We CHARGE toward
a better future
Our ESG vision, “We CHARGE towards a better future,”
demonstrates our commitment to creating a sustainable and better future as a global battery leader.
We have identified eight critical areas related to the environmental and social issues; and four enablers in terms of governance to accelerate actions in the aforementioned critical areas.
- Climate Action Achieving carbon neutrality by 2050
- LG Energy Solution is a leading company that plays a pivotal role in our transition into a carbon-neutral society. We seek to take initiative in responding to the global problem of climate change. We are reinforcing our cooperation with partners and related institutions to decrease energy use and greenhouse gas emissions at business sites, as well as to reduce carbon emissions in the battery industry in general. As part of our initiative to achieve carbon neutrality by 2050, we plan to convert 100% of electric power used at all domestic and overseas business sites to renewable energy by 2030.
- Virtuous Cycle of Resources Establishing a closed loop by 2025
- With the rapid growth of the electric vehicle battery market, millions of tons of batteries are used every year, resulting in a steady increase in the number of used batteries. LG Energy Solution is developing ways to reuse these batteries for ESS. To minimize environmental contamination and create a closed loop of resources, we are conducting various research and collaborations to recycle process waste from manufacturing batteries.
- Human Rights Management Creating risk-free business sites for human rights
- LG Energy Solution recognizes that respect for human rights is the most critical element of business. Based on our management philosophies "People-oriented Management" and "Jeongdo Management," we established and declared "'Global Human Rights and Labor Policy" founded on guaranteeing and respecting human dignity and rights to freedom and happiness.
- Human Capital Management Fostering diverse talent
- To realize the full potential of our members' individual capabilities, LG Energy Solution is implementing an active management policy that respects our members' diversity, rooted in our people-oriented management. We will continue to enhance our organizational and human capital as well.
- Product Responsibility 100% green products by 2023
- To increase customer value, LG Energy Solution is committed to providing environmentally friendly and competitive materials and solutions to customers, contributing to creating a sustainable future for you. To this end, we are carrying out various activities to derive and provide efficient and valuable solutions in terms of environmental and economic aspects throughout the entire production process, from R&D to disposal.
- Environmental Safety and Health Zero environmental safety accidents
- LG Energy Solution is building and operating an organized environmental safety and health management system based on standards such as ISO14001 and ISO45001. Recognizing how essential these elements are for achieving our competitive edge, we are taking robust initiatives to eliminate accidents and continuously enhancing the system.
- Responsible Supply Chain Management ESG evaluation of raw material
suppliers conducted 100% by 2030 - LG Energy Solution has established a code of conduct that suppliers must follow since 2016. It consists of regulations regarding human rights, labor rights, ethics, environmental sustainability, and responsible mineral procurement that suppliers must comply with to operate sustainable supply chains. From the stage of selecting new suppliers, we apply the code to verify the adequacy of their supply chain management system, and effectively supervise supply chain risks through evaluating and monitoring their sustainable management.
- Shared Growth and
Greater Impact on Local
Communities Improving corporate image through
cooperation for mutual growth - LG Energy Solution strives to create a battery ecosystem that grows together with its suppliers, with the belief that our competitive edge hinges on that of our suppliers. Furthermore, through efficient use of energy, we are fully utilizing our capabilities to solve various local community issues and endeavoring to bring about change.
- Enhancement of Compliance
Management & Ethical
Management - As of November 2021, LG Energy Solution became the first in the battery industry to acquire ISO37301, an international certification for establishing a compliance management system, and we intend to continue to strengthen compliance management through the corresponding surveillance audits . In addition, we strengthen ethical management by conducting regular ethical audits (self and in-depth inspections) at each business site and providing ethical code training to employees and suppliers.
- Strengthening
the Governance System - LG Energy Solution’s Board of Directors constitutes more than majority of independent directors in order to ensure the transparency and effectiveness of its governance structure and their reappointments are determined based on the evaluation of their activities and performance. In line with ‘Guidelines on the Expertise and Diversity of the Board of Directors’ and ‘Guidelines on Independent Directors’ Independence’ of LG Corp., we strive to ensure that the Board consists of expert directors holding a diversity of experiences and perspectives to facilitate reasonably prudent decision-making process. We will continue to strengthen the independence, expertise and diversity of the Board and reinforce the sustainable governance system.
- Transparent ESG Disclosure
- LG Energy Solution annually publishes ESG reports and periodically updates the information on our website to inform our stakeholders of the latest state of ESG management and performance. Through public relations and activities in global initiatives, we constantly communicate with various stakeholders and disclose our ESG management indicators.
- Stakeholder
Communication
& Partnership Reinforcement - As a leader in the battery industry, LG Energy Solution participates in various global ESG initiatives, actively engaging in the global standards-setting process and discloses ESG management indicators in a transparent manner. LG Energy Solution will continue to strengthen engagement with diverse stakeholders and optimize the partnership by participating in initiatives and activities that are relevant to our ESG management strategy.
Sustainability Governance
LG Energy Solution established an ESG Committee in June 2021 as the highest governing body of ESG management to advance ESG agenda in a systematic manner. We have also formed a dedicated ESG organization to strengthen internal expertise and capacity to address ESG issues and implement ESG strategic framework. It also allows us to meet the ESG-related demands from a wide range of stakeholders in a proactive manner. In addition, to manage ESG performance and accelerate the implementation in an effective manner, LG Energy Solution has formed an ESG Working Council consisting of members of relevant departments. The quarterly meetings of the Working Council serve as a platform to provide a comprehensive overview of ESG performance and exchange key issues and insights to implement the ESG strategic framework.
ESG Committee
LG Energy Solution’s ESG committee establishes policies, strategies, as well as mid- to long-term goals of ESG management in the areas of environment, human rights, safety & health, CSR, customer value, shareholder value, and governance, and it deliberates on and makes decisions relevant to the implementation of ESG strategic framework. Four of the five members are independent directors, and the ESG Committee convenes at least biannually.
ESG Policy Team
- Decide on strategic ESG direction
- Manage the implementation of key ESG tasks
- Engage in global ESG initiatives
- Communicate with stakeholders and address their ESG-related needs
- ESG Rating Management
- ESG Communication
- Serve as the ESG Committee Secretariat
- Operate the ESG Working Council
ESG Impact Team
- Design and oversee implementation of the company-wide carbon negative strategy
- Manage product LCA and CFP
- Design and operate CSR programs
- Publication of ESG Report
- Conduct Employee ESG Training
- Manage Supply Chain ESG risks
ESG Working Council
- Consists of members from departments implementing ESG vision and strategy
- Reviews progress of ESG strategies and shares insights through quarterly consultative meetings
All Employees
ESG vision cannot be achieved solely by the efforts of a few related departments. It is essential that ESG management is integral part of business and integrated into daily work of everyone at LG Energy Solution. To this end, we are fostering environment that our members can practice ESG management in a proactive manner through initiatives such as ESG trainings provided by members of ESG department, online trainings provided as part of compliance training on ESG issues including diversity, human rights, responsible sourcing, business ethics.
ESG Committee Profiles
Shin, Mee Nam
Chairman
- Former CEO of K Auction
- Former President, Doosan Fuel Cell Business Unit
Shin, Mee Nam Chairman
Yeo, Mee Sook
Outside Director
- Professor, Hanyang University School of Law
- Former Presiding Judge, Seoul High Court/Seoul Central District Court
Yeo, Mee Sook Outside Director
Han, Seung Soo
Outside Director
- Professor, Korea University Business School
- Vice Chairman, Korean Association for Accounting and Policy
Han, Seung Soo Outside Director
Park, Jin Kyu
Outside Director
- Specially appointed professor, University Research Institute Industry Collaboration Center, Korea University
- Former 1st Vice Minister, Ministry of Trade, Industry & Energy
Park, Jin Kyu Outside Director
Kwon, Young Soo
Director
- Vice Chairman, CEO of LG Energy Solution
- Former Vice Chairman, COO of LG Corp
Kwon, Young Soo Director
Leveraging Global Network & Partnership
To build a sustainable battery ecosystem, it is critical to collaborate and communicate with various stakeholders in the battery value chain. LG Energy Solution is leveraging a variety of global initiatives and expanding partnerships to increase the sustainability of the entire battery manufacturing process and provide sustainable value to all stakeholders.
Through global initiatives, we intend to share our experiences, challenges, and opportunities as a global battery leader, actively participate in setting the ESG agenda of the industry, and thereby support each initiative’s mission. Furthermore, we proactively engage in ESG standards-setting process for the global battery industry and aim to contribute to sustainable development of local communities that are part of the battery supply chains.
Our Story
LG Energy Solution showcases various ESG activities and performance through Global Newsroom.
ESG Reports
LG Energy Solution publishes ESG report annually to disclose information on financial and non-financial performance of LG Energy Solution to stakeholders with an emphasis on the company’s ESG strategic framework. LG Energy Solution is committed to systematically managing and disclosing information on ESG performance in a transparent manner through annual ESG reports and website.
Contact us for more ESG Stories
We welcome feedback on the report or on any other aspect of sustainability management at LG Energy Solution.
You can send general comments by emailing our ESG team.
E-mail: lgensol.esg@lgensol.com