2022-2023 LS ELECTRIC Sustainability Report

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the World

Message from the Chairman

About this ReportCompany Profile

Report Overview

Reporting Scope

Assurance

Business Overview

LS ELECTRIC has been communicating with stakeholders by

This Report contains key data identified through materiality analysis.

To ensure objectivity and credibility of the content, this Reportpublishing sustainable reports annually since 2015. This Report,

While this Report primarily focuses on our domestic worksites, it

was assured by the Korea Management Register, a third-party

Our ESG Journey

which is our nineth report, serves to provide a balanced, transparent

also includes overseas worksites on a selective basis as necessary.

independent assurance provider.

Our Sustainability Management

and performances in the year 2022. Moving forward, we will

Reporting Standards

Contact Information

This Report was prepared in accordance with the GRI (Global

This Report is freely accessible on the LS ELECTRIC website (www.ls-

Reporting Initiative) Standards 2021 and the UN SDGs (Sustainable

electric.com). For inquiries or feedback, please contact us throughDevelopment Goals). In addition, it complies with the climate

the following:

Global Business

Appendixpresentation of our economic, environmental, and social activities
continue pursuing sustainable growth and development bycommunicating with stakeholders.

Reporting Periodchange-related disclosure recommendations of the TCFD (Task ForceThis Report was prepared based on data from January 1 toon Climate-related Financial Disclosures) and the SASB (Sustainability

December 31, 2022, including some data from the first half of 2023.

Accounting Standards Board) standards according to industrial

As for quantitative data, the reporting period covers the last threecharacteristics. Financial data are based on the consolidated

years to support yearly trend analyses.

financial statements according to the K-IFRS (Korean International
Financial Reporting Standards).

02

Address

LS Tower, 127 LS-ro, Dongan-gu, Anyang-si,
Gyeonggi-do, Korea

Websitewww.ls-electric.com

Phone

02-2034-4461

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the World

Message from the Chairman

Contents

Company Profile

LS ELECTRIC Bringing Light to the World

Business Overview

05

Message from the Chairman

Environmental

06

Company Profile

21

07

Global Business

08

Business Overview

Global Business

Our ESG Journey
Our Sustainability Management
Appendix

Our Sustainability Management

72

ESG Data

Environmental Management

77

Stakeholder Communication

26

Creating Eco-friendly Worksites

78

Materiality Analysis

30

Climate Change Response

79

GRI Content Index

81

SASB Index

81

TCFD Index

82

UNGC, Memberships and Awards

83

GHG Verification Statement

84

Independent Assurance Statement

Our ESG JourneySocial15

Our Commitment to ESG

34

Human Rights Management

16

LS ELECTRIC from the Stakeholders’ Perspective

37

Talent Management

17

Integrated Control of ESG Management

42

Health and Safety Management

18

ESG Highlight

47

Data Protection and Information Security

50

Quality Management

INTERACTIVE USER GUIDE

53

Shared Growth

58

Social Contribution

The LS ELECTRIC Sustainability Report has been prepared ininteractive PDF format. Click icons on the left to open therespective pages.

Governance03

Appendix

To previous page

60

Establishing Sound GovernanceTo next page64

Ethics Management

To contents page67

Compliance

To immediately previous page

69

Risk ManagementPrint2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the World

Message from the Chairman
Company Profile
Global BusinessBusiness Overview
Our ESG Journey
Our Sustainability Management
Appendix

LS ELECTRIC
Bringing Light to the World
04

Message from the Chairman

05

Company Profile

06

Global Business07

Business Overview

082022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the World

Message from the Chairman

Company Profile
Global BusinessMessage from the Chairman
Distinguished Stakeholders,

Taking the publication of our Sustainability Report 2022-2023 asSocialan opportunity, I would like to express my appreciation for yourWe will create a safe, happy working environment for our employeesinterest in and support for LS ELECTRIC.

and contribute actively to social value creation by expanding

Business Overview

COVID-19 that has swept through the globe is now entering an

Our ESG Journeyendemic phase. However, the management environment that

Our Sustainability Management

surrounds us, such as the war between Russia and Ukraine, the trade
conflict between the US and China, and the increase in the prices

Appendixof raw and subsidiary materials, poses a number of difficulties. In
addition, various ESG-related regulations including those for supply

across the value chain to providing safe products and services
to consumers, we will establish a safe working environment thatsatisfies employees. At the same time, a variety of shared growthprograms will be operated to help establish ESG management in our
suppliers.

chain due diligence and carbon border adjustment mechanism are

Governancebeing tightened especially in the EU, and global customers’ request

We will make efforts to strengthen ethics and compliancefor ESG due diligence and information is increasing rapidly. As such,
ESG has emerged as a key element in business management.
To break through the difficulties and aim for a sustainable future,
LS ELECTRIC internally and externally declared ESG managementby holding the ESG management declaration ceremony on October
4, 2022. Under the ESG management vision of “Sustainable Futurewith Green Energy Solution,” LS ELECTRIC is committed to creating asustainable future by reducing carbon emissions, respecting society,and promoting responsible management.
To this end, LS ELECTRIC promises the following:

Environmental
We will promote eco-friendly management and achieve carbon
neutrality by 2040 for the future generation. For this, we will achieve
40% reduction in carbon emissions by 2030 compared to 2021 andcarbon neutrality by 2040 through 100% carbon reduction. We will
also practice eco-friendly management by performing resource05

win-win cooperation with stakeholders. While dedicating effort

circulation, eco-friendly product development, and ecosystem
restoration activities.

management and establish transparent governance. Based on
the principles of fairness, honesty, and sincerity, we will fulfill our
responsibilities for customers, suppliers, shareholders, and local
communities by practicing transparent management.
Dear Stakeholders,
I would like to ask for your continued interest and participation in
LS ELECTRIC’s ESG management. We at LS ELECTRIC hope to createa sustainable future together with our stakeholders based on ESG
management.
Thank you.

LS ELECTRIC Chairman

Ja-Kyun Koo

2022-2023 LS ELECTRIC
Sustainability ReportCompany Profile
Since its establishment in 1974, LS ELECTRIC has grown as Korea’s No. 1 company in the power and automation fields, leading the nation’s industrial development.
Under our mission of “Futuring Smart Energy,” we will continue leading the future energy business.

LS ELECTRIC Bringing Lightto the World
Message from the Chairman

Company Overview

Global Business

Name of Company LS ELECTRIC Co., Ltd.

Company Profile

Business Overview
Our ESG Journey
Our Sustainability Management
Appendix

Corporate History

July 24, 1974

CEO

Chairman Ja-Kyun Koo,
Vice President Dong-Hyun Kim,
Vice President Dong-Whi Koo*

Head Office

LS Tower, 127 LS-ro, Dongan-gu,
Anyang-si, Gyeonggi-do, Korea

Employees

3,112(As of the end of Dec. 2022)

Credit Rating

AA- in corporate bond, A1 in CP(Korea Investors Service)* Vice President Dong-Whi Koo appointed on Mar. 28, 2023

Summarized Financial Statements in 2022
(Consolidated, Unit: KRW 100 million)

Operating Income

Total Assets

33,771
1,875
33,228

Total Liabilities

17,735

Total Equity

15,49306

Era of Growth and Innovation

Era of Value Management

1974-1995

2008-20142015-2022

1974. 07 Lucky Packaging Co., Ltd. established1987. 03 Changed company name to Goldstar
Industrial Systems Co., Ltd.
1994. 07 Held initial public offering of Goldstar
Industrial Systems Co., Ltd.
1995. 02 Changed company name to
LG Industrial Systems Co., Ltd.
09 Merged with Goldstar Instrument & Electric Co.,
Ltd. and Goldstar Electric Machinery Co., Ltd.

2008. 04
2009. 1010
2010. 02
04
04

2015. 01
03
2016. 03
09

Pioneering the power andautomation industries

Date of
Establishment

Sales

Era of Beginning

Era of Challenge

Leading Korea’s power and automation sectors
1996-2007
1997. 04
04
2000. 06
2003. 122005. 03
09

Established production subsidiary in Vietnam
Merged with LG Metal Co., Ltd.
Completed production plant in Dalian, China
Separated from the LG Group
Changed company name to LSIS
Completed electric power and automationequipment production plant in Wuxi, China
2007. 02 Established sales subsidiary in Dubai

Advancing asa global leader

10
2011. 1011
2012. 122013. 1111
2014. 05

Relocated head office (to LS Tower in Anyang)
Established sales subsidiary in Europe
Incorporated LS Mecapion as a subsidiary
Established LS Sauter
Completed plant in Busan
Spun off the Metal Processing Business Unit
(currently known as LS Metal)
Established sales subsidiary in Japan
Completed HVDC plant in Busan
Named one of the 500 Fastest Growing
Companies by Fortune Korea
Established sales subsidiary in the US
Received the 500 Million Dollar Export Tower
Award
Awarded at the 39th National Quality
Management Convention
Received the 49th Gold Tower Order ofIndustrial Service Merit on Invention Day

Opening up the future ofsmart energy

2017. 0306
2018. 1212
2019. 0812
2020. 0307
2021. 01
03
03
09
2022. 03
04
09
10
10
10
11

Declared the guiding principles of value management
Completed R&D Campus
R&D Campus acquired BEMS certification as a first in Korea
R&D Campus acquired certification for establishing the first
ESS for emergency power supply
Listed on the Global Top 100 Companies of patentapplications in Europe
Awarded as Korea’s Best Enterprise for10 consecutive years
Received the Minister’s Award at the Korea
Technology Awards
Acquired the ESS business sector of Parker-Hannifin,a US-based company
Completed the world’s largest self-sufficient DC
energy island on Seogeochado
Established holding company in China
Changed company name to LS ELECTRIC Co., Ltd.
Established Yeongam Photovoltaic Power Plant with
94MW capacity, the largest in Korea
Announced the LS ELECTRIC vision of“Drive Change for 2030”
Named one of the world’s top 100 Innovative
Companies for 10 consecutive years
Acquired LS ITC and AC&T as subsidiaries
Named Lighthouse Factory by the World Economic
Forum (WEF)
Took over MCM Engineering II of the US
Spun off the EV Relay Business Unit
(currently known as LS e-Mobility Solutions)
Established sales subsidiary in Indonesia
Established sales subsidiary in Spain
Declared ESG management
Completed construction of Bac Ninh Plant in Vietnam
Established joint venture in Turkey (LSAS)

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the World
Message from the Chairman
Company Profile

Global BusinessBusiness Overview

Global Business❶

Amsterdam
Madrid❸Moscow

VeronaShenyang
DalianBeijing
QingdaoNanjing
Wuxi
ShanghaiChengduGuangzhou

Istanbul

Our ESG Journey
Our Sustainability Management❷

Appendix

Bangkok

Dubai

Bengaluru❺

Seoul Office

Head Office/R&D Campus
Cheonan Plant
Automation R&D Center

Tokyo

Cheongju Plant
Electric Power R&D Center
Power Testing & Technology
Institute

Hanoi

Enoch

IrvineBusan Worksite
HVDC R&D Center

Ho Chi Minh

Singapore

ChicagoBostonCharlotte

Jakarta❹

LS ELECTRIC set a mid- to long-term vision for each overseas market to broaden its

Domestic Subsidiaries (as of Dec. 31, 2022)

global business presence. In addition to pursuing the evolution of our existing businesses, we are discovering new business opportunities and strengthening the basisof business operations to take a tailor-made approach to each local market.

Manufacturing copper
tubes and STS pipes

Yongsan-gu, Seoul, Korea❶ Europe
Accelerating growth
mainly in the renewableenergy market

07❷ Middle East &Southwest Asia

❸ China

Strengthening direct sales
through localization❹ Southeast Asia
Focusing on the sale of strategic
products and project development

Strengthening businesscapabilities for power
equipment and systems❺ North America
Delivering global products and solutions,tapping into the Central and
Latin American markets● Head Office● Seoul Office● Domestic Worksites

Manufacturing industrial
electronic equipment
Dalseo-gu, Daegu, Korea

Selling BAS/IBS and
GBS systems

Anyang-si, Gyeonggi-do, Korea

AnyangYongsanCheongju, Cheonan, Busan● Domestic R&D

R&D Campus (Anyang), Electric Power R&D
Center (Cheongju), Power Testing & Technology
Institute (Cheongju), Automation R&D Center(Cheonan), HVDC R&D Center (Busan)● Overseas Holding

Shanghai (China), Chicago (US)● Overseas Produc-

Wuxi (China), Dalian (China), Hanoi (Vietnam),Charlotte (US), Enoch (US), Istanbul (Turkey)

Centers

Companytion Subsidiaries

Providing total IT
services

Yongsan-gu, Seoul, Korea

Manufacturing industrial
communication equipment

Anyang-si, Gyeonggi-do, Korea● Overseas Sales

Amsterdam (Netherlands), Dubai (UAE),
Tokyo (Japan), Chicago (US), Istanbul (Turkey),
Jakarta (Indonesia), Madrid (Spain)● Overseas Branches

Shanghai (China), Beijing (China), Guangzhou(China), Qingdao (China), Nanjing (China),
Chengdu (China), Shenyang (China), Tokyo (Japan),Hanoi (Vietnam), Ho Chi Minh (Vietnam),Moscow (Russia), Bangkok (Thailand), Irvine (US),Singapore (Singapore), Bengaluru (India),
Verona (Italy), Boston (US)

Subsidiaries● Overseas R&D

CenterWuxi (China)

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the World
Message from the Chairman
Company Profile
Global BusinessBusiness Overview

Our ESG Journey
Our Sustainability Management
AppendixBusiness Overview
Leading CFE (Carbon Free Electricity) through DX-based Electrification and Efficiency Improvement
In line with carbon neutrality, RE100, and expansion of electric vehicle distribution, the world has entered the phase of energy transition focusing on electrification and efficiency improvement.
In addition, the spread of the DX (digital transformation)-based renewable energy and distributed power network is accelerating,and the structure of power system is transforming toward a decentralized distribution network.
Such environmental change is sweeping through the world as a gigantic wave that can completely turn around the market structure.
LS ELECTRIC will take the changes in the market environment as an opportunity for advancement to the next level.
In responding to changes in the business paradigm, we will establish an eco-friendly system across our products and processes.
Likewise, by preemptively identifying market and customer needs, we will develop a variety of products, solutions, and business based on the DX.
Through the effort, we will grow as a carbon-free electricity leader in the era of carbon neutrality.

Electrification

Efficiency

Smart electric power solution partner contributing to
the reduction of carbon emissions

Leading a sustainable future by providing anefficient, smart manufacturing environment

LEADING CARBON FREE ELECTRICITY

08

2022-2023 LS ELECTRIC
Sustainability Report

Business Overview LS ELECTRIC’s Eco-friendly Strategies to Provide a Warm, Healthy Environment to the People

LS ELECTRIC Bringing Lightto the World
Message from the Chairman
Company Profile
Global BusinessBusiness Overview

Our ESG Journey
Our Sustainability Managementtrenu r te mt C Sysce
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9. Cha

1. Renewable Energy Power Station Despite the difficulty in securing photo-

3. High-voltage Direct Current (HVDC) Transmission System The
high-voltage direct current (HVDC) transmission system transmits power inthe DC state and converts it into AC power in the area of consumption. Compared to the existing AC transmission, this system reduces the amount of
power loss. In particular, it produces exceptional efficiency in renewable energy transmission or long-distance power transmission.

provide a total solution from ESS design to procurement and construction. Together with Korea Electric Power Corporation, we are building a 56MW ESS at
Yeongju Substation. With the stable implementation of the project serving as
momentum for entry into the European market, we are currently working on a
50MW ESS project in Botley, UK.

6. High-voltage Transformer The 154kV natural ester
oil-immersed power transformer is an eco-friendly transformer that uses natural ester oil instead of mineral oil. Natural ester oil is highly biodegradable, so it can prevent environmental pollution in case of accidents such as oil leak. In
addition, as the minimum combustion temperature is low,
the risk of fire and explosion is low. Moreover, by extending
the lifespan of the transformer, the environmental impactof the product can be reduced.
Power Distribution
7. MCCB Smart MCCB is a product developed by applying
digital technology to the existing molded case circuit breaker (MCCB). With the metering and measuring functions fortransmission line and load protection strengthened, it collects and analyzes data and examines and maintains devices through connectivity between low-voltage devices. In addition, product stability was enhanced and environmental
impact was eased through the application of halogen-free

Power Transmission

2. ESS To address the issue of instability in the renewable energy system, we

09

Power Transformation

Power Generation

project. This is a fuel cell project of the largest scale in Korea.

of the flexible AC transmission system (FACTS) keeps thevoltage consistent by constantly regulating reactive power.
Ensuring the efficient operation of and voltage stabilization
for power transmission and transformation facilities, FACTS
addresses the instability of renewable energy sources.

ab ionew t a t
en er SR.
1 ow
P

voltaic equipment due to COVID-19, LS ELECTRIC completed the 100MW photovoltaic power station on Imjado Island within the time limit. We also participatedin the 200MW resident-led photovoltaic power project on Bigeumdo Island as
a first in Korea; thus contributing to increasing local residents’ income and activating the local economy. In addition, we received a 110MW-class fuel cell power
generation EPC contract for the Gyeongju Wangsin Fuel Cell Power Generation

5. Flexible AC Transmission System (FACTS) STATCOM

4. Gas Insulated Switchgear g3 170kV GIS is an eco-friendly GIS (gas in-

sulated switchgear) whose insulation medium SF6 gas is changed to g3 Gas(NOVECTM 4710+O2+CO2). LS ELECTRIC succeeded in the 170kV and 50kV-classeco-friendly GIS development as a first in the world. Providing the same functions and performance as those of the existing GIS, this product contributes
to reducing GHG (greenhouse gas) emissions by lowering the global warming
potential (GWP*) by at least 98%.
*GWP: GWP, which stands for global warming potential, expresses the degree by
which each GHG contributes to global warming based on the impact of carbon
dioxide on global warming.

materials to the case and cover.

8. Switchboard Switchboard is a type of panel making up

devices that provide two functions: power energization toreceive electric power from the power station and power
distribution to distribute power to each user. LS ELECTRIC’s
switchboards offer high barrier function and high reliability,
so they are widely used in residential and commercial build-ings as well as power generation and substation facilities.

End User
9. Electric Vehicle Charging Station LS ELECTRIC contributed to improving electric vehicle drivers’ access tocharging infrastructure by connecting electric vehicle
charging stations to LPG stations located in major cities
across the country. Having established power banks withcapacity of 400kW in five locations, we plan to upgrade thecharging infrastructure further by applying photovoltaic
and ESS technologies.

2022-2023 LS ELECTRIC
Sustainability Report

Business Overview LS ELECTRIC’s Eco-friendly Strategies to Provide a Warm, Healthy Environment to the People

LS ELECTRIC Bringing Lightto the WorldPower Solutions

Message from the Chairman

GridSol CARE

E-Health Portal

Smart Panel SAFEGUARD

ment platform whose reliability, safety, convenience, and ef-

service is comprehensively provided. When a customer requests

safety, convenience, and efficiency through the application officiency are strengthened through the application of digitalinspection online (app, web) on a power facility in operation, LS

the exclusively designed software (Gridsol Powertalk) and LS

Our Sustainability Management

technologies and IoT-based smart devices. GrisSol CARE is con-

ELECTRIC’s professional personnel not only checks the environ-smart power devices, especially reliable breakers. When electricAppendix

tinuously expanded to include various solutions and systems

ment and safety of the power facility but also provides facility

accidents or fires occur, the customer is accurately notified ofincluding GridSol SCADA and GridSol FEMS. We provide ourlifespan information. This is an O2O (online to offline) power fa-

the location in real time. Therefore, the damage caused by thecustomers with optimal solutions ranging from the integrated

cility management service to provide customers with convenientaccident is minimized, and the fire spread is prevented.

monitoring of individual solutions and systems to the integrat-

and stable power facility operation support. As cloud-based ser-ed software package for asset management.

vice is provided through computer and mobile devices concur-

Company Profile
Global BusinessBusiness Overview

Our ESG JourneyThis is LS ELECTRIC’s integrated digital power facility manage-

This is a web portal where LS ELECTRIC’s power facility inspection

rently, our customers can access the power facility inspection
service whenever, wherever.

10

This low-voltage distribution board solution offers improved

2022-2023 LS ELECTRIC
Sustainability Report

Business Overview LS ELECTRIC’s Eco-friendly Strategies to Provide a Warm, Healthy Environment to the People

LS ELECTRIC Bringing Lightto the World

Microgrid, a Self-sufficient Power Network

Virtual Power Plant Collecting Renewable Energy

Message from the Chairman

Microgrid is a new-concept small-scale power system where-

Virtual power plant (VPP) is a solution that connects and in-

Global Businessin energy is internally generated, saved, supplied, and con-tegrates small-scale dispersed energy sources and operates

sumed in a building, a complex, or a region based on various

Company Profile

Business Overview

them as one virtual power plant based on ICT, such as AI, big

DC Island on Seogeochado

dispersed power sources. Power system efficiency is im-

data, cloud, and communication technologies. Renewable en-

Our ESG Journey

proved as the energy consumer can internally control powerergy power generation is key to climate change response andgeneration and consumption. Receptivity to renewable en-

carbon neutrality. However, the amount of renewable ener-

Our Sustainability Management

ergy power generation is increased as well, which can leadgy power generation is not consistent as small-scale facilities

to carbon reduction. In addition, it enables energy supply to

are distributed across numerous regions and the system isareas where power supply is difficult, such as island regions;affected by weather conditions. Therefore, as a weakness, itthus contributing to improving energy accessibility.

is difficult to operate the renewable energy power system sta-

Appendix

bly. VPP is one of the important technologies for addressing

LS ELECTRIC is participating in and leading various verifica-

this issue and achieving efficient renewable energy use. It nottion projects. Based on expertise built through project expe-

only increases the stability and reliability of power system byriences, we successfully established a DC island on Seogeo-

resolving the issue of instability but is also essential for fulfill-chado which lacks power infrastructure.

ing our vision of “Futuring Smart Energy.”

The microgrid system established on the DC island connects

Using an internally developed system, LS ELECTRIC has partic-

renewable energy sources with a low-voltage DC distribu-

ipated in the renewable energy power generation prediction

tion network. The system is configured for independent op-

system of the Korea Power Exchange since the fourth quartereration through internal energy generation and consump-of 2022. To upgrade the prediction performance and improvetion for around 70 households on the island. In addition,

the system, we are securing resources for participation in thethrough an MOU with Uiwang City, we will establish a “Car-

Jeju region.

bon neutrality Park” using microgrid technology on Beagun

Following the prediction system, we will participate in a pilot

Lake and reduce carbon emissions from the park.

project to build related experiences and capabilities. Moving
forward, we will expand the overseas VPP business based oncapabilities secured in Korea.

11

Population

130

Approx.

No. of Households

70

Approx.

Photovoltaic Power

200 kW

Wind Power

100kW

ESS

1.5 MWh2022-2023 LS ELECTRIC
Sustainability Report

Business Overview LS ELECTRIC’s Automation Business for Comfortable and Safe Living

LS ELECTRIC Bringing Lightto the WorldLS ELECTRIC’s Automation Business consists of the manufacturing

Company Profile

tems, and distribution of thermal image monitoring and control sys-

2

Message from the Chairman
Global BusinessBusiness Overview

of industrial automation products, manufacturing and sale of andmaintenance service for industrial communication devices and sys-

3

Delta Robot

This is an articulated parallel link robot that has several
arms with one motor. The Delta robot improves
productivity by accurately and swiftly moving products
in a factory line.

tem. We also establish smart factory systems suitable for corporate
establishments to contribute to production rate improvement andOur ESG Journey

defect rate and processing cost reduction. Our key products include

Our Sustainability Management

automation system, and industrial communication equipment andAppendix

HMI

This is a touchscreen that helps operators check thefacility conditions and commands through real-timemonitoring on the operating states of various kindsof production equipment in the field.

PLC, AC drive (inverter), HMI, servo, automation system, building
system, and our customers include automotive, battery, electronic,
semiconductor, and display facility makers, IT companies, smart factory companies, local governments, and companies specializing inenergy efficiency improvement.

1

InverterSupplying power to a motor by converting thevoltage and frequency of power to suitable levels,
inverter is a device that controls the motor speed.
By controlling the motor, which moves only in single speed, according to situations, the inverter
reduces unnecessary energy consumption andensures efficient machine operation.

12

7

RAPIEnet+

This is a hybrid communication solution that
integrates the international standard-based LS
industrial Ethernet RAPIEnet communication
with the universal Modbus TCP/IP and EtherNet/
IP communication technologies. Capable of ring
control, it is effective in reliability improvement
and wiring reduction based on the integrated
network configuration with other models.

6

DEXA

This is a software solution that provides
diagnosis, monitoring, and backup functions
for various networks. Keeping engineering
data in the latest version, it minimizes therecovery time when an anomaly occurs.

5

SERVO

This device precisely drives the motor through feedback according to the accurate location and speed
instructed by the higher control unit.
4

PLC

Serving as a brain in the automation process, PLC
controls the overall machine operation, making
sure that the machine is operated in the set orderand under the set conditions.

2022-2023 LS ELECTRIC
Sustainability Report

Business Overview LS ELECTRIC’s Automation Business for Comfortable and Safe Living

LS ELECTRIC Bringing Lightto the World

Automation Solutions

Message from the Chairman
Company Profile

EdgeHub Connecting OT and IT with Data

Tech Square, a Smart Factory Service Platform for SMEs

Business Overview

EdgeHub is an edge computing* solution to process and ana-

LS ELECTRIC operates the “Tech Square” platform to help small

Our ESG Journeylyze data collected by connecting various assets in the OT (oper-and medium-scale manufacturing companies from various in-

Korea

ational technology) area and exchange the data freely with the

dustries successfully resolve issues on hand and communicate
with one another. Tech Square provides manufacturing com-

As a first in Korea, LS ELECTRIC completed an automation line

Our Sustainability Management

IT (information technology) system. It plays the role of collect-

Appendixing, saving, analyzing, delivering, and visualizing facility data

panies with plans for competitiveness improvement or services

through a link to the facility monitoring sensor, facility control

for stable smart factory development. With help from experts

PLC (programmable logic controller), and MES (manufacturingin the respective fields on Tech Square, manufacturing compa-

execution system), etc. The flexible and scalable edge comput-

nies can establish development roadmaps optimized to theiring environment enables agile response to the variable man-factories and strengthen factory competitiveness. In addition,

ufacturing sites. In the hyperconnected era, it is also used toby collaborating with competent solution suppliers depending

search the direction for manufacturing innovation and identify

on the factory situation requiring various solutions and sys-data values swiftly.

tems, companies can create optimal smart factories.

Global Business*Edge Computing: A technology for processing enormous volumes ofdata in real time through dispersed small servers

13

CASE STORY

Established Automation Line for Finished Cars as a First in

for finished cars using only domestically developed automation technologies. We provided key automation solutions forautomobile manufacturing processes such as PLC, HMI, servo, and inverter as well as RAPIEnet applied to the automobile processing line of the GGM factory located in Gwangju
where Casper is manufactured.

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Commitment to ESG

LS ELECTRIC from the
Stakeholders′ Perspective
Integrated Control of ESG
Management
ESG Highlight

Our Sustainability Management
Appendix

Our ESG Journey
14

Our Commitment to ESG

15LS ELECTRIC from the Stakeholders’ Perspective

16

Integrated Control of ESG Management

17

ESG Highlight18

2022-2023 LS ELECTRIC
Sustainability Report

Our Commitment to ESG

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Commitment to ESG

LS ELECTRIC from the
Stakeholders’ Perspective
Integrated Control of ESG
Management
ESG Highlight

Our Sustainability Management

ESG Management Team

Yu-Seok Hong

LS ELECTRIC established the ESG strategies and system in 2022 and internallyand externally declared ESG management at the ESG management declaration
ceremony on October 4. In 2023, we will solidify the basis for advancement as
an ESG leading company by faithfully implementing the strategies and tasks established last year. In particular, we will actively take part in the climate change
response by embodying the “Carbon Neutrality by 2040” strategy and promoting joining the RE100 as a principal methodology. In addition, we will spread our
ESG management to internal and external stakeholders and create a channel
through which stakeholders can participate in the ESG management practice.

Environment & Safety Team

Jun-Pyo Ko

LS ELECTRIC established the ISO 14001 environmental management system inorder to advance as a global environmental management company. Based on
the system, eco-friendly management activities are continuously performed
across domestic worksites such as compliance with environmental regulations, pollutant discharge reduction, improvement of waste recycling rate, andenergy saving. In addition, considering the industrial characteristic of having a
number of high-risk operations, we dedicate efforts to discovering risk factors
in worksites, achieving improvement, and consequently reducing the risk ofaccidents. Based on the belief that QCD (quality, cost, delivery) without safety
guaranteed is meaningless, we will dedicate utmost effort to creating a safety
management culture that is faithful to the basics.

Appendix

The compliance activities of a company are the most fundamental element
to increasing the sustainability of the company and also the driving force forthe company to grow together with customers and society. To this end, theCompliance Management Team will strive to contribute to establishing a compliance culture based on autonomy and responsibilities of all employees andsolidify the trust of internal and external stakeholders further. From the shortterm perspective, we will expand the application of compliance training to
subsidiaries and overseas worksites. From the mid- to long-term perspective,
we plan to introduce stricter compliance management criteria than the statutory requirements through the internal fair trade and compliance program.
Ultimately, we will achieve “zero compliance issues” by promoting the internalization of compliance awareness in all employees.

15

Public Relations Department

Soo-Jeong Kim

Compliance Management TeamKi-Ho Jo

Among the E, S, and G elements of ESG practice, the Public Relations Department focuses on social contribution and environmental management throughlocal communities. There have been a number of cases where eco-friendly social contribution activities were performed together with local communities.
Taking a step further, we will search for more systematic and efficient activities
and consequently solidify our role as a leader in addressing local environmental issues. In addition, we will conduct in-depth research for advanced ESG
activities, such as securing biodiversity whose necessity is on the rise, and announce and spread the outcomes internally and externally through the website, webzine, and Intranet.

As human rights management is a critical part of ESG management practice,
LS ELECTRIC is committed to “people-oriented” corporate operation. In addition to compliance with the labor-related law and regulations, securing employee diversity and creating a healthy organizational culture are the basisof our philosophy for ESG management. In 2023, we will establish a management system to respect human rights by announcing the “LS ELECTRIC Human
Rights Management Declaration” through which we promise compliance withinternational standards for human rights, such as the Universal Declaration of
Human Rights of the UN and domestic labor-related statutes. We will provide
support for creating a good workplace for employees from the perspectives oflabor, human rights, talent securing, safety, development of human resources, health, welfare, and organizational culture and improving corporate value
while enhancing employees’ awareness through the ESG practice.

Win-Win Growth Team

Ouk-Keun Yoo

GHR Team

Kyu-Tae Choi

To achieve sustainable growth together with suppliers, LS ELECTRIC is strivingto spread a fair trade culture within the supply chain and helping suppliers develop global competitiveness. We also conduct various communication activities and operate supporting programs to establish a shared growth culture.
In addition, as corporate ethics and social responsibilities are emphasized, we
will improve suppliers’ awareness of ESG management and form a consensus
on ESG management by establishing the Supplier Code of Conduct. We willcontinue dedicating effort to creating a responsible, eco-friendly supply chain
by implementing various policies and carrying out support activities.

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC from the Stakeholders’ Perspective

LS ELECTRIC Bringing Lightto the World

Employees

Our ESG Journey

Our Commitment to ESG
LS ELECTRIC from the
Stakeholders′ Perspective
Integrated Control of ESG
Management
ESG Highlight

Our Sustainability Management
Appendix

Power Solution Contractor
Sales Team

Chan-Hui Park

LS ELECTRIC is committed to communicating with stakeholders continuously
regarding its ESG management plans and performances, such as publishing
the annual Sustainability Report since 2015. LS ELECTRIC is taking the lead inbolstering stakeholders’ ESG awareness through ESG volunteer group activities, ESG management declaration, and internal ESG magazine publication.
As a result of the efforts, the Company is receiving excellent reviews from domestic and international ESG assessment agencies each year. ESG management must be promoted by all, not by a specific few. Therefore, it is importantto solidify the basis for ESG management through a process of identifying andmonitoring the ESG-wise strengths and weaknesses of each organization.

Shareholders

LS Sustainability
Management Team

Seung-Ho Lee

Suppliers
Through partnership based on mutual communication and trust, LS ELECTRIC
has grown over the last 38 years together with SSIS.
LS ELECTRIC prepares the foundation for suppliers’ growth by not only providing mentoring service but also operating technological and financial support
programs. In addition, it spreads its strong commitment to ESG management
promotion to suppliers. As such, I believe LS ELECTRIC is making various efforts
for growth as a global enterprise. With support and guidance from LS ELECTRIC, SSIS will achieve shared growth and dedicate the best effort to becoming
a company that contributes to the smart energy industry development.

Local Communities
SSIS

Hwa-Yeong Wu

ESG Experts

16

PwC

Yeong-Chang Yun

Among the LS Group subsidiaries, LS ELECTRIC, I believe, is the most active inpracticing ESG management. From eco-friendly activities including carbon reduction and expansion of eco-friendly products, social contribution activities
carried out together with suppliers and local communities, and safety activities conducted in the manufacturing and product installation sites to governance improvement activities for shareholders, the Company promotes E, S
and G practice in a balanced manner. In particular, by performing various activities including the promotion of carbon neutrality by 2040, LS ELECTRIC willlead CFE (carbon free electricity) as the LS Group’s vision for 2030. I hope that,in the ESG era, LS ELECTRIC will further improve its corporate value by making
use of its strengths in the electricity field.

LS ELECTRIC leads various business areas that play pivotal roles in the transition to a carbon-neutral society. In terms of ESG management practice, I highly evaluate LS ELECTRIC for setting the goal of achieving carbon neutrality by
2040 and continuously investing in the development of eco-friendly products.
For LS ELECTRIC to achieve growth as a global enterprise, it will need to focus
on fostering competent human resources to lead innovation and market creation and continuous improvement of ethical business operation system considering the characteristics of the EPC industry. I look forward to LS ELECTRIC’s
ESG management contributing to the company’s business growth and corporate value improvement.

Sponsoring the Anyang-si Senior Citizens Welfare Center in the developmentof welfare services for senior citizens, LS ELECTRIC is a partner of Anyang City
that actively supports joint development. LS ELECTRIC is an exemplary company that fulfills its social responsibilities in local communities, such as donatingcold weather gear and continuously participating in the dietary improvement
activities to improve the quality of life of the underprivileged senior citizens. I
hope LS ELECTRIC will continue performing as a mediator that brings a better
future to the underprivileged in the local communities by producing synergy
using its physical and human resources together with welfare centers.

Anyang-si Senior Citizens
Welfare Center

Eun-Seon Yang

2022-2023 LS ELECTRIC
Sustainability Report

Integrated Control of ESG Management
ESG Management Promotion Strategies

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Commitment to ESG

LS ELECTRIC from the
Stakeholders′ Perspective
Integrated Control of ESG
Management

For advancement as a global leader that achieves sustainable growth and creates the future of smart energy, LS ELECTRIC internally and externally declared ESG management on October 4, 2022 under the ESG management vision of “Sustainable Future with Green Energy Solution.” Toestablish transparent and advanced governance, we established the ESG Committee under the BOD to deliberate and resolve on key ESG-related policies and strategies. Likewise, for systematic ESG management promotion, the ESG Management Team was established to lead the internal and external ESG management dissemination. In addition, the ESG Council is operated with executives and organizational leaders from var-

ESG Council

Appendix

ESG Committee
ESG Management Team

(Subsidiary ESG Meeting) is held to spread ESG management to subsidiaries and overseas worksites.

LS ELECTRIC’s ESG Strategy System

Board of Directors

Executive Director in charge of
ESG/CEO

ious internal value chains in order to implement the ESG tasks systematically and respond to various ESG issues efficiently. Moreover, the SEM

ESG Highlight

Our Sustainability Management

ESG Organization

SEM(Subsidiary ESG Meeting)

ESG Management Improvement Direction
STEP 1

MissionWe open up a brighter future through efficient and convenient energy solutions

VisionStabilize the ESG strategic system
Select and operate KPIs
by value chain to spread
ESG management

Form employees’ consensus
for and internalize
ESG management

STEP 2Upgrade and expand the application of ESG strategy system
ESG
Management
Vision

ESG Directivity

SUSTAINABLE FUTURE WITH GREEN ENERGY SOLUTION

REDUCE Carbon Emission

RESPECT Society

RESPONSIBLE Business

Establish the ESG management
system with investors
and suppliers

STEP 3Create a sustainable future
Stabilize ESG management

Eco-friendly management tocontribute to carbon neutrality

17

Safe and happy working
environment

Ethical, transparent, andresponsible management

Establish the
ESG disclosure system

Advance as a global ESG leader

2022-2023 LS ELECTRIC
Sustainability Report

ESG Highlight2022

LS ELECTRIC Bringing Lightto the WorldG1

LS ELECTRIC from the
Stakeholders′ Perspective

S1

May
Entered into abusiness agreementfor digitaltransformation
with MS

Integrated Control of ESG
Management
ESG Highlight

Our Sustainability Management

March
Appointed female
outside director

Our ESG Journey

Our Commitment to ESG

ENVIRONMENTAL

S2Appendix

G2

July

To promote eco-friendly management, LS ELECTRIC vowed to achieve carbon neutrality by 2040.
For active participation in the climate change response, we plan to achieve 40% reduction in carbon emissions by 2030 compared to 2021, and100% reduction by 2040. To this end, we pledged
to promote energy-saving activities continuously
by worksite and implement the RE100 initiative
through the Renewable Energy Certificate (REC)purchase and power purchase agreement (PPA).

In recognition of its environmental improvement performance and eco-friendly activities, LS ELECTRIC Cheongju Worksite won the Minister of Environment Award at theGood Green Company Awards 2022. LS ELECTRIC scored high in a number of categories,
such as zero carbon emissions, active participation in environmental policy implementation, establishment of environmental management system, eco-friendly product development, environmental pollutant control, and ESG management. The KRW 10 million
prize money was donated to the Cheongju-Chungcheongbuk-do Regional Office of the
Korea Federation for Environmental Movements for use in response to climate crisis in
the local community and river-cleaning activities.

L S ELEC TR IC's Cheongju
worksite entered into abusiness agreement with
Cheongju City for waste battery recycling activation. LS
ELECTRIC will actively cooperate with Cheongju City in contributing to the creation of a sustainable resource circulation society by activating the separate discharge of waste batteries andincreasing the collection amount.

October

S1 Business Agreement for Digital

S2 ESG Volunteer Group “Hi Light”

S3 D esignation as a Good Design Product by the

LS ELECTRIC entered into a strategic partnership agreement with Microsoft (MS)for smart working environment creation
through safe digital transformation. LS ELECTRIC will increase the agility of working andconsequently improve operating efficiency
by using Teams, the integrated cooperation
solution of the LS Group, and establish acloud-based global business system.

The first Hi Light volunteer group consisting ofaround 50 university students from across thecountry and LS ELECTRIC employees as mentors
performed volunteer work for two days in a rural
region of Cheongju City. Founded with the goal of“bringing light to local communities,” Hi Light contributed to improving the residential environment
by repairing farmhouses in Cheongju City. It also
played a part in local community development by
throwing EM clay balls at Miwon Stream for ecological environmental improvement.

At the Good Design Awards 2022 hosted by the Ministry of Trade,Industry, and Energy, four of LS ELECTRIC’s power and automation
products—S300 Drive Series, Smart ACB (air circuit breaker), Delta
Robot, and L100 Drive Series—were selected as Good Design products and given the Good Design mark. S300 Drive Series in particular received the Minister of Trade, Industry, and Energy Award (Silver
Prize), in recognition for not only its performance but also design
excellence. Moving forward, LS ELECTRIC will increase competitiveness to make a contribution in terms of the functional aspect of
products while exposing the PI (product identity).

Declared carbon
neutrality

S3

NovemberNamed Good Design
Product by the
Ministry of Trade,Industry, and Energy

Transformation with MS

December

Won the Minister ofEnvironment Award
as a Good Green
Company

2023

18

E3 A greement for Waste Battery Recycling

SOCIAL

E1

E3

 inister of Environment Award as a Good Green Company
E2 M

Launched the ESG
volunteer group“Hi Light”

Held the ESG
management
declaration ceremony

E2

E1 Carbon Neutrality Declaration

March
Entered into anagreement for waste
battery recycling

GOVERNANCE

G1 Appointment of Female Outside Director

G2 ESG Management Declaration Ceremony

LS ELECTRIC improved the gender diversity of the directors by appointing
Professor Won-ja Song from the Division of Business Administration, University of Suwon as an outside director at the general shareholders’ meeting inMarch 2022. We will continue appointing directors based solely on expertise and capabilities without discrimination in terms of gender and age, etc.
By doing so, we will organize the BOD to be equipped with diversity and expertise so that it can represent the rights and interests of shareholders andstakeholders in a balanced manner and, at the same time, create a transparent, professional governance system.

LS ELECTRIC took the first step toward sustainable growthby holding the ESG management declaration ceremony inorder to respond actively to the management paradigm
shift to ESG. Under the slogan “Sustainable Future with
Green Energy Solution,” we will practice eco-friendly management to contribute to carbon neutrality, create a safeand happy working environment, and promote ethical,
transparent, and responsible management; thus creatinga sustainable future.

Ministry of Trade, Industry, and Energy

2022-2023 LS ELECTRIC
Sustainability Report

ESG Highlight
Domestic

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Commitment to ESG

LS ELECTRIC from the
Stakeholders′ Perspective
Integrated Control of ESG
Management
ESG Highlight

Our Sustainability Management

KCGS

RatingSUSTINVEST

A for 4 years in a row

The Korea Corporate Governance Service (KCGS) is Korea’s leading ESG
assessment agency that evaluates the sustainability management oflisted companies. LS ELECTRIC has obtained a rating of A for four years
in a row since 2020. In 2022, we successfully maintained the rating evenas the rating of many companies fell following the tightening of assessment criteria.

SUSTINVEST is an ESG assessment and research agency based in Korea.
It conducts ESG assessment twice a year (first and second halves) targeting domestic listed companies. In the first and second halves of2022, LS ELECTRIC received overall rating of AA and rating of A by scale.

0

1

S

(Exceptional)

A+

13

14

10

A

B+

B

35

28

LS ELECTRIC

C

RatingA by scale(Unit:%)

AppendixAA

Overall rating
Rating

Institute for Sustainable Development (Who’s Good)LS ELECTRIC

7.5
D

AA

(Very Weak)(Very Good)

18.5
A

29.7

The Institute for Sustainable Development is an AI-based ESG assessment agency. In 2022, LS ELECTRIC scored 67 points, 47 points, and 60
points in environmental, social, and governance categories, respectively,
for an integrated rating of A.

(Unit:%)

20.5

BB

17.8

B

C

A

Environmental

67points

4.9
D

Rating

1.2

Governance

47points

60points

Integrated ESG Rating

RatingA

LS ELECTRIC

AAA

E(Very Poor)

Social

AA

High

A

BBB

C

B

CCC

Low

Overseas
MSCI

A

3 years in a row

RatingforSustainalytics

Low

24
4

11

AAA
AA
(Leader)A

Sustainalytics is a risk management-based
ESG assessment institute supervised by
Morningstar. LS ELECTRIC received a Medium Risk rating in 2021. With our ESG
management performance recognized,
however, we acquired a rating of Low Risk
in 2022.

7

BBB

18
BB

22

BB

C

42points

S&P Global ESG assessment is conducted by
global financial information provider S&P
through the acquisition of Switzerland’s
SAM, a sustainability management assessment agency. Each year, it comprehensively
assesses the economic, environmental, andsocial performances of businesses. In 2022,

As a nonprofit organization of the UK,
CDP manages the carbon emissions ofmajor listed companies across the world.
LS ELECTRIC received a C rating in the climate change category. We will promote
improvement in the CDP rating by implementing and upgrading the carbon neutrality strategies established in 2022.

Eco-Vadis is a CSR assessment platform
where global suppliers’ environmental
and social performances are assessed. It
assesses the ESG performance of around50,000 companies from 190 industries in
150 countries across the globe. LS ELECTRIC scored 42 points.

improvement year on year.

15
CCC(Laggard)

Eco-Vadis

Rating(Climate Change)

LS ELECTRIC scored 33 points, a 14-point(Unit:%)LS ELECTRIC

CDP

33points

ESG Risk Rating

In the MSCI ESG assessment, LS ELECTRIC
received rating A for three years in a row.
MSCI annually assesses global listedcompanies in terms of 35 critical issues
in the 10 environmental, social, and governance-related areas.

19

S&P Global CSA

21points

LS ELECTRIC

Negligible
0

10

Low

Medium

20

30

High

Severe40+

Industry Average

33points

LS ELECTRIC

LS ELECTRIC

LS ELECTRIC

A

Leader

A-

B

B-

C

C-

D

D-

F

No Response

0

42

100

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental

Environmental Management

Creating Eco-friendly Worksites
Climate Change Response
SocialHuman Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security
Quality Management
Shared GrowthSocial Contribution
Governance

Establishing Sound Governance
Ethics Management
Compliance

Risk Management

Our Sustainability
Management

Appendix20

SocialEnvironmental
Environmental
Management

21

Creating Eco-friendly
Worksites

26

Climate Change
Response30

Governance

Human Rights Management

34

Talent Management

37

Health and Safety Management

42

Data Protection andInformation Security

47

Quality Management

50

Shared Growth

53

Social Contribution

58

Establishing Sound
Governance60

Ethics Management

64

Compliance

67

Risk Management692022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental

Environmental Management

Creating Eco-friendly Worksites
Climate Change Response

Environmental
Management
ENVIRONMENTAL

Roadmap

Recognizing eco-friendly, green management as a key element ofGoalbusiness management strategy, LS ELECTRIC dedicates every effort
to contributing to preserving the global environment and creating a

Zero-pollution/Zero-loss worksitesustainable society by fulfilling its corporate social responsibilities.
By internalizing environmental management, we will strive to create an
eco-friendly ecosystem in corporate operation and across the value chain.

SocialGovernanceDirection of Advancement

AppendixStrengthen environmental
management competency

Comply with domestic and international
environmental regulations

Secure operational excellence

Detailed Implementation Plans

2023

2024-2026

2027-

Strengthen the environmental
management system

Expand eco-friendly
management

Advance as a global eco-friendly
management leader· Establish an integrated environmental
management system for worksites· Manufacture products by introducing
eco-friendly material (Cd(cadmium)free electric breaker contact material)· Expand eco-friendly and renewableenergy businesses· Expand the purchase of eco-friendly
products (Green Certification)· Establish the LCA system for all
products· Conduct LCA (life cycle assessment)
on key product groups

21· Expand eco-friendly products· Develop an eco-friendly R&D process2022-2023 LS ELECTRIC
Sustainability Report

Environmental Management
PolicyLS ELECTRIC Bringing Lightto the World

Environmental Management Implementation System

Environmental Management Governance

Environmental Risk Management

Our ESG Journey

For its advancement as a global leader of eco-friendliness, LS ELEC-

With the Executive Director in charge of ESG and CEO in charge of

LS ELECTRIC established the risk management process to identify

TRIC established its environmental management promotion strate-

handling key issues related to environmental management, LS ELEC-

and respond preemptively to risks that can occur in the course of

Our Sustainability Management

gy of “Green Management Vision 2030,” and it is implementing the

TRIC establishes environmental management strategies and tasks

environmental management. In addition, emergency management

Environmental

Environmental Management

key tasks. We are establishing environmental policy and goals andand makes decisions on important issues such as investment.

rules have been established, and environmental accident situations

Creating Eco-friendly Worksites

performing resource management, performance assessment, andIn addition, through the quarterly company-wide Environmental Ex-

were categorized into levels A to C for swift response to and man-improvement activities in order to respond to the needs of our inter-change Council meetings, the environmental issues of each worksite

agement of emergency situations. We also inspect the status ofnal and external stakeholders including customers. In addition, inte-

are shared, and the direction for environmental management pro-compliance with environmental regulations on a regular basis andgrated management of environmental and chemical information in

motion across the Company is discussed. The organization of theinstall environmental pollution prevention facilities and apply substi-

worksites is being promoted based on the integrated ESH* manage-

Council meetings is led by the head of the Environment and Safety

tute materials to ensure compliance with the regulations.

ment system. We also remove potential environmental risks by con-

Sector under the Executive Director in charge of ESG and CEO. The

ducting annual environmental impact assessment and perform fieldrisks identified through the meetings are immediately handled byinspections on a regular basis for swift response to environmental

the environment and safety divisions of each worksite.

issues upon occurrence.

The key environmental issues are reported to the ESG Committee

In recognition of our eco-friendly management performance, we

under the BOD. Based on the reports, the ESG Committee oversees

have been selected as Green Company by the Ministry of Envi-and provides advice on the impact of key sustainability issues in-ronment since 1997. In addition, the transparency of our environ-cluding environmental issues on the Company’s business.

Climate Change Response
SocialGovernanceAppendix

mental management has been enhanced through the acquisition

Environmental Accident Response System
Risk Type

Level A

Level B

Level C

PhysicalCritical impact
on worksite/
unit process

Impact on unit
process

Impact on
facilities within
the process

Human

Seriousaccident

Lost time ofthree days andlongerLost time of lessthan three days

and continuous renewal of ISO 14001 certification, a global environmental management system standard. We will strive to create
an eco-friendly environment across the value chain by developing

Executive Director in charge of
ESG/CEO

eco-friendly products and technologies as well as promoting envi-

Head of Environment and
Safety Sector

ronmental impact reduction.
Environmental Management Policy*ESH : Environment, Safety, HealthReportingCompany-wide Environmental
Exchange Council
Divisions in Charge by Worksite

22

Cheongju Worksite

Cheonan Worksite

Busan Worksite

Environment/
Safety Team

CheonanEnvironment/
Safety Part

Environment/
Safety Team
(Busan Part)

Notification

Executive Director in charge of ESG(CSEO*)CIC COOGroup
Leader*CSEO : Chief Safety and Environment Officer

Plant Manager/
Manager of Business
Division

2022-2023 LS ELECTRIC
Sustainability Report

Environmental Management
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Goal and Performance

Environmental Risk Management Process

Our Sustainability Management

Conduct pre-environmental review

Environmental Management

Creating Eco-friendly Worksites

Develop response plan

SocialReview effectiveness

Environmental

Climate Change Response
GovernanceAppendix

No

Check suitability

Response to Environmental Legal Risks
Law

Requirement

Clean AirConservation
Act

Report air
pollutantemitting
facilities

Clean AirConservation
Act

Horizontally deploy improvement activities

Address environmental management risks

23

the amended statutes to the internal regulations. As a result, we re-Attach IoT(Internetof Things)
measuring
deviceAttach IoT (Internet of Things)
measuring device to air pollutantemitting facilities and transmit
matters related to facility
operation, etc. to the Ministry ofEnvironment management system(Green Link)

Item

ChemicalSubstances
Control Act

Comply withhazardous
chemicalhandling
criteria· Inspect facilities handling small
amounts of hazardous chemicals
in terms of toxic substances(cadmium oxide, nickel oxide)- Handling Facility: 8 welding
machines- Storage Facility: 2 cabinets· Apply substitute for methyl
alcohol as the latter was added as
toxic substance

Act on theRegistrationand Evaluationof Chemical
Substances

Registerimportedchemicals

Complete imported chemicalregistration for cadmium oxide,a toxic substance raw material
imported and used by theprocessing division

ComplianceYes

tions, LS ELECTRIC periodically reviews related statutes and applies
corded zero violations of environmental regulations in 2022. Moving

Apply to field practice in each divisionNo

To comply with domestic and international environmental regula-Complete the report completion
certification change according to
the installation of high-voltage air
pollutant-emitting facility

Yes

Review effectivenessResponse

Compliance with Environmental Regulations

forward, we will conduct thorough monitoring and ensure strict regulatory compliance in order to keep the violation cases to zero.

Environmental
Regulation Violations

Unit

Goal
Violation

Cases

2022

2023

0
0

2024

0

0

2022-2023 LS ELECTRIC
Sustainability Report

Environmental Management
Activity

LS ELECTRIC Bringing Lightto the World

Environmental Management Spread

Environmental Training of Employees and Suppliers

Our ESG Journey

LS ELECTRIC conducts various activities to spread environmental management across the Company in order to improve employees’ environ-

LS ELECTRIC provides annual environmental training to enhancemental awareness and capabilities. We will strive to encourage employees’ voluntary participation in environmental management activities andthe environmental management awareness of employees and help

Our Sustainability Management

provide a greater number of opportunities for participation.

them improve their work competencies. The training focuses on theEnvironmental

Environmental Management

Activity

Creating Eco-friendly Worksites

One Company One Forest campaign

Quarterly

Tree planting and maintenance to improve the forest's ecological function(Yeongdong-gun and Okcheon-gun, Chungcheongbuk-do)

are posted on the internal noticeboard and shared with all employ-SocialPower-saving activity

Monthly

Campaign to promote power saving during work, such as keeping the recommended
temperature for winter (20℃)

provide off-the-job training at least once a year on hazardous chem-

Green & Clean Day

5-6 times/year

Nature purification around worksites

suppliers. We also provide environmental technology support by visenvironmental management competency.

Climate Change Response
GovernanceAppendix

Cycle

Description

Introduction of preferred menu
selection system to the cafeteria

Year-round

Reducing food waste by letting employees select the menus for the next meal

Zero Leftover Day

Year-round

Activity to achieve zero food wasteenvironmental management policy and operation of eco-friendly
worksite. Moreover, when an environmental issue occurs, the details
ees. To strengthen the environmental competencies of suppliers, we
icals, greenhouse gas, and environmental regulations to 26 internal
iting the worksites of suppliers to assist in the improvement of their

Performance
Training

Description

Environmental
Training upon management
and compliances
recruitment
in worksites

One Company One Forest Campaign

Green & Clean Day

Zero Leftover Day

New
employees

Environmental
Environmental
regulation trends Environmental
engineerengineerand statutory
training
training

Trainees

Training(persons)

Hours

49

36

9

86

Environmental
Environmental
management in
training
worksites

Employees

132

461.5

Key
environmental
regulations

Suppliers22

44

Suppliers

24

Target2022-2023 LS ELECTRIC
Sustainability Report

Environmental Management
Activity

LS ELECTRIC Bringing Lightto the World

Eco-friendly Investment

Eco-friendly Power Generation

Eco-friendly Technological Patents

Our ESG Journey

As a global eco-friendly company, LS ELECTRIC sets eco-friendly

To contribute to the transition to eco-friendly energy sources, LS

LS ELECTRIC is dedicating utmost effort to eco-friendly technology

product development goals and steadily invests in product devel-

ELECTRIC is operating the photovoltaic power plants it has installed

and product development in order to expand its global business and

Our Sustainability Management

opment in order to lead the future market. In particular, we actively

at the worksites and in nearby idle sites by expanding renewable en-

secure a future growth engine. As of 2022, we have applied for pat-

Environmental

Environmental Management

invest in compact size design technology development to promoteergy infrastructure. We also promote efficient power generation andents for a total of 548 eco-friendly technologies. We also obtained

Creating Eco-friendly Worksites

production using eco-friendly materials and minimize waste dis-management using the monitoring system and ESS of our smart

patents not only in Korea but across the world as well, such as the

charges. In addition, through periodic facility repair and replace-

grid solution GridSol. Moving forward, we will contribute to GHG re-

US, China, Germany, and the UK. We will actively practice eco-friend-ment and reasonable process establishment, we are striving to im-

duction by increasing the establishment of renewable energy powerly management for our future generation by developing new tech-prove utility efficiency; thus reducing energy consumption.

generation facilities on idle land in our worksites, such as rooftops

nologies to increase future value.

Climate Change Response
SocialGovernanceand parking lots.

Appendix

Environmental Investment in 2022
Item

Eco-friendly productdevelopment

Renewable Energy Power Generation in 2022*

Development (cases)

9

Cost (KRW million)

4,054

Worksite

Photovoltaic Power

Generation

Capacity (kW)Amount (MWh)156Electric vehicle

68

1,873.00

Eco-friendly gas (g3) insulated switch

22

998

1,815.99

Total

548

4,439

7,174.99

Cheongju Plant 2

2,034

2,614.73

Busan

912

16

1,044

Hwamyeong Water
Purification Plant

Total

33

12,688

Total*100% of generated electrical power sold25

Photovoltaic power

871.27

Utility environmental
improvement

No. of Patents

302

495

7

Technology

Energy storage system

Cheongju Plant 1

Compact size design
technology

7,590

Eco-friendly Patents

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental

Environmental
EnvironmentalManagement
Management

Creating
CreatingEco-friendly
Eco-friendlyWorksites
Worksites

Creating Eco-friendly
Worksites
ENVIRONMENTAL

Roadmap

To minimize the environmental impact generated in the course ofGoalbusiness operation, LS ELECTRIC applies a strict set of internal criteria.
We will continue making effort to reduce environmental impact,

Minimize environmental impact and operate eco-friendly worksites

such as reducing pollutant discharge and achieving the inclusion ofzero hazardous chemicals in our products.

Climate Change Response
SocialGovernanceDirection of Advancement

Appendix

Reduce pollutant discharge

Strengthen waste upcycling

Achieve zero inclusion of
hazardous chemicals

Detailed Implementation Plans
2023

2024 - 2026

2027 -

Analyze environmental
impact in worksites

Operate eco-friendly
worksites

Create worksites with zeroenvironmental impact· Manage the pollutant emission target· Expand solid refuse fuel (SRF) reuse· Establish a management system for
response to the EU environmental

26

regulations (REACH/RoHS)· Replace LNG facilities withelectric facilities· Expand the installation of eco-friendly utility facilities· Acquire ZWTL*(Zero Waste to Landfill) certification· Achieve the zero inclusion of
toxic substances by developing
eco-friendly raw materials· Reduce environmental load by
discovering substitutes

2022-2023 LS ELECTRIC
Sustainability ReportCreating Eco-friendly Worksites
PolicyLS ELECTRIC Bringing Lightto the World

Establishment of Eco-friendly Worksite System

Our ESG Journey

resource circulation in the worksites, LS ELECTRIC established theWith the goal of minimizing environmental impact and maximizing

Our Sustainability Management

integrated ESH management system, and it is conducting perfor-

Environmental
EnvironmentalManagement
Management

including wastes, pollutants, and hazardous chemicals.

Environmental

mance management and monitoring by environmental indicators

Creating
CreatingEco-friendly
Eco-friendlyWorksites
Worksites

To minimize waste discharge, we sort wastes discharged from

Climate Change Response
SocialGovernanceMaterial receiving

Production

Waste generation

Waste storage

Waste treatment

Final treatment

Establish waste
reduction plan,achieve zero defects

Sort waste forcollection, transport
waste to in-housestorage

Separately store
waste by type/property

Hand over waste
to the contracted
transport company

Check the legal
treatment status,
conduct regular due
diligence/assessment

worksites according to their recyclability and lawfully treat themthrough a professional waste treatment service provider. Conformity assessment is also conducted annually by monitoring compliancewith the waste control manual. In addition, to minimize waste treat-

Appendix

Waste Management Process

ment through incineration or landfill, we promote the acquisition of
ZWTL (zero waste to landfill) certification for all worksites.
The effluent limitations do not apply to LS ELECTRIC as the entire
amount of wastewater is treated through consignment. However,
we control the impact of wastewater on the ecosystem by analyzing
the components of water pollutants in the source water. Our internal acceptance criteria for air pollutant control are 50% stricter thanPreliminary Substance Evaluation

the legal criteria. In addition, we repair and replace old air pollution· Request review on chemical use

prevention facilities to keep them in optimal condition.
At the same time, we limit the use of the six chemicals restricted for· Conduct environment/safety evaluation
on chemicals

use by the EU RoHS (Restricted Hazardous Substances): lead, cadmi-· Review related regulations

um, mercury, chrome, and flame retardants PBBs and PBDEs. Hazard identification is also conducted on chemicals before they are received into worksites for preemptive response to related legal risks.
We regularly conduct inspections on facilities for hazardous chemical handling and provide technological support for chemical management to suppliers.

27

Chemical Management System· Approve substance use and purchaseReceiving Management

Storage/Handling Management· Select the chemical storage location andreceive chemicals· Regularly inspect chemical handling andstorage facilities· Prepare receiving/shipping log· Use appropriate protective equipment· Install leak prevention facilities andorganize and train an emergency
response team· Provide training on chemicals· Conduct safety monitoring throughdaily patrolling2022-2023 LS ELECTRIC
Sustainability ReportCreating Eco-friendly Worksites
Goal and Performance

Activity

LS ELECTRIC Bringing Lightto the World

Reduction of Pollutant Emissions

Reduction of Pollutants

Chemical Safety Management

Our ESG Journey

To minimize the environmental impact of pollutants generated

LS ELECTRIC controls pollutants by setting emission limit values

The facilities used in handling hazardous chemicals are monitoredfrom worksites, LS ELECTRIC analyzes performance and establish-

stricter than the legal standards. Since 2022, our Cheongju andweekly under the supervision of the Environment/Safety Team. At

Our Sustainability Management

es environmental goals. In addition to pollutant intensity control byCheonan worksites have carried out activities for reducing season-

the same time, the environment and safety manager conducts daily

Environmental
EnvironmentalManagement
Management

worksite, we will dedicate various efforts to the continuous reduc-al particulate matter generation by participating in the voluntary

chemical safety management inspections. Status inspection is also

tion of environmental impact of our production activities.

particulate matter reduction program led by the Geumgang River

performed on chemical handling facilities in worksites once a week.

Basin Environmental Office. We also conduct regular monitoring on

To prevent chemical accidents, all chemicals used in the worksites

air pollution prevention facilities through self-measuring, and weare strictly managed according to legal criteria in the stages of use,are contributing to reducing air pollutant emissions by replacing thestorage, and disposal.

filter materials for air pollution prevention facilities with activated

LS ELECTRIC strengthens the chemical management capabilities bycarbon and bag filter. At the same time, to reduce water pollutants,

assigning professional personnel for chemical management to eachwastewater discharge facilities of the Cheongju worksite have been

worksite and having them complete related training. We continue

partially shut down, producing the result of decreasing the total

striving for swift response to related statutes and creation of a safe

Expansion of Waste Recycling

wastewater discharge from the worksite by approximately 45%.

workplace from hazardous chemicals. We also provide training and

By 2026, LS ELECTRIC plans to recycle over 99% of wastes dis-Establishment of Waste Reduction and Resource Circula-charged through expansion of investment in recycling infrastructuretion System

and activities to reduce the amount of waste generation. Our goal is

We achieved zero waste incineration for wastes generated from

Environmental

Creating
CreatingEco-friendly
Eco-friendlyWorksites
Worksites

Climate Change Response
SocialGovernanceAppendix

Pollutant

Unit

Emissions in

2023 Goal2022

Air pollutants(dust)

g/KRW million

0.44

0.42

Waste

kg/KRW million

1.59

1.54

to achieve zero waste-to-landfill across worksites from 2027 basedon continuous reduction in the amount of wastes treated throughincineration and landfill.

Waste Recycling Rate
Goal
Performance(Unit : %)

85

92.7

95

97

Cheongju Plants 1 and 2 by changing the treatment method for the 230
tons of waste synthetic resin discharged per year to solid refuse fuel28

handling was provided to 22 of the Cheongju worksite's suppliers
that use chemicals.

which is categorized as designated waste—was changed from incin-

Using Substitute for MC (Methylene Chloride)eration to recycling, which contributes to lowering the waste disposal

LS ELECTRIC substituted MC (methylene chloride), a hazardous

charges continuously. In addition, the Cheongju worksite entered into

chemical used in the stripping process, with a substance contain-

an agreement for waste battery collection and recycling activation withing no hazardous chemical by discovering suppliers and conducting

Cheongju City to establish a waste resource circulation system. Basedquality tests in each stage since October 2019.

ton, would be recycled. Through the effort, the environmental pollution
2024

In 2022, training for the management of facilities used in chemical

Reduction of Chemical Use

teries discharged from the worksite each year, which is approximately 1

2023

employees of suppliers can work in a safe, healthy environment.

(SRF). In the Busan worksite, the treatment method of waste oil paint—on the agreement, it was decided that the total amount of waste bat-2022

consulting on chemical management to suppliers to ensure that thecaused by heavy metals generated in the course of waste battery landfill and incineration was reduced, and a sustainable resource circulation
system was established.

*Waste Disposal Charges: A system of imposing and collecting charges for
waste treatment through incineration or landfill among various methods

Developing Cd(Cadmium)-free Eco-friendly Material
LS ELECTRIC developed the eco-friendly Cd(cadmium)-free electric
breaker contact material using carbon nano tube (CNT) as a first in
the world. The introduction of the new material to the manufacturing process was first promoted in 2023. Our goal is the zero inclusion of toxic substances (cadmium oxide, nickel oxide) contained in
the previously used materials in stages by 2026.

2022-2023 LS ELECTRIC
Sustainability ReportCreating Eco-friendly Worksites
Activity

LS ELECTRIC Bringing Lightto the World

Water Stress Management

Our ESG Journeywater stress index in 2023 is medium-high (20-40%), which is high-According to the World Resources Institute (WRI), Korea’s average

Our Sustainability Management

er than that in Africa. In addition, the OECD Environmental Outlook

Environmental
EnvironmentalManagement
Management

among the OECD states by 2050. For successful response to water

Environmental

to 2050 reports that Korea will be the most water-stressed country

Creating
CreatingEco-friendly
Eco-friendlyWorksites
Worksites

stress issues, LS ELECTRIC minimizes water consumption in the pro-Climate Change Response
SocialWorksite

Cheongju
Worksite

Water Stress Index

Medium - High

Water Intensity*(ton/KRW 100 million)

5.02

Water Source

Geum Riverduction process and strives to increase water reuse.

· Removing the Cooling Tower for the High-speed Processing
Room: Removing the outdoor cooling tower to reduce energy
and water consumption in order to improve cooling efficiency
through cooling system improvement· Installing Butterfly Valves at Six Points on the Output Line of Units
1 and 2 to Improve the Cooling Efficiency of the Cooling Tower:
Improving the facility for intensive de-scaling of pipeline by section
through the installation of valves to enable cleaning in each section

GovernanceAppendix

Management Activities

CheonanWorksite

Medium - High12.81

Geum River*Reducing the amount of water wasted in cleaning(1) Reduction amount (2.5 tons x twice/year x 3 units = 15 tons/year)(2) W ater consumption for the cooling tower is 2,620 tons, which
was lowered by 0.57% compared to before improvement· Promoting stable water supply and improving energy
efficiency by stabilizing the groundwater deep well operationand conducting environmental impact assessment in thesurrounding area
· Increasing water reuse by doubling the capacity of the boiler
condensate tank
Busan Worksite

Low-Medium

49.01*Water Intensity: Water consumption/production amount

29

Nakdong River · Installing a Flow Meter and Establishing a Control System in the
U/T Building: Increasing water supply efficiency by extending theflow meter installation

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental

Environmental
EnvironmentalManagement
Management

Creating Eco-friendly Worksites

Climate Change
Response
ENVIRONMENTAL

Roadmap

To minimize the impact of climate change, LS ELECTRIC strives for

Goal

GHG reduction by increasing the use of renewable energy, replacing old
and inefficient facilities, and expanding the development of eco-friendly

Achieve carbon neutrality by 2040

products. We will continue dedicating effort to achieving carbon
neutrality by 2040.

ClimateClimateChange
ChangeResponse
Response
SocialGovernanceDirection of Advancement

Appendix

Implement decarbonization strategy for climate change response

Detailed Implementation Plans
2023

2024 - 2030

2031 - 2040

Establish basis for carbon
neutrality promotion

Implement strategies for
decarbonization

Achieve
Carbon neutrality· Join the RE100 initiative· Expand renewable energy sourcing(PPA, REC purchase, etc.)· Perform energy-saving activities(replacing old and low-efficiency facilities, etc.)· Include climate change management elements in the
supplier selection and sourcing process30· Change 100% of company cars to eco-friendly vehicles· Support the establishment of supply chain carbon
emission management system and reduction activities· Promote the establishment of efficient Scope 3
emissions management
system and reduction
activities· Promote carbon-negative
strategies

2022-2023 LS ELECTRIC
Sustainability Report

Climate Change Response
Following the Paris Agreement in 2015, the international society

LS ELECTRIC Bringing Lightto the WorldOur ESG Journeyhas set the goal of limiting global temperature increase to below
2℃ compared to before industrialization, while pursuing efforts tolimit the increase to 1.5℃. Under the circumstances, the TCFD (Task
Force on Climate-related Financial Disclosures) launched with the

Our Sustainability Management

G20 Finance Ministers and Central Bank Governors presented theEnvironmental
EnvironmentalManagement
Management

ed risks and opportunities and financial impacts.

ClimateClimateChange
ChangeResponse
Response

in four areas: climate change-related governance, strategy, risk

Environmental

Recommendations for businesses to report climate change-relat-

Creating Eco-friendly Worksites

The Recommendations require businesses’ transparent disclosure

SocialGovernance

LS ELECTRIC identifies climate change risks and opportunities and systematically responds to them. The transitional and physical risks associated with climate change are identified, and response plans for the related financial impact are developed and managed. We will continue implementing effective response through careful identification of the impact of climate change on our business by upgrading the
scenario analysis technique, etc.

Physical Risk
Category
Acutemanagement, and metrics and reduction targets.
Recognizing the seriousness of the impact of climate change on
not only corporate existence but also the global environment andAppendix

Strategy

Chronic

Potential Financial Impact
Abnormal climate(heat wave, heavy rain,drought, etc.)

Average temperature rise

· Increase in production facility management cost
· Possible sourcing delay in the supply chain due toincrease in natural disasters· Increase in production facility operating cost
due to climate change

humankind, LS ELECTRIC adopted the TCFD Recommendations as
a reporting standard in order to disclose related details to stakeholders transparently. In keeping with the CFE era, we plan toestablish climate change response strategies including those fortem and transparently disclose all processes.

Category

PolicyPotential Financial Impact
Carbon tax and GHG
emissions-related
regulations· I ncrease in cost for regulatorycompliance(carbon credit purchase, etc.)· I ncrease in cost due to fines for regulatory
violations· I ncrease in cost of new production process
Technology and Increase in demand for lowestablishment
Marketcarbon power facilities· New technology development cost

Governance

Reputation

LS ELECTRIC manages and oversees the handling of key ESG is-

Demand of investors andcustomers for climatechange responsesues including climate change response strategies by establishing
the ESG Committee under the BOD. We set the mandatory climatechange-related KPIs targeting the top management and reflect
the results in the assessment and compensation system to bolster
the management’s commitment to fulfilling responsibilities. Moving forward, LS ELECTRIC will agilely respond to climate change

31

risks and upgrade the management system.

Time of Impact· Establish an emergency response systemby disaster typeMid-term· Construct eco-friendly, high-efficiency
building· Optimize energy consumption bystrengthening monitoring

Mid-term

Transitional Risk

carbon neutrality and conduct related activities steadily. We willcontinuously improve our climate change risk management sys-

LS ELECTRIC’s Response· Decrease in sales of existing products if
demand is not met· Decrease in ESG-based investment
inducement

LS ELECTRIC’s Response

Time of Impact· S ecure renewable energy sources through
PPA and REC purchase, etc.
· P romote fuel transition and install highefficiency facilities

Mid-term· Expand business with low-carbon, ecofriendly products

Mid-term· Establish Carbon Neutrality 2040 strategy· Promote RE100 membership

Short-term

LS ELECTRIC’s Response

Time of Impact· P romote continuous renewable energyrelated businesses, such as photovoltaic
power generation, ESS, and smart gridLong-term· Promote R&D to increase the eco-friendly
product market share

Long-term

Opportunity
Category

Potential Financial Impact

Energy Source

Transition to renewableenergy· I ncrease in smart energy business sales
Increase in sales of DC devices

Product andService

Increase in power demand · Expansion of power device supply and sales
according to electrification increase in Korea and abroad

2022-2023 LS ELECTRIC
Sustainability Report

Climate Change Response
LS ELECTRIC’s Climate Change Response

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental

Carbon Neutrality
To take part actively in the climate change response, LS ELECTRIC aims to achieve carbon neutrality in relation to Scope 1 andScope 2 emissions by 2040. Recognizing that the risk caused byEnvironmental
EnvironmentalManagement
Management

climate change is a material risk that affects not only the en-

ClimateClimateChange
ChangeResponse
Response

nancial impact of the risk and opportunity factors. To achieve

Governancesources of BAU emissions and embodied the eco-friendly vehicle

Appendixlar, according to our business's characteristic of having a higher

Creating Eco-friendly Worksites

vironment but also society and economy, we analyzed the fi-

Socialeffective carbon neutrality, we analyzed the amount and maintransition and facility efficiency improvement plans. In particu-

BAU* Emissions
Target Emissions

1

53,600.0

Reduction by 26,900tCO2eq
Eco-friendly electric power : 13,200tCO2eq
Facility efficiency improvement : 5,200tCO2eq

47,950.7

EV100 : 300tCO2eq
Natural reduction : 8,200tCO2eq

35,084.5

rate of Scope 2 emissions, we plan to strengthen our renewable2

1

energy sourcing capacity and monitor the carbon neutrality promotion status continuously.

NDC**

Moreover, the Scope 3 carbon emissions will be monitored forcarbon emission control across the value chain, and a mid- to2

2

Eco-friendly electric power : 14,000tCO2eq
Facility fuel conversion : 4,300tCO2eq

IPCC/SBTi Recommendations***

long-term roadmap will be established.

= 1 + Reduction by 26,700 tCO eq

Facility efficiency improvement : 2,900tCO2eq

21,050.7

Natural reduction : 5,500tCO2eq

Carbon Neutrality
2021

2030

2040

(Base Year)

32* BAU (Business As Usual): GHG emissions estimation, total amount of GHG emissions expected if the current trend is maintained without effort for reduction** NDC (Nationally Determined Contribution): Korea’s 2030 NDC is aimed at 40% reduction compared to 2018, and 14.5% reduction in the industries*** IPCC, SBTi Recommendations: To keep the average temperature increase at less than 1.5℃ to prevent global warming and abnormal climate(recommendation to reduce GHG emissions by 38% by 2030 compared to 2021)

2022-2023 LS ELECTRIC
Sustainability Report

Climate Change Response
LS ELECTRIC’s Climate Change Response

LS ELECTRIC Bringing Lightto the World

Risk Management Process

K-EV100

Scope 3 GHG Emissions Calculation

LS ELECTRIC established a management framework to discover

LS ELECTRIC joined the K-EV100 initiative to change to eco-friend-

LS ELECTRIC internally calculates and manages the Scope 3 GHG

and prevent climate change risks that can occur across the val-

ly vehicles by 2030 all fossil fuel-based vehicles it owns or leas-emissions. Scope 3 emissions are indirect GHG emissions gener-

es for business use. In 2022, 22 company cars were changed toated in the value chain other than worksites. As the worsening ofEnvironmental
EnvironmentalManagement
Management

eco-friendly vehicles.

climate change issues is accelerated, stakeholders’ demand for

ClimateClimateChange
ChangeResponse
Response

Eco-friendly Vehicle Transition PlanOur ESG Journey

Our Sustainability Management
Environmental

Creating Eco-friendly Worksites
SocialGovernance

Scope 3 emissions control is on the rise. LS ELECTRIC partially cal-

Goal
Performance

culates GHG emissions from the value chain. We plan to expand

120

Appendix(Unit: Vehicles)

Category

Category

Waste generation in
the course of operation(incineration)

36

8
2025

2027

2029

currence. At the same time, preventive and management strategies are established. Tasks are derived and detailed goals are set
through close cooperation among the relevant divisions according
to the strategies established. Then, the progress of the task implementation is monitored. The details of major risks are reported to
the Executive Director in charge of ESG/CEO, and critical issues are

Scope 3 GHG Emissions in 2022

60

2022

der to enhance the reliability of the data.

and evaluate the financial impact and likelihood of the impact oc-reported to the ESG Committee.

96

22

the scope of measuring and undergo third-party verification in or-

ue chain. For elements evaluated to be material risk, we identify

2030

Effort for GHG Reduction
LS ELECTRIC actively promotes activities to reduce unnecessary energy use and optimize the energy consumption system.
In 2022, the Cheongju Worksite replaced old transformers withhigh-efficiency facilities. We also conducted inspections on utility

UpstreamBusiness
trips

Emissions (tCO2eq)

Remarks

112.4

Overseas6,500.9

Air

Domestic

1,525.9

Train anddriving

Employee commuting(shuttle bus)

7,419.5

Downstream Leased Assets

11,462.0

Total

27,020.7

1
Identify risk

2
Analyze andevaluate risks

3
Develop response
strategies· Analyze climate change-related domestic
and international policies, industry trends,
and expert opinions· Discover potential climate change risks ininternal divisions· Analyze risk factors considering thepossibility and time of occurrence· Establish risk response strategies by stage/area and consult with divisions promoting
the strategies

facilities in all worksites and replaced the old equipment. In the
Busan Worksite, energy consumption was reduced by replacing
the halogen lamps with LED lighting.
Through the energy-saving activities, our GHG emissions in 2022

33

decreased by 3.8% year on year.

4
Check
implementationand conduct
follow-up
management· Inspect the KPI implementation rate byrelated division, identify areas requiring
improvement· Report the key risk response status to the
management and ESG Committee

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Human Rights
Management
SOCIAL

Roadmap

Goal

LS ELECTRIC is committed to practicing human rights management to

Our Sustainability Management

protect and respect the human rights of all stakeholders including

Socialfor diversity and inclusiveness in order to spread the culture ofEnvironmental

employees, customers, and suppliers. We will continue making effort

Human Rights Management

respecting human rights across the Company.

Establish a culture of respecting human rights across corporate activities,
and achieve zero negative impact on human rights

Talent Management

Health and Safety Management
Data Protection andInformation Security
Quality Management
Shared GrowthSocial Contribution
GovernanceDirection of Advancement
Establish and declare the humanrights policy

Establish and implement the humanrights management system

Upgrade the human rights
management system

Appendix

Detailed Implementation Plans
2023

2024 - 2026

· Establish the Human Rights
Management Declaration· Expand the human rights
management training· Establish human rights
management governance· Develop the human rights due
diligence system· Conduct human rights impact
assessment

34

2027 · Expand the human rights training
and due diligence target(investors and suppliers)

2022-2023 LS ELECTRIC
Sustainability Report

Human Rights Management
PolicyGoal and Performance

Human Rights Management Implementation System

Human Rights Training

LS ELECTRIC is committed to practicing human rights management to protect and respect the human rights of all stakeholders including em-

LS ELECTRIC provides training to enhance employees’ human rights

ployees, customers, and suppliers. We ban discrimination by reason of gender, race, religion, disability, place of birth, political inclination, etc.

awareness as well as protect human rights. The training for sexualand prohibit child labor or forced labor. We have also established the LS ELECTRIC Human Rights Management Declaration based on the Uni-

harassment prevention and enhancement of awareness of people

versal Declaration of Human Rights of the UN and major domestic and international principles for human rights practice. The GHR Team, whichwith disabilities is annually provided online as compulsory educa-

handles LS ELECTRIC’s human rights management, provides human rights management training to employees on a regular basis in order totion. Offline training programs specializing in various job levels,

spread the culture of respecting human rights. In addition, to protect employees’ human rights, we established the Basic Principles of Humansuch as organizational leaders, field supervisors and managers, andRights Management, with related issues strictly handled through the Disciplinary Committee. Stakeholders’ grievances are collected and han-new and experienced employees are also offered.

dled in real time through the anonymous noticeboard on the website and whistleblowing channels. To prevent violation of stakeholders’ hu-

In 2022, 93.6% of employees completed the human rights related

Data Protection andInformation Security

man rights, LS ELECTRIC will upgrade the human rights management system by measuring the impact on human rights on a regular basis andtraining. We will continuously increase employees’ human rights

identifying risks in advance.

awareness by expanding the human rights-related training.

Shared Growth

Basic Principles of Human Rights Management

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management

Talent Management

Health and Safety Management
Quality Management
Social Contribution
GovernanceAppendix35

Anti-discrimination

Complying with Working Conditions

LS ELECTRIC does not tolerate discrimination in recruitment, employment,
promotion, training, wage, and welfare and benefits by reason of employees’
gender, race, ethnicity, nationality, religion, disability, age, family status, social
status, political inclination, etc. without any reasonable grounds and strives tocreate an organizational culture that respects the diversity of employees.

LS ELECTRIC complies with labor-related laws in countries where it does
business. In addition, we provide an appropriate working environment for job
performance along with sufficient opportunities for training in order to assist in
the capability development and quality of life improvement of all employees.

Humane Treatment

Guaranteeing Freedom of Association and Collective Bargaining

LS ELECTRIC respects the privacy of all employees, thoroughly protects theirpersonal information, and shuns mental, verbal, and physical violence, abuse,or irrational treatment.

LS ELECTRIC respects the labor relations law in all countries where this Human
Rights Policy applies and provides all employees with an opportunity forsufficient communication.

Banning Forced Labor and Child Labor

Guaranteeing Occupational Safety

LS ELECTRIC complies with the minimum age requirement for employmentprescribed in each country and refrains from mentally or physically restraining
employees such as through slavery or human trafficking or forcing labor by aperson against his or her free will.

LS ELECTRIC complies with the occupational health and safety laws of eachcountry to ensure that all employees work in a safe environment, inspects
facilities, equipment and tools, etc. in worksites on a regular basis, andprepares support plans for appropriate handling and follow-up management
for the purpose of preventing employees’ physical and psychological risks.

Protecting the Human Rights of Local Residents

Protecting the Human Rights of Customers

In performing operations, all employees of LS ELECTRIC take care not toviolate the human rights of local residents and protect local residents’ rights
to health and safety and freedom of residence.

In providing products and services, all employees of LS ELECTRIC place thehighest priority on protecting customers’ life, health, and property and takethe best actions to protect customers’ personal information collected throughmanagement activities.

Scope of Human Rights Training

2022

All employees of the Company

2023

All employees of the Company and office workers
of subsidiaries

2024

All employees of the Company and subsidiaries

2022-2023 LS ELECTRIC
Sustainability Report

Human Rights Management
Activity

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management

Talent Management

Health and Safety Management
Data Protection andInformation Security
Quality Management

E-Bridge (Junior Board)

Human Rights Grievance Handling Channels

Labor-Management Council

LS ELECTRIC operates the E-Bridge to collect opinions of employees of theSince 2021, LS ELECTRIC has been operating “Vision Talk,” a channel throughLS ELECTRIC recognizes the labor union as a management partner, and it isGeneration MZ, which account for 50% of total employees. Through online

which every employee can communicate directly with the CEO. The CEO andcommitted to building win-win labor-management partnership. As part of theand offline meetings, E-Bridge members discover and propose new and orig-

employees communicate through the in-house email on a 1:1 basis. Accesseffort to create a healthy labor-management culture, we participated in theinal ideas about the company management and conduct activities with theto the information about the sender and content of the email is limited to“Labor-Management Partnership Program” of the Korea Labor and Employ-goal of operational productivity improvement based on efficient thinking.

the CEO and the system administrator only, so employees’ risk of exposure isment Service and completed training on labor-management cooperation to

In addition, by participating in the quarterly CSR* (supporting the neglected

minimized. Through Vision Talk, constructive suggestions and ideas for theachieve joint development among small, medium, and large enterprises, jointclass, helping in meal service at welfare centers for senior citizens, performing

growth of the company and employees with regard to the corporate visiondevelopment between contractors and contractees, and labor-management

volunteer work abroad, etc.) activities, the members contribute to LS ELEC-

and organizational culture, among others, are being collected. In the first halffulfillment of social responsibilities.

TRIC’s fulfillment of social duties and responsibilities.

of 2022, we opened “Talk Together,” an anonymous Intranet noticeboard, to

We strive to resolve key issues earlier on by holding workinglevel meetings

strengthen communication with employees further. With anonymity guaran-

between labor and management. In addition, through quarterly labor-man-teed through system operation by an external company, a person who makes

agement council meetings, issues concerning not only employees’ working

a suggestion is provided with an answer within three days if the suggestion

conditions and welfare but also management activities such as personnel

receives the prescribed number of “Likes.” In 2022, 10 of the 19 suggestions

arrangement and reshuffle and corporate development strategies are dis-received were answered as the required number of “Likes” was received. To

cussed to create a reasonable labor-management culture.

create a healthy communication culture, we plan to improve the functions

In particular, we practice open management by holding the “field manage-of the anonymous noticeboard continuously according to user demands byment performance briefing” and “talk with the CEO” between senior manage-adding a questionnaire survey function, etc. The EAP (employee assistancement and union executives. By sharing information on business conditions

program) was introduced at the end of 2022 to provide professional psycho-

and challenges, a mutually cooperative labor-management relationship is

logical counseling service to employees. In addition, we are striving to handle

maintained.

*CSR: Corporate Social Responsibility

Shared GrowthDiversity and InclusivenessGovernanceto enhance employee diversity. In addition to health keepers (masseurs), we

Appendix

ities in order to achieve not only the quantitative but also qualitative expan-

Social Contribution

LS ELECTRIC strives to create quality jobs for people with disabilities in orderfind new cultural and art positions for the recruitment of people with disabilsion of recruitment for these people. In May 2023, we launched the “Green
Voice” choir by employing eight new artists with developmental disabilities.
The name of the choir, Green Voice, conveys the commitment of LS ELECTRIC
employees to creating a sustainable future with green energy. We will provide
full support to the choir and its members so that they can stably perform musical activities. Moving forward, LS ELECTRIC will dedicate efforts to expanding employment and enhancing social awareness of people with disabilities.

employees’ difficulties and complaints by operating counseling centers in thehead office and worksites. Moreover, we respond to 100% of grievances received through the human rights grievance handling channels.

Grievance Handling Process

Accident occurring

36
Green Voice Choir

Pre-investigation

Investigation· Review internal
regulations· Check the overview
of the event andrelated persons·G HR Team andBusiness Assessment
Office conduct
investigation

Disciplinary
Committee

Decision ofpunishment· Prepare supporting data for procedural fairness· Review measures for the reporterand the accused· Review punishment level

Result notification· Take follow-up action
such as training toprevent recurrence andimprovement of HR
management system

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management

SOCIAL

Talent Management

Roadmap

LS ELECTRIC is formulating various strategies to secure and foster global
talents based on the ideal employee description “Imagineer for Futuring
Smart Energy.” We are continuously striving to create an environment

Goal

where individual employees can unleash their capabilities.

Secure competent talents through fair and transparent performance assessment,
operate capability building programs

Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security

Direction of Advancement

Quality Management
Shared GrowthSocial Contribution

Expand capability building programs customized to individual employees

GovernanceAppendix

Detailed Implementation Plans
2023 -- 2022
Individual
Employees· Program to improve job expertise· DT training· Individual training through LS learning platform· Develop job competency training programs basedon examination and assessment results· Support self-directed global competency fosteringand expand scope to locally recruited employees

Emerging
Leader· Leadership programs by level· Courses specializing in production/sales/
management jobs
· Global Pioneer Program· Program to improve job expertise· Team leading training· Leadership self-awareness training

Leader· Special lectures for leadership of organizational
leaders· Performance-based training through feedback· Special lectures on humanities targeting leaders· Biz coaching solution· Management mindset· Leadership Program372022-2023 LS ELECTRIC
Sustainability Report

Talent Management
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security
Quality Management
Shared GrowthSocial Contribution
GovernanceAppendix

Employee Training Promotion System

Fair Assessment and Compensation

ESG-linked Assessment and Compensation

LS ELECTRIC provides various education and training programs—such

LS ELECTRIC continuously strives for fair assessment and compensa-

For ESG management internalization, LS ELECTRIC includes the ESG

as training by job level, global training, training for organizational de-tion based on the belief that it is a foundation for the company’s de-indicators in the management KPIs. We bolster the responsibilities

velopment, and job training—to improve employees’ capabilities. The

velopment.

of the management by reflecting indicators linked to the compa-

LS Learning Platform is operated to support employees’ access to andTo fulfill the company’s management goal, the performance man-ny-wide ESG management strategies—such as GHG emissions in-convenience of learning. In addition, through the group-level training

agement system is operated with the goals of each CIC* group andtensity and accident prevention activities—in the KPIs.

center (LS Future Center), we are sharing and spreading LSpartner-

division and the linked team and individualunit goals set in stages.

ship as LS Group’s management philosophy, improving employees’

For persons in charge of organizations, the goal is established based

capabilities, and fostering outstanding leaders.

on the MIP (management incentive performance). As for the teamAt the same time, we provide various training programs to key tal-members, performance management is carried out through the MBO

ents in order to select and foster the next-generation leaders who(management by objectives) assessment for general office workers

will lead change and innovation. To candidates for next-generationand project or essay assessment for those of research organizations.

leaders for management and research positions selected throughTo secure consistency and objectiveness of assessment, perfor-

recommendation and assessment by duty, a wide range of training

mance inspection in relation to the established goal is conducted

including MBA and graduate school courses is provided.

semiannually. In addition, through the quarterly feedback sessions,

Candidates for expatriates for subsidiaries and branches in eachperformances are inspected and areas requiring improvement arecountry are provided with training to assist in their successful settle-

identified. A multirater assessment (peer review) is also performed

ment in the new environment along with language support and ed-

once a year, and the result is used as reference in the employee

ucational programs for their families.

competency development and end-of-year assessment. For the end-

LS ELECTRIC also operates a training program for employees sched-of-year assessment, the performance of an organization is linked touled to retire in order to support their life planning after retirement.

that of individual members. The assessment result is used in deter-

We support our employees to enable them to enjoy life after retire-

mining and adjusting the bonus, annual salary, promotion, and ca-

ment by providing job change and career search, design and con-reer development.

sulting programs, as well as training for financial management.

38*CIC: Company in Company

Key ESG Assessment Indicators

E· GHG emissions and energy consumption
reduction activities· Acquisition of LCA (Life Cycle Assessment) certification· Eco-friendly product sales planning and performance
managementS· Establishment and introduction of supplier ESG
assessment system· Support for supplier safety management· Improvement of human rights management anddiversity of workers· Establishment of informations security and cybersecurity strategies and processesG· Outside director attendance management andtraining expansion· Expansion of Audit Committee operation

2022-2023 LS ELECTRIC
Sustainability Report

Talent Management
PolicyEducation and Training System

Intensive(Chinese language)

Manager

39

Supervisor/
Production
worker

Lv.3 course(12th year)
Lv.2 course(8th year)
Lv.1 course(4th year)

LS Future Camp
Introductory course for
new employees(LS ELECTRIC)
Introductory course
for new employees(LS Group)
Supervisor capacity
improvement
Production worker
capacity improvement

Coaching

Innovation
capacity
improvement
for production
workers

Intervention - Assimilation W/S, PI, Harmony Day

Appendix

Lv.4 course(16th year)

Bolstering of team execution power

Governance

LS MBA, LS T - MBA

Social Contribution

WS for new team leadersInnovation capacity improvement_Office workers

Specializing in job(production/sales)

Shared Growth

New team leaders

Mentoring

Quality Management

Leadership School forteam leaders

Solution Leader Program

Data Protection andInformation Security

GlobalLounge Program

Goal-based external language education support

Health and Safety Management

New executives

Full course for expatriates/returning expatriates

Talent Management

Language for executives

Overseas dispatch UT-Austin

Human Rights Management

Global Mindset course

SocialJob

Customers/Suppliers
Power
Solutions

R&D

LCP(Leadership Challenge Prg.)

Executive

Special language course in preparation for exam

Environmental

In Company English

Our Sustainability Management

Introductory course for experienced employees

Our ESG Journey

Organization
Development

Job Level

Seminar for
executives

GlobalTraining of locally employed personnel in Korea

LS ELECTRIC Bringing Lightto the World

SW

Understanding and using Git & GitLab/Software testing TDD forsoftware architecture practice developer/Design pattern in C++/
Python tutorial for practical use/Linux intermediate level (Linux kernel
analysis and tracking)/Application of agile for integrated softwareand hardware development/Cyber security for beginners/Clean
code to improve software maintenance/Micro service architecture/
Understanding and using the ALM system

HW

EMC basic course (theory/test/certification)/EMC response
technologies/Basic course on practical technologies for reliability/
Reliability practice through case study (practice)

DesignCREO basics/CREO drawing design/CREO sheet metal design/CREO
optimization design/PDMLink (R&D)/Auto CAD Mechanical/Auto CAD
Electrical/PCB design analysis and verification using Altair PollEx tools/
PADS Hyperlynx SI+Thermal/PADS DxDesigner+Analog/PADS layout

CAE

Dynamics and structural analysis using RecurDyn/CAE Cloud(Rescale+Appstream) user training [Altair]SimSolid simple structure
analysis/Simlab and Flux low-frequency electronics system analysis/
Pretreatment for HyperMesh structural analysis/DptiStruct linear
analysis/AcuSolve thermal flow analysis/[ANSYS]SpaceClaim basics/
Maxwell basics/Mechanical basics/AEDT Icepak basics/SIwave

Common R&D basics/Project stakeholder management and communication/
R&D PM, PMP/PLM user/RMS PL/ERP
QualityDT

Production

Reliability basics/Reliability test design and technique/QFD-FTA
practice/Reliability statistics and failure analysis/SPC course/ISO/
PL basics/QMS certification reviewer/FMEA course, etc.

Automation PLC
XGK basic
XGK advanced
XGK basic & advanced
XGI basic
XGI advanced
XGI basic & advanced
XGK communication
XGI communication
XGR general
XGK location control/servo
XGK network location control/servo
XGK special(AD, DA, PID, HSC)HMIHMI-XGT Panel
HMI-XGT infoU

Python programming, data pretreatment, operation automation,practical data analysis, key libraries/First step to coding/Google
analytics/Data analysis expert fostering/Data literacy/Statistics andmachine learning/Power BI/Data analysis using Excel/Data use
expert fostering
Basics of production session 1, 2/Production expert fostering

Procurement Basics of procurement/CPSM qualification
SupportFinance and economy basics (finance)/HR basics/Finance andeconomy basics (cost)

Sales

Sales/Marketing basics/Sales strategy development/Excel data
analysis for sales rep/B2B sales negotiation/Overseas channel
management/B2B sales expert fostering

CommonPlanning ability of new employees/McKinseystyle planningability/Study partner/Planning ability improvement/Accounting
for new employees/Office tools

Introduction to electric power system
Electric power system analysis & failure
analysis
Digital protection practice
X-GIPAM practiceElectrical devices
Cooperation for electric power system
protection
Understanding and application ofearthing system
Photovoltaic power and ESS system

Drive

Inverter basics
Inverter applications
Suppliers

FTA decision of origin
Data analysis
NAMOS system
Drawing analysis
SPC basic/intermediate
Procurement competency improvement
Fair Transactions in Subcontracting Act
Quality management techniques andexpertise2022-2023 LS ELECTRIC
Sustainability Report

Talent Management
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management

Employee Welfare and Benefits
LS ELECTRIC operates a range of welfare and benefits systems and convenience facilities to help employees achieve work-life balance.

Childcare Center

LS ELECTRIC operates childcare centers for the children of employees aged 1 - 5 to help employees ease the burden of childcare, and focus on their work accordingly.

Nursing RoomLS ELECTRIC promotes maternity protection by providing a nursing room in the head office.

Maternity Leave,
Parental Leave

LS ELECTRIC created an ideal working environment for parents by guaranteeing the legally required maternity protection, such as maternity leave, parental leave, andcurtailment of work hours during pregnancy/childcare period.

Family Leave

LS ELECTRIC provides a leave for up to 90 days and shortened working hours so that employees can spend more time with their families.

TuitionTo ease employees’ financial burden with regard to children’s education, LS ELECTRIC supports scholarship for employees’ children in middle school, high school,
and university regardless of the number of children.

Quality Management

Family Happiness Camp

Social Contribution

In celebration of Family Month, the LS Future Center holds various events (bubble show, cotton candy making, magic show, face painting, etc.) to provide an opportunity for
employees to bond with their children.

Infertility Treatment Support LS ELECTRIC provides a threeday infertility treatment leave in order to prevent career break for female workers suffering from infertility and address the social issue of low birth rate.

Environmental

Work and Family
Balance

SocialHuman Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security
Shared Growth
GovernanceWork - Life Balance

AppendixLeave

To promote employees’ work - life balance, LS ELECTRIC actively recommends taking the last week of December off to employees by operating the year-end long-term leave system.
We also support a flexible working environment by operating the quarter-day off (two hour annual leave) system.

Congratulatory andCondolatory Support

LS ELECTRIC provides a gift of money and wreath and a special leave to employees for family events, such as marriage, childbirth, 60th birthday, and death.
The presentation of a ring on the first birthday of an employee’s child, which was started in 2020, is receiving favorable responses.

Housing Support

LS ELECTRIC operates a housing fund support system to assist in employees’ residential and living stabilization at housing purchase and rental.
While partially subsidizing the amounts of employees’ housing purchase and rental expenses, we provide dormitory and company housing for employees in regional worksites
to contribute to operational productivity improvement based on residential stabilization.

Health Checkup and Support In addition to offering general health checkup for employees and their spouses, LS ELECTRIC subsidizes the medical expenses of employees and their families.
for Medical Expenses
Also, we have purchased group insurance to help employees focus on treatment when affected by accidents and diseases.

Support for
Recreational
Activities

40

Working Environment
Improvement

In-house ClubLS ELECTRIC operates a number of in-house clubs to help employees enjoy their hobbies and promote self-development. Any employee can open a club, and subsidies for
cultural activities are provided if the internal criteria are met. As of April 2023, 86 clubs including a sports club, a trekking club, and a volunteer work club are in operation.

Condominium

To assist in employees’ leisure life, LS ELECTRIC offers access to famous condominiums across the country to help employees enjoy quality time with their families.
We also operate a summer vacation resort where our employees can enjoy camping with their families.

Sports Events

LS ELECTRIC encourages employees to enjoy a cultural life by providing them with tickets to baseball, football, and other professional sports events.

Welfare Points

To help in employees’ living, LS ELECTRIC provides welfare points that employees can freely use according to their individual needs.

Convenience Facilities

LS ELECTRIC strives to improve employees’ satisfaction with the working environment by providing a range of convenience facilities including cafeterias, fitness centers, andcommon rooms.

2022-2023 LS ELECTRIC
Sustainability Report

Talent Management
Activity

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Flexible Organizational Culture
LS ELECTRIC strives to create an agile organizational culture based on horizontal communication and simple reporting system. We also promote the establishment of an organizational culture of mutual respect and inclusiveness through phased restructuring of the personnel system.

Our Sustainability Management

Personnel System Integration

No Dress Code

One-million Rose Program

SocialIn 2019, to establish a horizontal organizational culture, LS ELECTRIC

LS ELECTRIC started the no-dress code system in 2021 in order to

LS ELECTRIC operates the “One-million Rose” program to activate

restructured the personnel system from the existing five levels to three.

create a corporate culture of communication that encourages em-

communication and spread the complimenting culture among em-

In 2022, the level three job positions were integrated as “manager.”ployees to unleash their originality and individual characters. Our

ployees. One-million Rose coupons are distributed in a set number

employees have the freedom to decide what to wear according toto each team. The team members can use these coupons to request

the TPO (time, place, occasion).

cooperation to other divisions, and the organizational leaders canEnvironmental

Human Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security
Quality Management
Shared GrowthSocial Contribution
GovernanceFree Seating System
LS ELECTRIC enhances spatial and operating efficiency by installingin LS Yongsan Tower a smart office that supports the establishmentof an agile operating culture and a Dt-based working environment.
In the smart office, employees can work in the seats of their choiceusing the seating reservation system. The smart office contributes
to the establishment of a flexible working environment, ensuring anefficient, horizontal working culture.

Appendix

41
Yongsan Smart Officepresent the coupons as a way of complimenting their team members. The One-million Rose coupons can be used as cash at convenience stores and restaurants inside and outside the company. Since
it is applied to the meal ticket application, employees can exchange
the coupons using mobile devices.

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety
Management
SOCIALBy establishing and declaring the company-wide health and safety
management policy, LS ELECTRIC enhances employees’ awareness

Roadmap

Goal
Establish a company-wide safety culture and a health and safety management systemof safety culture and promotes the internalization of health andsafety management. To establish the safety culture, we set the“zero accidents” goal, and we are striving to prevent accidents.

Health and Safety Management

Data Protection andInformation Security
Quality Management
Shared GrowthSocial Contribution

Direction of Advancement
Improve employees’ safety awareness by reinforcing S-QCD

Remove health and safety risks

GovernanceAppendix

Detailed Implementation Plans

42

2023

2024 - 2026

2027 -

Establish an accident
prevention system

Strengthen the accident
prevention system

Establish and operate a healthand safety management system· Strengthen the internal safety
criteria and system· Expand the health and safety
management indicators· Establish a safety culture levelassessment system· Establish and operate an integrated
ESH management system· Establish a real-time health andsafety level examination system(upgrade the integrated ESH
management system)· Expand the scope of health andsafety risk management(subsidiaries, major suppliers, etc.)· Establish a full-time health andsafety monitoring system· Establish safety culture levelassessment criteria

2022-2023 LS ELECTRIC
Sustainability Report

Health and Safety Management
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management

Data Protection andInformation Security
Quality Management
Shared GrowthSocial Contribution
Governance

Health and Safety Management Promotion System
Placing the highest value on health and safety among the business
management areas, LS ELECTRIC developed the four health andsafety strategies. Under the slogan “S(Safety)-QCD*,” we also place

Apply measures to lower the risk
level from non-permissible topermissible risk

Leading the establishment of a safe working environment that conforms to domestic and international standards by acquiring thehealth and safety management system (ISO 45001) certification,

Establish/Implement measures

we have also established an integrated ESH management system—
which is a company-wide health and safety system—and we man-No

age health and safety-related plans and performances in real time.
Through the system, implementation of the health and safety-relat-

Permissible

ed statutes in worksites is monitored, and improvement is promoted
for insufficient areas. In addition, we prevent accidents by inspecting or supporting operations with high risk of accident occurrence
Health and Safety Goals and Management Policy*QCD: Quality, Cost, Delivery

Four Health and Safety Management Strategies

1.

Preparation of risk
assessment

Hazards
identification

Select the assessment
target, collect datanecessary forassessment

Identify hazards by
patrolling worksites
and using a checklist,
etc.

Risk estimation

Risk evaluation

Estimate the likelihoodof hazard and risk
factor causing injury/
disease and severity of
the risk

Determine if the sizeof the risk estimatedthrough comparison
between the resultof risk estimation
by risk factor andpermissible standard
is permissible

2.

100% improvement on
nonconformities detected
through safety inspections

ZERO accidents from thefive high-risk operations

43

Risk Control Action

greater importance on safety than QCD.

through risk evaluation.

Appendix

Risk Assessment Process

3.

4.

100% compliance with safety
procedures prior to an operation

Establishment of employees’safety awareness anddissemination of safety culture

Monitor record management and implementation status

Yes

Establish thelowest levelpossible withina reasonably
practicablerange

Closing

Post information and keep watch on remaining hazards

2022-2023 LS ELECTRIC
Sustainability Report

Health and Safety Management
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management Governance
LS ELECTRIC is strengthening health and safety management capa-

Health and Safety Management Organization

bilities by appointing the Executive Director in charge of ESG/CEO as
Chief Safety and Environment Officer (CSEO), with a company-wide
health and safety organization established under the Executive Di-

Executive Director in charge of ESG/CEO

rector in charge of ESG/CEO. We also operate the Serious Accident

Chief Safety and Environment Officer (CSEO)

Prevention Committee—the highest health and safety-related decision-making body—and the Occupational Health and Safety Com-

Serious Accident Prevention Committee

Health and Safety Management

mittee by worksite to deliberate and resolve on health and safety-re-

Quality Management

Serious Accident Prevention Committee
As LS ELECTRIC’s highest health and safety-related decision-making

Safe Environment Part

Social Contribution

body, the Serious Accident Prevention Committee was established

Overseeing company-wide health and safety operations

Highest health and safety-related
decision-making body

Data Protection andInformation Security

lated matters.

Shared Growth
Governancewith the goal of ensuring that the CEO fulfills the roles and duties

Safe Management Part

Appendix

stipulated by the Act on the Punishment, etc. of Serious Accidents
and to establish an accident prevention system by strengthening theCompany-wide health and safety
management control towercompany-wide health and safety management system. Led by theCEO, the Committee holds regular meetings in June and November
each year and extraordinary sessions when necessary. Through themeetings, the establishment and implementation of action plans ac-

Environment & Safety Team

Cheonan Environment/Safety Part

Construction Safety Team

cording to the results of health and safety management operation
reviews are continuously checked. In addition, the Committee strives
to eliminate internal and external health and safety risks by formulating company-wide safety management bolstering plans including
system installation and improvement.

Occupational Health and Safety Committee
LS ELECTRIC operates the Occupational Health and Safety Committee as a communication body to guarantee official participation of
the company and workers in the process of controlling the healthand safety issues of each worksite in advance and detecting and re-

44

solving the issues. With meetings held at least quarterly, the Committee strives to prevent accidents and establish a safety culture byencouraging all employees to express their opinions freely about
health and safety in worksites.

Cheongju
WorksiteBusan
Worksite

Regional
Sales
LocationsCheonanWorksite

Outsourcing Service(Automation)

Installation and
Pilot Operation

O&M BusinessOutsourcing Service(Power Solutions)

2022-2023 LS ELECTRIC
Sustainability Report

Health and Safety Management
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management

Data Protection andInformation Security

Supplier Health and Safety Competency Assessment

Health and Safety KPI Operation

LS ELECTRIC has conducted health and safety competency assessment of suppliers since 2022 in order to prevent occupational accidents

LS ELECTRIC is implementing the health and safety-related KIPs it

among suppliers and guarantee the safety of their employees. The assessment is conducted once a year targeting the existing suppliers. Whenhas set for key position holders in order to strengthen the healtha reason arises such as new supplier registration, an unscheduled assessment is also conducted. For suppliers found to be ineligible throughand safety management system and reinforce employees’ respon-

the assessment, we provide them with an opportunity to raise objections during a set period of time and reassess them in order to help themsibilities with regard to health and safety management. The assess-

improve their safety capabilities.

ment indicators consist of items such as number of occupational
accident victims and health and safety inspection results. Those who

Type

Safety Division

Supplier

Assess safety competency
upon supplier registration

New Assessment

Appendix

Purchase Divisionmance through safety inspection are provided with additional points
in the assessment.
Category

Shared Growth
Governancewon health and safety rewards or got selected for excellent perfor-

Supplier Health and Safety Competency Assessment Process

Quality Management
Social Contribution

Goal and Performance

KPI(Reflection Ratio)
Occupational accident occurrence(70%)

Position Holder

Health and safety inspection(30%)

Conduct safety competency assessment
Manufacturing

Review the safety competency assessment result

Employee

Yes
Register the company as supplier

Health and safety inspection and improvement(20%)
Occupational accident occurrence(20%)

No

Competency criteria met

Occupational accident occurrence(80%)

Health and safety inspection result(20%)
Construction

Company cannot be registered as supplier

Health and safety inspection and improvement(30%)
Health and safety training completion(20%)
Health and safety activities(10%)

Research

Scheduled Assessment

Request scheduled safety competency assessment
Conduct self-assessment on safetycompetency
Conduct safety competency
assessment and review the result(record of accident prevention activities)

Yes
Register the company as supplier

45

Competency criteria met

Occupational accident occurrence(100%)

Health and Safety Indicator Management
Having set the goal of achieving zero accidents, LS ELECTRIC controls
the accident rate and number of serious accidents as management
indicators in order to achieve the goal. In 2022, our accident rate andNonumber of serious accidents were 0.06% and 0, respectively. LS ELECTRIC will dedicate every effort to achieving an accident rate of 0% by
continuously discovering and improving on hazard factors.

Company cannot be registered as supplier

Item
Accident Rate
No. of Serious
Accidents

Unit
Goal
Performance
Goal
Performance

%
Cases

2022

2023

0.00

2024

0.00

0.00

0

0

0.06
0
0

2022-2023 LS ELECTRIC
Sustainability Report

Health and Safety Management
Activity

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management

Data Protection andInformation Security
Quality Management
Shared GrowthSocial Contribution
Governance

Strengthening Safety Inspection in Worksites

Serious Accident Management

Safety Education and Training

LS ELECTRIC conducts various activities to prevent accidents in ad-

The Serious Accident Prevention Committee was established in

LS ELECTRIC provides workers’ health and safety training on a reg-

vance through health and safety risk management. In addition to2022, and it held three meetings wherein major health and safe-

ular basis in order to improve the safety awareness of suppliers'

the regular inspection, the management and health and safety di-ty-related items were discussed; thus contributing to the establish-

employees. We will strive to improve occupational health and safe-

vision of the head office conduct unscheduled inspections to check

ment and spread of the health and safety culture.

ty management by segmenting the training subjects and providing

the daily safety management status in each worksite. To create aprovement is promoted through external agencies. For nonconformities detected through inspections, the causes are analyzed by re-Consultative
Body

Date of
Meeting

Details of Discussion

2022.01· Overview of establishment and operation of the
Serious Accident Prevention Committee· Health and safety promotion plans of each
worksite in 2022

2022.06· Setup of safety management expenses account· Improvement of health and safety investment
system· Reflection of safety management expenses for
projects won· Improvement of safety proposal system

lated position holders and senior management through meetings.
At the same time, we are carrying out continuous management by
preparing effective measures to prevent the recurrence of accidents
and improvement plans.
In 2022, a total of 153 inspections were conducted, such as 60 inspections by the management, 2 regular inspections by the safety
division in the head office, and 91 unscheduled inspections.

Appendixcustomized training.

safe workplace, potential hazard factors are discovered, and im-

Through the inspections, 782 insufficiencies were detected, and thenecessary improvement actions were taken. We will reduce health

Serious
Accident
Prevention
Committee

and safety risks by promoting continuous improvement. In addition,
we hold monthly meetings of the Win-win Cooperation Team to listen to suppliers’ health and safety-related difficulties and provide

2022.11

support for improvement.

· Derivation of safety management improvement
plans according to the establishment of real-timemonitoring system, such as for operation status· Necessity of establishing employees’ safety
awareness improvement plan for safety culture
establishment

Training
Program

TargetDescription

Health andsafety trainingof workers

Employees,
managers, andsupervisors· Occupational Safety and Health Act andinternal health and safety systems· Key health and safety rules of worksites· Accident cases and preventive measures of LS
ELECTRIC and other companies

Training on
accident
prevention
measures

Accident-related
persons andsuppliers· Preventive measures in relation to internal
accident occurrence, safety rules(targeting related internal personnel andsuppliers)

Training on the
integrated ESH
management
system

Employees
and suppliers· User training according to the introduction of
the integrated ESH management system

On-the-job
training forconstruction
safetyProject
implementersand suppliers· Occupational Safety and Health Act andinternal health and safety systems· Accident cases and preventive measures of LS
ELECTRIC and other companies

Healthcare Support
LS ELECTRIC operates healthcare centers in each worksite to promote employees’ healthcare. With resident nurses (health managers), the healthcare centers provide first aid and health counseling service as well as health education support. Besides general health checkup according to the
Occupational Safety and Health Act, we support annual general health examination for employees and their spouses. Health examination by visiting employees (health examination bus) is also provided for employees’ convenience. Special health examination is concurrently provided to employees exposed to—and handling—181 hazard factors. At the same time, hazard factor investigation and questionnaire survey are conducted on46

a regular basis in relation to operations causing burden on the musculoskeletal system to improve the working environment continuously. For suspected persons, consultation with medical specialists is organized for drug prescription, surgery, exercise therapy, or education for disease prevention, and intensive follow-up care is also provided. We will continue dedicating effort to supporting employees’ healthy life.

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Data Protection andInformation Security
SOCIAL

Roadmap

Goal

LS ELECTRIC carries out responsible data protection activities based ona global-standard security system in order to expand the stability of

Secure reliability by protecting information assets and customer information

personal information and information assets. With systematic strategies and governance, we will exert all-out efforts for the creation of anadvanced security environment.

Health and Safety Management
 ata Protection andD
Information Security

Direction of Advancement

Quality Management
Shared GrowthSocial Contribution

Establish a cyber security system in response to the DT era

GovernanceAppendix

Detailed Implementation Plans
2023· Strengthen cloud information
protection

472024 - 2026
· Establish an OT security system andstrengthen physical security

2027 · Expand the security systemapplication to subsidiaries andsuppliers

2022-2023 LS ELECTRIC
Sustainability Report

Data Protection and Information Security
PolicyOur Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management
 ata Protection andD
Information Security

Quality Management
Shared GrowthSocial Contribution
GovernanceIn processing the personal information of third parties such as cus-

Information Security Incident Response Process

tomers, employees, and suppliers, LS ELECTRIC complies with relat-

Information Security Officer) under the Vision Management Officer

Incident detector

EU GDPR (EU General Data Protection Regulation).

and CEO as security officer and organized a team dedicated to dataprotection.

We also established a management system that conforms to theglobal standard by acquiring international certifications.

1

For response to the demand for global security environment reinforcement and certification, we acquired ISO 27001 (international
standard for data protection). In addition, we conduct security activities in the OT (operational technology) area for protective measures

4

against occupational accidents, etc., and obtained IEC 62443 4-1*,
an international standard for industrial control system security.
Moreover, to increase our security level, we undergo internal security checkup on a regular basis according to the LS Group’s securicodes and internal information leak incidents, we have establishedthe response procedures and designated an officer in charge.

*IEC 62443 4-1: Security standard for industrial automation and control
systemFor response to internal and external security threats and protectionof confidential information, LS ELECTRIC designated the CISO (Chiefed domestic statutes and overseas privacy regulations including thety management system. In preparation for the inflow of malicious

Appendix

Information Security Governance

Incident reporting

Our ESG Journey

Information Security Promotion System

Supplier

LS ELECTRIC Bringing Lightto the World

Identify the situation and2take initial response actions

3

5
Response
and recovery
support6

The division in charge of security handles incident and harmful traf-

Receive report(division in charge of security)

fic monitoring. In addition, for efficient operation and communication among divisions handling personal information, the Personal
Information Protection Committee meetings are held on a regularInternal Security
reporting Officer

Instruction
Organize and report the caseto the incident response T/F Report

Identify the incident andtake response actions

SupportrequestExternal
Support agency

forresponse
and action

Establish and implement adamage recovery plan

7 Close the incident handling

Reportbasis.
When a security anomaly occurs, the status is shared with the Security Secretariat, and response and action plans are established. Likewise, key security issues are reported to the Security Committee todiscuss the development of recurrence prevention plans.

Vision Management Officer/CEO
Security Officer(CISO/CPO*)
Security Committee

Security Secretariat
Security Operation(suppliers)

Division in Charge of
Security

IT Operation
Report Agency

8

Follow-up management

Division in Charge of Privacy*CPO : Chief Privacy Officer

48

2022-2023 LS ELECTRIC
Sustainability Report

Data Protection and Information Security
Activity

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management
 ata Protection andD
Information Security

Quality Management
Shared GrowthSocial Contribution

Information Security Awareness Improvement Activities

Information Security Education and Training

Information Security Investment

LS ELECTRIC holds regular information security campaigns using vari-

LS ELECTRIC provides online security training on an annual basis to

To strengthen technical security, LS ELECTRIC continuously upgradesous channels in order to improve employees’ security awareness.

help employees recognize the importance of security.

and improves the security system. As key investment activities, we

To protect our assets, we collect security pledges from employees on

To improve the effectiveness of information security training, we

separated the physical network for smart factory security, acquireda regular basis. In addition, the first Wednesday of each month has

also provide new employees and newly appointed division leaders

security certification for products, upgraded the web firewall, estab-been designated for computer security check to support employeeswith differentiated data protection training that is necessary in busi-

lished a security system in the cooperation environment, conducted

in inspecting and improving the security of their computers. More-ness operation.

blind simulation hacking, inspected and addressed infrastructure

over, a personal information manager (person in charge of IT) is

At the same time, for the prevention of information security incidents,

and web system vulnerabilities, and purchased information securi-

designated by division to be in charge of training and inspection inhacking mail response training is organized and unnecessary per-ty-related liability insurance.

the respective division, and the malicious email report system is im-

sonal information files are detected on a regular basis. Through theplemented to reward employees producing excellent performance;

activities, we dedicate utmost effort to preventing possible accidents

thus encouraging employees’ active participation.

caused by email scams and ransomware attacks, etc.

Governance

Data Protection and Information Security Training

Appendix

Program49

Investment in Data Protection
Target

Cycle

Employee data protection training

Information on security compliance

Description

All employees

Once a year

Training on software copyrightPlans for checking and managing software copyrightAll employees

Once a year

Data protection training for new/experienced employees

Internal security regulations and processes

All employees

Once a year

Security training for suppliers

Information on data protection compliance by suppliers

Employees of suppliers

Once a year

Web system secure coding training

Security programming for addressing web system vulnerabilities

Developers

Once a year

Security expert training

Security architecture and new vulnerability response capabilities

Security managers ofeach division

Once a year

Training for malicious mail response

Sending phishing mail for penetration test, measuring the penetration rate

All employees

Twice a year

Web system penetration test training

Inspection on data snatch and hacking response level for external systems

Security managers

Once a year

Investment Amount

KRW

1,512 million

Investment in IT

KRW

33,258 million

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

SOCIAL

Quality Management

Roadmap

LS ELECTRIC is striving to maximize customer satisfaction by conducting
systematic quality management activities. We are committed to secur-

Goal

ing customers’ trust by providing safe products and services.

Achieve ZERO customer complaints by upgrading the reliability management
system based on digital transformation

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management

Direction of Advancement

Data Protection andInformation Security

Quality Management

Promote advancement by development quality, component quality, process quality,
customer quality, and quality infrastructure sector

Shared GrowthSocial Contribution
GovernanceAppendix

Detailed Implementation Plans
2023

50

2024 - 2026

2027 -Development
quality· Plan and identify digital platform-based
product tasks· Develop digital platform-basedengineering solutions· Promote the transformation
to digital business

Component
quality· Establish a quality and SPC* traceability
management system for component suppliers· Establish a real-time supplier anomaly
management status monitoring system· Achieve zero defect in supply
quality

Processquality· Establish an online management system
for nonconformities detected duringobservation, installation, and pilot operation· Internalize the improvement action
management system and develop
indicators· Achieve zero process quality
defects

Customerquality· Strengthen quality improvement activities
based on CSI** survey results and establish
a customer experience information
management system by MOT· Expand the CSI operation in overseas
worksites· Establish a global CSI
assessment system andsecure “affective quality”· Establish QMS*** 3.0· Open QMS 3.0· Stabilize QMS 3.0

Quality
infrastructure*SPC : Statistical Process Control **CSI : Customer Satisfaction Index ***QMS : Quality Management System

2022-2023 LS ELECTRIC
Sustainability Report

Quality Management
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security

Quality Management

Shared GrowthSocial Contribution
Governance

Quality Management Promotion System

Internal Quality Audit and Assessment System

With customer value innovation as the highest priority, LS ELECTRIC

To maintain stable quality and management standards, LS ELECTRIC conducts both internal audit and standardized quality assessment annual-established a quality mission to “achieve zero customer complaints

ly across all processes from design to calibration and testing. In doing so, we can identify compliance with the quality management system (ISOby upgrading the reliability management system based on digital

9001:2015) and our internal quality criteria, inspect in advance whether the requirements are being effectively met, and promote overall qualitytransformation.”level-up as a result.

To provide customer-oriented service that wins customers’ satisfac-

The Q-Performance assessment conducted in June - September each year on domestic and international worksites (Cheongju, Cheonan, Busan,tion and trust, we continuously conduct quality improvement activi-

Wuxi, Dalian) in particular contributes to discovering and eliminating potential quality risks in advance based on our standardized quality as-ties by establishing an integrated quality operation system covering

sessment criteria. We maintain quality by applying consistent guidelines not only to domestic products but also to overseas worksites and max-

product design up to after-sales service stages.

imize business growth momentum by narrowing the gap in quality control power between worksites.

The quality improvement system (QIS) has been established for standardized quality management and operation; for quality issues requiring improvement, a series of PDCA (plan, do, check, action) processes
are in place to promote continuous improvement activities.
At the same time, with the goal of establishing a system conforming
to global standards, we are acquiring and renewing the international quality management system certification (ISO 9001:2015) for all

Appendix

Q-Performance Assessment Items and Process

domestic worksites.

Design andDevelopment· Design anddevelopment· Technology
management, etc.

51

Procurement· Domestic andinternationalsourcing· Management oftrade partners, etc.

Production and
Delivery· Materials,
processes, andfacilities· Operation andinspection, etc.

Installation andService· Installation andpilot operation· Customer complainthandling, etc.

Quality Assurance· Quality information
management· Managementof measuring
instruments, etc.

Calibration andTesting· Calibration system· Testing system, etc.

2022-2023 LS ELECTRIC
Sustainability Report

Quality Management
Activity

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management

Quality Training

Customer Satisfaction Survey

National Quality Innovation Award

LS ELECTRIC provides regular quality training to office workers to

LS ELECTRIC conducts a customer satisfaction survey on an annual

At the 48th National Quality Management Convention in 2022, LS

help employees recognize the importance of quality management. In

basis to identify and improve customers’ awareness of and require-

ELECTRIC won the Presidential Citation in the Fourth Industry cate-

the first half of 2023, 1,908 employees completed regular basic qual-

ments for key electric products. In 2022, the survey was conductedgory of the National Quality Innovation Awards. The National Qual-

ity training. We also provide annual training on QMS, reliability, ba-

on 15 items targeting around 170 customers. The average score wasity Management Convention is an event to award individuals andsic production technologies, etc. to the quality management-related

75.4 points, which is higher than that of other companies.

companies with outstanding management performances throughquality management innovation activities and contributing to na-

workers in order to improve our quality management expertise.

tional industrial competitiveness improvement. In addition to main-

Talent Management

taining the excellent quality levels of our products, we solidified our

Health and Safety Management

position in the fourth industrial sector by actively promoting smart

Data Protection andInformation Security

Quality Management

grid for transition to the fourth industrial revolution era as well as
global business expansion and smart factory development.

Shared Growth

Customer Satisfaction Survey Results

Governance

Customer Satisfaction Survey Results in the Past Three Years (Unit: Points)

Social Contribution■ Product/Price ■ Distribution/Service ■ Sales Promotion

Appendix

74.88
74.63

74.7
74.6

Customer Satisfaction Survey Results in 2022 (Unit: Points)

76.7

LS

75.2

A

74.6

B

76.7
74.6

75.2

69.7
67.6
67.4

74.2

67.4

62.8

72.07
59.4

2020

52

2021

2022

Product/Price

Distribution/Service

Sales Promotion

National Quality Innovation Award

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
Social

SOCIAL

Shared Growth

Roadmap

LS ELECTRIC practices shared growth management to create a shared
growth culture based on Lspartnership, form a relationship of trust
through communication and harmony, and achieve growth as a

Goal

global enterprise together with partners. To create a sustainablesupply chain, we will preemptively control economic, environmental,

Sustainable Value Creationand social risks that can occur within the supply chain.

Human Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security

Direction of Advancement

Quality Management
Shared GrowthSocial Contribution
Governance

Enhance the integrity of the supply chain

Establish a shared growth culture

Establish a sustainable supply chain

Appendix

Detailed Implementation Plans

53

2023

2024 - 2026

2027 -

Enhance the integrity of the
supply chain

Strengthen the basis forshared growth

Strengthen the global supply
chain competitiveness· Support suppliers in securing
competitiveness· Activate communication with
suppliers· Upgrade the ESG managementlevel of suppliers· Support suppliers in strengthening
their independent management
system· Establish the LS ELECTRIC Supplier
Code of Conduct· Support global competitivenessbuilding for value creation· Exchange key talents with suppliers· Expand and activate the win-win
payment system· Create a fair trade culture2022-2023 LS ELECTRIC
Sustainability Report

Shared Growth
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security
Quality Management
Shared GrowthSocial Contribution

Shared Growth Promotion System
For sustainable growth with business partners, LS ELECTRIC selected five key policies for shared growth, and it conducts related activities. While
complying with the fair trade and other related statutes together with suppliers to secure fair trade order and establish a sound industrial ecosystem, we support programs for bolstering Global competitiveness in order to strengthen our competitiveness in the global market. We also
strive to establish a shared growth culture as a core corporate culture by carrying out various communication activities to build reliable partnerships. At the same time, to minimize environmental impact in the supply chain, we conduct activities to create an eco-friendly supply chain, including response to domestic and international environmental regulations and establishment of a response system for conflict mineral control.

· Ban forced labor· Ban child labor· Comply with the working hours· Comply with the wage, welfare, and benefits
conditions· Provide humane treatment

Safe working
environment(Health & Safety)· Promote occupational safety· Provide appropriate personal protective
equipment· Provide safety training for accident prevention· Conduct risk evaluation· Provide health checkup for workers

Eco-friendly
management(Environment)· Manage pollutants emitted from worksites· Control hazardous chemicals· Promote energy saving and waste reduction·O btain environmental permits

Compliance withcorporate ethics(Ethics)· Promote ethics practice and ban unfair
enrichment· Implement information disclosures· Protect intellectual property rights

Shared growth andsocial contribution(Win-Win Growth)· Promote shared growth· Cooperate for social contribution

support their fulfillment of social responsibilities. For a new contract with a supplier, implementation of the Code of Conduct is included in therequirements.

Five Shared Growth Policies
Comply with the fair trade andother related statutes
Improve global competitiveness· Operate the ACE Club system targeting excellent
suppliers· Support the welfare of suppliers’ workers· Improve the subcontract payment conditions (cashpayment for amounts less than KRW 100 million)· Conduct activities to disseminate the fair trade culture
and the Fair Transactions in Subcontracting Act· Operate the Internal Subcontracting Audit Committee andSubcontract Dispute Settlement Committee· Implement the Basic Trade Contract and the Pledge for
Ethics Management Practice· Carry out management support activities tostrengthen competitiveness- Provide financial support, technological protection,and environment and safety consulting- Operate the origin management system, andbolster the competency of suppliers’ employees

Build a relationship ofcommunication and trust· New Year’s Meeting and Performance Sharing· Promote various communication activities with Tier 1
and Tier 2 suppliers

54

Respect forworkers’
human rights(Labor)In addition, the Supplier Code of Conduct has been established to enhance the awareness of suppliers with regard to ESG management andGovernanceAppendix

Key Items of the LS ELECTRIC Supplier Code of Conduct· Conduct quarterly investigations on trade-related
irrationalities and unfairness· Activate TOPS (shared growth portal) operation
Shared Growth Portal (TOPS)

Disseminate a shared growth culture· Continuously expand the Shared Growth
Agreement with suppliers· Activate the win-win payment system· Support suppliers in facility investment andpurchase operations· Carry out corporate social responsibility activities

Five Shared Growth
Policies

Establish an eco-friendly supply chain

Shared Growth Governance· Enhance the ESG management awareness of
suppliers

LS ELECTRIC manages suppliers through the procurement department· Form consensus on management philosophy
based on the Supplier Code of Conduct· Secure transparency for responsible mineralsourcing through response to conflict mineralregulations· Comply with regulations including the RoHS
(Restricted Hazardous Substances) Directivein each worksite by considering the characteristics of supply chains forindividual businesses. To ensure successful shared growth activities, we
also operate the Win-Win Growth Team to establish related systems,
provide training to suppliers, operate the ACE Club, and manage support programs. In addition, the Win-Win Growth Team and Legal Affairs
Division work in collaboration for compliance with fair trade-related
statutes and establishment of fair trade culture.

2022-2023 LS ELECTRIC
Sustainability Report

Shared Growth
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security
Quality Management
Shared GrowthSocial Contribution
GovernanceFair Supplier Selection and Assessment

Supplier Complaint Handling

Establishing a Conflict Minerals Regulation Response System

For new supplier registration, a team of reviewers consisting of per-LS ELECTRIC listens to and manages the difficulties experienced in the

As the Conflict Minerals Regulation first adopted by the US increas-sons in charge of design, production, procurement, and quality visitscourse of transactions in order to establish fair and reasonable trade

ingly spreads to Europe and other advanced nations, LS ELECTRIC

a candidate and conducts a comprehensive assessment. The candi-

relationships. The VOS (voice of supplier) is collected through TOPS,

established a conflict minerals management system in order to re-date winning points higher than the prescribed score is selected as aa shared growth portal. In 2022, we received 88 reports on difficul-

spond to the Regulation and prevent risks that can affect suppliers.

supplier. For supply chain management that provides optimal quality,

ties experienced by our suppliers and their quality deterioration cases

To secure consistency of data provided by suppliers, we implement

delivery service, and innovation, LS ELECTRIC conducts QCD (quality,(mold and facility repair, etc.). Among the reports received, 42 havea process of verifying the use and sources of conflict minerals con-cost, delivery) and competency assessment of suppliers on a yearly ba-

completed handling, and 46 are in the process of handling.

tained in the supplied parts and raw materials and also conductsis. In addition, to reduce GHG emissions and environmental pollutant
discharges from suppliers, we not only conduct general supplier assessment together with quality and process-wise assessment but also
include environmental assessment as a compulsory item. In particular,
in assessing suppliers for parts whose hazardous substance management is important in the coating, plating, and heat treatment processes, environmental and safety assessment criteria are strictly applied
according to the rules for response to environmental regulations con-

Appendix

cerning products. In addition, with the goal of effective managementof hazardous substances, we established the Material Data Management System (MADAMS) in 2020, and we have made it compulsory forsuppliers to register the RoHS and REACH-related reports and warranties since then. Moreover, additional points are given for ESG activities
such as ethics management and social stewardship to encourage sup-LS ELECTRIC conducts risk assessment and implements a prior business consulting system in order to monitor for potential legal violations; thus maintaining a fair trade relationship with suppliers. For
risk assessment, the monthly Internal Subcontracting Audit Committee meetings are held under the supervision of the Win-Win Growth
Team to deliberate on the risk of delayed payment to suppliers as wellas the appropriateness of new supplier registration and cancellationof registration. By operating the Committee, we prevent violations of
the Fair Transactions in Subcontracting Act. At the same time, throughinternal quarterly procurement process monitoring, legal compliancein subcontracting and unfair cases in transactions are inspected on aregular basis. In addition, led by the Business Audit Department, wepliers’ participation.

conduct an ethics management questionnaire survey of suppliers and

New Supplier Selection and Assessment Process

violations continuously. Moreover, the system of prior business con-Request forregistration

Supplier assessment
for registration

operate the online whistleblowing system to monitor for fair trade

Supplier
registration

sulting with the Chief Compliance Officer helps suppliers receive legal
counseling and consulting services prior to a business execution forwhich the likelihood of violation of the Monopoly Regulation and Fair
Trade Act is high, or it is difficult to determine violation.

Assessment Items

55

Suppliers’ Fair Trade Management

General assessment

Environmental
assessment

Additional points
for ESG activities· Credit rating· Compliance with thedelivery deadline· Price competitiveness· Quality· Environment andsafety assessment· RoHS and Reachrelated reports andguarantees· Ethics management· Social stewardshipbriefings and provide the necessary training on an ongoing basis.
In addition, when entering into the Basic Trade Contract with a supplier, we stipulate suppliers’ compliance with the ban on minerals
sourced from conflict areas. We will continue advancing our conflictminerals management system in collaboration with suppliers andresponding to the global trend of related regulations being tightened in the EU and other major countries to take a step closer tosustainability management.

Shared Growth
Goal and Performance

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security
Quality Management

Supplier Support Programs

Promoting the establishment of partnerships for shared growth

LS ELECTRIC provides a range of support programs, such as for financial, technological, and training support, in order to assist in suppliers’ sus-

with suppliers, LS ELECTRIC manages shared growth performances

tainable growth. We also communicate with suppliers continuously by holding innovation meetings and performance sharing meetings to un-each year based on the results of the fair trade agreement imple-

derstand and address their grievances and needs. Moving forward, we will actively strive to support our suppliers’ sustainable growth.

mentation assessment of the Fair Trade Commission and generalshared growth assessment of the Korea Commission for Corporate
Partnership.

2012

Shared Growth~2014

Appendix

2015

~2020

2021

Good

Very
Good
Very
Good

Satisfactory

Good

Good

Very
Good

Good

Very
Good

Good

2022

2023
(Goal)

56

Program

Support Details

Performance

ACE Club

CSR activities targeting major suppliers, CEO Forum,
Reflection

Supported KRW 2 million for group homes throughthe Community Chest of Korea

Financial Support

Provide interest-free or low-interest loans to improve
supplier productivity

Provided KRW 5.6 billion financial support to 50
suppliersFTA Country of Origin
Management System

Support supplier system establishment andmanagement operation to secure COO consistency

Provided support and advice for system establishment
to 48 major suppliers

Shared Growth Index Assessment Results and Goals

Social Contribution
GovernanceCategory

2024(Goal)

Average

Satisfactory

Satisfactory

Satisfactory

Satisfactory

Average

Average

Improvement
required
Average

Average

Poor

Poor

In progress

Very Good

Very Good

Good

Good

Satisfactory

Satisfactory

Average

Average

Support for Shared Growth

Our ESG Journey

Shared Growth Index

Poor

Poor

Communication and
Dissemination of Shared
Growth Culture

LS ELECTRIC Bringing Lightto the World

ActivityCompliance with
the Fair Trade andSubcontracting Act

2022-2023 LS ELECTRIC
Sustainability Report

Support SME smart factory development using the
Smart Factory Development win-win cooperation fund of the Korea Foundation for
Cooperation of Large & Small Business, Rural Affairs

Provided mentoring service 142 times to 40 suppliersfor SME smart factory development

Technology Protection

Support the Certification of Original Document of Trade Provided support for the Certification of Original
Document of Trade Secrets nine times to four
Secrets to protect suppliers’ technologies and tradesuppliers
secrets

Education and Training
SupportSupport specialized training customized to SMEs

Provided educational and training support to 163
persons of 137 suppliers

Operation of Welfare andBenefits Fund for Suppliers

Provide support for family events, tuition, and funeral
expenses to employees of major suppliers

Provided support to 2,976 persons of 32 suppliers(KRW 430 million)

New Year’s Meeting and
Performance Sharing

Promote online and offline communication to share LS
ELECTRIC’s business direction and procurement policy

Held meetings with 100 Tier 1 and Tier 2 suppliers(once a year each)

Shared Growth Innovation
Meeting

Communicate regularly with major suppliers to secure
quality and strengthen innovation activities

Held meetings 8 times a year targeting 56 major
suppliers

Internal Subcontracting
Audit Committee

Conduct pre/post-reviews on fairness and legitimacy inthe process of contract conclusion and termination, etc. Held monthly meetings (12 times)
in relation to the Fair Trade and Subcontracting Act

Post-verification on the
Legality of Subcontract
Transactions

Regularly check for violations against the compliancesand prohibitions for large enterprises specified in the
Fair Trade and Subcontracting Act

Performed semiannual verifications (twice)

Subcontract Dispute
Settlement Committee

Prepare procedures for switch dispute mediation
between LS ELECTRIC and suppliers-

2022-2023 LS ELECTRIC
Sustainability Report

Shared Growth
Activity

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security
Quality Management
Shared GrowthSocial Contribution
GovernanceAppendix

Supplier Support Amount

Win-win Payment System for Suppliers

Supplier Questionnaire Survey

LS ELECTRIC provides low-interest rate loans to suppliers to help fa-

LS ELECTRIC introduced the win-win payment system to improve

Each year, LS ELECTRIC conducts a questionnaire survey targeting

cilitate their financing of facility investment for productivity achieve-

payment conditions for suppliers. This system allows Tier 2 and Tier

suppliers to monitor their overall satisfaction with transactions, eth-ment. In 2022, we supported a total of KRW 5.6 billion for 50 Tier 1

3 suppliers as well as Tier 1 suppliers to extend secured loans of

ics management activities, and compliance with the Code of Eth-and Tier 2 suppliers, helping in their fund liquidity improvement andcredit sales based on LS ELECTRIC’s credit. As of 2022, a total of 804

ics Practice Guidelines. The survey score in 2022 (on a scale of five

management stabilization. We will continue actively implementing

suppliers benefited from the win-win payments amounting to ap-

points) was 4.27 points, which decreased slightly compared to thethe policy so that various benefits can be provided to Tier 1 and Tierproximately KRW 1.0893 trillion.

previous year.

2 suppliers in need of funding assistance. In addition to the low-in-

In particular, HANGIL EST, D&S Electric, and DHIS were designated in

The ethics-related survey questions were divided into detailed

terest rate loan support, we endeavor to improve subcontract pay-

2021 as companies with excellent performance in win-win payment

items, such as experience or witnessing of unethical behaviors andment conditions and increase the rate of cash payments to help im-

selected by the Ministry of SMEs and Startups each year to spreadanti-corruption conducts within the organization, in order to under-

prove the cash liquidity of suppliers.

the win-win payment system. In 2022, HANGIL EST and Sanjeon

stand the level of substantial ethics management practice. For re-Jungmil were selected.

ports of unethical and unfair practices, anonymity is strictly guaran-

Our win-win payment system will assist suppliers in duly receiving

teed. In addition, the results were delivered to the division in charge

their payments and resolving concerns over dishonored payments

for response and improvement.

to create a sound ecosystem across the supply chain.

Supplier Questionnaire Survey Results (on a scale of five points)

Financial Support to Suppliers
Category

Unit

2020

39

2021

17

2022

Combined Support*

KRW 100 million

7

Special Support**

KRW 100 million

23

16

35

Direct Support***KRW 100 million

48

36

14

Total

KRW 100 million

110

69

56

*Combined Support: Loan support through the Shared Growth Cooperation
Fund linked to financial institutions**Special Support: Financial loan credit through the Korea Credit Guarantee
Fund***Direct Support: Loan support using the LS ELECTRIC fund

Supplier Training Support
LS ELECTRIC operates customized education and training programs
to help suppliers develop excellent business capabilities and foster
outstanding talents. In 2022, training was provided to 163 persons of
137 suppliers. To improve awareness of the necessity of ESG management, the training programs covered areas ranging from quality management, risk management, inventory management, and profit andloss management techniques to ESG management. We plan to expand the curriculum continuously in order to establish ESG management in our suppliers. At the same time, we held a CEO Forum with
suppliers in order to expand the management insight of the CEOs of
our suppliers and help them improve their management capabilities.

57

2021

4.18points

2022

4.27points

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
Social

SOCIAL

Social Contribution

Roadmap

Under the philosophy that the basis of social contribution is contribution
to local communities, LS ELECTRIC conducts various volunteer activities.
In particular, to protect the environment and ecosystem, we promote the

Goal“Let’s Make Green with LS ELECTRIC” campaign and operate programs
to secure biodiversity. Moving forward, LS ELECTRIC will achieve shared

Create an eco-friendly world through joint effort for the future generation

growth with local communities by maximizing social value creation.

Human Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security

Direction of Advancement

Quality Management
Shared GrowthSocial Contribution

GovernanceAppendixCreate sustainablesupport models for theunderprivileged in local
communities

Secure eco-friendly
ecosystem restoration
modelsDevelop systematic andsubstantial programs to support
the future generation

Secure channels for
effective communication
with local communities

Detailed Implementation Plans
2023· Strengthen the continuity of· Expand employee engagement· Promote the quantitative

key programs to support local· Establish a consultative body for

expansion of social contribution

communities· Expand the scope of ecological

58

2027 -

2024 - 2026

preservation activities

sharing and communication withcost, such as donations

local communities· Strengthen LS ELECTRIC’s
corporate brand image for sharing
management

2022-2023 LS ELECTRIC
Sustainability ReportSocial Contribution
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialHuman Rights Management
Talent Management

Health and Safety Management
Data Protection andInformation Security
Quality Management
Shared GrowthSocial Contribution

Governance

ActivitySocial Contribution Promotion System

Key Social Contribution Activities in 2022

LS ELECTRIC, under the LS Group’s management philosophy of“Lspartnership,” set the creation of an “eco-friendly world throughjoint effort for future generation” as the vision for social contribution, and it is establishing promotional strategies in order to practiceCategory

We carry out various social contribution activities to fulfill our social responsibilities and create a society of sharing. By integrating

Support forchildrenour experiences and expertise built through power solution, au-

Focusing on the creation of greater value through sharing and co-Support forsenior citizens

three principles of ▲partnership, ▲initiative, and ▲sustainability.
children and teenagers, ▲supporting people with disabilities, and ▲Support forpeople withdisabilities

communicating with local communities have been set, and customized programs are planned to carry out social contribution activities
systematically.
In 2023, we will continue organizing a range of sustainable programs for the five key promotion areas so as to conduct social contribution activities in which all employees can participate.

Social Contribution Promotion Organization· Donated KRW 100 million to Cheongju City,
Chungcheongbuk-do for neighbors in need· Learning kits for new semester to local elementary school
students from low-income families(Let’s Start with LS ELECTRIC campaign)· Volunteer activity of employee volunteer team to keep seniorcitizens living alone company· Kimchi sharing event at the Anyang-si Welfare Center for Senior
Citizens

operation between beneficiaries and volunteers, we established theUnder the principles, the five key promotion areas of ▲creating an

Performance· Donation of winter goods such as winter clothes to the Anyang-si
Welfare Center for Senior Citizens

tomation, and eco-friendly energy businesses with management
strategies, we are developing and implementing related programs.

Description

Donation to help · Donation to the Community Chest of Korea
neighbors in· Support to protect the socially vulnerableneedsocial contribution based on sustainability management.

eco-friendly ecosystem, ▲supporting senior citizens, ▲supporting

Appendix

Related UN SDGs

·D
 onated winter clothes to 200 senior citizens in Anyang City·D
 onated KRW 5 million for Kimchi making to senior citizens
in Anyang City· Support for residential environment improvement for local
families of people with disabilities· Repaired the home of a person with disability in
Miwon-myeon, Sangdang-gu, Cheongju City
· Donated KRW 14 million raised by employees to the welfare· Provided living support to residents using the local welfare center center for people with disabilities in Cheongju City· Provided clothing support to 70 users of the local welfare
for people with disabilities
center for people with disabilities in Cheonan City· Ecosystem preservation in the local streams

Environmental (Let’s Make Green with LS ELECTRIC campaign)clean-up· Environmental clean-up on Green Day in areas where worksites
are based

Support forrural regions·D elivered items for new semester including school bags
to 200 elementary school students in the southern part ofGyeonggi-do, such as Anyang, Siheung, and Ansan· Residential environment improvement activities of a volunteer
group of university students for local rural villages· Support activities on a regular basis, such as selling farm
produce, based on sisterhood relationships with rural villages in
Chungcheongbuk-do· EM clay ball throwing, environmental cleanup at
Miwon Stream in Cheongju City· 16 environmental clean-up activities including clean-up
around Busan Worksite· Improved residential environment of 24 households in
Miwon-myeon, Sangdang-gu, Cheongju City

CEO
Executive Director in charge of
ESG/CEO
Public Relations Department

59

Cheongju
Worksite

CheonanWorksiteBusan
Worksite

E-Bridge**E-Bridge: LS ELECTRIC’s representative body for office workers, launched tolead open-minded culture establishment and social contribution activities

Ecosystem Preservation in the Local Streams

Kimchi Sharing Event at the Anyang-si Welfare Center for
Senior Citizens

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

GOVERNANCE

Establishing Sound
GovernanceRoadmap

Goal

To establish sound governance, LS ELECTRIC is operating the BOD

Our Sustainability Management

organized according to the statutes and Articles of Association.

Socialcommitted to realizing transparent and independent governance

Environmental

To uphold the rights and interests of all stakeholders, we are

Governancebased on checks and balances.

Establish transparent governance by securing the BOD independence and expertise

Establishing Sound Governance

Ethics Management
ComplianceDirection of Advancement

AppendixStrengthen the BOD roles and enhance shareholder value

Risk Management

Detailed Implementation Plans
2023

2024 - 2026

2027 -

Strengthen the BOD competency

Upgrade the governance system

Strengthen the BOD
independence and diversity· Develop the board skills matrix· Establish the Remuneration
Committee· Expand specialized training for
directors

60

Actively implement theshareholder return policy· Maintain dividend payout ratio at
40% or higher

Expand communication withshareholders and investors· I ncrease the ratio of outside directors· Increase the percentage of female
director appointment

2022-2023 LS ELECTRIC
Sustainability Report

Establishing Sound Governance
PolicyGovernance Policy

Outside Director Appointment and Management

CEO Succession Policy

According to LSpartnership's management philosophy of “LS, withThe Outside Director Candidate Recommendation Committee estab-

The CEO is required to have the capabilities to manage the company

integrity as well as the best abilities, will achieve sustainable growthlished according to Article 542-8 of the Commercial Act recommends

in a direction conforming to the interest of the company and share-with all partners by creating outstanding outcomes based on mutual

independent candidates for outside directors through fair process

holders and realize the company’s core values and vision efficiently.

respect and cooperation,” LS ELECTRIC pursues the goal of contribut-

and multifaceted reviews. To ensure the independence of the Com-

To discover and foster the CEO candidates, the GHR Division oper-

ing to the development and happiness of employees, customers, andmittee, majority of the members consist of outside directors.

ates a talent fostering system for each field according to the detailed

human society. To this end, we operate governance—which serves as

LS ELECTRIC’s outside directors have expertise and practical experi-

mid- to long-term goals. The CEO and senior management regularly

a foundation for corporate management—according to our principles

ences in various fields, from a financial and accounting expert who

review the selection of candidates for key positions through the Tal-and policies. In addition, in realizing the mission of “Futuring Smartis also a certified public accountant to a professor specializing in theent Development Committee meeting. When necessary, external re-

Energy,” we have established the Governance Charter to establish andindustrial field on which our business is based as well as economic

cruitment is also considered. The selected candidates are assigned

Risk Management

maintain and develop sound governance accordingly.

and administration experts; thus making substantial contributions

to various positions and given coaching according to the mid- to

The BOD of LS ELECTRIC, as its highest decision-making body, is oper-

to corporate management. In 2022, we strengthened the BOD diver-long-term goals. A talent fostering program linked to the CEO pro-Appendix

ated according to the BOD Operating Regulations that set forth vari-sity by appointing a female outside director. As for the Audit Com-grams of major universities is also provided.

ous matters related to the BOD operation. LS ELECTRIC supports themittee, it consists entirely of outside directors to bolster the function

Among candidates fostered through this system, the CEO Candi-

BOD’s rational management decision making by including personsof keeping the management in check and solidify expertise.

date Recommendation Committee selects the most eligible persons

with various kinds of expertise as BOD members while strengthening

LS ELECTRIC conducts the annual outside director self-assessment.

as candidates for executive directors to be appointed at the gener-

the BOD’s function to keep senior management in check through out-

We assess outside directors based on their BOD attendance andal shareholders’ meeting. The CEO appointment is resolved by theside directors whose independence has been verified.

provision of appropriate advice for key management decisions. The

BOD according to Article 30 of the Articles of Association. If the CEO

assessment results are reflected in the director reappointment tocannot perform his or her duty due to absence, the CEO Candidate

encourage the fair and active performance of its duties by the BOD.

Recommendation holds a meeting, and the BOD is convened to de-

To secure transparency and fairness, the outside director remunera-

termine a single candidate and appoint the candidate as the CEO.

tion is paid within the total director remuneration amount approved

In case the position of the CEO is vacant, a senior executive director

at the general shareholders’ meeting.

fills the position until a new CEO is appointed. In case the positions

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialGovernance

Establishing Sound Governance

Ethics Management
Compliance

Link to the Governance Charter

Governance Structure

Committees of the BOD

General Shareholders
Meeting* As of Mar. 2023

GHR Team

Board of Directors(1 executive director, 2 outside directors)

Corporate Planning Department(5 outside directors)

Internal Control TeamESG Committee

ESG ManagementTeam(3 executive directors, 5 outside directors)(Organization supporting the BOD and
Subcommittees)

61

Outside Director Candidate
Recommendation Committee

Supporting
Organization

Audit Committee(1 executive director, 5 outside directors)of both the CEO and senior executive director are vacant, an unregistered executive with the most seniority fills the position of the CEO
until a new CEO is appointed.

2022-2023 LS ELECTRIC
Sustainability Report

Establishing Sound Governance
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

BOD Organization (as of March 28, 2023)
Category

Name

GenderOur Sustainability Management
Environmental
SocialGovernance

Establishing Sound Governance

Ethics Management

Ja-KyunKoo
Executive
Directors

Compliance

Risk Management

Overall business
Former) Professor, Korea University Graduate School ofmanagement
International and Public Affairs
Electricity/
Current) Chairman, Korea Smart Grid Association
Power solutions/
Current) Chairman & CEO, LS ELECTRIC
Automation◎

ESG management/
Current) E xecutive Director of ESG, LS ELECTRIC
support●Dong-Whi
Koo

MaleMar. 28, 2023
(Mar. 28, 2026)

Overall business
management

●

Male

Mar. 20, 2018
(Mar. 29, 2024)

Accounting/Audit
Former) Professor of accounting, Chungnam National University(Certified public
Former) Commissioner, Board of Audit and Inspection of Korea
accountant)

Won-JaSong

Gil-SuJang

Male

FemaleMale

MaleMar. 24, 2020
(Mar. 28, 2026)

Administration(Professor)

Current) E xecutive Director of Vision Management, LS ELECTRIC

Former) Non-standing commissioner, Korea Fair Trade
Commission
Former) Member of the Public Institutions Management
Committee, Ministry of Economy and Finance
Current) D irector, Seoul National University Global
Administration Development Institute
Current) P rofessor, Seoul National University Graduate Schoolof Public Administration

Mid- to Long-term Shareholder Return Policy
LS ELECTRIC’s shareholder return policy is aimed at steadily increasing the amount of dividends through continuous growth. From thelong-term perspective, we aim to realize shareholder return by increasing our corporate value. We determine the financial resources
for dividend payout by considering business performances, forecasts, and financial conditions; to enhance shareholder value, we established a mid- to long-term shareholder return policy. From fiscal

Mar. 28, 2022
(Mar. 28, 2025)

Jae-Hong
Kim

62

Career Highlights

Outside Director
Board
Audit
ESG
CandidateofCommittee Committee Recommendation
Directors
Committee

Male

Jong-Won
Choi

OutsideDirectors

Mar. 11, 2005
(Mar. 28, 2026)

Field of
Expertise

DongHyun Kim

WonChang
Lee

AppendixMale

Date ofAppointment(Expiration ofTerm)◎ : Chairperson

●

●

●

year 2022 to 2024, we plan to maintain the dividend payout ratio at
40% at least of the current net profits based on the non-consolidated financial statements and pay dividend of at least KRW 1,000 per◎

share. Having set the policy continuation period as three years to in-◎crease predictability for investors, we will reexamine the policy after
this period in order to reflect environmental changes. LS ELECTRIC
distributes profits in the form of money, shares, and other properties to shareholders or registered pledgees by implementing share-

●

●

●

◎

holder return to the registered shareholders or those included in
the shareholder list at the end of each settlement period following
resolution by the BOD and approval at the general shareholders’meeting. In the 49th period (fiscal year 2022), KRW 32,292 million

Mar. 28, 2022
(Mar. 28, 2025)

Former) Member of the Ethics Investigation Deliberative
Committee, Korean Institute of Certified Public
Accountants
Former) Member of the Compensation Deliberative Committee,
Accounting/Audit
Anti-Corruption & Civil Rights Commission
Current) A ssistant professor, Division of Business
Administration, University of Suwon
Current) Outside director at SK Rent A Car

●

●

●

Mar. 28, 2023
(Mar. 28, 2026)

Administration

Former) Professor, College of Policy Science, Hanyang University
Former) CEO, Korea Trade-Investment Promotion Agency
Current) Outside director at LF
Current) P olicy adviser, Korea Electrical Contractors Association
Current) Adviser, SK Telecom

●

●

●

Mar. 28, 2023
(Mar. 28, 2026)

Electricity/
Power solutions(Professor)

Former) President, Korea University Power System ResearchInstitute
Current) D irector, Dept. of Planning and Budget, Korea University
Current) P rofessor of electrical and electronic engineering, Korea
University
Current) Director, American Korean Foundation

●

●

●

was paid as dividend with KRW 1,100 as the amount per share. Moving forward, LS ELECTRIC will continue dedicating effort to respect●

ing and strengthening shareholder rights by carrying out shareholder return in an appropriate level.

2022-2023 LS ELECTRIC
Sustainability Report

Establishing Sound Governance
Activity
Activities of the BOD and Subcommittees

Training of Outside Directors

For swift and efficient decision making by the BOD, LS ELECTRIC operates the three subcommittees it established according to the respective

LS ELECTRIC provides directors with the necessary training for their

Our ESG Journey

regulations.

operations. All our outside directors participated in the Regular

Environmental

Category

LS ELECTRIC Bringing Lightto the WorldOur Sustainability Management

Forum for Audit and Audit Committee Members held by the Audit

SocialGovernance

Establishing Sound Governance

Ethics Management
Compliance

Role

Risk Management

Board of Directors

Audit Committee· Audit the company’s· Decide key management
accounting and businessgoals and basic management
operations
strategies for the company
and shareholder benefits,
and oversee the management
activities

Appendix

Function· Establish management
goals and key management
strategies· Appoint and dismiss,supervise, and assess the
management and decide thecompensation policy· Handle other mattersprescribed by the statutes,
Articles of Association, and
BOD Regulations

ESG Committee

Outside Director Candidate
Recommendation Committee· Recommend candidates
 eliberate on and approve·Dfor outside director to be
the ESG-related agenda items
appointed at the generalin order to help the company
strategically and systematically shareholders’ meetingpromote ESG management ineach area of environmental,social, and governance andachieve sustainable growth· E stablish ESG strategies and· Handle matters related toaccounting and outside auditor, plans·A nalyze ESG policies andetc.
· Handle matters related to audit trends eliberate on internal· Handle matters related to the · Dtransactions in advancestatus assessment of internal
accounting management
system operation· Handle other mattersprescribed by the statutes
and Articles of Association, or
entrusted by the BOD· Recommend outside director
candidates· Handle other mattersnecessary for outside director
candidate recommendation

Committee in April 2022 and shared their knowledge and received
training on accounting, audit, internal control system, law, and related industries as well as the market.

Shareholder Status
As of the end of 2022, LS ELECTRIC, a company listed in the securities market, has 30,000,000 shares issued, 47.47% of which are
owned by LS Co., Ltd. as the majority shareholder (14,240,000
shares). The National Pension Service, the second largest shareholder, has a 13.43% shareholding.

Expanding Communication with Shareholders and Investors
In March 2022, LS ELECTRIC increased shareholder convenience inexercising voting rights by introducing the electronic voting systemand the shadow voting recommendation system. LS ELECTRIC discloses overall information related to the general shareholders meeting, such as the date, location, purpose, and method of voting right
exercise, in the DART (Data Analysis, Retrieval, and Transfer System)of the Financial Supervisory Service. The BOD resolves a generalshareholders meeting convocation and issues the convocation notice 48 days and 4 weeks, respectively, prior to the meeting in order

Meetings Held

6

5

5

1

to help shareholders exercise their voting rights after sufficiently

Attendance

97%

100%

95%

100%

reviewing items on the agenda. Following the earnings announce-

Items Resolved

25

5

4

1

Items Reported

18

13

5

0

ment, NDR (non-deal roadshow) is held targeting key domestic institutional investors every quarter and when requested by investors.
NDR for overseas investors and IR activities are also conducted in
the form of a corporate day meeting to explain directly about the63

areas of investors’ interest and collect investors’ requests about thecompany. In addition, for domestic and overseas institutional investors wishing to have meetings with us in person, we hold IR meetings along with IR activities using contactless conference calls.

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental

GOVERNANCE

Ethics Management

Roadmap

LS ELECTRIC creates a corporate culture based on ethical responsibilities in order to prevent unethical and corruptive conducts acrossmanagement activities. We will become a company that pursues

Goalcommon interest with all stakeholders by promoting fair competition
based on mutual trust and cooperation.

Advance into a sustainable company through transparent management based on fairness, honesty, and sincerity

SocialGovernance

Establishing Sound Governance
Ethics Management

ComplianceDirection of Advancement

AppendixCreate an ethics management culture by upgrading the ethics management system and conducting ethics training

Risk Management

Detailed Implementation Plans
2023 - 2025
· Provide regular training to all employees· Expand the target of regular ethics management· Strengthen training content specializing in ethics

training to domestic and overseas subsidiaries

management642026 -

2022-2023 LS ELECTRIC
Sustainability Report

Ethics Management
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialGovernance

Establishing Sound Governance
Ethics Management

Compliance

Ethics Management Operation System

Ethics Management Whistleblowing System

LS ELECTRIC is committed to growing as a top-tier company that fulfills its responsibilities for customers, suppliers, shareholders, and society

LS ELECTRIC operates an online whistleblowing center that can beat large based on clean and transparent management. We established a system for sustainable development as a company of fairness, hones-

accessed by all internal and external stakeholders. We fairly andty, and faithfulness based on the Code of Ethics and Code of Ethics Practice guidelines that all employees must follow as the criteria for proper

swiftly address issues that can impede the establishment of a soundactions and value judgments. The Ethics Committee serves as the highest decision-making body in practicing the Code of Ethics, and the Ethics

organizational culture, such as corruption, unfair conducts, and hu-

Committee Secretariat is up and running for the day-to-day operation of ethics management.

man rights violation including sexual harassment. The whistleblow-

Full Text of the Code of Ethics and Practical Guidelines

ing system is protected with a security system and is designed not todisclose the whistleblowers’ personal information, the details of the

Ethics Management Organization

report, or any implicative information without the whistleblower’s

Goal of Ethics Management

consent. In case our noncompliance with such whistleblower protection results in any disadvantage on the part of the whistleblow-

Risk Management

er, we assume responsibility for the restoration or take equivalent

CEOAppendixmeasures. The protection applies only when the whistleblower’s realname is specified or accurate evidence is submitted.
Ethics Committee
Business Audit Department

Electric PowerCIC

Automation
CIC

Global/SE CIC

Executive
Director in
charge of ESG

Customers/Suppliers

Shareholders/Society· Build trust in the company
and products· Lay the basis for stable
growth· Improve the corporate
value and reputation· Establish a reliable basis
for investment

Whistleblower Reward System
To eradicate any unethical practices of employees and other stakeholders and create a sound corporate culture, LS ELECTRIC has operated a whistleblower reward system. The practices for report subject
to the whistleblower reward include stakeholders’ conducts causing
damage to the company by engaging in unfair transactions in violation of ethics management, acceptance of bribes or entertainment

Honesty

Ethics Management

Sincerity

Role of the Ethics Committee
Institutional maintenance, training, and dissemination forcompliance with the Code of Ethics

65

ducts in violation of the Code of Ethics and Practical Guidelines. A
reward from a minimum of KRW 1 million to a maximum of KRW 10

Fairness

Design and operation of whistleblowing system toeliminate impediments to ethics management
Consultation on ethics management and proposal of key
issues as agenda items to the Ethics Committee

from stakeholders in relation to business operations, and other con-

million is paid according to the amount of impact on the company’s
profit or loss fluctuation. If the profit or loss fluctuation extends overa long period, an amount expected for one year is paid as reward.

Transparent management | Fair competition | Social stewardshipFor cases of bribe or entertainment acceptance and calculation manipulation or false report that do not have a direct impact on thecompany’s profit or loss fluctuation, rewards of KRW 500,000 and
KRW 300,000, respectively, are paid.

2022-2023 LS ELECTRIC
Sustainability Report

Ethics Management
Activity

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialGovernance

Establishing Sound Governance
Ethics Management

Compliance

Risk Management

Ethics Management Survey Among Employees

Ethics Management Practice Training

Unethical Conduct Reporting

LS ELECTRIC conducts the biannual ethics management question-

Ethics management training is provided to employees at the LS

To eradicate ethical management violations, LS ELECTRIC receives

naire survey to inspect compliance with the Code of Ethics PracticeGroup-wide level. In 2022, the ethics management training mate-reports on unethical conducts involving employees, suppliers, andGuidelines and monitor employees’ satisfaction with ethics manage-

rials were posted on the internal noticeboard. Ethics management

customers over the phone, through email, via post, and on the on-

ment. By conducting the satisfaction survey in each area including

training was also provided to 77 new and experienced employees,

line whistleblowing center at all times and takes the appropriate ac-

ethics management activities and effects, implementation of andnewly appointed team leaders, and expatriates.

tions.

compliance with the Code of Ethics Practice Guidelines, and ethics
management practice level, we identify changes in the Company’s
ethics standard and collect related opinions.
The score of the 2022 survey, which was participated in by 56% of
employees, was 3.90 points. The ethics management survey will be
conducted again in the second half of 2024.

Ethics Management Pledge
All employees of LS ELECTRIC sign the ethics management pledge
management and establish transparent work processes. In 2022, all
3,810 employees of LS ELECTRIC and its subsidiaries signed the pledge.

Ethics Management Pledge• I will execute operations according to the principle of good faithand will make all-out efforts not to impede the operations or cause
damage to the company by deliberately or due to negligence.
• In executing operations, I will dedicate utmost effort to protecting
the company’s funds, assets, and information.
• In the event of a violation of the Code of Ethics, such as when I
become aware of an employee’s unfair or corruptive practice or got
propositioned to engage in such practice, I will report it immediately
to the Business Audit Team.

66

100% through the internal procedures.

every two years to raise their awareness of the practice of ethics

Appendix• In executing operations, I will not engage in any unfair transactions or
corrupt practices by complying with the LS ELECTRIC Code of Ethics.

In 2022, 28 reports were received, and these reports were handled• In the event of an investigation on any unfair or corruptive practicein violation of the LS ELECTRIC Code of Ethics, I will fully cooperatewith the investigation, such as submitting the data requested by thecompany (documents necessary in the unfair or corruptive practiceinvestigation).
• I will execute operations fairly by following the LS ELECTRIC Code of
Ethics and Practical Guidelines.
• S hould I violate this pledge, I will assume all associatedresponsibilities.

2022
Type

Reports
Received

Reports
Handled

Unfair Transaction

4

4Illegal/Corruptive
practice3

3

Unfair operation
handling

6

6

Claim

4

4

Others

11

11

Total

28

28

Handling Rate100%

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental

GOVERNANCE

ComplianceRoadmap

LS ELECTRIC continuously strengthens the compliance management
system under the philosophy that compliance awareness is the basisof all business activities and associated decision-making processes. By

Goal

spreading compliance awareness, we will enhance corporate transparency and reliability for our stakeholders.

Achieve zero compliance issues by internalizing the compliance awareness of all employees

SocialGovernance

Establishing Sound Governance
Ethics Management
ComplianceDirection of Advancement

Risk Management
AppendixUpgrade compliance management by introducing the compliance management system and expanding training

Detailed Implementation Plans
2023

67

2024 - 2026

2027 -· Establish and implement· Monitor for compliance system· Establish an effective compliancea compliance system planestablishment and upgrade thesystem by introducing a compliance· Expand the target of compliancesystemmanagement system (ISO 37301)

management training to domestic· Increase the compliance training

and overseas subsidiaries

hours for employees

2022-2023 LS ELECTRIC
Sustainability ReportCompliance
PolicyGoal and Performance

ActivityCompliance Management Operating System

Compliance Training Expansion

Fair Trade ComplianceFollowing the introduction of the compliance officer system in 2012,

LS ELECTRIC provides compliance training in relation to the Monop-

In 2021, the BOD appointed the head of the Legal Affairs GroupLS ELECTRIC hosted the compliance management proclamation cer-

oly Regulation and Fair Trade Act and the Fair Transactions in Sub-

as fair trade and compliance officer. It also revises the fair tradeemony in 2014 and adopted the Compliance Program (CP). We also

contracting Act in order to help employees recognize and practiceand compliance manual by reflecting the amendments of the fairconduct compliance support activities to assist all employees in theirimplementation of the legal and compliance requirements in carry-trade-related statutes. In 2022, LS ELECTRIC’s compliance support di-compliance through self-directed reviews. In addition, complianceing out their operations. In 2022, the training for the statutes was

vision inspected violations of the fair trade-related statutes for a to-training is provided on a regular basis to domestic and overseas sub-provided 46 times. In case of training for the Monopoly Regulation

tal of 48 times according to the fair trade and compliance program.

sidiaries. Under the leadership of the head of the Legal Affairs Groupand Fair Trade Act, it was provided centering on the duties for which

In addition, based on the inspection results, the purport and content(compliance officer), we practice compliance management by cat-preferential recognition of the legal requirements is necessary, suchof the law were explained to the relevant divisions, and training ac-

egorizing legal risks, conducting self-initiated reviews, and offering

as sales and business development. In 2023, we will expand thetivities were performed to share the violation cases; thus preventing

Risk Management

compliance training. The compliance officer operates under the direct

training target to include domestic and overseas subsidiaries as we

any illegal conducts in the future.

leadership of the BOD established in accordance with the Commercial

endeavor to establish the compliance culture across the value chain.

Appendix

Act (Article 542-13). In 2012, the BOD appointed the head of the Legal

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialGovernance

Establishing Sound Governance
Ethics Management
Compliance

Affairs Group as compliance officer (reappointment every three years
upon termination of office). As a compliance support organization
established under the Legal Affairs Group, the Compliance Management Team reports compliance activities to the BOD each year.

LS ELECTRIC categorizes legal risks related to business operations

Compliance Management Training
Goal
Performance

Prevention

Violation
Handling

Report the compliance inspection results to the management46

as a result of self-inspection activities, zero legal risk was detected. If
necessary, additional legal compliance inspections are conducted.

Violations and Handling Actions

30

In March 2022, LS ELECTRIC was issued a corrective order and imposed with penalty surcharges by the Fair Trade Commission as a

2022

2023

2024

result of not issuing a technical document request in the course of
requesting technical data, such as approved drawings, to subcontractors. Upon the imposition, we shared the case immediately withall employees and provided training on the Fair Transactions in Sub-

Suspend, address, correct, and take sanctions on violations

ing the technical data request. Moving forward, we will preemptive-

contracting Act. In addition, we promoted employees’ conveniencein performing compliance activities by developing a system for issuly respond to the occurrence of any illegal conduct by developing a

Propose plans to the management

Recurrence
Prevention

50

52

ed management and review in day-to-day business routines. In 2022,

Check the facts with the relevant employees and related
persons, prepare a warning report, and report the details to
the management and share them with the relevant divisions

Prepare recurrence prevention plans

68

while developing and providing a checklist for use in the self-direct(Unit: Training provided)

Compliance Control Process
Aside from conducting self-inspection using a checklist, thecompliance officer conducts ongoing inspections on thecompliance status

Self-inspection

Deliver plans to related divisions and reflect them in policy
revisionsmonitoring process for the system.

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialGovernance

Establishing Sound Governance
Ethics Management

GOVERNANCE

Risk Management

LS ELECTRIC manages risks that can have company-wide impacts by pre-Risk Management Process

emptively identifying various risk factors that can occur in the course of busi-

LS ELECTRIC recognizes the risks by inspecting all operating processes according to the prior management plan. For the recog-

ness activities and corporate operation and developing plans for responding
to the risks. In addition to financial risks including financial, capital, tax and

Policynized risks, we conduct continuous reviews and improvements by carrying out thorough follow-up management.

internal accounting risks, non-financial risks such as environmental, dataprotection, organizational operation, and supply chain risks are managed by
the relevant divisions to increase efficiency of risk management.
Recognition

Assessment

Response

Compliance

Risk Management

Appendix

Monitoring

Follow-up
management

Risk Identification in Advance
LS ELECTRIC manages the company-wide risks through emergency response, risk control in advance, and operation processinternalization according to the risk management types. In 2016, we introduced a method of identifying and managing risks inadvance, and we have established a system for swift response to risks that require intensive management through the application of this method.

Management Types
Emergency response

Risk control in advanceOperation process internalization

When an incident occurs, implement
organizational response, recovery,and simulation training according to
the prepared plans

Conduct prior inspection (using
checklist) for risk prevention

Derive improvement tasks based on risks andconduct risk management activities with focus
on the internalization of the current operatingprocesses

Identification in Advance69

Checklist management

Operation process internalization

Prepare a risk checklist, with the division in charge conducting inspection
with focus on items for prior inspection

Reflect internal accounting management incompany-wide and operation level assessment

2022-2023 LS ELECTRIC
Sustainability Report

Risk Management
PolicyLS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Environmental
SocialGovernance

Financial Risk Management
Financial Risk Management

Classification ofClassification of Financial Risks

Foreign Exchange Risk

Risk of exchange rate fluctuationthat can occur in foreign currencytransactions

Establishing Sound Governance
Ethics Management

Interest Rate Risk, Price Risk

Compliance

Risk Management

Credit Risk

Appendix

Risk of a counterpart in a contract
causing financial loss by failing to fulfill
the obligations specified in the contract

Liquidity Risk

Management Plan

· Regularly measure the exchange risk in relation to Korean won exchange rate fluctuations· Use financial derivatives· Enter into a currency forward contract to avoid exchange risk for foreign currency debts and bonds· Enter into a currency forward contract to manage exchange risk for expected sales and purchase transactions· Regularly measure the interest rate risk caused by borrowings in variable rates· Measure the marketable fair value, regularly measure the price fluctuation risk occurring in equity instruments· In addition to credit risk for accounts including amortized cost of financial assets, LS ELECTRIC’s credit risk is also
caused by payment guarantee limit· Assess credit by considering other elements such as past experiences and financial conditions of generalaccounts, and identify possible risks in advance by credit rating

Capital Risk Management

Internal Accounting Risk Management

For the purpose of capital management, LS ELECTRIC maintains an

LS ELECTRIC is operating the internal accounting management reg-

optimal capital structure in order to provide benefits to stakeholders

ulations and internal accounting management system operating

continuously and reduce the cost of capital. To maintain or adjust therules it established. We also established a consolidated internal ac-

capital structure, we adjust the dividends, return capital to sharehold-counting management system—an integrated system for the LSers, or issue new shares and sell assets to reduce liabilities.

Group—in order to improve our risk management level to a global

To meet the deadline for tax return and manage other tax risks, LS
ELECTRIC constantly monitors the amended statutes and established rules. We also detect changes in the international tax environment and laws and manage the transfer price risk through the BEPS
(Base Erosion and Profit Shifting). In addition, by cooperating witha global accounting firm, we check and respond to domestic and international tax policies and laws; thus keeping the occurrence of tax
risk to a minimum.

Non-financial Risks

Environment andClimate Change

standard from 2023.
While reestablishing the assessment and certification procedures by
spreading the internal accounting management system to LS ELECTRIC subsidiaries as well, we are designing and operating risk management processes with consideration given to the scales and characteristics of each subsidiary.
The CEO inspects the internal accounting management system operation status and reports the details at the general shareholders’meeting and to the BOD and Audit Committee. The Audit Committee
reports the results of status assessment of the internal accounting
management system operation to the BOD. From 2023, the operation status inspection and reporting will be conducted on a consolidated basis to include the subsidiaries.

Management Plan

· Monitor environmental statutes and regulations· Identify and respond to physical and transitionalrisks

Data Protection· Provide education and training in preparation
for information leak and hacking

Organization
Operation· Derive improvement tasks through businessaudit· Conduct organizational culture improvement
activities

Supply Chain· Provide ESG competency training targeting the
supply chain· I nclude non-financial areas in supplier selection
assessment· Establish short-, mid-, and long-term fund management plans· Respond to the maturity of financial assets and liabilities by analyzing cash outflow budget and actual cash outflows

Tax Risk Management70

Non-financial Risk Management

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Appendix
ESG Data

Stakeholder Communication
Materiality Analysis
GRI Content Index
SASB Index
TCFD Index

UNGC, Memberships and Awards
GHG Verification Statement
Independent AssuranceStatement

Appendix
71

ESG Data

72

Stakeholder Communication

77

Materiality Analysis

78

GRI Content Index

79

SASB Index

81

TCFD Index

81

UNGC, Memberships and Awards

82

GHG Verification Statement

83

Independent Assurance Statement842022-2023 LS ELECTRIC
Sustainability Report

ESG Data
Financial Statements (Consolidated)

LS ELECTRIC Bringing Lightto the World(Unit: KRW million)

Summarized Statement of Financial Position
2020

2021

2022

Assets2,540,396

2,796,732

3,322,805

Cash flows from operating activities

Current assets

1,649,805

1,887,748

2,341,252

Cash flows from investing activities

Non-current assets

890,592

908,983

981,553

Cash flows from financing activities

Liabilities

1,126,926

1,323,312

1,773,514

Current liabilities

644,246

845,301

1,390,210

Non-current liabilities

482,680

478,012383,304

Equity1,413,470

1,473,419

TCFD Index

Total equity attributable to shareholders of thecompany

1,411,499

GHG Verification Statement

Non-controlling interests
Total liabilities and equity

Our ESG Journey

Our Sustainability Management
Appendix

ESG Data

Stakeholder Communication
Materiality Analysis
GRI Content Index
SASB Index

UNGC, Memberships and Awards
Independent AssuranceStatement

Particulars

2021

2022

288,901

101,544(145,446)(84,498)(120,431)(131,065)(55,341)

34,813

134,654

Change in cash and cash equivalents

149,063

15,926(141,857)

Cash and cash equivalents at the beginning of
the year534,507683,235

701,597

1,549,291

Effects of exchange rate changes on cash andcash equivalents

(335)

2,436

(3,654)

1,481,633

1,553,494

Cash and cash equivalents at the end of the year

683,235

701,597556,086

1,971(8,214)(4,203)

2,540,396

2,796,732

3,322,805(Unit: KRW million)

Summarized Statement of Comprehensive Income
Particulars

Particulars

2020(Unit: KRW million)

Balance in Government Subsidies

2020

2021

2022

Particulars

2020

2021

2022

2,402,673

2,668,265

3,377,070

Buildings

172

167

162

Operating income

133,714155,132

187,524

Machinery

370

333

295

Income from continuing operations before tax

127,845

110,750

126,967

Tools and equipment

12

25

21

Net income

85,48685,31091,210

Office equipment

46

217

223

Total comprehensive income
for the current term

86,671

107,906

104,027

Development expenses

173

184

115

Other non-tangible assets

-

18

14

Sales

72

(Unit: KRW million)

Summarized Statement of Cash Flows

2022-2023 LS ELECTRIC
Sustainability Report

ESG Data
Environmental Performance

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Appendix

ESG Data

Stakeholder Communication

Environmental
Category
Process improvement

6,142

842

944

1,415

629

478

313

kg

1,554

841

1,006

kg

2,480

4,068

3,092

kg

SOx

Water

Independent AssuranceStatement

Unit

Chemicals4)

Hazardous chemicals used

-

-

-

3

m

59,093

113,752

75,246

Industrial
water

m3

113,661

64,583

142,382

Total

m3

172,754

178,335

217,628

Wastewater discharged

m3

152

104

159.28

Reuse

m3

-

-

-

TJ

745.2

637.3

603.0

Raw materials

Total waste generation

Power consumption

EnergyFuel consumption

TJ

100.4

87.5

LNG, LPG, gasoline,
74.5
dieselTotal energy
consumption

TJ

845.6

724.8

677.5

Energy intensity

TJ/KRW 100
million

0.05

0.04

0.03

Renewable energy
consumption

TJ

-

-

-

Scope1
Amountdischarged Scope2
Energy/GHG

Category

ServicewaterConsumption
by source

GHG Verification Statement

3)

GHG

tCO2eq

5,288

4,587

tCO2eq37,58230,49828,836tCO2eq42,87035,08533,749Carbon intensity

tCO2eq/
KRW 100
million

2.31

1.87

Waste

tCO2eq--BusinesstraveltCO2eq--Scope of Data: Scope
1.48 1, Scope 2, based on
separate sales

tCO2eq--Leasedfacilities

tCO2eq--11,462Total

tCO2eq--27,021

1.50

2021

0.27

2022 Remarks
Overall consumption
increased due tothe expansion of
hazardous chemical
1,598.8 category according to
the amendment of the
Notification of Toxic
Substance Designation(Jun. 22, 2021)

KRW million

412

265

739

Eco-friendly product development

KRW million

17,232

7,602

11,644

Power Solutions

KRW million

70,335106,273

118,905

Automation

KRW million

4,501

5,598

7,014

Global SE

KRW million

215,446

85,009136,094

Sales from
eco-friendly
products andservices

5)

Total

KRW million

290,282

196,880

262,013

Steel

ton

8,162

9,470

13,104Non-ferrous metal

ton

2,841

3,419

4,129

Resin

ton

352

2,278

2,148

Recycled materials
Treatment Landfill
type
Incineration
Other
DesignatedInternal
Treatment treatment
waste

methodConsignment
to treatmentcompany

SubtotalWaste
treatment6)

Landfill

Treatment
Incineration
type
Others112
Air (overseas),
8,027 train and driving(domestic)
Shuttle bus operation
7,420 (Cheongju, Cheonan,
Busan)

kg

2020

Green procurement

Based on separate
4,913
sales

Total

Scope 3
Employeeemissionscommuting73

2022 Remarks

5,119

Dust

2)

UNGC, Memberships and Awards

2021

Air pollutant1) NOx

GRI Content Index
TCFD Index

2020
15,704

Investment in Investment in environmental and
KRW million
environment safety facilities
and safety
Maintenance of environmental and
KRW million
safety facilities

Materiality Analysis
SASB Index

Unit
KRW million

Generalwaste

Internal
treatment

Treatment
Consignment
methodto treatmentcompany
Subtotal

Total waste treatment

ton

0

0

0

ton

4,056.41

3,683.66

3735.86

ton

1.22

0.91

1.65

ton

69.08

55.84

44.50

ton

-

-

-

ton

-

-

-

ton

70.30

56.75

46.15

ton

70.30

56.75

46.15

ton

5.97

7.23

1.91

ton

613.40498.40228.02

ton

-

-

-

ton

-

-

-

ton

619.37505.63229.93

ton

619.37505.63229.93ton

689.67562.38276.081)2)4)5)6) Scope of Data: C heongju, Cheonan, Busan worksites
3) Scope of Data: H ead office, LS Yongsan Tower, R&D Campus, 3 plants (Cheongju, Cheonan, Busan), 9 sales offices(Daejeon, Daegu, Busan, Ulsan, Naju, Gwangyang, Anyang, Gunsan, Uiwang)

2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldESG Data
Environmental Performance

Social Performance

Environmental

Employees1)

Category

Our ESG Journey

Recyclingtype

Our Sustainability Management

Designatedwaste

Appendix

ESG Data

Stakeholder Communication
Materiality Analysis
GRI Content Index
SASB Index
TCFD Index

UNGC, Memberships and Awards
GHG Verification Statement
Independent AssuranceStatement

Recyclingmethod

Unit

2020

2021

Pretreatment for reuse

ton

-

-

-

Recycling

ton

52.82

46.41

37.16

Other treatment

ton

-

-

-

Internal treatment

ton

-

-

-

Consignment totreatment company

ton

52.82

46.41

37.16

ton

52.82

46.41

37.16

Pretreatment for reuse

ton

-

-

-

Recyclington

3,313.92

3,074.87

3,422.62

Other treatment

ton

-

-

-

Internal treatment

ton

-

-

-

Consignment totreatment company

ton

3,313.92

3,074.87

3,422.62

ton

3,313.92

3,074.87

3,422.62

Subtotal

Waste
recycling

Recyclingtype
Generalwaste

RecyclingmethodSubtotal

Total waste recycling
Recycling rate2022 Remarks

ton

3,366.74

3,121.28

3,459.78

%

83.0

84.7

92.6

Category

Employees by
employment
type

Unit

2020

2021

2022 Remarks

Permanent Male

Persons

2,814

2,771

2,645

employees Female

Persons

313

322

335

Temporary Male
employees Female

Persons

84

74

78

Persons

45

55

54

Total
20s
30s
Employees
by age40s
50 andolder

New recruits

Turnover rate

Performanceassessment

74

3,256

3,222

3,112

Persons

167

128

186

FemalePersons

57

57

Male

Persons

836

681

82 Excluding
outsourced
648 personnel

FemalePersons

97

105

102

Male

Persons

901

918

885

FemalePersons

184

179

170

Male

Persons

994

1,118

1,004

Persons

20

36

35

Total

Persons

3,256

3,222

3,112

Male

Persons

125

146

192

FemalePersons

51

60

63

Total

Persons

176

206

255

Overall turnover rate

%

5.2

7.6

11.7

Voluntary turnover rate

%

1.6

3.4

4.8

Female

%

3.6

4.2

6.9

Persons

2,079

2,066

1,771

%

63.9

64.1

56.9

%

27.8

26.8

Including
29.0 engineers andoffice workers

Male

Years

17.3

17.6

17.5

Female

Years

16.6

16.5

15.8

KRW
million/person

16.5

16.6

17.4

%

2.9

2.8

2.4

Non-voluntary
turnover rate
Persons subject toassessment
Performanceassessment ratio

Union membership rateYears of service

Persons
Male

Welfare expenses
Welfare expenses to sales

1) Employee data partially changed due to the change in the basis of total employee counting (based on the numberof workers in the Annual Report of the respective year)2022-2023 LS ELECTRIC
Sustainability Report

ESG Data
Social Performance

LS ELECTRIC Bringing Lightto the World

Employees
Category

Our ESG Journey

Female employees

Our Sustainability Management
Appendix

ESG Data

Stakeholder Communication
Materiality Analysis
GRI Content Index

Health and Safety

Employeediversity

SASB Index
TCFD Index

UNGC, Memberships and Awards
GHG Verification Statement
Independent AssuranceStatement

2020

2021

2022 Remarks

358

377

388

Ratio of female
employees

%

11.0

11.7

12.5

Female managers

Persons

52

66

69 Manager and higher

Ratio of female
managers

%

3.5

4.2

4.5

Female executives

Persons001

Ratio of female
executives
Employees withdisabilities
Ratio of employeeswith disabilities

%

0

0

3.7

Persons

43

39

35

%

1.3

1.2

1.1

Foreign national
employees

Persons

11

Based on foreign
11 national employees
working in Korea

0.81

Average pay offemale employees/
0.77
average pay ofmale employees

All employees
Equal pay

Management
positionsNon-management
positions
Pay gap between the CEO andother employees

75

Unit
Persons

Times

10

0.79

Times

0.89

0.89

Times

0.85

0.87

0.85

Times

74.23

43.13

43.01

Training expenses

KRW 1,000/
person

1,355

1,487

1,572

Training hours

PD/person

7

10

7.6

Employees
Maletakingmaternity leave Female
Employees
Maletaking parental
Femaleleave

Persons000Persons11

47

Persons12

915Persons

20

5

16

Male

%

100

100

100

Female

%

100

100

100

Male

%

100

100

100

Female

%

100

100

100

Unit

2020

2021

2022 Remarks

Industrial accident rate

%

0.06

0.01

Data from the Korea
0.06 Occupational Safety& Health Agency

Mortality

Persons0

0

0

Lost days

Days

161

14

29

Incident
per onemillionworking
hours

0.729

0.147

0.758

Hours completed(cumulative)

Hour

71,46061,02353,260Participants(cumulative)

Persons

13,272

28,25026,659

Expenses

KRW
million

691

699

638

Suspected persons

Persons

1,055

2,975

1,871

Support for medical expenses

KRW
million

1,113

1,100

1,003

LTIFR(Lost Time Injuries Frequency Rate)

Below executives of
0.90
manager level or higher

Rate of return
after parental
leave
Employees
working forat least
1 year after
return fromparental leave

Category

Including outsourced
personnel

SafetyTraining

Checkup
Health2022-2023 LS ELECTRIC
Sustainability Report

ESG Data
Social Performance

LS ELECTRIC Bringing Lightto the World

Retirement Pension Fund Management
Category

Unit

2020

2021

Our ESG Journey

Funds under
Defined benefit management(DB)
Subscribers

KRW
million217,113

233,995

250,342

Persons

2,852

2,707

2,475

Funds undermanagement

KRW
million---Subscribers

Persons

387

404

461

Our Sustainability Management
Appendix

Purchase by Region
2022 Remarks

Category

Unit

2020

2021

2022 Remarks

Asia (excluding Middle East)

%

65

69

69

Europe%20

21

21 Region-specific

Americas

%

13

10

Middle East

%

2

-

Others (Oceania and Africa)

%

-

-

Total

%

100

100

100

9 percentageof overseas
0 purchase
1 amount

ESG Data

Definedcontribution(DC)

Materiality Analysis

Shared Growth

SASB Index

Category

Unit

2020

2021

2022 Remarks

Supplier satisfaction with ethics management

Points

4.37

4.18

4.27

Shared Growth Agreement concluded

Cases

329

324

337

Category

Unit

2020

2021

2022 Remarks

Support amountKRW 100
million

110

69

56

Donations

KRW
million

691

3,426

4,778 Consolidated

Supported suppliersCompanies

60

43

50

Social contribution expenses

125

151

152

Win-win payment support for suppliers

KRW 100
million

KRW
million

9,231

8,777

10,893Social contribution activities

Cases

68

55

56

Supplier training participants

Persons

-

122

163

Participants in social contribution activities

Persons

4,856

4,511

3,478

Supplier training provided

Times

-

9

8

Beneficiaries of social contribution activities

Persons

724

1,471

901

-

37

0

Stakeholder Communication
GRI Content Index
TCFD Index

UNGC, Memberships and Awards
GHG Verification Statement
Independent AssuranceStatement

Financial support tosuppliers

Suppliers benefitingfrom technology
Companies
sharing
Technology protection
support provided

Cases

22

17

9

Technology
cooperation
projects

Projects

30

22

41

Support amountKRW 100
million

14

17

35

Companies

17

16

20

Supported suppliersCompanies

17

16

20

Supported employees

Persons

17

16

20

Suppliers participating in performance sharing

Companies

238

133

100

Technologicalsupport tosuppliers
Technology
development

ACE Club (suppliers association) members

76

Innovation capacity
support for ACE Club

Social Contribution

2022-2023 LS ELECTRIC
Sustainability Report

Stakeholder Communication

LS ELECTRIC Bringing Lightto the WorldLS ELECTRIC categorizes employees, local communities, suppliers, customers, and shareholders and investors as key stakeholders. We will strive to achieve sustainable growth with our stakeholders by listening atten-

Our ESG Journey

Our Sustainability Management
Appendix

tively to their voices across all management activities.

Category

Employees

Communication Channels· E-Bridge (Junior Board)· Satisfaction survey

ESG Data· WeLS (employee portal)· Meetings with the
management

Stakeholder Communication

Key Areas of Interest· Work-life balance· Employee health and safety

SASB Index
TCFD Index

UNGC, Memberships and Awards
GHG Verification Statement

Independent AssuranceStatement

Local
Communities· New Recruits: 255

Suppliers·M eetings with the· Expansion of social· Environmental· Donations: KRW 4,778 million· Direct communication

management

contribution investment

preservation activities· Social Contribution Participants: 3,478 persons

with persons in charge· Questionnaire survey· ACE Club· Shared growth portal· Establishment of fair

· Supply chain risk

· Financial Support: KRW 5.6 billion· ACE innovation exchange

cooperative relations

management· Shared growth and ESG· Supplier communication

meeting

support· Exhibitions and seminars· Customer service center· Customer satisfaction· Customer meetings· SNS channels· Local community meetings· Shared growth

innovation meeting· Performance sharing
Customers(TOPS)

Shareholders andInvestors· NDR· Company visits· Product and service risk

· Customer Satisfaction Score: 75.4 points

management

management· Personal information pro-· Eco-friendly producttection and leak prevention

development· Shareholder-friendly· Transparent information· Cash Dividend per Share: KRW 1,100· General shareholders’management activation

disclosure· Interest Expenses: KRW 19,880 million

meeting· Stable profit generation and · Risk management activities· Distributor meetings· Website

distribution

77

tional culture improvement· Fair performance assess-· Welfare Expenses per Person: KRW 17.4 million

ment and compensation

Materiality Analysis
GRI Content Index· Welfare system and organiza-

Activities and Performance in 2022

2022-2023 LS ELECTRIC
Sustainability Report

Materiality Analysis

LS ELECTRIC Bringing Lightto the WorldLS ELECTRIC derived ten material issues that can wield an impact in the course of key business promotion by conducting materiality

Our ESG Journey

Our Sustainability Management
Appendix

ing transparently our plans, activities, and performances related to the ESG issues in the Report, we reflect them in the actual management decision-making system through reporting to the management. We will communicate with various stakeholders and identify their ESG-related needs by continuously conducting the materiality analysis and upgrading the process.

Materiality Analysis Result

ESG Data(Low Impact) ← Impact →Stakeholder Communication
Materiality Analysis

GRI Content Index
SASB Index
TCFD Index

UNGC, Memberships and Awards
GHG Verification Statement
Independent AssuranceStatement

Organize a pool of
ESG issues(High Impact)

Organize a pool of 26 issues by analyzing international
standards and ESG assessment indicators including
industry trend

1

Stakeholders
Category

ESG Issue

Environmental

1. D
 iscovering new business andsecuring eco-friendly technologies

Social

2. M
 anagement for shared growthwith suppliers

Governance

3. E thics management andanti-corruption

Social4. Safe working environment

Social

5. Customer health and safety

Social6. Human rights protection

Social7. Product and service quality

Governance

8. Sound BOD organization

Environmental 9. Climate change response
Social78

Materiality Analysis Methodology

analysis targeting internal and external stakeholders. In addition to managing strategically the material issues selected and disclos-

10. Fair HR system and welfare

ImpactEmployees

Customers

Suppliers

Experts

Review international standards and
ESG assessment indicators· Analyze the GRI Standard, ISO 26000, UNGC, UN
SDGs, MSCI, SASB, and TCFD indicators

Shareholders/
Investors
2

Conduct industry benchmarking and analysis· Analyze material issues of the industry in 2022

Analyze impact
3

Analyze media· Analyze 4,378 articles searched under the keyword
LS ELECTRIC(Analysis Period: Jan. 1 - Dec. 31, 2022)
4

Collect stakeholder opinions· Conduct a questionnaire survey targeting employees,
customers, suppliers, academic circles, and experts(Survey Period: Jan. 11 - 13, 2023)· Analyze BOD agenda items (shareholders/investors)
in 2022

Selectcritical issues· Conduct a general assessment by applying weights byitem to the impact analysis results· Select critical issues

2022-2023 LS ELECTRIC
Sustainability Report

GRI Content Index

LS ELECTRIC Bringing Lightto the World

Material
Issue

Our ESG Journey

Our Sustainability Management

Indicator

Description

Page

Reason for
Non-disclosure

Material
Issue

Indicator

Description

Page

General Disclosure 2021

GRI 3

Material Topics 2021

2-1

Organizational details2

3-1

Process to determine material topics

78

2-2

Entities included in the organization’s sustainability reporting2

3-2

List of material topics

78

GRI 2

Discovering GRI 3
new business
3-3
and securingeco-friendly GRI 201
technologies
201-1

Material Topics 2021

2-3

Reporting period, frequency, and contact point2

ESG Data

2-4

Restatements of information

74

Stakeholder Communication

2-5

External assurance

84

Materiality Analysis

2-6

Activities, value chain, and other business relationships

7

GRI Content Index

2-7

Employees

74

GRI 3

Material Topics 2021

TCFD Index

2-8

Workers who are not employees

74

3-3

Management of material topics

2-9

Governance structure and composition

61

GRI 308

Supplier Environmental Assessment 20162-10

Nomination and selection of the highest governance body

61

308-1

New suppliers screened using environmental criteria

55

2-11

Chair of the highest governance body

62

308-2

Negative environmental impacts in the supply chain and actions
taken

55-56

2-12

Role of the highest governance body in overseeing themanagement of impacts

2-13

Delegation of responsibility for managing impacts

61

2-14

Role of the highest governance body in sustainability reporting

63

2-15

Conflicts of interest

61-63

2-16

Communication of critical concerns

61-63

2-17

Collective knowledge of the highest governance body

61-63

2-18

Evaluation of performance of the highest governance body

61

2-19

Remuneration policies

61

2-20

Process to determine remuneration

61

2-21

Annual total compensation ratio

75

2-22

Statement on sustainable development strategy

5

2-23

Policy commitments

2-24

Embedding policy commitments

22, 352-25

Processes to remediate negative impacts

36, 65

Appendix

SASB Index

UNGC, Memberships and Awards
GHG Verification Statement
Independent AssuranceStatement

79

60-63

5, 22, 35

2-26

Mechanisms for seeking advice and raising concerns

36, 652-27

Compliance with laws and regulations

67, 682-28

Membership associations

82

2-29

Approach to stakeholder engagement

77

2-30

Collective bargaining agreements

74

Management
GRI 408
for shared
growth with
408-1
suppliers

Management of material topics

21, 26

Economic Performance 2016
Direct economic value generated and distributed (EVG&D)

6
53

Child Labor 2016
Operations and suppliers at significant risk for incidents of child
labor

55

GRI 409

Forced or Compulsory Labor 2016409-1

Operations and suppliers at significant risk for incidents offorced or compulsory labor

GRI 414

Supplier Social Assessment 2016414-1

New suppliers screened using social criteria

55

414-2

Negative social impacts in the supply chain and actions taken

55-56

GRI 3

Material Topics 2021

3-3Management of material topics

Ethicsmanagement GRI 205
and anti205-2
corruption

205-3

55

64

Anti-corruption 2016
Communication and training on anti-corruption policies andprocedures

66

Confirmed incidents of corruption and actions taken

66

Reason for
Non-disclosure2022-2023 LS ELECTRIC
Sustainability Report

GRI Content Index

LS ELECTRIC Bringing Lightto the World

Material
Issue

Our ESG Journey

Material Topics 2021

GRI 403

Occupational Health and Safety 2018

403-1

403-2

ESG Data

Stakeholder Communication
Materiality Analysis

GRI Content Index

Safe
403-3
workingenvironment 403-4

403-5

SASB Index

403-6

TCFD Index

Description

GRI 3
3-3

Our Sustainability Management
Appendix

Indicator

Management of material topics
Occupational health and safety management system

Page

42

Material Topics 2021

3-3Management of material topics

Worker participation, consultation, and communication on
occupational health and safety43

GRI 201

Economic Performance 2016

Worker training on occupational health and safety

46

201-2

Financial implications and other risks and opportunities due to climate change

Promotion of workers' health

46

GRI 302

Energy302-1

Energy consumption within the organization

73

302-2

Energy intensity73

GRI 305

Emissions 2016

305-1

Direct (Scope 1) GHG emissions

73

305-2

Energy indirect (Scope 2) GHG emissions

73

305-3

Other indirect (Scope 3) GHG emissions

73

305-4

GHG emissions intensity

73

305-5

Reduction of GHG emissions

73

305-6

Emissions of ozone-depleting substances (ODS)-No
violation

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

73

GRI 3

Material Topics 2021

3-3Management of material topics

37

GRI 401

Employment 2016

401-1

New employee hires and employee turnover

74

401-2

Benefits provided to full-time employees but not to temporary or
part-time employees

40

401-3

Parental leave75

GRI 404

Traning and Education 2016

45-46

Human
rightsprotection

Work-related ill health-

GRI 416

Customer Health and Safety 2016

GRI 405405-1

GRI 407
407-1

80

75

Material Topics 2021

405-2

Product
and service
qualityWork-related injuries

GRI 3

3-3

GRI 3
3-3

GRI 417417-2

Anti-competitive Behavior 2016

GRI 3

Management of material topics
Incidents of noncompliance concerning the health and safety
impacts of products and services

Climatechangeresponse

Management
scheduled

50

Material Topics 2021
Management of material topics
Diversity and Equal Opportunity 2016
Diversity of governance bodies and employees
Ratio of basic salary and remuneration of women to men

35, 6275

Freedom of Association and Collective Bargaining 2016
Operations and suppliers wherein the right to freedom of
association and collective bargaining may be at risk

36

Material Topics 2021
Management of material topics

50

Marketing and Labeling 2016
Incidents of noncompliance concerning product and service
information and labelingNoviolation

Fair HRsystem andwelfareReason for
Non-disclosure

60

46

Workers covered by an occupational health and safety
management system

GRI 3

Management of material topics

Sound BOD
organization GRI 206

Occupational health services

403-8

416-2

Material Topics 2021

3-3

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

Independent AssuranceStatement

3-3

GRI 3

Page

43

43-46

Customerhealth andsafetyDescription

Hazard identification, risk assessment, and incident investigation

Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships

403-10Indicator

206-1

403-7

403-9

Material
Issue

43-45

UNGC, Memberships and Awards
GHG Verification Statement

Reason for
Non-disclosure

68
30
31

37

404-1

Average hours of training per year per employee

75

404-2

Programs for upgrading employee skills and transition assistance programs

39

404-3

Percentage of employees undergoing regular performance andcareer development reviews

74

No emission

2022-2023 LS ELECTRIC
Sustainability Report

SASB Index

LS ELECTRIC Bringing Lightto the World

Category

Our ESG Journey

Our Sustainability Management
Appendix
ESG Data

Stakeholder Communication
Materiality Analysis
GRI Content Index
SASB Index

SASB Index

Unit

Total energy consumed
Energy
RT-EE-130a.1 Percentage grid electricity
management
Percentage renewable

GJ

696,990

%

86.5

%

0

Amount of hazardous waste generated,
RT-EE-150a.1
percentage recycled

Hazardous
waste
management RT-EE-150a.2 Number of reportable spills, aggregate
quantity of reportable spills

GHG Verification Statement
Independent AssuranceStatement

Ton, %

Status in 2022

Remarks

Category

Governance46.15, 80.5%

Products,
kg

RT-EE-250a.1 Number of recalls issued, total units recalled Products ProductsafetyTCFD Index

UNGC, Memberships and Awards

SASB CodeTCFD Index

Total amount of monetary losses as a
RT-EE-250a.2 result of legal proceedings associated withproduct safety
RT-EE-410a.1

Percentage of products containing IEC
62474 declarable substances by revenue

Product
Percentage of eligible products meeting
life cycle
RT-EE-410a.2
the ENERGY STAR® criteria by revenue
management
Revenue from renewable energy-related
RT-EE-410.3
and energy efficiency-related products
Materialsourcing

Business
ethicsActivity
Metrics

Description of management of risks
RT-EE-440a.1
associated with the use of critical materials

KRW

-

%

-

%

-

%

11.47%

Risk Management-

Description of policies and practices forthe prevention of:
RT-EE-510a.1(1) Corruption and bribery and(2) anti-competitive behavior-

Total amount of monetary losses as a
RT-EE-510a.2 result of legal proceedings associated withbribery or corruption

KRW

Total amount of monetary losses as a
RT-EE-510a.3 result of legal proceedings associated with
anti-competitive behavior regulations

KRW

Page

a. D
 escribe the board’s oversight of climate-related risks and opportunities

31

b. D
 escribe the management’s role in assessing and managing climate-relatedrisks and opportunities

31

a. D
 escribe the climate-related risks and opportunities identified by theorganization from the short-, medium-, and long-term perspectives

31

b. D
 escribe the impact of climate-related risks and opportunities on theorganization’s businesses, strategy, and financial planning

31-32

c. Describe the resilience of the organization’s strategy, taking into considerationdifferent climate-related scenarios including a 2°C or lower scenario

31-32

a. D
 escribe the organization’s processes for identifying and assessing climaterelated risks

31-33

b. D
 escribe the organization’s processes for managing climate-related risks

31-33

c. D
 escribe how processes for identifying, assessing, and managing climaterelated risks are integrated into the organization's overall risk management

33

a. D
 isclose the metrics used by the organization to assess climate-related risks
and opportunities in line with its strategy and risk management process

30-32

b. D
 isclose Scope1, Scope 2, and, if appropriate, Scope3 GHG emissions andrelated risks

33, 73c. D
 escribe the targets used by the organization to manage climate-related risks
and opportunities and performance against targets

28, 38p.55

p.64-680Metrics & Targets

0

Power
Solutions:
2,668,292
Automation:
590,651

Number of units produced by product
RT-EE-000.A
category

KRW
million

RT-EE-000.B Number of employees

Persons 3,112

81

Strategy

Recommended Disclosures

Power Solution Items:
Low-voltage device,high-voltage device,meter, ultra-highvoltage system,
switchboard, etc.
Automation Items:
PLC, inverter, automation system, etc.

2022-2023 LS ELECTRIC
Sustainability Report

UNGC, Memberships and Awards

Memberships in associations

UN Global Compact
LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management

LS ELECTRIC joined the UN Global Compact (UNGC), a voluntary initiative to promote
the fulfillment of corporate social responsibilities, in 2015, and it has supported andapplied the Ten Principles of the UNGC for human rights, labor, environment, and anti-corruption activities across corporate activities.

Appendix

Ten Principles of the UN Global Compact

ESG Data

Stakeholder Communication
Materiality Analysis
GRI Content Index
SASB Index

Principle 1.

Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2.

make sure that they are not complicit in human rights
abuses.

Principle 3.

Businesses should uphold the freedom of associationand the effective recognition of the right to collective
bargaining;

Human Rights

TCFD Index

UNGC, Memberships and Awards

GHG Verification Statement
Independent AssuranceStatement

Labor

Principle 4.

the effective abolition of child labour; andPrinciple 6.

the elimination of discrimination in respect of
employment and occupation.

Environmental Principle 8.

Principle 9.

82

Anti-corruption Principle 10.

35

the elimination of all forms of forced and compulsory
labour;Principle 5.

Principle 7.

Page

LS ELECTRIC’s
Policy· LS ELECTRIC
Code of Ethics· Basic Ethics
Practice
Guidelines for
Employees

CAN in Automation, ETG (EtherCAT Technology Group)

Certifications

21-29· LS ELECTRIC
Environmental
Management
Policyencourage the development and diffusion ofenvironmentally friendly technologies.

Businesses should work against corruption in all its
forms, including extortion and bribery.

UN Global Compact (UNGC), CIGRE, CIRED KNC (CIRED Korean National Committee),Overseas International Electric Research Exchange (IERE), Sunspec Alliance, MECHATROLINK Members Association,

Businesses should support a precautionary approach toenvironmental challenges;
undertake initiatives to promote greater environmental
responsibility; andDomestic

Federation of Korean Industries, Korea Economic Research Institute, Korea International Trade Association, Korea-Japan Economic
Association, Korea Enterprises Federation, Anyang Gwacheon Chamber of Commerce and Industry, Korean Council on Latin America& the Caribbean, Korea Listed Companies Association, Korean Association for Intellectual Property Services, Korea Electrical
Contractors Association, Electric Contractors’ Financial Cooperative, Korea Electric Engineers Association, Korea Engineering &Consulting Association, Engineering Guarantee Insurance, Korea Information & Communication Contractors Association, Information& Communication Financial Cooperative, Korea Products Safety Association, Korea Electrical Manufacturers’ Cooperative, Korea
Heavy Electric Business Cooperative, Korea Railway Signal Engineering Association, Korea Railway Association, Korea Urban
Railway Association, Railway Signal Research Association, Korea Railway Association Overseas Cooperation Committee, Korea
Electrical Manufacturers Association, Korea Electric Association, Korean Society of Marine Engineering, Seoul National University
Electric Power Research Institute (Industry-Academe Consortium), Korea Electrical Industry Technology Research Association,
Korea Industrial Technology Association, Korean Institute of Electrical Engineers, Smart High Power and Voltage Technology Study
Group (Korean Institute of Electrical Engineers), Power System Study Group (Korean Institute of Electrical Engineers, Korea ElectricPower Corporation), LVDC Facility Study Group of the Korean Institute of Electrical Engineers, Korean Institute of Power Electronics,
Institute of Control, Robotics, and Systems, Korea Battery Industry Association, Korea Industrial Safety Association, Korea Instituteof Information & Telecommunication Facilities Engineering, Korean Institute of Electrical and Electronic Material Engineers, Korea
Embedded Software and System Industry Association, Korea Software Technology Association, Korea Software Industry Association,
Open Network DeviceNet Korea, Korea PROFIBUS Association, Korea Smart Manufacturing Industry Association, Korea AutomaticControl Ind. Cooperative, Korea Packaging Machinery Association, Korea Marine Equipment Association, Korea Smart Grid Association,
International Contractors Association of Korea, Construction Association of Korea, Construction Guarantee, Korea Fire Facility
Association, Fire Guarantee, Korea Photovoltaic Industry Association, Korea New & Renewable Energy, ESS Ecosystem Fostering Council,
KOVA Cooperative, Climate Technology Centre and Network, Korea Wind Energy Industry Association, Cheongju Chamber of Commerceand Industry, Korea Electric Engineers Association, Green Company, Environmental Preservation Association, Korea Industrial Safety
Association, Korea Fire Safety Institute, Korea Association of Occupational Health Nurses, Korea Environmental Engineers Federation
Chungcheongbuk-do Branch, Korean Standards Association, Association of Korean National Quality Award Winners, Korea Associationof Standards and Testing Organizations, Korea Customs Logistics Association, Korea Chamber of Commerce and Industry (GS1 Korea),
Northern Chungcheongnam-do Chamber of Commerce and Industry, Korea Fire Safety Institute, Korea Industrial Safety Association,
Environmental Preservation Association, Green Company, Chungcheongnam-do Environmental Engineers Association, Korea ElectricEngineers Association, Korea Association of Occupational Health Nurses, Korea Customs Logistics Association, Busan Chamber ofCommerce and Industry, Korea Fire Safety Institute (Fire Safety Engineer), Korea Fire Safety Institute (Hazardous Material Safety
Supervisor), Korea Electric Engineers Association, Regional Safety Action Council, Korea Industrial Safety Association, Northern Busan
Industrial Safety Association, Environmental Preservation Association, Green Company, Korea Customs Logistics Association

64-68· LS ELECTRIC
Code of Ethics· Basic Ethics
Practice
Guidelines for
Employees· ISO 27001· ISO 9001

· Green Company· ISO 45001· IATF 16949· KOLAS-certified calibration agency· ISO 14001· IEC 62443-4-1· KOLAS-certified testing agency· KEPIC certification for nuclear inspector
and supervisor· Family-friendly Company

AwardsCategory

Date(Month/Year)

Hosting Organization

Award Description

Ministry of Trade, Industry, and Energy(Korean Agency for Technology andStandards)/Korean Standards Association

National Quality
Innovation Award

Nov. 2022

48th National Quality Management
Convention

Nov. 2022

2022 Minister of Environment Award forGreen Company, Ministry of Environment

Korea Environmental Industry &Technology Institute

Top Prize, Minister ofEnvironment Award

Apr. 2022

Citation on Science Day

Ministry of Interior and Safety

Presidential Citation(Material Research Center
Director Wook-Dong Choi)

Company

IndividualAward2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

GHG Verification Statement_Overall

GHG Verification Statement_by Worksite

The Korea Management Registrar Inc. (hereinafter “KMR”) has conducted the verification on thegreenhouse gas (hereinafter “GHG”) emission (Scope 1&2) of LS ELECTRIC Co.,Ltd. in 2022.

Overview

Scope
Verification of all places of business and emission facilities under the control of LS ELECTRIC Co.,Ltd.

Our Sustainability Management

Place of business in Korea : HQ, LS Yongsan Tower, Global R&D Campus, 3 Place(Cheongju, Busan,
Cheonan), 9 Office(Daejeon, Daegu, Busan, Ulsanㅅ, Naju, Gwangyang, Anyang, Gunsan, Uiwang)

AppendixStandards

ESG Data

Stakeholder Communication
Materiality Analysis
GRI Content Index
SASB Index
TCFD Index

UNGC, Memberships and Awards
GHG Verification Statement

Independent AssuranceStatement

LS ELECTRIC conducted MRV based on the verification standards such as ISO 14064 in order to implement theParis Agreement and achieve the goal of carbon neutrality. KMR states the verification result of LS ELECTRIC in
2022 as follows:

ResultGHG emissions
Worksite• ISO 14064-1:2006, ISO 14064-3:2006• WRI/WBCSD GHG Protocol• IPCC Guidelines for National Greenhouse Gas Inventories (2006)• Operating guidelines for GHG emissions reporting and certification under the GHG emission trading scheme

Limitaions

Directemissions(Scope1)

Indirect
emissions(Scope2)

Energy consumption
Total(tCO2eq)

FuelElectricity

Total
(TJ)

Cheongju Worksite

1,746.917

18,800.205

20,54734.016392.855427

Busan Worksite

1,051.423

3,204,125

4,256

20.52266.95487

Cheonan Worksite

855.6313,063.512

3,919

16.80464.01681

LS Tower (head office)516.600

1,246.677

1,763

9.602

26.05136

LS Yongsan Tower

213.596

1,036.704

1,250

3.658

21.66325

R&D Campus

309.075

1,325.666

1,635

5.998

27.702

34

Results

Daejeon Sales Office19.62816.764

36

0.285

0.350

1

• GHG verification has been performed to meet the limited assurance level according to the verification
standards.
• We express that no significant errors were found in the calculation of emissions during the verification
process, and that relevant activity data and evidence were appropriately managed and calculated. As a result,
we express an “qualified” opinion.

Daegu Sales Office27.850

5.986

34

0.410

0.125

1

Busan Sales Office16.25841.771

58

0.294

0.873

1

The verification has inherent limitations that may arise in the process of applying standards and methods.

GHGs Emission

Direct emission (Scope 1)

Indirect emission (Scope 2)

Total (tCO2eq)

2022

4,913

28,83633,749Energy Consumption

FuelElectricity

Total (TJ)

2022

94

603

697

Ulsan Sales Office17.216

5.021

22

0.253

0.105

0

Naju Sales Office20.86312.226

33

0.303

0.255

1

Gwangyang Sales Office14.032

6.740

21

0.213

0.141

0

Anyang Sales Office104.18163.356

168

2.056

1.324

3

Gunsan Sales Office

-

4.266

4

-

0.089

0

Uiwang Sales Office

-

3.478

3

-

0.073

0

4,913.27

28,836.497

33,74994.413602.577

697

Total

We present an “appropriate” opinion for the GHG emission and energy consumption estimations of theorganization above in 2022.

83

Korea Management Registrar is an agency conducting verifications of the greenhouse gas and energy target management
system and emission trading scheme with permission from the Republic of Korea government.
Division in Charge Sustainability Management Center │ TEL 02-6309-9041 │ E-MAIL sun8055@ikmr.co.kr │ www.ikmr.co.kr

April 18, 2023
CEO of Korea Management Registrar
Eun-Ju Hwang

2022-2023 LS ELECTRIC
Sustainability Report

Independent Assurance Statement
To readers of 2022-2023 LS ELECTRIC Sustainability Report

As for the reporting boundary, the engagement excludes the data andinformation of LS ELECTRIC’ partners, suppliers and any third parties.

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Introduction
Korea Management Registrar (KMR) was commissioned by LS ELECTRIC to
conduct an independent assurance of its 2022-2023 Sustainability Report(the“Report”). The data and its presentation in the Report is the sole responsibility

KMR’s Approach
using the standards outlined above, our Assurance Team undertook thefollowing activities as part of the engagement:

Our Sustainability Management
Appendix

issue an assurance statement.

• reviewed materiality assessment methodology and the assessment report;

Stakeholder Communication

Scope and Standards

and processes;

GRI Content Index

Report. Our Assurance Team carried out an assurance engagement in

ESG Data

Materiality Analysis

LS ELECTRIC described its sustainability performance and activities in the

SASB Index

accordance with the AA1000AS v3 and KMR’s assurance standard SRV1000. We

TCFD Index

are providing a Type 2, moderate level assurance. We evaluated the adherence

UNGC, Memberships and Awards
GHG Verification Statement
Independent AssuranceStatement

to the AA1000AP (2018) principles of inclusivity, materiality, responsiveness andimpact, and the reliability of the information and data provided using the Global
Reporting Initiative (GRI) Index provided below. The opinion expressed in the
Assurance Statement has been formed at the materiality of the professional
judgment of our Assurance Team.
Confirmation that the Report was prepared in accordance with GRI standards
2021 was included in the scope of the assurance. We have reviewed the topicspecific disclosures of standards which were identified in the materiality
assessment process• GRI Sustainability Reporting Standards• Universal Standards• Topic specific standards- GRI 206: Anti-competitive Behavior- GRI 305: Emissions- GRI 401: Employment- GRI 403: Occupational Health and Safety- GRI 404: Training and Education- GRI 405: Diversity and Equal Opportunity- GRI 407: Freedom of Association and Collective Bargaining- GRI 408: Child Labor

84- GRI 409: Forced or Compulsory Labor- GRI 414: Supplier Social Assessment

LS ELECTRIC has a unique materiality assessment process to decide the impactof issues identified on its sustainability performance. We have not found any
material topics left out in the process.

To perform an assurance engagement within an agreed scope of assessmentof the management of LS ELECTRIC. KMR’s responsibility is to perform anassurance engagement as agreed upon in our agreement with LS ELECTRIC andMateriality• reviewed the overall Report;• evaluated sustainability strategies, performance data management system,• interviewed people in charge of preparing the Report;• reviewed the reliability of the Report's performance data and conducted data
sampling;

Responsiveness
LS ELECTRIC prioritized material issues to provide a comprehensive, balanced
report of performance, responses, and future plans regarding them. We did not
find anything to suggest that data and information disclosed in the Report do
not give a fair representation of LS ELECTRIC actions.

ImpactLS ELECTRIC identifies and monitors the direct and indirect impacts of material• assessed the reliability of information using independent external sources

topics found through the materiality assessment, and quantifies such impacts

such as Financial Supervisory Service’s DART and public databases.

as much as possible.

Limitations and Recommendations

Reliability of Specific Sustainability Performance Information

KMR’s assurance engagement is based on the assumption that the data andIn addition to the adherence to AA1000AP (2018) principles, we have assessed

information provided by LS ELECTRIC to us as part of our review are provided in

the reliability of economic, environmental, and social performance data related

good faith. Limited depth of evidence gathering including inquiry and analyticalto sustainability performance. We interviewed the in-charge persons andprocedures and limited sampling at lower levels in the organization werereviewed information on a sampling basis and supporting documents as wellapplied. To address this, we referred to independent external sources such as

as external sources and public databases to confirm that the disclosed data is

DART and National Greenhouse Gas Management System (NGMS) and publicreliable. Any intentional error or misstatement is not noted from the data anddatabases to challenge the quality and reliability of the information provided.

information disclosed in the Report.

Conclusion and Opinion

Competence and Independence

Based on the document reviews and interviews, we had several discussions

KMR maintains a comprehensive system of qualit y control including

with LS ELECTRIC on the revision of the Report. We reviewed the Report’s final
version in order to make sure that our recommendations for improvement andrevision have been reflected. Based on the work performed, it is our opinion
that the Report applied the GRI Standards 2021. Nothing comes to our attention
to suggest that the Report was not prepared in accordance with the AA1000AP(2018) principles.

documented policies and procedures in accordance with ISO/IEC 17021·2015 Requirements for bodies providing audit and certification of management
systems. This engagement was carried out by an independent team ofsustainability assurance professionals. KMR has no other contract with
LS ELECTRIC and did not provide any services to LS ELECTRIC that could
compromise the independence of our work.

Inclusivity
L S ELEC T R IC has developed and maint ained dif ferent s t akeholder
communication channels at all levels to announce and fulfill its responsibilities
to the stakeholders. Nothing comes to our attention to suggest that there is a
key stakeholder group left out in the process. The organization makes efforts toproperly reflect opinions and expectations into its strategies.

June 2023 Seoul, Korea
CEO2022-2023 LS ELECTRIC
Sustainability Report

LS ELECTRIC Bringing Lightto the WorldOur ESG Journey

Our Sustainability Management
Appendix85

Date Issued

June 2023

Issued by

LS ELECTRIC Co., Ltd.

Production Management

ESG Management Team - Yu-Seok Hong, Gi-Hyun Ryu, So-Hyun Jung, Ji-Hye Kim

Special Thanks To
Division

Person in Charge

CPO) Win-Win Growth Team

Jae-Min Jeon

Electric Power CIC) Marketing TeamHyun-Sik Park

Business Support) Quality Management Team

Yun-Seog Nam

Strategy and Digital) Marketing Team

Hee-Jung Kim

Strategy and Digital) Tech.Square Business Team

Yong-Min Kim

Global SE CIC) Global Strategic Planning Team

Jae-Sung Lee

Global SE CIC) Global Marketing Team

Yong-Jik Kwon

SE) SE Domestic Sales Team

Ki-Soo Yang

Global Business Support) SE Engineering Team

Se-Jin Park

ESG) Public Relations Department

Do-Yup Kwon

Environment and Safety) Safety Management Part

Jong-Chan Ryu

Environment and Safety) Environment&Safety Team

Tae-Hyun Kong, Jin-Bin Jeong

CFO) Treasury Team

Do-Hoon Kim

CFO) Accounting TeamHyun-Ik Park

Legal Affairs) Compliance Management Team

Sang-Hyung Ryu

CFO) Internal Control Team

Hye-Mi ParkDX R&D Center

Wo-Cheol Jeong, Gi-Chan Pyo

Vision Planning) IT Innovation Team

Min-Kyeong Byun

CHO) GHR Team

Jae-Eun Lee

Business Audit Department

Hyun-Woo Kim

Corporate Planning) Corporate Planning Team

Han-Jun Ryu

LS ELECTRIC Sustainability Report can be downloaded as a PDF
file from the LS ELECTRIC website. The PDF version provides aninteractive PDF function including links to the related pages in theReport and shortcuts to the relevant web pages.