmental regulations
• Maintaining compliance with evolving international standards

Mitigation Strategies

• Implemented Green Program Plus for supplier environmental performance
• Expanded CSR risk assessment and training for suppliers
• Developed a conflict minerals management system
• Revised Global Labor Policy to address forced labor concerns

Supply Chain Management

Supplier Audits: 264 suppliers (EICC self-assessment, 2015)

Responsible Procurement

• Supplier Code of Conduct
• Green Program Plus
• Conflict Minerals Management System

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4, UN Global Compact

Certifications: ISO 14001, OHSAS 18001, ISO 50001, ISO 22301, ISO 9001, ISO 10002, BS10012, ENERGY STAR

Third-party Assurance: Korea Productivity Center

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13

LG Electronics' initiatives contribute to these goals through various programs and policies

Sustainable Products & Innovation

• Energy-efficient products
• Products with reduced hazardous substances
• Products with recycled materials

Awards & Recognition

• ENERGY STAR Partner of the Year – Sustained Excellence Award
• CES Innovation Awards
• Red Dot Design Awards
• iF Design Awards
• Compasso d’Oro Award
• EISA Awards
• Green Product of the Year Award

Environmental Metrics

ESG Focus Areas

• Customer
• Environment
• Fair Trade
• Community
• Labor Rights

Environmental Achievements

• Reduced GHG emissions associated with product use by 42.83 million tons (compared to 2007)
• Reduced GHG emissions associated with production by 36.2 (10K tons CO2e) (compared to 2008)
• e-waste take-back and disposal service at 83 locations across 50 regions and countries
• Increased e-waste recycling rate (global) to 78%
• Used 5,302 tons of PCR plastics in products
• Reduced use of packaging materials by 8.6% and empty space in packages by 8.7%
• Received the 2016 ENERGY STAR Partner of the Year - Sustained Excellence Award for the third consecutive year
• Received the U.S. EPA’s Sustainable Materials Management (SMM) Gold Tier Award for the third consecutive year

Social Achievements

• Expanded social contribution initiatives leveraging products and technologies (accessibility app development training, solar power systems for hospitals, etc.)
• 100,081 employees participated in social contribution initiatives across 93 locations in 54 countries
• Concluded annual collective bargaining and wage negotiations without dispute for the 28th consecutive year
• Average time required to complete service (overseas) reduced to 3.1 days (from 3.7 days in 2012)
• Rate of repeat service requests (global) reduced to 4.8% (from 8.0% in 2012)
• Customer satisfaction level (compared to competitors, global markets) 100.3 points

Governance Achievements

• Established a strong prevention and response system against breaches of personal information and proprietary technologies
• Implemented the LG-Secure Development Lifecycle (SDL) to enhance product software security
• Acquired ISO 27001 Certification on all business locations in Korea
• Established the Data Protection FD to ensure effective response to data privacy risks
• Implemented the EESH Compliance Risk Management System to monitor compliance with EESH regulations

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events
• Growing concerns over CSR issues such as unlawful extraction of commodities and forced/child labor
• Increasing risks associated with product safety and data security and privacy
• Growing demand for responsible sourcing
• Rising security threats
• Changes in data protection regulations
• Growing concern for environmental issues and tightening regulations
• Risks associated with climate change
• Fire hazards at production sites and suppliers
• Need to reduce water use across the value chain
• Need to manage chemicals safely
• Need to enhance employee safety and health
• Need to manage compliance risks effectively
• Need to prevent cartel formation and unfair trade practices
• Need to ensure fairness and transparency in subcontracting transactions

Mitigation Strategies

• Developed alternative sourcing strategies
• Incorporated CSR requirements into supplier assessment and established Supplier Code of Conduct Guidelines
• Established a strong prevention and response system against breaches of personal information and proprietary technologies
• Implemented the LG-Secure Development Lifecycle (SDL)
• Established “Privacy by Design” as a governing principle in product planning and development
• Implemented real-time responses to changes in data protection regulations
• Established a strategic framework for developing greener technologies and products
• Implemented the Eco Index to assess environmental performance
• Implemented the Global EESH Audit Rating System (GEARS)
• Implemented the Business Continuity Management (BCM)
• Strengthened EESH awareness training
• Implemented the EESH Compliance Risk Management System
• Implemented the Fair Trade Compliance Program
• Implemented the Conflict Minerals Management System (CMMS)
• Implemented the Win-Win Growth Payment System

Supply Chain Management

Supplier Audits: 40 supplier locations in 2016

Responsible Procurement

• Supplier Code of Conduct
• CSR requirements incorporated into supplier assessment
• Green Program Plus
• Win-Win Growth initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Increase in natural disasters
• Negative impact on employee health

Transition Risks

• Rising costs due to tougher regulations and supply chain disruptions
• Decline in purchasing power
• Stringent standard for corporate assessment by investors and NGOs

Opportunities

• Rising energy prices and growing requirements for the use of renewable energy
• Growing demand for low-carbon products
• Improved brand and corporate profile
• Growing demand for the disclosure of product carbon footprint

Reporting Standards

Frameworks Used: GRI G4 Guidelines, UN Global Compact, AA1000APS, AA1000SES

Certifications: ISO 14001, OHSAS 18001, ISO 50001, ISO 27001, ISO 22301

Third-party Assurance: Korea Productivity Center

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production

LG Electronics developed and implemented initiatives that contribute to these goals, focusing on areas where LG Electronics can create a positive impact based on its core competencies and business operations.

Sustainable Products & Innovation

• Green 3 Star products
• Energy-efficient products
• Eco-friendly products
• Products with greener features
• Recycled materials in products
• Green packaging

Awards & Recognition

• ENERGY STAR Partner of the Year - Sustained Excellence Award
• U.S. EPA’s Sustainable Materials Management (SMM) Gold Tier Award
• CES Innovation Awards
• iF Design Awards
• Milano Design Awards
• EISA Award
• Good Design Award
• Intersolar Award
• International Design Excellence Awards (IDEA) Gold Award

Environmental Metrics

ESG Focus Areas

• Intelligent Life
• Healthy Life
• Green Business
• Zero Carbon
• Product Responsibility
• Circular Economy
• Sustainable Supply Chain
• Decent Workplaces
• Social Contribution

Environmental Achievements

• Reduced greenhouse gas emissions by approximately 1.07 million tons in 2017 (third-party verified)
• Reduced the amount of waste landfilled at the Gumi A3 site from 1,527 tons in 2017 to 94 tons in 2018, reducing the landfill rate from 10% to 1%
• Used 11,030 tons of recycled plastic material in 2018, a 54.6% increase over the previous year
• Obtained Korean eco-label certification for 1,909 products as of December 31, 2018

Social Achievements

• Improved the safety culture awareness level to 3.0 out of 5.0
• Implemented the Mobile Accessibility Project in cooperation with the Korea Blind Union
• Operated the LG Inverter class at the Korea-Bangladesh Vocational Training Center in Dhaka, Bangladesh
• Donated washing machines for firefighters’ protective clothing

Governance Achievements

• Established a global sanctions compliance program
• Operated a Corporate-level Compliance Committee and Company/Subsidiary-level Compliance Committee
• Established the ‘Fair Trade Compliance Program’

Climate Goals & Targets

Environmental Challenges

• Structural uncertainties in the global economy
• Increasing competition in industry
• Shifts in technological paradigm with AI and big data
• Concerns over quality-related accidents and the leakage of personal information from mobile products
• Social and environmental issues such as fine dust and ocean plastic
• Indiscriminate environmental destruction and child labor exploitation in tin mining on Bangka Island, Indonesia

Mitigation Strategies

• Launching products to lead the market through innovation and developing new business areas
• Strengthening processes for verifying the performance and safety of products
• Developing products that empathize with customers’ social and environmental concerns and promote their general health
• Participating in TWG (Indonesian Tin Working Group) to resolve issues of indiscriminate environmental destruction and child labor exploitation
• Establishing a CSR risk management system for suppliers
• Implementing a global sanctions compliance program
• Operating a Corporate-level Compliance Committee and Company/Subsidiary-level Compliance Committee

Supply Chain Management

Supplier Audits: CSR risk self-assessment once a year for all 1st-tier suppliers; on-site inspections for high-risk suppliers

Responsible Procurement

• Green Program Plus
• Supplier Code of Conduct
• Conflict Minerals Management System
• RMAP conformant smelters

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core Option), UNGC, AA1000APS

Third-party Assurance: DNV GL

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 8
• SDG 9
• SDG 11

LG Electronics' social contribution activities align with these SDGs by focusing on health and welfare, high-quality education, job creation and growth, industrial and infrastructure innovation, and sustainable cities and communities.

Sustainable Products & Innovation

• High-efficiency appliances
• Eco-friendly products
• Products with recycled materials
• Products with improved energy efficiency

Awards & Recognition

• Edison Awards Gold Prize
• Energy Technology Award
• Sustainable Material Management Award (SMM Award) Gold
• Green Product of the Year
• CES Best Innovation Award
• Korea First Brand Grand Prize
• IF Design Award Gold Prize
• Red Dot Design Award
• Economic Design Award
• Best Washing Machine Award
• Energy Star Award Excellence in Sustainability

Environmental Metrics

ESG Focus Areas

• Intelligent Life
• Zero Carbon and Circular Economy
• Better Society

Environmental Achievements

• Reduced GHG emissions by 620 thousand tons compared to 2017 (by 2020)
• Achieved 86% waste recycling rate
• Reduced packaging materials and volume by 2.3% and 1.4%, respectively
• Reduced GHG emissions by approximately 60.48 million tons (compared to the level of power consumption in 2007) in 2019
• LG Electronics USA achieved its goal of reducing carbon emissions by 50% from the baseline year of 2017, three years earlier than the target year of 2020.

Social Achievements

• Increased sales of healthcare products by 161% compared to 2016
• Employee satisfaction rate: 74.7 points on average (increased by 0.4 points YOY)
• Supported Caring program, flexible working hours, and Smart Vacations to promote a healthy work-life balance
• Direct Employees of LGE Korea Service Center Suppliers: 3,984 service technicians
• No. of participants for ‘Technology that Cares’: 71,032
• No. of participants for ‘Trustworthy Partnership’: 2,792,666
• No. of participants for ‘Sharing and Comfort’ campaign: 129,264

Governance Achievements

• Established Jeong-Do Management risk diagnostics system
• Applied a two-track process whereby both the business department and the audit department can jointly manage issues relating to receivables, expenses and purchasing
• Introduced the latest technologies such as machine learning and AI, established monitoring systems for each type of risk

Climate Goals & Targets

Environmental Challenges

• Uncertainties in the market due to global trade disputes and volatility in the foreign exchange market, as well as the global outbreak of COVID-19
• Growing awareness of social and environmental issues surrounding particulate matter, water pollution, and food hygiene

Mitigation Strategies

• Established mid- to long-term goals from a sustainability management perspective
• Undertaking a range of initiatives and managing our performances
• Developing a range of innovative health care appliances
• Strengthening our product lineup and securing more orders to achieve greater economies of scale

Supply Chain Management

Responsible Procurement

• RMAP (Responsible Mineral Assurance Process) certification for smelters and refiners
• Green Program Plus

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, AA1000AP

Certifications: ISO 50001, ISO 14001, OHSAS 18001, ISO 45001, UL1703, Energy Star

Third-party Assurance: DNV GL

UN Sustainable Development Goals

• 3
• 4
• 8
• 9
• 11

LG Electronics has set 3 major strategy initiatives and 5 goals highly relevant to our business characteristics as our priority goals. We reflect the opinions of our stakeholders in making continuous efforts to discover and implement social contribution activities relating to our 5 priority goals and the SDGs.

Sustainable Products & Innovation

• High-efficiency solar modules
• Solar car roofs
• AI-based products

Awards & Recognition

• 2020 Energy Star Award
• 2020 Best Washing Machine Award
• Red Dot Design Award
• IF Design Award
• American Society of Heating, Refrigerating and Air-Conditioning Engineers Performance Award
• Consumer Technology Association Best Innovation Award
• 2019 Good Design Award
• IDEA Design Award 2019
• EISA Award 2019
• Green Products of the year 2019 in Korea
• 2019 Annual Energy Winner Award
• UK Carbon Trust Carbon Footprint Certification
• 2019 Korea First Brand Grand Prize
• RA1000 certification mark (LGE Brazil)

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Circularity
• Clean Technology
• Decent Workplace
• Diversity & Inclusion
• Design for All

Environmental Achievements

• Reduced GHG emissions by 11.8% compared to 2020 in the product use stage.
• Achieved 95.5% waste recycling rate across all Korean and overseas business sites (ahead of 2030 goal).
• Used a cumulative total of 114,000 tons of recycled plastic since 2021.
• Developed industry's first pulp mold (paper cushioning material) for packaging.

Social Achievements

• Launched LG Comfort Kit to improve product accessibility.
• Launched voice-recognition water purifier.
• Achieved 80% of production sites with zero critical non-conformances based on RBA audit requirements.
• Increased percentage of female employees globally to 22%.

Governance Achievements

• Established Global Human Rights Principles.
• Revised Global Labor Policy (version 6.0).
• Obtained ISO 37301 (Compliance Management System) certification and declared conformant in the first follow-up audit.
• Awarded A grade in Corporate Governance by the Korea Institute of Corporate Governance and Sustainability for three consecutive years.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical factors and regulatory changes.
• Meeting ambitious GHG reduction targets.
• Ensuring human rights compliance across the global supply chain.
• Maintaining high waste recycling rates across all global business sites.

Mitigation Strategies

• Strengthening supply chain monitoring and risk management.
• Implementing energy-efficient equipment and carbon emission reduction devices.
• Conducting human rights due diligence and impact assessments.
• Expanding ZWTL certification to all production sites by 2026.

Supply Chain Management

Supplier Audits: On-site audits conducted for high-risk suppliers; third-party audits for significant suppliers.

Responsible Procurement

• Supplier Code of Conduct based on RBA Code of Conduct
• ESG risk management system for suppliers
• Conflict minerals management system

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD, UNGC, AA1000AP

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 27701, ISO 27018, ISMS

Third-party Assurance: Korea Management Registrar

Sustainable Products & Innovation

• Energy-efficient products
• Products with recycled materials
• LG Comfort Kit

Awards & Recognition

• DJSI World listing for 12 consecutive years
• DJSI Asia Pacific listing for 14 consecutive years
• DJSI Korea listing for 15 consecutive years
• MSCI ESG Ratings Grade A
• CDP Climate Grade A in 2022
• KCGS Comprehensive Grade A