Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Management
• Social Responsibility

Environmental Achievements

• Reduced GHG emissions by 600,000 tons per year through installation of the world’s first centralized, large-capacity SF6 decomposition system and highly efficient facilities.
• Achieved 56.4% water reuse in Gumi and Paju plants.
• Won the Korea Green Management Excellence Awards with a citation from the Minister of Environment for effectively addressing climate change.
• Paju Plant re-designated as a specified voluntary waste monitoring worksite by the Ministry of Environment.

Social Achievements

• Launched the “Power Saving 1520” campaign to reduce power consumption by 20% by 2015.
• Implemented the Six Sigma System to enhance product quality and customer satisfaction.
• Reduced industrial accident rate by 61.5% in 2013.
• Various employee wellbeing initiatives including medical checkups, wellbeing room, emotional therapy programs, and lifecycle-based care programs.
• Established a cooperative labor-management relationship with the union.
• Expanded its fellowship program to nurture core technology talent.

Governance Achievements

• Established a solid sustainability management system by launching a dedicated CSR team and CSR Steering Committee.
• Became the first business in Korea to disclose the remuneration of each of its registered directors whose total annual income exceeds KRW 500 million.
• Implemented a three-strike security policy to protect critical information.

Climate Goals & Targets

Environmental Challenges

• Continued uncertainty in the global economy and sluggish display market.
• Climate change risks including regulatory changes, physical risks (unusual temperature patterns, changes in average precipitation), and reputational risks.
• Supply chain disruptions.
• Conflict minerals.

Mitigation Strategies

• Investing in innovative technologies and preemptively responding to risks.
• Investing in facilities for GHG emissions reduction and energy savings, developing low-power products, strengthening external communication on climate change, and developing alternative sourcing strategies.
• Implementing a complete overhaul of industrial safety and health management, establishing a risk management system, and providing training sessions on FCPA.
• Establishing a conflict minerals management policy, conducting due diligence, and encouraging suppliers to buy from conflict minerals-free smelters.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Management Doctor System
• Support for green management
• Performance sharing with partners
• Technology Escrow
• Industrial Innovation Movement 3.0
• Win-Win Cooperation Fund

Climate-Related Risks & Opportunities

Physical Risks

• Unusual temperature patterns
• Changes in average precipitation

Transition Risks

• Regulatory changes

Opportunities

• Reduction in operating costs through energy saving initiatives.

Reporting Standards

Frameworks Used: GRI G4 Guideline

Certifications: ISO 50001

Third-party Assurance: DNV Certification Ltd.

Sustainable Products & Innovation

• M+ technology for low-power, eco-friendly displays
• Curved OLED TV Panel
• 84-inch UHD Public Display Panel
• Full HD LCD Panel for Smartphones
• Flexible OLED Panel for Smartphones

Awards & Recognition

• 46th Annual Invention Day, Presidential Citation
• IMID Information Display Award
• Prime Minister’s Award for outstanding industrial waste reduction
• 2011 Fortune Great Workplace in Korea Award
• Korea World-class Product Award
• 48th Annual Trade Day, uSD15 billiion Export Tower
• Award at the 6th National Display R&D Project Workshop
• 11th Korea Safety Contest, Presidential Award
• 2012 Investment Attraction Award
• Family-friendly Management Award
• Korea World-class Product Award
• 49th Annual Trade Day, Silver Tower Order of Industrial Service Merit
• SID best in Show
• 47th Day of Invention, bronze Tower Order of Industrial Service Merit
• AAA Certification, AEO
• Korea Green Management Excellence Award
• 48th Annual Invention Day, Tin Tower Order of Industrial Service Merit
• National Display R&D Project Workshop, Award from Minister of Trade, Industry & Energy
• Energy Conservation Excellence Award
• Environmentally-friendly business Award

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Reduced GHG emissions by 376,913 tCO2eq
• Achieved 89% recycling rate at domestic sites
• LGDCA became the first green manufacturing plant in China
• Developed in-house carbon footprint calculator

Social Achievements

• No. 1 in job creation for recent 5 years
• Employee attrition rate decreased to 4.8%
• Established 34 IT power plants
• Various employee wellbeing initiatives (Joyful Workplace)
• Expanded stakeholder communication

Governance Achievements

• Established LGD Safety Rules
• Earned AA grade in Compliance Program
• Implemented Jeong-Do Management

Climate Goals & Targets

Environmental Challenges

• Continued uncertainty in the global economy and slowdown in the display market
• Workplace accident in Paju plant (Nitrogen gas leak)
• Supply chain disruptions (implied)
• Climate change related risks (regulatory, physical, etc.)

Mitigation Strategies

• Proactive CSR risk management
• Strengthened safety management standards and employee training
• Developed alternative sourcing strategies (implied)
• Investments in facilities for reducing GHG emissions and energy consumption
• Wastewater recycling and redundant raw materials sourcing system

Supply Chain Management

Supplier Audits: EICC self-survey and onsite CSR inspection

Responsible Procurement

• Supplier Code of Conduct
• Conflict minerals management policy
• Technology sharing
• Financial support
• Management Doctor System
• Industrial Innovation Movement 3.0

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: GRI G4 Guidelines (Core Level), International Integrated Reporting Council (IIRC) framework

Certifications: ISO 50001, ISO 14001, OHSAS 18001, AEO (Authorized Economic Operator) AAA certification

Third-party Assurance: Korea Productivity Center

Sustainable Products & Innovation

• OLED TVs
• Plastic OLED
• M+ technology

Awards & Recognition

• Dow Jones Sustainability Index (DJSI World) for two consecutive years
• Prime Minister Award as Leader in Resource Circulation (twice)
• Various awards for OLED and other display technologies

Environmental Metrics

ESG Focus Areas

• Economic performance
• Occupational health and safety
• Employment
• Emissions
• Procurement
• Local communities
• Effluents and waste discharges
• Supplier Assessment for social and environmental practices
• Training and education
• Products and services

Environmental Achievements

• Reduced GHG emissions by 431,795 tCO2eq
• Improved water reuse rate to 137%
• Increased waste recycling rate to 88%
• Reduced discharge of water pollutants
• Reduced emissions of air pollutants

Social Achievements

• Obtained Family-friendly Company Certification
• Reduced employee turnover rate to 3.5%
• Increased new employment
• Increased social contribution investments
• Improved number of complaints resolved

Governance Achievements

• Achieved the highest grade of Win-win Shared Growth Index
• Implemented Jeong-Do Management
• Strengthened integrated risk management system
• Improved compliance management activities

Climate Goals & Targets

Environmental Challenges

• Pricing pressures in the worldwide display industry due to global economic slowdown and increased Chinese suppliers
• Increasing client requests for EICC VAP and JAC Audit
• Climate change and environmental degradation
• Conflict minerals regulations
• Need to strengthen partner companies’ competitiveness

Mitigation Strategies

• Diversifying products via innovative technologies
• Supporting a third party audit fees for partner companies
• Implementing energy management system standards (ISO14001, ISO50001)
• Developing online integrated conflict minerals management system
• Providing financial, technical, and training support to partner companies

Supply Chain Management

Supplier Audits: 139 partner companies

Responsible Procurement

• EICC assessment for partners and on-site inspections
• Operations of fair trade self-compliance program
• Implementation of four actions of mutual developing cooperation
• Conduct partner companies’ capacity building programs
• Code of conduct for partner companies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Guidelines (Core Level), International Integrated Reporting Council (IIRC) framework

Certifications: OHSAS 18001, KOSHA 18001, ISO 14001, ISO 50001

Third-party Assurance: DNV GL Business Assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-friendly OLED lights
• M+ technology
• UV Photo Alignment
• N-type Liquid Crystal technologies
• Plastic OLED
• Transparent OLED

Awards & Recognition

• World Health Day “Hidden Man of Merit Citation”, AAA Certification, AEO, Korea Green Management Excellence Award, National Display R&D Project Workshop Award, Citation by Chairman of Fair Trade Commission, Citation from Prime Minister as a Resource Recycling Leading Company, Citation on Industrial Technology Security Day, G Flex Gold Display Application of the Year Award, 55” Full HD Curved OLED TV Silver Display Application of the Year Award, 55”, 65” and 77” UHD Curved OLED TV Best In Show, KAIST Intellectual Property Award, Listed in East Asia 30, The Trade Day Award, Gold Tower Order of Industrial Service Merit, The 1st ‘Happiness Sharing Company’ Minister Award, Winner of Family-friendly Management Award, Winner of the Korea Chamber of Commerce Chairman Award, Winner of the Prime Minister’s Award at the Korea Technology Award

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Safety and Health
• Employee Well-being
• Shared Growth with Suppliers
• Social Contribution
• Corporate Governance

Environmental Achievements

• Reduced GHG emissions by 1.28 million tCO2 in 2018, exceeding the target of 650,000 tCO2 reduction by 20,000 tCO2.
• Achieved a 97.2% waste recycling rate in 2018.
• Achieved a 165% water reuse rate in 2018.
• Obtained green technology certification for OLED lighting products.

Social Achievements

• Strengthened labor-management relations through open communication and active collaboration.
• Implemented various employee health programs, including an in-house medical clinic and psychological counseling.
• Launched numerous family-friendly programs, including maternity support and childcare facilities.
• Conducted social contribution activities, including IT development centers for underprivileged children and eye care programs.

Governance Achievements

• Maintained a higher ratio of outside directors than legally required to ensure independence.
• Established three committees under the Board of Directors (Audit Committee, Outside Director Nomination Committee, and Management Committee).
• Implemented Jeong-Do Management (LG Way) to promote ethical practices and fair competition.

Climate Goals & Targets

Environmental Challenges

• Meeting tightened regulations on hazardous chemical substances.
• Responding to natural disasters and safety accidents.
• Meeting employee needs and expectations.
• Ensuring the competence of partner companies.
• Preventing information leakage and cyberattacks.

Mitigation Strategies

• Acquired environmental and energy management system certifications (ISO14001, ISO50001).
• Established an integrated safety management system and disaster response system.
• Implemented various employee support programs and a family-friendly culture.
• Established a mutually beneficial partnership system with suppliers.
• Implemented an information security management system (ISO 27001) and security enhancement support program for key suppliers.

Supply Chain Management

Responsible Procurement

• Code of Conduct
• Shared growth agreements
• Win-win payment system
• Green SCM consulting
• Carbon reduction partnerships

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option), IIRC framework (partially)

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

Third-party Assurance: Korea Management Registrar Inc. (KMR)

Sustainable Products & Innovation

• OLED lighting products with improved energy efficiency.

Awards & Recognition

• GSMA Family-friendly Management Award (4 consecutive years)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Awarded the Carbon Management Honors Club in the “Climate Change Response” category for 4 consecutive years and the Excellent Company Award in the “Water Management” category for 3 consecutive years.
• Achieved 197% water reuse rate at business sites by enhancing water resource management.
• Reduced greenhouse gas emissions by 1,436,426 tCO2eq in 2020.

Social Achievements

• Certified as a family-friendly company.
• Operated Employee Social Contribution Fund and LGDream Fund.
• 34,000 executives and employees reached a total of 556,000 social contribution hours by March 2021.
• Won the Grand Prize in GSMA Family Friendly Management Category for 6 consecutive years.

Governance Achievements

• Officially launched the ESG committee.
• Established the Chief Safety & Environment Officer (CSEO) position.
• Obtained ISO 45001 certification.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chains.
• Climate change risks (extreme weather, increased energy consumption).
• Intensifying competition in the display market.

Mitigation Strategies

• Implemented company-wide emergency response system, including work-from-home options.
• Invested in wastewater reuse facilities and diversified supply and demand for water.
• Improved energy efficiency through facility upgrades and process improvements.
• Increased R&D investment to secure OLED competitiveness and develop eco-friendly products.
• Implemented 20 company-wide TDR initiatives for quality improvement and cost optimization.

Supply Chain Management

Supplier Audits: 9 processing suppliers audited in 2020.

Responsible Procurement

• Shared Growth Index 'Best grade' for 6 consecutive years.
• SR Code of Conduct for business partners.
• Membership in the Responsible Business Alliance (RBA).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Disruption of water supply

Transition Risks

• Enhanced environmental regulations
• Growing demand for eco-friendly products

Opportunities

• Development of energy-efficient products
• Investment in GHG reduction technologies

Reporting Standards

Frameworks Used: GRI Standards (Core Option), IIRC Integrated Reporting Framework (partially)

Certifications: ISO 14001, ISO 50001, ISO 45001, SGS Eco Label

Third-party Assurance: BSI Group Korea

Sustainable Products & Innovation

• OLED displays (low-power consumption)
• Eco-friendly TV modules (SGS Eco Label)

Awards & Recognition

• Carbon Management Honors Club (CDP)
• Excellent Company Award in Water Management (CDP)
• GSMA Family-Friendly Management Award

Environmental Metrics

ESG Focus Areas

• Green Management
• Safety
• Environmental Management
• Resource Circulation

Environmental Achievements

• Reduced greenhouse gas emissions by 1.52 million tons as of December 31, 2022 due to investment in plasma equipment.
• Converted 1,096 GWh of electricity (approximately 13% of total electricity) to renewable energy in 2022, reducing greenhouse gas emissions by 0.62 million tons.
• Saved 454 GWh of electricity in 2022, reducing greenhouse gas emissions by 0.21 million tons through various energy-saving initiatives.
• All domestic production facilities earned Gold ZWTL validation (above 95% recycling rate), and overseas subsidiary in Nanjing earned Platinum validation in 2022.
• Overseas subsidiary in Yantai earned Platinum Zero Waste to Landfill validation in 2021.

Social Achievements

• Implemented corrective orders for non-payment of overtime pay, completed on November 27, 2023.
• Established a special committee to improve organizational culture and implemented remedial measures including reorganization of employee attendance system to prevent recurrence of employee death incident.

Governance Achievements

• Four out of seven directors on the board are outside directors.

Climate Goals & Targets

Environmental Challenges

• Deterioration of macroeconomic conditions and weak demand across various industries leading to decreased production levels and prices of display panels.
• Intensifying competition among display panel manufacturers.
• Weakening demand for televisions and IT products.
• Overcapacity in the industry relative to general demand for display panels.
• Fluctuations in foreign exchange rates.
• Safety incidents resulting in fines and legal proceedings.

Mitigation Strategies

• Enhanced business structure to focus on OLED products and reduce reliance on supply-based business.
• Cost innovation and operational efficiency improvements.
• Strengthening fundamental competitiveness in key sectors.
• Adjusting production levels based on market demand.
• Securing syndicated loan and paid-in capital increase to enhance financial stability.
• Strengthening safety management standards and employee training.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: K-IFRS

Certifications: ISO 14001, ISO 50001, SGS Eco Label, Carbon Footprint Certification (Carbon Trust), Product Carbon Footprint (PCF) certification (TÜV Rheinland)

Third-party Assurance: KPMG Samjong

Sustainable Products & Innovation

• High-end LCD panels for 16-inch notebooks and 27-inch monitors incorporating recycled materials.
• 30-inch and 55-inch transparent display products applying hazardous substance reduction technology.

Awards & Recognition

• CDP Water Korea Best Awards (Leadership A, grand prize in 2016)
• Leadership A recognition from CDP (2018-2022)
• Carbon Management Honors Club award (2017-2020)
• Carbon Management Sector Honors (every year since 2016)
• Commendation from the Minister of Environment (2020)