Human Rights Policy
LG Energy Solution recognizes that respect for human rights is the most critical element of business, based on the management philosophy of "People-oriented Management." By establishing the "Global Human Rights and Labor Policy," we express our respect and support for the spirit and purpose of international human rights as stipulated by international standards, such as the Universal Declaration of Human Rights, UN Guiding Principles on Business and Human Rights, and International Labor Organization's Fundamental Conventions, and laws of countries and regions where our business is conducted. The policy is applied to all business sites around the world where we conduct business, and furthermore, we are striving to improve and spread awareness by sharing with all stakeholders directly affected by LG Energy Solution's business activities, including our clients and suppliers.
Human Rights Impact Assessment
LG Energy Solution conducts human rights impact assessments in business sites that directly affect stakeholders in corporate management activities, diagnoses human rights risks, identifies points for improvement, and reflects them in business operations. In addition, regarding supply chains that have indirect yet significant impacts on the company's business, we are making efforts to supervise suppliers by checking risks related to human rights through CSR inspections and reflecting them in the evaluation.
LG Energy Solution developed a self-inspection checklist in each sector to assess human rights impacts and diagnose risks in accordance with the Global Human Rights and Labor Policy. Based on these checklists, we conduct a survey of those subject to human rights impact assessment and conduct on-site inspections verified by a third party in addition to self-inspections. We produce a feedback report from this process and identify points of improvement on human rights. The main targets of this evaluation are in-house contract workers who are most vulnerable to human rights violations. Indices for the evaluation include human rights management system, humanitarian treatment, prohibition of forced labor, prohibition of child labor, prohibition of discrimination, working hours, wages and benefits, and freedom of association and collective bargaining. The main methodologies for identifying risks are document review, interviews, questionnaires, and on-site diagnosis.
In the first half of 2019, we completed a human rights impact assessment for the Ochang Plant through a third party. Seven in-house production contractors at the Ochang Plant were subjected to a process to identify and improve the human rights risks through surveys and interviews of workers and document review. Despite having human rights guidelines for in-house production contractors through the establishment of Global Human Rights and Labor Policy and Supplier Code of Conduct, through the impact assessment, we discovered that there was a need for improvement in the application and implementation at the business site level, monitoring, and preventive measures for violations through handling grievances. In the future, we plan to upgrade the monitoring system for the Global Human Rights and Labor Policy and Supplier Code of Conduct, strengthen preventive measures for human rights violations and the management system for each contractor, and continue to conduct additional training on the scope and procedures for handling grievances within the company.