Our Sustainable Solution

Our Sustainable Solution

Our Commitment to
Sustainability

LG Energy Solution aims to be an eco-friendly company that prioritizes the environment, fulfills its social responsibility, and creates sustainable future values.

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 also identified eight critical areas related to the environment, human rights, occupational health and safety, and society; and four enablers in terms of governance to promote the aforementioned critical areas.

8 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.

4 Key Enablers

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 Disclosure of ESG Data

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 Expansion

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.

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 Dpt.
  • 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



  • Design and oversee implementation of the company-wide carbon negative strategy
  • Product LCA and CFP management
  • Design and operate CSR programs
  • Publication of ESG Report
  • Conduct Employee ESG Training
  • Manage Supply Chain ESG
  • Consists of members from departments implementing ESG vision and strategy
  • Reviews progress of ESG strategies and shares insights through quarterly consultative meetings
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

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Shin, Mee Nam

Chairman
/Independent director

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Yeo, Mee Sook

Independent director

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Han, Seung Soo

Independent director

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Park, Jin Kyu

Independent director

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Kim, Dong Myung

Director

Shin, Mee Nam

Chairman/Independent director

Term of office

Jun. 2021 ~ Mar. 2026

Former CEO of K Auction

Former President, Doosan Fuel Cell Business Unit

Yeo, Mee Sook

Independent director

Term of office

Jun. 2021 ~ Mar. 2026

Professor, Hanyang University School of Law

Former Presiding Judge, Seoul High Court/Seoul Central District Court

Han, Seung Soo

Independent director

Term of office

Jun. 2021 ~ Mar. 2026

Professor, Korea University Business School

Vice Chairman, Korean Association for Accounting and Policy

Park, Jin Kyu

Independent director

Term of office

Mar. 2023 ~ Mar. 2026

Specially appointed professor, University Research Institute Industry Collaboration Center, Korea University

Former 1st Vice Minister, Ministry of Trade, Industry & Energy

Kim, Dong Myung

Director

Term of office

Mar. 2024 ~ Mar. 2027

Executive President, CEO of LG Energy Solution

Former Advanced Automotive Battery Division Leader of LG Energy Solution

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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 publishes our internal and external activities and performances for enhancing ESG management.

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 performances in a transparent manner through annual ESG reports and website.

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Contact us for more
ESG Stories

We welcome feedback on this report or on any other aspect of sustainability at LG Energy Solution. You can send general comments by emailing our ESG team.

E-mail: lgensol.esg@lgensol.com