Respecting Fundamental Rights
Under the corporate management philosophy, “People-Oriented Management”, LG Energy Solution fulfills its basic responsibility to uphold human rights and the right for freedom and happiness. LG Energy Solution supports the international standards including Universal Declaration of Human Rights, Human Rights and Labor Principles of UN Global Compact (UNGC), UN Guiding Principles on Business and Human Rights (UNGP), and relevant conventions of the International Labor Organization (ILO), and is in full compliance with relevant laws of each country we operate in. LG Energy Solution has established “Global Human Rights and Labor Policy,” which is applied to all business sites around the world, and constantly monitors and mitigates any human rights risks.
Regular ESG Risk Management Process
LG Energy Solution implements a regular ESG risk management process for our business sites and supply chain to uphold human rights in our business activities.
For global business sites, regular ESG risk assessments and on-site due diligence are conducted to manage any potential risks in key ESG issues, including human rights and labor. Through these processes, we identify areas for improvement and strive to enhance them in our business operations. We also monitor and manage our suppliers' adherence to human rights by identifying relevant risks in the supply chain through regular ESG risk assessments and integrating the results into the regular suppliers evaluation process.
Human Rights Impact Assessment
LG Energy Solution operates a process to evaluate human rights impacts of our business activities on relevant stakeholders. In particular, it intends to diagnose human rights risks and identify areas for improvement for in-house (sub-)contractors, who can be exposed to human rights violations.
The human rights impact assessment intends to take a close look at various human rights issues including human rights management system, humane treatment, prohibition of forced labor, prohibition of child labor, non-discrimination, working hours, wages and benefits, freedom of association, and collective bargaining. The steps involved in the assessment include risk identification through self-assessment questionnaire, documentation review, interviews / survey questionnaire with the focus group, and on-site third-party audit.
Moreover, we plan to enhance the monitoring system of the Global Human Rights and Labor Policy and the Code of Conduct for Suppliers as well as conduct preventive activities in the field of human rights. We will also strengthen the management system for each contractor and continue to expand trainings for contractors on human rights and labor management system and the scope and procedures for handling internal grievance.
Diversity, Equity and Inclusion
LG Energy Solution pursues a culture that respects ‘diversity’ of individuals and does not tolerate any form of discrimination based on individuals’ differences; that ensures ‘equity’ in access, opportunity, resources and power to thrive; and that embraces ‘inclusion’ based on mutual understanding, respect and trust. LG Energy Solution is committed to embracing diversity, equity and inclusion (DEI) into its culture across all global sites and for all our members. We endeavor to bring sustainable value for society by developing and implementing programs tailored to national and local context. LG Energy Solution is working to promote a culture that respects diversity, running programs such as Women Leadership Conferences focused on women leaders and in-house training programs on DEI as part of the company-wide ESG trainings for all employees.
Collaborative Labor-Management Relations
LG Energy Solution recognizes workers and labor unions as important partners. We are committed to fostering a organizational culture and labor-management relations based on mutual trust, and employees are encouraged to freely join in labor unions. To strengthen our cooperative labor-management relations, we engage in regular collective bargaining sessions. In Korea, collective agreements and wage agreements are negotiated annually with the labor union, and the decisions made are promptly and transparently communicated to the employees. The latest collective bargaining agreement was successfully concluded on December 23rd, 2024.
Valuing Human Capital
LG Energy Solution respects the creativity and autonomy of its employees, values their abilities, and provides compensation corresponding to their performance. To ensure that employees feel valued and motivated, LG Energy Solution has implemented a strong performance-based incentive pay structure. This system is designed to align compensation with the actual performance and achievements of employees, thereby rewarding those who perform exceptionally. This incentive structure is comprehensive and inclusive, covering all contract types (i.e. full-time and part-time), all levels (i.e. from entry-level, management to C-suite executives) and all functions (i.e. production, R&D, sales and others) of employees. The specificity of its application is determined in accordance with the terms of each employment agreement. We provide programs to foster employees who can play a leading role in ensuring the company’s transparency and fairness. In preparation for the aging society, we also actively support those who are looking for new jobs after retirement. To make LG Energy Solution a company where employees are motivated to “get up and go to work”, we undertake various activities designed to maximize their positive experience. We are organizing a variety of efforts to create a pleasant organizational culture, as well as acquiring external certifications to examine our performance and continue to initiate positive changes.
Awarded as “Great Place to Work” in Korea
Great Place to Work (GPTW) is the official name of the global authority on workplace culture as well as a name of certification agency established in 1990 in the United States. The agency collaborates with 97 countries to research, select and recognizes employers who create an outstanding employee experience.
In November 2022, LG Energy Solution acquired the GPTW certification based on the two-step process that includes surveying our employees and completing questionnaire about our workforce. The survey resulted in 71% of positive responses across all survey questionnaire and 79% answering that they are satisfied with the workplace. In addition to the certification, we won awards in the five following categories:
Corporate more
- 100 best places to work in Korea
- The best workplace for millennials
- The best workplace for seniors
Individual more
- Korea’s most respected CEO: Kwon, Young Soo
- Korea’s GPTW Innovation Leader - Junior Board
Acquired the Family-Friendly Company Certification
The “Family-Friendly Corporation Certification System” is a Korean government-led initiative to create family-friendly social environment for the compatibility in work and family, in accordance with Article 15 of the Act on the Promotion of Creation of Family-Friendly Social Environment. The certification system recognizes companies and public institutions that operate exemplary family-friendly programs, such as support for childbirth and childcare, flexible work hours, and family-friendly workplace culture. The certification process involves documentation screening, on-site screening, and employees’ satisfaction surveys. LG Energy Solution acquired the “Family-Friendly Company Certification” in 2022, valid for next three years.
Awarded as '2023 Korea’s Top 100 Companies for Job Creation'
Each year, the Korean Ministry of Employment and Labor selects 100 companies that make significant efforts to create jobs and improve employment conditions, promoting work-life balance. In 2023, LG Energy Solution was awarded with this recognition, standing out as the sole battery manufacturer to receive the award. LG Energy Solution was acknowledged for its high ratio of regular employees, a fair wage system, workplace flexibility, and advanced employee welfare programs and non-compensation benefits. Moving forward, LG Energy Solution will continue to do its best to create an advanced organizational culture where individuals and the company can grow together.