Managing ESG Risks at Our Operating Sites
LG Energy Solution has put in place a process for the company-wide ESG risk management in areas including environmental impacts, human rights and labor, safety and health, responsible sourcing, and ethics management in order to preemptively identify and systematically manage ESG risks that may occur at each business site. Beyond ad-hoc assessments upon request from customers, we intend to systematize and formalize the process, thereby ensure the preparedness of all our global sites for compliance with ESG policies and regulations, as well as the sustainability of the products and services we provide.
Managing ESG Risks in Our Supply Chains
Responsible supply chain management is a key task for LG Energy Solution's sustainable business. Ethical and transparent supply chain operation is one of the essential requirements for the company-wide medium-to long-term business strategy.
LG Energy Solution has established and operates a Responsible Sourcing Policy and a supply chain management framework in accordance with global standards, including those of the UN, OECD, and ILO. With the Supplier Code of Conduct and a regular ESG assessment process, we manage ESG risks that may arise in our supply chains and support our suppliers to improve their ESG capabilities in various areas such as human rights, labor, ethics, occupational safety and health, environmental sustainability, and responsible mineral sourcing. We continue to broaden the scope of the supply chain that we engage in ESG activities beyond our Tier-1 suppliers.
LG Energy Solution's supply chain management framework is based on the OECD Due Diligence Guide1)and consists of the following five steps:
Establish strong company management systems
Identify and assess risks in the supply chain
Design and implement a strategy to respond to identified risks
Carry out independent third-party audit of due diligence practices
Report annually on supply chain due diligence
1) OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas