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Framework

Vision & Strategy

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.

8 Critical Areas : Climate Action & Circular Economy / Human Value Management / Advanced EH&S / Responsible & Impactful Business
4 Key Enablers : Good Governance / ESG Disclosure & Communication
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.

Strenthening 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 indicator

Stakeholder Communication & Partenrship 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.