Climate Change Data

LG Household & Health Care Ltd.

Climate Impact & Sustainability Data (2019, 2020, 2021)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Not disclosed

Environmental Achievements

  • Not disclosed

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:44,623 tCO2e
Scope 1 Emissions:20,408 tCO2e
Scope 2 Emissions:24,105 tCO2e
Scope 3 Emissions:112 tCO2e
Total Energy Consumption:990 TJ
Water Consumption:555,420 tons
Waste Generated:6,589 tons
Carbon Intensity:0.122 tCO2e/product-ton in 2020.

ESG Focus Areas

  • Governance
  • Products
  • Society
  • Environment

Environmental Achievements

  • Reduced GHG emissions by 636,112 tons in 2020 through low-carbon certified products.
  • Reduced water consumption by 17% compared to the previous year.
  • Achieved 50 tons of recycled plastics (PCR PET).

Social Achievements

  • Launched the 3rd-term Natural Beauty Creator program, selecting 29 female and 6 male beauty creators.
  • Shiny PERIOE health musical for children reached 242,290 beneficiaries.
  • Borrowed Earth School reached 52,668 cumulative participants in 2020.

Governance Achievements

  • Established the ESG committee (April 2021).
  • Achieved 100% attendance rate at BOD and Audit Committee meetings.
  • Won the Excellence Award for Anti-Corruption at the BIS Summit 2021.

Climate Goals & Targets

Long-term Goals:
  • Build global leadership by 2025.
  • Establish a global training framework by 2025.
  • Develop products with social value and leading technologies by 2025.
Medium-term Goals:
  • Achieve KRW 2.63 trillion in sales through continuous expansion of overseas business by 2023.
  • Achieve 28% of female managers by 2023.
  • Achieve 0.069 tCO2e/product-ton of GHG emissions intensity by 2025.
Short-term Goals:
  • Operate and establish a process of Customer Value Innovation based on the Reliable Quality Management (RQM) system by 2022.
  • Secure world-class evaluation capabilities and build reliable operation in relation to safety verification by 2022.
  • Establish a supply chain operating system that responds to the future of Informatization, Intelligence, and Automation based on the customer-centric PEOS platform by 2023.

Environmental Challenges

  • COVID-19 pandemic impact on economic activity and consumer sentiment.
  • Supply chain disruptions.
  • Microplastics in plastic beverage containers.
Mitigation Strategies
  • Minimized crisis by complying with principles in cosmetics business and focusing on digital capabilities in household goods and beverages.
  • Developed alternative sourcing strategies and implemented online assessment system for CSR.
  • Improved dust collection facilities and established a preemptive response system for microplastics.

Supply Chain Management

Supplier Audits: 190 suppliers underwent CSR assessment in 2020.

Responsible Procurement
  • Code of conduct for suppliers; Safe Quality Certification Assessment; CSR Assessment; sustainable palm oil purchasing policy; third-party CSR inspection.

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters due to unusual weather phenomena.
Transition Risks
  • Government regulations; increase in investment costs; decrease in investment; damage to reputation.
Opportunities
  • Development of eco-friendly products and services; eco-friendly packaging; eco-friendly bioplastics.

Reporting Standards

Frameworks Used: GRI Standards (Core Option), SASB Standard, UNGC Ten Principles, UN SDGs

Third-party Assurance: BSI

Sustainable Products & Innovation

  • Hempharmx hair & body care; PERIOE Hempharmx toothbrush; label-free Seagram soda bottles; BIO PET materials for laundry detergent containers.

Awards & Recognition

  • Best Workplaces for Women; Grand Prize at the Contest for Best Practices of Education for Disability Awareness in the Workplace; Excellence Award for Anti-Corruption at the BIS Summit 2021; 2020 Excellent Organization for Cultural and Arts Sponsorship.

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:51,631 tCO2e (2018); 45,314 tCO2e (2020); 52,346 tCO2e (2021)
Total Energy Consumption:1023TJ (2019); 911TJ (2020); 1151TJ (2021)
Water Consumption:666,127 tons (2020); 595,782 tons (2021)
Waste Generated:21,584 tons (2021)
Carbon Intensity:0.148 tCO2e/product-ton (2021)

ESG Focus Areas

  • R&D and product innovation
  • Shared growth activities with partner companies
  • Developing eco-friendly products and services
  • Enhancing Product Responsibility and Safety
  • Reducing the environmental impact of packaging materials
  • Managing greenhouse gas emissions (carbon neutralization)
  • Enhancing brand leadership
  • Strengthening global competitiveness
  • Improving product functionality based on customer health and impact
  • Creating social value through products
  • Expanding customer service access
  • Advancing resource circulation system

Environmental Achievements

  • Achieved green product sales of KRW 450.7 billion
  • Saved logistics center eco-friendly logistics activity savings of KRW 2.5 billion
  • Greenhouse gas emission per basic unit: 0.148 tCO2e/product-ton
  • Wastewater discharge intensity: 0.348 tons/product-ton
  • Reduced carbon emissions by 45% by 2030 (compared to 2020)
  • Achieved 33.7% of sustainable palm oil purchases
  • Reduced annual greenhouse gas emission through PET weight-lightening: 4,609.9 tons/year
  • Reduced petroleum-based materials used in labels by 71 tons
  • Reduced petroleum-based plastics by 11.2 tons per year (AURA ViRUX Refill Pouch)
  • Reduced petroleum-based materials used by 155 tons per year (Saffron Special Set)
  • Reduced the amount of plastic used by 3.9 tons per year (Dr. Groot Shampoo Bar)
  • Reduced plastic usage by 75% (Beyond refill pouch)

Social Achievements

  • Selected 35 people for the 4th Term of Natural Beauty Creator (136 cumulative participants)
  • Provided KRW 38.8 billion financial support for shared growth
  • Supported 11 companies’ smart factory construction
  • Supported partner companies’ training for 1,150 people
  • Achieved 82 points in employee engagement score
  • Improved customer service system
  • Consumer Service Satisfaction Results: 4.7 (out of 5)
  • Beautiful Sharing Bags provided to 4400 households
  • Total number of PERIOE Kids School and Musical participants: 4,362 people
  • Total number of Borrowed Earth School participants: 63,503 people
  • Total beneficiaries: 450,196 people

Governance Achievements

  • Operated ESG committee (twice/year)
  • Operated ESG Council (quarterly)
  • Appointed new female independent director
  • Established Enterprise Risk Management (ERM) system
  • Operating 60 scenarios (As of May 2022)
  • Established Internal Transaction Committee
  • 100% monitoring rate of 100% high risk business sites (A/B Grade)

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero (by 2050)
Medium-term Goals:
  • Achieve KRW 3.17 trillion in sales through continuous expansion of overseas business (by 2025)
  • Achieve KRW 510 billion in sales of green products through eco-labeling (by 2025)
  • Reduce restricted substances in use by 50% (by 2025)
  • Achieve 50% clean beauty products among new products of clean beauty-focused brand (by 2025)
  • Achieve 0.069 tons CO2e/product-ton of GHG emissions intensity (production plant) (by 2025)
  • Achieve 1.46 tons/product-ton of water intensity (by 2025)
  • Achieve 200 tons of recycled plastic (by 2025)
  • Constant expansion of beneficiaries of social advancement such as job creation for women (280 people cumulatively selected by 2025)
  • Diversify education channels of ‘Borrowed Earth School’, habit improvement convergence education program for teenagers and achieve a cumulative total of 100,400 beneficiaries (by 2025)
  • Establish a global education system (a cumulative total of 750 who will have completed the course by 2025)
  • Build Global Leadership (by 2025)
  • Achieve a 28% ratio of female managers (by 2023)
  • Expand the regions for a health musical for children, ‘Twinkle Twinkle Perio’ and achieved a cumulative total of 242,290 beneficiaries (by 2025)
  • Improve reliable quality level for suppliers with (a cumulative total of 660 companies, by 2025)
  • Improve employee engagement (85 points, by 2025)
  • Provide technical support for business partners with (a cumulative total of 1,811 cases, by 2025)
  • Provide financial support for business partners with (a cumulative total of KRW 310.2 billion, by 2025)
  • Target ratio for purchasing sustainable palm oil (64.9%, by 2025)
Short-term Goals:
  • Operate and settle customer value innovation process through the product lifecycle-specific RQM system (by 2022)
  • Establish a supply chain operating system that responds to the future of informatization, intelligence, and automation based on the customer value-oriented PEOS platform (by 2025)
  • Secure global business capabilities through the unique LG H&H safety quality certification system (by 2024)
  • Secure global-level evaluation capabilities related to safety verification and build and operating reliability (by 2022)

Environmental Challenges

  • Global supply chain crisis
  • Global economic slowdown
  • Reduced consumption caused by COVID-19
  • Aggressive price competition from competitors
  • Soaring raw material prices due to global supply issues
  • Continuous social distancing
  • Various supply chain risks, including disruptions in raw material procurement and product supply
  • Demand for ESG realization for all supply chain participants
  • Climate change
  • Regional disparities and volatility in carbon taxes and pricing systems
Mitigation Strategies
  • Strengthening luxury image and responding quickly to the digital market
  • Expanding sales of premium products
  • Concentrating on digital channels
  • Securing market competitiveness through major brands
  • Expanding product lineup with health and eco-friendly concepts
  • Reflecting changing consumer needs in products
  • Enhancing product power and increasing distribution coverage
  • Introducing internationally recognized raw materials and using alternative raw materials
  • Regularly conducting human rights impact assessments and ESG assessments for partner companies
  • Providing various support, including education to spread ESG management
  • Carrying out practical win-win cooperation activities
  • Announcing the ‘2050 Carbon Neutral Plan’
  • Investing in renewable energy and greenhouse gas reduction technologies
  • Establishing a low-carbon business environment
  • Reducing process GHGs
  • Introducing renewable energy
  • Introducing electric/hydrogen vehicles
  • Expanding ESG competency-building activities to partner companies
  • Supporting suppliers to check risk factors and improvements for ESG items
  • Establishing an ESG training course for business partners
  • Providing domestic and overseas ESG management information
  • Actively participating in the global response to climate change
  • Minimizing the impact on the environment in the entire product process
  • Actively carrying out climate change response activities
  • Continuously developing and supplying clean beauty products and eco-friendly products
  • Establishing a low-carbon business environment
  • Lowering process greenhouse gas emissions
  • Using renewable energy
  • Introducing electric and hydrogen vehicles
  • Reducing energy and resources
  • Managing a continuous reduction throughout the whole process evaluation
  • Expanding the use of renewable energy
  • Active investment in new technologies and low-carbon facilities
  • Expanding and enhancing carbon footprint management in the entire value chain
  • Introducing an internal carbon pricing system

Supply Chain Management

Supplier Audits: 122 core and new partners (2021)

Responsible Procurement
  • Code of conduct for suppliers
  • ESG evaluation of suppliers
  • Sustainable palm oil purchasing
  • Responsible mica sourcing
  • Fair trade opportunities
  • Technology proposal fairs
  • Support for participation in international beauty fairs
  • Technical and human resources support
  • Win-win payment system
  • Funding support (win-win fund) system

Climate-Related Risks & Opportunities

Physical Risks
  • Disruptions in the supply and demand of water and steam necessary for production
  • Rising average temperature and insufficient water
Transition Risks
  • Increase in investment costs due to low-carbon products and technology conversion for carbon neutrality
  • Increased cost of eco-friendly expansion due to changes in customer behavior
  • Expanded cross-border carbon taxes
  • Increase in raw material prices due to eco-friendly certification/reinforcement of regulations
Opportunities
  • Developing and expanding label-free beverage containers
  • Developing packaging using recycled plastics
  • Activating recycling
  • Developing Bio-balanced HDPE containers using bio-renewable raw materials
  • Developing eco-friendly materials, such as Bio-PET application

Reporting Standards

Frameworks Used: GRI Standards, SASB standards, UNGC principles, UN SDGs, TCFD

Certifications: ISO 14001, ISO 45001, RSPO, Halal

Third-party Assurance: BSI

Sustainable Products & Innovation

  • Clean beauty products
  • Eco-friendly products
  • Label-free beverage containers
  • Packaging using recycled plastics
  • Pulp mold using paper
  • Aluminum containers
  • Paper pouches
  • Bio-balanced HDPE containers
  • Bio-PET

Awards & Recognition

  • Avenuel MVG's Pick Anti-Aging Essence Category Award
  • Singles COSMETIC AWARDS 2021 BEST ESSENCE Award
  • Allure's Best of Beauty Award
  • Nielsen 2021 East Asian Innovation New Product Winner
  • 2021 Top Breakthrough Innovations in FMCG for East Asia
  • Interbrand, “2021 Best Korean Brand”
  • 2021 Central ESG Management Awards
  • Corporate Integrity Society Summit 2021