2021-2022 LG ELECTRONICS
SUSTAINABILITY REPORT ESG FACT BOOK

Report Overview
INTERACTIVE PDF Guide

At LGE, we expressed our commitment and willingness to change to realize sustainable growth and a better life for all. This sustainability report consists ofThis report has been published as an interactive PDF

ESG STORY BOOK and ESG FACT BOOK. ESG STORY BOOK contains LGE's key ESG initiatives in the form of storytelling, whereas ESG FACT BOOK focuseswith functions such as 'transfer to page' and 'go toon LG Electronics' major activities and achievements. We have included the following in the ESG FACT BOOK: the management approach(MA), activities andwebsite' to support the readers' convenience.

03

I. Corporate Overview

04

Management Philosophy
		achievements, goals, and progress for each environment, social and governance sector by linking material issues derived through the materiality assessment

05

Message from the CEO		with LGE's six strategic tasks. We plan to transparently disclose our sustainability management activities and performance through the publication of reports

06

About LG Electronics
		07

Business Status		

08

II. Environmental

09

Carbon Neutral		

TCFD(Task Force on Climate-related Financial Disclosures). Furthermore, this report was created in accordance with Ten principles of the United Nations Global

11

Circular Economy
		Compact(UNGC) in the four areas of human rights, labor, environment, and anti-corruption. In addition, the report satisfies the four principles of inclusivity,

13

Product Stewardship		17III. Social

18

Supply Chain Management		26

Safety and Environment		

30

Customers
		

33

Employees
		39Social Contribution		Consolidated financial information has been prepared in accordance with the K-IFRS(Korean International Financial Reporting Standards), and some financial

41

IV. Governanceinformation prepared on a non-consolidated basis is presented as footnotes. In the case of social and environmental information, if there has been any

42

Corporate Governance		

45

Jeong-Do Management
		

Third Party Assurance

47

Compliance Management		In order to ensure the accuracy, objectivity, and reliability of the report and all data prepared, we requested an independent verification organization KMR(Korea

51

Information Protection		54

V. Appendix

55

Sustainability Management Performance Data		64

SHEE·Quality Certification Status		

64

Membership·Awards & Recognition		

65

Materiality
		67

GRI Standards Index
		

68

SASB Index
		

69

TCFD Report		

75

Governance Index		76

Independent Assurance Statement		every year.

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Reporting Principles and Standards
The 2021-2022 ESG FACT BOOK applies the Core option of GRI(Global Reporting Initiative) Standards which is an international standard guideline for report
preparation, and reflects the reporting standard and framework outlines as suggested by the SASB(Sustainability Accounting Standards Board) and themateriality, responsiveness, and impact as outlined in the AA1000AP(AccountAbility Principles Standard), which also outlines the obligation of companies todisclose their approaches to sustainability management.
Reporting Period
This report covers our activities from January 2021 to December 2021, in addition to some major activities from the first half of 2022. In terms of quantitative
performance, 3-year data from 2019 to 2021 is provided for identification of changes in trends.
Scope of Report
This report covers the activities of our headquarters, and South Korean and overseas production sites and sales subsidiaries operated by LG Electronics.

restriction in terms of the collection of data, the reporting scope of that particular data is also outlined as footnotes.

Management Registrar) and completed the verification of the report in accordance to international verification standards. The results are detailed on p.76-77 of
the report. The financial information in this report has been audited by an independent auditor, and assurance on GHG emissions and energy usage was carriedout in accordance with verification principle such as 'Administrative Guidelines on Reporting and Verification of GHG emissions by Emissions Trading System.'More information on sustainability management activities of LG Electronics can be found here
LG Electronics website http://www.lg.com/global/sustainability
Contact
ESG Department, LG Electronics LG Twin Towers 128 Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea | sustainability@lge.com | 82-2-3777-3212

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

02

I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialSupply Chain Management

COR PORATEOVERVIEW

Safety and Environment

04

Management Philosophy

06

About LG Electronics

Customers

05

Message from the CEO

07

Business Status

Employees
Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

03

Management Philosophy
I.

LG WAY

Corporate Overview
Management Philosophy
Message from the CEO

LG’s Jeong-Do Management is our unique management philosophy based on the principles of creating value for customers and respecting human dignity.
Through our principles and collective pursuit, we aspire to become the No. 1 LG

About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialCustomers

Investors

LG, Trusted by Customers

LG, Preferred by Investors

VISION

Capture the hearts of customers withexceptional quality and brand value

Become a preferred investment option forinvestors by delivering high returns

Supply Chain Management
Safety and EnvironmentNo.1 LG is the ultimate goal of becoming amarket leader in business performance as wellas in management practice through JeongDo management based on people-oriented
management and customer-value creation

Customers
Employees
Social Contribution

Employees
LG, Coveted by Talented Professionals

IV.

GovernanceCorporate GovernanceCompetitors
LG, A Force to be Reckoned with andRespected by Competitors

Create a great workplace that inspires talented
professionals to work with passion and drive

Generate strong results by operatinga world-class management and become a force to be reckoned withand respected by competitors

Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition

Management Principles

How We Conduct BusinessOur management principles consist of “Customer-Value Creation”
that represents our business objective and “People-Oriented Management” as our operating principle

Jeong-Do Management is an ethical management andcode of conduct to enable capacity development and fair competition

Materiality

Three main factors of Jeong-Do Management

GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

Customer-Value
Creation

People-Oriented
Management

Integrity

Fair Transaction

Fair Competition
Based on Merit

Customer first / Delivery of substantive value/ Innovation-driven creation

Self-management and creativity / Respect forhuman dignity / Capability development andactualization / Performance-based reward

Work transparently according
to principles and standards

Provide equal opportunities
and fair treatment in everytransactional relationship

Improve capabilities withwhich one can fairly win thecompetition

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

04

Message from the CEO
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

We Will Create a 'Better Life for All'

Business Status

II.

Environmental
Carbon Neutral

Dear LG Electronics stakeholders,Circular Economy
	Product StewardshipIII.

SocialSupply Chain Management

We would like to express our gratitude to all our stakeholders who have always cherished and supported our growth and development.
Last year, we achieved record-high sales by improving the competitive position of our flagship businesses, bolstering preemptive execution based on our mid-term goals, etc.
This was all accomplished despite the disadvantageous business environment in which market volatility was increasing due to global economic recession, prolonged COVID-19
pandemic, and instability in the supply chain. Although difficult internal and external conditions are also expected to continue this year, we will accelerate preparations for the

Safety and Environment

future and promote sustainable growth even more by stabilizing a firm market position for flagship businesses, continuously innovating its business models, and enhancing its

Customers

business methods.

Employees
Social Contribution

In particular, as we place customer value as the top management priority, we expand communication by establishing various contact points with customers and providing a
differentiated customer experience through R&D in various fields. Going forward, we will continue to achieve true innovation by providing 'First of its kind, Unique, and New'IV.

Governanceexperiences.

Corporate Governance
Jeong-Do Management
Compliance Management
Information Protection

For the past few years, we have been pursuing sustainable development by creating meaningful results in various fields inside and outside the company by embracing theopinions of various stakeholders and internalizing ESG management. Notably, we established its mid-to long-term strategic ESG task of 'Better Life Plan 2030', so that our ESG
management activities can lead to more tangible results. Based on this, we will continue to suggest guides and goals for ESG management to our employees and enhance ESG
management. In addition, by communicating specific action plans and achievements with our external stakeholders in an even more transparent and proactive way, we will fulfill
our corporate values.

V.

Appendix
Sustainability Management Performance Data

Moving forward, we will continue to strive to create a 'Better Life for All' by sincerely listening to the opinions of all of our stakeholders such as customers, employees, suppliers,

SHEE·Quality Certification Statusinvestors, and local communities.

Membership·Awards & Recognition
Materiality

July 2022

GRI Standards Index

William(Joo-Wan) Cho

SASB Index

CEO & President of LG Electronics

TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

05

About LG Electronics
I.

Corporate Overview
Management Philosophy

Corporate Introduction

Shareholder Status(As of December 31, 2021)

Message from the CEOII.

(As of December 31, 2021)| Status of Shareholders Holding More Than 5% |(Number of Voting Shares as of December 31, 2021)

Sales(Unit: KRW 100 million)

Sales(Unit: USD billion)

Korea

276,085

24.1

North America

177,255

15.5

Central and SouthAmerica

32,8492.9

China

26,008

2.3

Asia

41,729

3.6

Middle East andAfrica27,8092.4

Number of Shares Ownership

Europe120,159

10.5

55,094,582 SharesIndia

24,987

2.2

Safety and Environment

Russia(CIS)

20,335

1.8

Customers

Total

747,216

65.3

Employees* Exchange Rate: USD 1 = KRW 1,143.89

About LG ElectronicsName

LG Electronics Inc.

Business Status

Location of
Headquarters

LG Twin Towers, 128 Yeouidae-ro,
Yeongdeungpo-gu, Seoul, Korea

Number of Employees

Industry

Manufacturing

Sales(Consolidated)

Major Products

Refrigerators, Washing machines, Residential/
Commercial Air Conditioners, Microwaves,
Vacuum Cleaners, TVs, Monitors, PCs, Audio
Sound Systems, Video Systems, Automotive
Components, etc

Environmental
Carbon Neutral
Circular Economy

	Product Stewardship

III.

S&P: BBB(Positive)
Moody's: Baa2(Stable)
74,337 employees(36,499 in
Korea, 37,838 in Overseas)

Global Sales

SocialPresident

William(Joo-Wan) Cho, Doo-Yong Bae

Date Established

October 1, 1958

Credit Rating(Foreign Bonds)

USD 65.3 billion

Operating Income(Consolidated)
Total Assets(Consolidated)
Total Liabilities(Consolidated)
Total Equity(Consolidated)

USD 3.38 billion
USD 46.8 billion
USD 29.2 billion

Shareholder

Number of Shares

Ownership

LG Corp*55,094,582 Shares

33.67%

National Pension Service

13,399,832 Shares

8.19%*	Required to hold more than 30% stocks of LGE as a subsidiaryaccording to Fair Trade Act; Kwang-Mo Koo, chairman of LG groupand the largest shareholder, holds 15.95% of stocks.

| Largest Shareholders and Affiliated Persons |USD 17.6 billion* Exchange Rate: USD 1 = KRW 1,143.89

Supply Chain Management(As of December 31, 2021)
Shareholder
LG Corp

Relationship
Holding Company

33.67%Classification

Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

EuropeRussia(CIS)

China

Percentage of Sales: 16%
Production sites: 3
Sales subsidiaries: 13
Others: 14

Percentage of Sales: 3%
Production sites: 1
Sales subsidiaries: 2

Percentage of Sales: 3%
Production sites: 8
Sales subsidiaries: 1
Others: 3

Korea

Sustainability Management Performance Data
SHEE·Quality Certification Status

Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index

Percentage of Sales: 24%
Production sites: 1
Sales subsidiaries: 3
Others: 12

Middle East
and Africa
Percentage of Sales: 4%
Production sites: 2
Sales subsidiaries: 11
Others: 3

India

Asia

Percentage of Sales: 3%
Production sites: 2
Others: 2

Percentage of Sales: 6%
Production sites: 4
Sales subsidiaries: 9
Others: 7

Business Sites30

Production sites

48

Sales subsidiaries

Percentage of Sales: 37%
Production sites: 5
Sales subsidiaries: 1
Others: 9

Appendix

Membership·Awards & Recognition

North
America

Central andSouth America
Percentage of Sales: 4%
Production sites: 4
Sales subsidiaries: 8
Others: 3

53
Others

As of June 2022

Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

06

Business Status
I.

Corporate Overview
Management Philosophy

Financial Performance and Distribution

Message from the CEO
About LG Electronics

65,322.4 USD million

2021 Net Sales(Consolidated)

Business Status

II.

Environmental

Financial Performance(Consolidated)

Carbon Neutral

Classification

Circular Economy

III.

2020

2021

Net sales

49,336.7

50,754.8

65,322.4

Cost of sales

36,515.7

37,196.9

48,823.6

Gross profit

12,820.9

13,557.9

Selling and marketing expenses

9,941.9

Safety and Environment

Operating income

2,879.1

Customers

Financial income

Employees

Financial expenses

Social Contribution

Equity method profit(loss)

SocialSupply Chain Management

2019

2020

2021

Sales

21,391

21,624.3

24,283.8

16,498.9

Non-operating income andfinancial profits(261.5)

500

163.2

10,144.0

13,121.1

Economic value generated(A)21,129.6

22,124.2

24,447.1

3,413.9

3,377.7

Operating expenses

20,550.8

20,492.7

23,893.6

331.6

519.2

521.2

490.2

780.5

603.6

Wages & Fringe benefit expenses

3,350.8

3,417.4

3,885.9(919.8)

21.1

392.4

Capital costs

261.0

314.0

289.6

1,050.5

2,052.0

1,638.3

Others non-operating expenses

1,462.9

2,260.7

2,228.4

Taxes & Dues

31.5

31.2

35.7

Profit(loss) before income tax

1,388.3

2,922.8

3,097.7

Donations

12.8

8.2

7.9

518.6

521.4

855.5

Economic value distributed(B)24,206.7

24,263.6

28,112.6869.7

2,401.4

2,242.2
Economic value retained(A-B)(3,077.2)(2,139.5)(3,665.6)(712.4)(597.2)(1,005.2)

157.3

1,804.2

1,237.0

Others non-operating income
IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management

Income tax expense

Appendix

Short-term net profit for continued
operations(loss)
Net income for the current term of
discontinued operations(loss)

Sustainability Management Performance Data

Profit(loss) for the year

Information Protection

V.

Economic Value Generated, Distributed and Retained(Separated)
2019	Product Stewardship

SHEE·Quality Certification Status
Membership·Awards & Recognition

28,112.6 USD million

Economic Value Distributed for 2021(Separated)

Unit

USD
million* 2019 and 2020 data were re-reported due to the withdrawal of the MC company* Exchange rate: USD 1 = KRW 1,143.89

Materiality
GRI Standards Index

Classification

Rate(%)

Household appliances, heating andcooling devices and core components

23,699.6

36

TV, audio, home beauty device,
etc.

Video devices, multimedia products,
etc

15,052.7

23

VS

Telematics, AV, AVN, motor,
inverter, etc.

Communications and multimedia
products for vehicles, etc

6,288.9

10

BS

Monitor, PC, monitor signage,
LED signage, etc.

Information delivery, hotel TVs, etc.

6,086.7

9

OthersFacilities etc.

Production facilities

14,194.5

22

65,322.4

100

Item

Use

H&A

Refrigerator, washing machine,
air conditioner, etc.

HE

Total

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK(As of December 31, 2021, Consolidated)

Net Sales(USD million)

Classification

Governance Index
Independent Assurance Statement

USD
millionBusiness Division		

SASB Index
TCFD Report

Unit

07

I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental

EN V I R ON M E N TA L

Carbon Neutral
Circular Economy
	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment

09

Carbon Neutral

Customers

11

Circular Economy

13

Product Stewardship

Employees
Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management

2021 Key Performance

Compliance Management
Information Protection

In February 2021, the UN released the "Making Peace with Nature" report, which highlights the effects ofTaskhuman activity and the exploitation of nature on our planet, including climate change, harm to biodiversity, andV.

Appendix
Sustainability Management Performance Datathe occurrence of risks relating to environmental pollution, with a message that mutual cooperation and efforts

SHEE·Quality Certification Status

are necessary if these issues are to be resolved. As there is an increased identification with environmental issues,

Membership·Awards & Recognition

it is being recognized as the top priority of humankind. In line with this trend, as a member of the international

Materiality

community, LG Electronics is conscious of the seriousness of issues such as climate change and environmental

GRI Standards Index
SASB Index

pollution, and we are responding to these issues. In particular, we are minimizing the negative environmental

TCFD Report

impact of our activities and business sites to zero, and going beyond, we are working towards expanding

Governance Index

our positive impact. In addition, our products and services are carefully designed with the consideration of

Independent Assurance Statement

contributing to a sustainable future for our customers, communities, and the environment.

UN SDGs

Achievement(As of 2021)

2030 Target

Achieve carbon neutrality(50% reduction inemissions in the production phase + 50% of
external offset by 2030)

40% compared tobase year(2017)

CarbonNeutrality

Complete transition to renewable energy(goal of 100% renewable energy use by 2050)

Achieved 4.6%

60%

92%

95%

KPI
1

Pursuing carbon
neutrality anduse of renewableenergyBuilding a circular
economy withrecycling of waste

Developing
products/services
considering theenvironment

Increase waste recycling rate at production
sites
Expand a cumulative collection amount ofe-waste(2006 to 2030)
Reduce carbon emissions during use of
7 major products2(compared to 2020)
Expand a cumulative use of recycledplastics(2021 to 2030)

3.52 million tons 8 million tons

6.6%

20%

27,000 tons 600,000 tons

1	We established a goal of 54.6% in reduction by 2030 and completed verification with Science Based Targets initiative(SBTi) on its 2021 GHG
reduction goal amount
2 TV, Refrigerators, Washing Machines, Dryers, Residential Air Conditioner(RAC), System Air Conditioner(SAC), Monitors

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

08

Carbon Neutral
I.

Corporate Overview
Management Philosophy
Message from the CEO

Pursuing Carbon Neutrality

About LG Electronics

Reduce carbon emissions in the production phase(~2030)

Promote external greenhouse gas reduction programs

Business Status•	In order to achieve our goal for reducing greenhouse gas emissions generated during the production phase of our•	Promote CDM project in which we receive carbon credits in return for reduced power consumption during the use,

products by 50% in comparison to 2017 emission figures, we are introducing energy-efficient facilities and carbon
II.

Environmental
Carbon Neutral
Circular Economy

	Product Stewardshipemission reduction devices throughout our production process•	We are continuously securing carbon credits by participating in the Clean Development Mechanism(CDM) project,in which greenhouse gas emissions reduction goals can be achieved through the investment of technology andcapital in developing countries•	We are contributing to the reduction of greenhouse gas emissions by actively utilizing our B2B solutions such as

by selling high-efficiency products
Classification

Key performance

Implementing CDM project(selling high-efficient
refrigerators in India)

Approved by UNFCCC1 in 2013high-efficiency refrigerators and Energy Management Systems(EMS) to expand the use of renewable energy
III.

SocialSupply Chain Management

Implement strategies aimed at achieving Carbon Neutrality by 2030

Safety and Environment•	In order to achieve the goals of carbon neutrality by 2030, we are carrying out various activities through carbon

Customers

fund investment such as introducing SF6(Sulfur Hexafluoride) gas reduction facilities and expanding the use of

Employees

renewable energy at global production sites

Social Contribution

Invest in SF6 gas treatment facilities
IV.

Governance•	We are investing in facilities that treat SF6 gas generated during the production of high-efficiency solar panels

Corporate Governance•	We have achieved 93% in reduction of SF6 emissions by introducing and operating the SF6 gas reduction facilities

Secured 560,000 tons by 2020
Securing UN Emissions Trading
1.2 million tons to be additionally secured by 2025
1	UNFCCC: United Nations Framework Convention on Climate Change

Expand renewable energy projects
Classification

Key performance

February 2021

Completed solar power installation in Noida, India- Achieved 3,200kW of generation capacity and 3,865MWh of power
generation

Jeong-Do Management

Details

Achievement

Information Protection

Replaced key parts of solar process gas
scrubbers at Gumi plant

Improved reduction performance(A total of 31 gas reduction facilities)

Appendix

Added four new solar process gas reduction
facilities at Gumi plant

Improved reduction performance(A total of 35 gas reduction facilities)

Compliance Management

V.

Sustainability Management Performance Data
SHEE·Quality Certification Status*	LGE announced the withdrawal from the global solar panel business at the end of June 2022, and solar panel data related to this report
represents the past performance

Membership·Awards & Recognition

Expanded renewable energy use in Thailand- Achieved 4,300kW of generation capacity, 5,519MWh of annual power
generation expected

October 2021

Completed transition to 100% renewable energy in North America- Purchased REC2(64,586MWh)
2	REC: Renewable Energy Credit| Global GHG Emission Status |Year

Materiality

Expected to receive certificates for refrigerators sold from January 2018 to
December 2020

Unit

Total direct GHG
emissions(Scope 1)

Total indirect GHG
emissions(Scope 2)

Scope 1+2

GRI Standards Index

2017

1,105

828

1,933

SASB Index

2018

785

852

1,637

2019

603

866

1,469

440

854

1,294

333

819

1,152

TCFD Report
Governance Index

2020

Independent Assurance Statement

2021

1,000
tCO2eq2022 Target

Reduce 44% compared to 2017

2030 Target

Reduce 50% compared to 2017

* Scope 1 includes refrigerant

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

09

Carbon Neutral
I.

Transition to Renewable Energy

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

Energy Management System(ISO 50001) Certification

100% transition to renewable energy(~2050)

Business Status•	We are upgrading our energy management system by introducing the ‘Energy Management System(ISO 50001)’•	We established mid-to long-term plans to achieve 100% of renewable energy useinternational standard
II.

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social ContributionIV.

maintain the certification of these systems through annual re-examination•	We are expanding our energy management systems to overseas business sites

Carbon Pricing•	We are seizing business opportunities and discovering risks related to energy saving and reducing GHG emissions•	We apply an ‘internal carbon cost’ policy, which quantitatively determines the value of carbon for internaltransactions•	We measure environmental burdens by LGE as financial value and contribute to rational decision-making for GHG•	Expenses(emission liabilities) due to excess emissions are reflected in the consolidated statement of financial
position

GHG emissions measurement, reporting and verification•	We are a company subject to management under Article 42(6) of the Framework Act on Low Carbon, Green
Growth. In accordance with Article 44 of the aforementioned law, we submit emission statements to the

SHEE·Quality Certification Status

government in a timely manner following third-party verification of our greenhouse gas emissions and energy

Membership·Awards & Recognition

consumption at all of our production sites in Korea

GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

2022

2025

2030

2040

2050

5%

50%

60%

90%

100%

* Renewable energy ratio(%) = Annual renewable energy consumption ÷ Global electricity consumption•	We participated in the ‘K-EV100’ campaign hosted by the Ministry of Environment in April 2021

Sustainability Management Performance Data

Materiality| LGE’s Global Renewable Energy Expansion Plan |•	In accordance with Chapter 33 of the Generally Accepted Accounting Principles(Greenhouse Gas Emission Permits
as our own emissions on a quarterly basis

Appendix

REC(Renewable Energy Credit) purchasing, and third-party PPA(Power Purchase Agreement)

K-EV100 declaration and implementation(Korea)

Corporate Governance

Information Protection

conditions of the countries where our Korea and overseas production sites are located•	We are expanding applicable options such as the green rate system for renewable energy purchasing,

Carbon Accounting
and Emission Liabilities), we analyze greenhouse gas emission rights as allocated by the Korean government as wellCompliance Management•	We aim to expand transition to using renewable energy in consideration of the current laws and business

reduction investments for the future

Governance

Jeong-Do Management

V.

•	The energy management systems at all of our production sites in Korea have been certified and we manage and•	We have completed building a greenhouse gas inventory for our global production sites and disclose greenhouse•	We declared our commitment to transitioning all company-owned/renting vehicles with zero-emission
replacements that use electricity or hydrogen fuel cells(~2030)•	In line with the K-EV100 declaration, we plan to gradually increase the proportion of eco-friendly vehicle| Goal for transitioning to Zero-Emissions Vehicles |Stage

PeriodRatio(%)

Stage 12021~2025

90Stage 22026~2028

96

Stage 32029~2030

100

gas emissions every year

Operate energy consumption management system at global production sites•	We collect and manage the monthly energy consumption for Korea and overseas subsidiaries throughCCMS(Corporate Carbon Management System)

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

10

Circular Economy
I.

Waste Recycling at Production Sites

Improving Product Packaging

About LG Electronics

Achieve 95% in waste recycling rate at production sites(~2030)

Expand reuse of product packaging materials(~2030)

Business Status•	We strive to improve efficiency of our waste recycling processes by establishing a take-back and transportation

Classification

Details

Eco-friendly
certification

Acquire eco-friendly certification for the products of our suppliers in three areas(resin, jersey and manuals)

Corporate Overview
Management Philosophy
Message from the CEO

system for waste generated at our Korean production sites and by continuously researching recycling technologies
II.

Environmental
Carbon Neutral
Circular Economy

	Product Stewardship•	In order to achieve zero recycling charges and zero issues, we promote a Resource Circularity program aimed atincreasing the amount of collected e-waste and eliminating risks•	In 2021, about 78% of our global waste generation occurred from overseas, and overseas production sites arecontinuing to avoid sending waste to landfill and expand recycling•	We are reducing waste and expanding use of recycled materials by continuously improving the production process
and recycling system

III.

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

AppendixEco-friendly
product

Operate Chilseo Recycling Center(established in 2001)
Classification

Details

Goals

Recycling of home appliances and analysis of returned products in Gyeongnam provinceCharacteristics

Treatment or harmful substances contained in e-waste in an environmentally friendly way during
the recycling process.

•	We carry out research based on eco-friendly design that considers Resource Circularity in the product planningstage•	We develop new technologies that can utilize renewable resources•	We comply with an Environmental Assurance System1 that leads to induce the minimization of environmental
pollution
1	Environmental Assurance System: A system that induces the minimization of environmental pollution through systematic management
throughout the entire production process from the design and production of electrical and electronic products to their disposal(the Act on
Resource Circularity of Electrical and Electronic Equipment and Vehicles)

Sustainability Management Performance Data

Eco-friendly
packaging

Develop products that utilize recycled materials and eco-friendly packaging materials
Apply eco-friendly materials such as recycled resin, jersey, and paper to products
Remove EPS(Expanded Polystyrene)
Develop eco-friendly packaging materials with pulp mold and corrugated board materials
appliedCollecting E-waste
E-waste collection and compliance to recycling/regulations•	In response to regulations in countries where our production sites are located, we have established relevant policies
and operate a collection and disposal service and expand to include non-regulatory business areas•	We disclose information regarding the management of e-waste, such as local collection facilities and systems, anddisclose global e-waste take-back and disposal policy on our website•	We participate in the 'Producer Responsibility Recycling System' that has been in effect since 2003, and weoperate a free-of-charge take-back service for discarded home appliances

Support for Individual Producer Responsibility Regulations

SHEE·Quality Certification Status•	We comply with the principles of IPR(Individual Producer Responsibility) which addresses the responsibility ofMembership·Awards & Recognition

producers in collecting e-waste

Materiality•	We make concerted efforts to increase the recyclability of e-waste, and to reduce the environmental impact of

GRI Standards Index

landfills and incineration during the disposal process

SASB Index•	We enhance the recyclability of products by conducting recyclability evaluations from the product development

TCFD Report

stage

Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

11

Circular Economy
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

Collecting E-waste| Process of Free Take-back Service for E-waste(Korea) || E-Waste Take-Back/Treatment since 2006 |(Unit: tons)

Business Status

II.

Large
Appliances

Environmental
Carbon Neutral

Request forcollection bycustomers

Circular Economy
	Product Stewardship

III.

Small
Appliances

SocialSupply Chain Management

Collect e-waste byinstallation specialists
visiting customer's home
Collect e-waste througha designated take-backbox at our service center

3,516,953

Disassemble
and sort out
e-wasteRecycleas rawmaterial

3,074,638

2,661,571

2,306,374

Safety and Environment
Customers

2,057,229

Employees

E-Waste take-back/disposal service(Overseas)

Social Contribution•	We reflect the WEEE(Waste Electrical and Electronic Equipment) directive and the requirements of each country

1,825,644
1,606,872•	We have provided the e-waste recovery since in 87 regions in 52 countries(as of the end of 2021)
IV.

GovernanceCorporate Governance
Jeong-Do Management

1,392,409•	New regions: Introduce these services following regulatory analysis and prior communication and discussion ofcountermeasures with the government and industry groups in the target countries to expand voluntary recycling

1,179,351

policy983,363806,899

Compliance Management
Information Protection

618,635| E-Waste Take-Back/Disposal Results by Region |409,726

V.

Appendix
Sustainability Management Performance Data

Region

Unit
1

2019

2020

2021

Europe120,077

133,414

156,958

Korea

103,503

129,731

124,763

SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index

U.S

20,92621,12322,190Asia

95,303

107,212112,6903

2

242,249
56,4802006

134,114

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

*	The reporting period differs by country. In case data is not obtained, we report estimated amount of the rate of surrounding countries or the
take-back performance of the previous year. As a result, some data may be slightly adjusted in the next year's report

Ton

SASB Index
TCFD Report

CIS

14,163

20,40922,706

Governance Index

Central and South America4

1,225

1,179

3,008

Independent Assurance Statement

1	Estimated figures are used for some European countries
2 Asia: Japan, India, Australia
3 CIS: Russia
4 Central and South America: Brazil, Colombia, Mexico, Peru

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

12

Product Stewardship
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment
Customers

Eco-friendly Product Assessment•	In 2011, we introduced Eco-Index, an evaluation index unique to our company to evaluate the eco-friendliness of
our products•	The Eco-Index quantifies our products’ eco-design into grades through an eco-friendliness evaluation. It classifies
groups and models of products into three grades according to their level of eco-friendliness: Green 1 Star, Green 2
Star, Green 3 Star•	We operate and manage eco-index standards by analyzing and reflecting changes in the product development
environment•	We strive to increase the proportion of Green 3 Star products, i.e., products that are evaluated as the highest-levelof Eco-Index

Progress of Product Life Cycle Assessment

Performance in developing Green 3 Star products
assessment(~2030)

Employees

Unit

2019

2020

2021

Social Contribution

%

41

46

41

Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix

The evaluation standard of Eco-Index
Classification / Grade

Green 1 Star

Human

Satisfying regulatory requirementson hazardous substances

EnergySatisfying energy specifications

Resource

Satisfying recycling requirements

Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

1995

Application of LCA

2002

LCA and third-party certification for major product groups(refrigerator, washing machine, airconditioner, TV, monitor, mobile phone)2009

Calculation of carbon emissions by major product groups and disclosure of results

2011

Construction of the life cycle inventory database and third-party certification

2016

Mandatory LCA in the development stage of major product groups, and the development of
the Simplified LCA Tool

2018

Enhancement and development of the Simplified LCA Tool(function expanded to 13 impact
categories including global warming)

Innovation

Weight of Carbon Emissions throughout the Product Life Cycle
Stages of Life Cycle

GovernanceCorporate Governance

Details•	Increase the ratio of Green 3 Star certified products up to 80% as a part of internal eco-friendly product* Based on the number of development projects

IV.

Year

Green 2 Star

Green 3 Star

Voluntarily replacing hazardous substances
Achieving average
market efficiency

Securing competitive
advantage and high efficiency

Designed to improve resource efficiency

Preemptive activities for eco-friendly products(internal/external certification, development of advanced technology, etc.)

Conducting Product Life Cycle Assessment(LCA)•	We use the Life Cycle Assessment(LCA) to accurately analyze and manage environmental impact throughout the
product life cycle•	An environmental assessment technique standardized internationally(ISO 14040 series) which quantitatively
measures the environmental impact of each product cycle(manufacturing, distribution, use, and disposal) and
derives improvement points and assesses improvement performances•	We disclose the global warming impact and carbon emission data of our products to customers through our
website and sustainability reports, and through third-party certification that bolsters the reliability of the data suchas the Carbon Labeling(Korea) and Carbon Trust(Europe) certifications•	We expanded application of green technology certificate, by the Ministry of Trade, Industry and Energy of Korea, toproducts such as TV and air conditioner
LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

Unit

Pre-manufacturing Manufacturing

Distribution

Use

Disposal

Refrigerator

26.0

0.9

0.7

64.6

7.8

Washing machine

39.0

0.0

1.0

59.4

0.6

Air Conditioner

26.6

0.1

0.2

72.9

0.2

TV

58.9

0.1

0.8

40.0

0.2

Monitor

53.4

0.3

0.4

45.4

0.6

%

* Based on calculation of carbon emissions of particular models from each product group in 2021

Green Technology Certification awarded by Ministry of Trade, Industry and Energy
Name of Technology

Date of Certification

Valid Date

Technology to reduce standby power for PCs using facial recognition
that detects user's absence

2022.01.20

2025.01.19

Cutting-edge inverter air conditioning technology with axial penetration
lower compression scroll compressor

2021.07.29

2024.07.28

TV standby power reduction technology with X-capacitor discharge
function inside Control IC

2018.05.17

2024.05.16

13

Product StewardshipI.

Goal for Eco-Friendly Products

Human: Reducing Environmental Hazards

About LG Electronics

Reduce carbon emissions during the product use stage by 20%(~2030)

Voluntary substitution of hazardous substances

Business Status•	We set a target to reduce CO2 emission intensity by 20% during the product use stage compared to 2020•	We adhere to international environmental regulations such as RoHS and REACH that prohibit the use of hazardous

Corporate Overview
Management Philosophy
Message from the CEO•	We carry out activities to reduce CO2 emissions and improve energy efficiency for refrigerators, washing machines,
II.

Environmental

monitors, TVs, dryers, and air conditioners for commercial and residential use

Circular Economy

Use 600,000 tons of Recycled Plastics(~2030)•	We set a target to use a cumulative 600,000 tons of recycled plastics from 2021 to 2030
•	We carry out activities to reduce the use of plastics, such as expanding the collection of e-waste and increasing

III.

Social•	We entirely prohibit the use of harmful substances and continuously develop and apply replacement technicalparts for toxic substances that can cause harm to the human body and the environment

Carbon Neutral

	Product Stewardshipsubstances(e.g., lead, mercury, cadmium, hexavalent chromium, PBB, PBDE1, etc.) in the development process

the use of recycled plastics

Supply Chain Management•	We are gradually replacing harmful substances such as polyvinyl chloride(PVC) and brominated flame
retardants(BFRs) through safety and reliability tests
Year

Details

2010

Completely discontinued the use of PVC and BFRs in all of our mobile phone products

2011

Voluntarily replaced harmful substances such as phthalate and beryllium

Safety and Environment

2012

Customers
Employees
Social Contribution

IV.

GovernanceWe replaced PVC in the cables of UHD and OLED TVs

2013

Developed and applied PVC-free noise reduction parts(skirt lower) to refrigerators

2015

Removed HBCD(Hexabromocyclododecane), a type of brominated flame retardant, from all ofour products and packaging•	We are continuously developing technology and parts to replace harmful substances, and are applying to numerous

Corporate Governanceproducts while maintaining product quality

Jeong-Do Management•	We carry out supply chain management of the information of biocide used in the productCompliance Management

V.

Voluntarily replaced harmful substances such as Antimony trioxide•	We strive to refrain from using toxic substances in the manufacturing process

Information Protection

1	PBB: Polybrominated biphenyls
PBDE: Polybrominated diphenyl ether

Appendix

Management standards for hazardous substances

Sustainability Management Performance Data

We classify hazardous substances into LEVEL A-I, LEVEL A-II, and LEVEL B to enable management of these

SHEE·Quality Certification Status

substances in accordance with national regulations and international agreements

Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

LEVEL A-I
(Prohibited substances)

LEVEL A-II
(Substances prohibitedby others than EU RoHS)LEVEL B
(Substances subject tomonitoring or reduction)

LEVEL A-I: The top 10 hazardous
substances outlined in the EU
RoHS regulation

LEVEL A-II: The regulated
substances prohibited by national
or international agreements others
than the RoHS regulation

LEVEL B: Substances to bemonitored or the use thereof to be
reduced[Hazardous Standards in Subject]- Heavy metals such as lead, mercury,and cadium, hexavalent chromium
and its compounds- Brominated flame retardants such as
PBB and PBDE
- Four types of phthalate(DEHP, DBP,
BBP, DIBP)LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

[Hazardous Standards in Subject]- Chlorine-based compound- Asbestos, organotin compound- Formaldehyde, ozone-depleting
substances, etc.(PCBs, PCNs, PCTs,
VOC, HBCD, bisphenol A, nickel andits compounds etc.)[Hazardous Standards in Subject]- Polyvinyl chloride resin, phthalate,beryllium, palladium, bismuth,and others chlorine-based flame
retardants, commonly known as
PVC(Substances stipulated in EU
REACH SVHCs, California Proposition
65, etc., as well as PVC and PCP)

14

Product StewardshipI.

Resource: Improving Resource Efficiency

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

Hazardous substances replaced

Improve structure/materials•	We conduct activities aimed at improving materials and structures in order to develop products exhibiting improved

Business Status

II.

LaptopMonitor•	Applied PVC-free internal cables in2013•	Applied mercury-free display
panels•	PVC/BFRs-free laptops released
since 2013(excluding FPCB, BARE,
PCB, battery, adapter, keyboard,cable, touchpad, thermal module,
cable connector, mouse, andpower cord)•	PVC-free LCD modules in 2011
applied to all models•	PVC/BFRs-free LCD in 2013
applied to all models

Environmental
Carbon Neutral
Circular Economy

	Product Stewardship

III.

OLED/Ultra HDTV

Supply Chain Managementof application for recycled plastics for each of our product groups

Green supply chain management(Green Program Plus)•	We operate ‘Green Program Plus(GP Plus)’ with a view to laying a foundation for shared growth and enhancing

Amount of recycled plastic

the eco-friendly competitiveness of suppliers through the transfer of our eco-friendly technologies and know-

Corporate Governancehow(since 2005)

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report

Amount of raw materials used forrecycled plastic

Unit

tons

2020

2021

20,14526,545

11,14912,533•	In order to actively respond to regulations on the management of hazardous substances in products, scope of GP
Plus has expanded to include eco-friendly areas such as the greenhouse gas management of suppliers•	We are continuing our efforts to secure green partnerships that further strengthen the eco-friendly managementof our supply chain by strengthening eco-friendly competitiveness of our suppliers and proactively complying withV.

improving the efficiency of our use of resources

Classification

Governance

Information Protection•	We are expanding the use of recycled materials by conducting product stability and quality reliability tests aimed atTVs, and monitors

Employees

Compliance Management

Use of recycled materials•	We are promoting the development of alternative parts and technologies for all our products to expand the field

Customers

Jeong-Do Management

1 Plan to carry out test in July 2022•	We are using recycled materials in various products of LGE such as washing machines, refrigerators, air conditioners,

Safety and EnvironmentIV.

•	We develop products that take eco-friendly factors into consideration to expand resource utilization and reducewasteSocialSocial Contribution

performance and convenience, by minimizing volume and weight from the development stage1

global environmental regulations

Supplier training and technical support•	Every year, we conduct systematic training programs regarding regulations concerning hazardous substances,
specialized skills in eco-friendliness, and greenhouse gas management practices for suppliers and our designatedCase example of green packaging efforts•	We promote the miniaturization and weight reduction of packaging materials, including the application of ecofriendly packaging materials to minimize the amount of resources usedYear

Details

2012

We created our Eco-friendly Packaging Design Guidebook and applied it to some of our product groups suchas TVs and mobile phones

2013

We expanded the application of Eco-friendly Packaging Design Guidebook to all products

2014

We have established goals for each of our business regarding the amount of packaging material used, thepackaging volume, and the reduction rate of packaging space, and have been consistently implementing them2021

We reduced the amount of packaging material used and the packaging volume by 14% and 1.8%,
respectively, by reducing amount of packaging materials used and percentage of empty spaces in packaging

employees in order to strengthen our green partnerships with the suppliers•	We operate a training course for ‘hazardous substance measurement experts’-	Goal: Enhance hazardous substance management and measurement technology, improve the reliability of data-	Target: Those in charge of measuring the hazardous substances of the equipment of our suppliers

Governance Index•	By securing a database of the recycled content(pulp) ratio of paper packaging materials, we are contributing to the

Independent Assurance Statement

improvement of the recycling rate of paper packaging materials•	We will continue to implement eco-friendly activities such as the efficient use of resources and the optimizationof logistics through packaging design by having each of our business companies achieve their green packaging
development goals and strengthening identification of additional packaging improvement cases

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

15

Product Stewardship
I.

Corporate Overview
Management Philosophy
Message from the CEO

Energy: Improving Energy Efficiency

About LG Electronics

Improve energy efficiency

Energy Star

Business Status•	Based on 'Technology Road Maps(TRM)', we established and implemented detailed goals for different product• A program aimed at certifying energy efficient products(Jointly hosted by the US Environmental ProtectiongroupsII.

Environmental
Carbon Neutral

Agency(EPA) and the Department of Energy(DOE))•	We comply with global energy directives, such as the Energy-related Products(ErP) directive, and established ourown energy-related goals and detailed strategies

Circular Economy
	Product Stewardship

Establish TRM by each product group
III.

SocialSupply Chain Management| Energy Star Certified Products Among Those Sold in the United States |(As of June 2022)

Refrigerators

Washing machines

Dryer

Dishwashers

Air conditioners

105

70

89

31

43

Air purifiers

Humidifiers

MonitorPC

Set-Top box

7

2

171

44

2

Safety and Environment
Customers

Set energy efficiency goals for each stage of product development

Employees
Social Contribution

IV.

GovernanceMaximize energy efficiency by each productCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index

Reduce GHG emissions•	We calculate and disclose the amount of greenhouse gas emissions generated in the entire product life cycle ofour flagship products•	We implement activities aimed at enhancing the eco-friendliness, such as reducing product weight and resourceuse, and improving energy efficiency for reduction of GHG emissions in each stage of the product life cycle•	We reduced greenhouse gas emissions during the use stage of these products by developing and selling energyefficient products•	We expanded the number of products applied with high-efficiency energy technology-	Effect of reduced GHG emissions during the product use stage by approximately 3.7 million tons as of2021(when compared to the level of emissions per unit in 2020)

TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

16

I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental

S OCI A L

Carbon Neutral
Circular Economy
	Product StewardshipIII. Social
Supply Chain Management
Safety and Environment

18

Supply Chain Management

33

Employees

Customers

26

Safety and Environment

39

Social Contribution

30

Customers

Employees
Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management

2021 Key Performance

Compliance Management
Information Protection

As a member of the international community, LGE is striving to pursue sustainable growth so that it can fulfill its

Achievement(End of 2021)

2030 Target

Acquire/Maintain Health and Safety management
system(ISO 45001) certification for production sites

87%

100%1

Ratio of Production sites with no critical
non-conformance(based on RBA2 audit requirements)

66%

100%

Keep the proportion of high risk at 0.5% or lower for
suppliers' self assessment factors

1.0%

0.5%
or lower

Organizations
that grows
with afoundation ofdiversity

Ratio of disabled persons in employment(Korea)

2.3%

3.5%

Ratio of female employees(Korea)

13.4%

20%

Developing
products/
servicesthat areconvenient
for everyone

Incorporate accessibility features and universal design into
all product lines(by 2025)

Identifying status
and planning inprogress

100%

H&A products

100%

Task

social responsibilities such as reducing negative impacts, and providing quality jobs. In particular, LGE is creating a safe
V.

Appendix
Sustainability Management Performance Data

work environment that achieves a work-life harmony to enhance employee satisfaction, establish an independent

SHEE·Quality Certification Status

safety culture, and create a sustainable workplace. In addition, LGE continuously evaluates and manages potential

Membership·Awards & Recognition

risks in the supply chain, and conducts training and support activities for suppliers to prevent supply chain risks.

Materiality

Strengthening
supply chain
ESG riskmanagement

Furthermore, LGE pursues growth in which society and business coexist in order to achieve an inclusive society, and is

UN SDGs

KPI

GRI Standards Index
SASB Index

carrying out various activities accordingly. LGE is creating social value based on its unique technologies and solutions

TCFD Reportand is exerting efforts to create a convenient life for the customers through its products and services. LGE promotes

Governance Index

various social contribution activities under the themes of 'Circular Economy' and 'Future Generation: Youth' for a

Independent Assurance Statementbalanced growth of our society.

Apply the manuals for use by people with disabilities for
all products

1 Achieve/maintain 100% by 2025
2 Responsible Business Alliance

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

17

Supply Chain Management
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

Win-Win Growth with Suppliers
Win-win growth strategy② Support for Strengthening Next-Generation Technology

Business Status

A Challenge to Build a Future Toward Sustainable Growth with Our Suppliers
II.

Environmental

Fair Trade

Carbon Neutral

Shared Growth

Circular Economy
	Product StewardshipIII.

SocialSupply Chain Management

Trust and Communication

Change and Innovation

Partners with Shared Future

Jeong-Do Management

Manufacturing CompetitivenessSocial Responsibility

Fair Competition

No. 1 Spirit

Win-Win

Safety and Environment
Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance

5 major tasks for Shared growth
Strengthening competitiveness• Support automation, informatization, and RPA• Support quality and productivity enhancement

Support for next-generation technology• Support the development of components for Korea production• Technology escrow and brainstorming ideas

Providing financial support• Interest-fee funds• Win-Win Growth Fund
• Win-Win Payment System

Training and talent support• Win-Win Growth Academy• Free consulting from improvement specialists

Improving infrastructure• Supplier Grievance Hotline• Support employee welfare

Jeong-Do Management
Compliance Management•	Support for Developing Parts Using New Technologies and Methods: We provided royalty-free use of ourintellectual property to SMEs(small-medium-sized enterprises) in order to support their efforts to strengthen
their R&D capabilities. We also engaged in joint technology development with suppliers including new injection
technology and automatic parts lifting robot technology•	Protection of Suppliers’ Core Technology: The core technologies of our suppliers are escrowed by a trusted
government agency thereby ensuring the protection of trade secrets and core technologies(we cover the full costof the technology escrow service)•	Supplier Idea Proposal System:-	We cut back on costs by suggesting ideas that could boost the productivity of our suppliers, for example
developing new technology or part, or enhancing design, quality, and packaging, and applying these improvements
to production lines-	Idea Proposal System is being actively implemented as the ESI(Early Supplier Involvement) process from theproduct development stage is established•	Excellent Technology Seminar: From 2022 onwards, LGE will host the ‘Excellent Technology Seminar’ in which
its suppliers introduce excellent technologies owned by universities and public research institutes to improve theirtechnological capabilities| Technology Protection for Suppliers(Technology escrow) |
Year

2013

2016

2019

2021

No. of Suppliers

13

25

17

66

Information Protection

V.

③ FundingAppendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement① Support for Achieving No.1 in Global CompetitivenessZero-Interest Direct Financing•	LGE provides direct, interest-free funds to suppliers who are having financial difficulties so that they could use thefunds to improve productivity and quality, expand facilities, collaboratively advance overseas, and develop advanced
technologies•	Since 2018, we have been sharing our accumulated know-how regarding automating production lines and building
infrastructure for digitalization with our suppliers in order to help them enhance their competitiveness in terms of

Win-Win Growth Fund

manufacturing•	LGE and financial institutions pooled a total of KRW 200 billion(about USD 1.7 billion) in a fund to provide loans to•	We contributed to increasing the overall productivity(output per person/hour) and sales of our suppliers, as well as
creating new jobs
•	LGE has supported the establishment of Robotic Process Automation(RPA) to accelerate the digital transformation

suppliers at low interest rates•	Starting in 2021, the eligibility for the Win-Win Growth Fund has expanded to include third-tier suppliers, thereby
contributing to building a healthy ecosystem for win-win growthof its suppliers. LGE's experts stay with the suppliers and deliver know-how throughout the entire RPA process,from task discovery to detailed project-specific programs and maintenance•	In particular, we select fifty companies to provide consulting costs to ensure that ESG(Environmental, Social,and Governance) is inspected by reliable certification companies to strengthen the ESG competitiveness of our
suppliers' sustainable co-prosperity

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

18

Supply Chain Management
I.

Establishing a Sustainable Management System with Suppliers

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

Operating the Win-Win Growth Payment System•	In 2015, we introduced and began operating the Win-Win Growth payment system in order to ensure thatpayments for goods made by large companies to 1st-tier suppliers are safely delivered to secondary and tertiary

II.

Environmental
Carbon Neutral
Circular Economy

suppliers•	In 2021, LGE and two 1st-tier suppliers were recognized for their contribution to spreading the Win-Win GrowthPayment System and were selected as excellent companies in win-win payments by the government	Product Stewardship④ Supporting Talent Development
III.

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social Contribution•	LGE opened and operated the Win-Win Growth Academy as a free education program exclusively for employeesof its suppliers in the company's educational facilities•	In connection with local universities(Kyungnam University/Korea Polytechnics), LGE implemented customized
training for its suppliers by need of competency improvement. In 2021, LGE opened and has since operated a
training course for suppliers' RPA professionals in connection with Korea Polytechnics

GovernanceCorporate Governance
Jeong-Do Management

Improvement Course’ for second-generation owner-managers and key talents to improve the management
for the suppliers•	In 2022, LGE opened the ‘LG Electronics Suppliers' Online Recruitment Center’ on Job Korea, a job search website,
to support suppliers that are having difficulties in recruiting talented professionals

Compliance Management
Information Protection⑤ Infrastructure Improvement•	LGE signed a fair trade agreement among primary to tertiary suppliers of LGE to establish autonomy for fair trade

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status

and a healthy symbiotic growth ecosystem. The number of primary and tertiary suppliers which participated in the
Fair Trade Agreement in 2021 was 1,551, 2.5 times more than 611 in 2018•	Performance Rewards for Suppliers(Win-Win Performance Sharing Fund): LGE holds the ‘LGE Supplier Workshop’at the end of every year to share results of innovation, select excellent suppliers, and provide cash rewards. In

Membership·Awards & Recognition

2021, LGE selected twelve companies that carried out innovative activities such as production line automation

Materiality

for the LGE Best Supplier Award and provided each of them with a cash reward of KRW 60 million(about USD

GRI Standards Index

52,452)

SASB Index•	Supplier Grievance Hotline: In order to address the grievances of suppliers, we operate the Supplier Grievance

TCFD Report

Hotline, a channel for suppliers to report corrupt conduct or unfair practices of our employees. Reports are

Governance Indexfollowed up with fact-checking and appropriate measures

Independent Assurance Statement

value creation by discovering and nurturing competitive suppliers•	We select strategic suppliers for sustainable and responsible supply chain operation and conduct regular
evaluations of technology, quality, responsiveness, delivery time, cost, and business management•	In line with the ESG management principle, we intensively inspect and manage workers’ human rights, safety andhealth, the environment, and corporate ethics in the supply chain

Risk management for supply chain| LGE's Major Suppliers |Classification| Proportion of Purchases from LGE Suppliers |Unit

1st-tier supplier1
2

2021

Classification

2,409

1st-tier supplier

Unit

2021

100

Suppliers%

Critical Supplier

605

Critical Supplier90•	In 2021, with prolonged COVID-19, LGE opened and has since operated the ‘Management Competency
capabilities of suppliers. In 2022, LGE developed and started operating customized training courses(ESG, DX, etc.)

IV.

•	LGE operates a sustainability policy to provide the best value to stakeholders and customers, and contributes to•	Benefit Mall for Suppliers' Employees: LGE operates an online site dedicated to suppliers that provide employee
benefits for its employees which expanded to include the employees of its suppliers under the same conditions.

1	1st-tier supplier: Component supplier + Subcontracting + Outsourcing supplier2 Critical Supplier: Supplier with a high purchase volume(proportion of purchases 90%) + critical component supplier•	LGE inspects risk factors such as workers' human rights, safety & health, the environment, and corporate ethics
according to RBA standards and suppliers take the initiative to improve the working environment, thereby
increasing the sustainability of the entire supply chain•	LGE systematically established a management process consisting of supplier self-assessment, on-site inspection,and third-party ESG management conformity certification through the supplier CSR management system•	LGE is strengthening its supplier-led risk management capabilities by addressing non-conformities and providing
CSR management training to high-risk suppliers and major suppliers through on-site inspections•	LGE will continue to reduce the proportion of high-risk suppliers in the future, and will support the 1st-tier supplierto lead risk management by lower-level suppliers

Verification process of the Supplier Code of Conduct and International Trade Regulations•	LGE Supplier Code of Conduct has been established based on the RBA Code of Conduct and others internationalnorms•	The code of conduct and the pledge to comply with international trade regulations are reflected in the purchaseagreement•	LGE operates a pre-verification process upon registration of new suppliers in case its supply chain finds cases
opposing international trade regulations

In 2021, LGE expanded the employee benefits, previously available for the 1st-tier suppliers, to secondary andtertiary suppliers

Transaction request
Supplier

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

Registration review
Purchase

Trade regulation
target confirmation
Compliance Monitoring

Follow-up management
Purchase

19

Supply Chain Management
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Supplier CSR Risk Assessment and Management| Detailed CSR Self-Assessments of Suppliers(by region) |Classification

Details

RegionOverview•	Self-assessment of suppliers conducted once a year•	Use the evaluation sheet for in-depth self-assessment developed by LGE that applies necessarychanges to the RBA guide•	A CSR self-assessment system is established and implemented to enhance the convenience ofself-assessment and improve the fidelity of non-conformities•	1,289 companies(purchase amount of KRW 100 million or more in 2021 among 1st-tiersuppliers)conducted self-assessments•	On-site assessment and consulting are conducted for potential high-risk suppliers and majorpurchasing partners•	1st-tier suppliers led self-assessment of secondary suppliers(678 companies)

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialActivities

Supply Chain Management

Employees
Social Contribution

Low-Risk

Moderate

High-Risk

Subtotal

Korea

304

143

2

449

China

284

83

1

368

Southeast Asia

196

121

2

319

26

22

2

50

Europe/Russia(CIS)

48

33

5

86

Middle East/Africa

8

8

1

17

866

410

13

1,289

America

Suppliers

Total

Safety and Environment
Customers

Unit•	Improvement tasks for non-conformities are derived and registered in the CSR management
systemManagement•	Non-conformities are immediately rectified or improvement progress is monitored according to
the supplier's establishment plan

| Results of Suppliers' CSR On-site Assessment |Classification

Governance| Suppliers' Self-assessment System |(As of 2021)

Unit

Korea

4

20

24

Suppliers

420

273

693

424

293

717

Number of suppliers that conducted CSR assessment
Number of suppliers that conducted fire/safety assessment

IV.

(As of 2021)

Total

Overseas

Subtotal

Corporate Governance
Jeong-Do Management| Types of Non-conformities in On-site Assessments |Enable function to attach reference for key management items

Compliance Management

Description of Non-conformities

Information Protection

Suppliers
V.

Differentiate the areas of assessment by the scale of suppliersInsufficiency in corporate ethics policy and poor management

Provide the CSR manual and best practice guides to suppliers

Labor/
Grievance handling process
Human
Rights Prohibition of forced labor and child labor and contract details(No forced

Appendix
Sustainability Management Performance Data

labor/child labor practice)

SHEE·Quality Certification Status
Membership·Awards & Recognition

Internal Contact

Firefighting facilities/emergency evacuation guidance/emergency evacuation
drillsSupport multiple languages for self-assessment(11 languages)

Safety/Health Control procedure, record and MSDS management of chemical substances

Materiality
GRI Standards Index
SASB Index
TCFD Report

Failure to conduct regular risk assessment| Results of Suppliers’ CSR Self-Assessments |Governance Index

Classification

Independent Assurance Statement

Number of suppliers that conducted
self-assessment

Unit

Proportion of high-risk suppliers

%

Unit

Korea

Asia Europe/CIS

America

3

3

2

4

2

3

2

3

2

2

2

3

3

5

2

5

1

1

1

2

1

2

1

2

%

* The above supplier’s non-conformance types have been improved through task implementation(improvement rate: 100%)

2019

2020

2021

1,665

1,416

1,289

40

26

13

2.4

1.8

1.0

Suppliers

Number of high-risk suppliers(As of 2021)

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

ESG Management Conformity Certificates for Suppliers through a Third-Party Certification
Organization•	LGE provides support to confirm and improve the suitability of ESG management from Underwriters Laboratories
Inc.(UL) and TÜV Rheinland, which are global certification companies•	Certification companies have been visiting suppliers since July 2021 to check ESG categories such as labor, safety
and health, the environment, and corporate ethics based on the RBA Code of Conduct. They supported suppliers
so that they could achieve necessary improvements on their own, and issued conformity certificates to suppliers
that completed CSR/ESG assessments and carried out improvement measures20

Supply Chain Management
I.

Building a Sustainable Supply Chain

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment

Support for CSR Management Capability Improvement of Suppliers and Overseas Subsidiaries•	Conduct training of workers' human rights and safety and health management in the supply chain for purchasing
managers of overseas subsidiaries(online)•	Conduct training for the CEO and key executives and employees of suppliers in cooperation with specialized
training institutions in line with stricter safety and health laws and regulations(safety and health management
system, chemical management, etc. to respond to the Serious Accident Punishment Act)•	Develop CSR/ESG online training for suppliers•	Conduct training of CSR/ESG in management for suppliers(online, twice in 2021)

Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management

Classification

Details

Purpose•	To refrain from using minerals mined in conflict zones and minerals that infringe labor/human rights and damage the environment in the mining process

Response toexternal issues•	As a member of the Public-Private Alliance(PPA) for Responsible Minerals Trade, provide
information to establish a conflict minerals tracking system•	Participate in global activities to trace the origin of minerals(cobalt, mica, etc.) that may haveissues such as forced or child labor

Implementation
activities for
suppliers•	Monitor the origin of the four major conflict minerals1 in suppliers' products and parts•	Require the Responsible Mineral Assurance Process(RMAP) certification for smelters in the
supply chain•	Provide awareness-raising training on the responsible use of minerals•	LG Chem and LG Display jointly recommended that suppliers use RMAP-certified smelters•	Managing supply chain according to the target of using 100% certified smelters(Tantalum/Tungsten: Achieved in 2019, Tin: Achieved in 2020, Gold: Achieved in 2021)•	Use of uncertified smelters due to supply of new parts and changes in the certification ofexisting certified smelters(2021)•	100% of smelters certified according to the RMI smelter database as of January 2021
(March 2022)

ESG-linked win-win cooperation activities
Support for Management of Supplier's Working Environment
Classification

Details

Supplier's
fire safety
management
activities•	Conduct on-site fire safety inspections and improvement consulting for major supply chains(semi-annually)•	A fire safety management system for suppliers for systematic improvement and management of on-site fire
safety consulting has been established and is in operation(since 2018)•	Special wintertime fire safety inspection•	Fire safety inspection of secondary suppliers

Performance

Supplier's
serious accident
prevention
activities•	Carry out special safety inspections on robots in the manufacturing process•	Consulting for hazardous chemical handling procedures and improvement•	Provide guidance for suppliers' autonomous issue prevention activities(propagating safety management
manuals and best practices)

1 3TG: Tantalum, Tungsten, Tin, Gold

Customers
Employees

Work with 100% RMAP-conformant smelters

Information Protection

Support for Improvement in Manufacturing Process Improvement and Energy Consulting
V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index

Activity

Details

Supporting
smart factory
construction•	Support suppliers' improvement of hazardous processes at manufacturing sites and establishment of process
automation•	Target: 130 companies(cumulative in 2021)

Energy saving
consulting•	Support energy diagnosis consulting for major suppliers to support their greenhouse gas reduction andenergy saving(for five companies in connection with the Korea Energy Agency)

SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

21

Supply Chain Management
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

RMAP2 -conformant smelter management

Establishing the conflict mineral management system

Business Status

Tantalum

Conflict Mineral Management Policy

Classification
II.

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment
Customers

IV.

Conformant
Active

2020

2021

36

34

38

0

0

0

- Document the conflict minerals identification process and grounds

0

1

1

- Register the information on conflict mineral in the LGE Conflict Minerals Management System

Classification•	Requirements for smelters in the supply chain
Unit

Conformant

Social Contribution

Non-conformant

EA

2019

2020

2021

39

40

38

1

1

0

0

4

5

Tin

Jeong-Do Management

Classification

Compliance Management

Conformant

Information Protection

Active

Unit

EA

2019

2020

2021

73

53

51

0

6

4

10

24

26

Appendix

Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement- Secure responsible mineral use certification

Conflict Mineral Management Standards
Classification

Details

Purpose• To operate requirement and processes for the conflict minerals management system

Scope ofapplication•	All products developed/produced/sold/supplied by LGE•	Products and main/auxiliary raw materials developed/produced/custom-made by suppliers•	Products and main/auxiliary raw materials developed by LGE and produced by its suppliers

Activities
implemented•	Regular review and revision of management standards•	Conduct training of standard requirements for LGE employees and suppliers

Conflict Minerals Managing Organizations

Sustainability Management Performance Data
SHEE·Quality Certification Status

LGE•	Requirements for 1st-tier suppliers

main/auxiliary raw materials

TungstenNon-conformant
V.

•	Due diligence: In case conflict minerals are included in main/auxiliary raw materials supplied by 1st-tier suppliers to2019-	Check whether some secondary or later suppliers use conflict minerals or include conflict minerals in their

Employees

Corporate Governance

EA

Non-conformant

ActiveGovernance

Unit•	Operation of global unit: Responsible for complying with policies and standards concerning responsible minerals,

Gold
Classification

fulfilling social responsibilities, purchasing and procuring minerals
Unit

Conformant
ActiveNon-conformant

EA

2019

2020

2021

102

103

99

0

1

0

11

7

12

2	RMAP(Responsible Mineral Assurance Process): A due diligence and assurance program by the RMI for smelters not using conflict minerals*	Use of uncertified smelters may occur due to the occurrence of new parts or changes in smelter certification and registration, but LGE strives touse only certified smelters through periodic inspections of supply chain*	Uncertified smelters in the supply chain in 2021 have been deleted from LGE's supply chain based on the RMI smelter database in January2022(March 2022)*	We are carrying out investigations of smelters found uncertified after February 2022

Activity

Details

Global communication•	Website and email(conflict-mineral@lge.com)

Analysis of external status•	Customer requests, regulatory compliance, use of RMI tools,
international forums, NGO and media requirements etc.

Internal report and request for
support•	Manage changes concerning our suppliers and to maintain/improveinformation on certain smelters

Operation of Conflict Minerals•	Improve the effectiveness of the conflict minerals management program
Management System(HSMS/CMMS) and respond to customer requests and risks
Participation in the RMI
working group•	Identify origins of minerals and implement inspection activities*	RMI provides the status of conflict minerals of global smelters to its members and organizes a forum to share best practices to resolve issues*	Conflict mineral website – https://www.lg.com/global/conflict-minerals-business-partner

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

22

Supply Chain Management
I.

Risk Management at Production Sites

Corporate Overview
Management Philosophy
Message from the CEO

II.

About LG Electronics

Inspection and due diligence of conflict minerals and assessment of risk level

CSR Risk Management at Production Sites

Business Status

Inspection and Due Diligence of Conflict Minerals

Classification

Details

Classification

Details

Scope of management

Data
submission•	Matters concerning the production and procurement of conflict minerals included in main/
auxiliary raw materials(including information on cobalt and origin, since 2019)•	Risks in labor, human rights, safety/environment, ethics, and suppliers at all
production sites

Method•	A 5-step CSR risk management process using RBA's self-assessment toolManagement
entities and roles•	Supervised by ESG Department of Headquarters•	Integrated management of CSR risk management processes at all production sites•	Operated by designated personnel responsible for CSR at each business site

Major achievements•	Conducted in-depth online self-assessments on all 33 production sites in 2021

Result•	Reflected the identified common risks in each corporate system and operation

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment•	Cross-check information on the origins of conflict minerals and cobalt in the conflict minerals
system and the submitted mineral information
Fact-checking•	Check whether conflict minerals or cobalt are included in the main/auxiliary raw materials,
using the hazardous substance management system
Channel for
data
collection•	RCOI(Reasonable Country of Origin Sourcing Information) on the certification status according
to RMAP due diligence results•	Others publicly available data

Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix

Risk Assessment of Conflict Minerals
5-step CSR Risk Management Process and Assessment Results
Classification

Details

Purpose•	To assess the risk level for procurement of conflict minerals and cobalt based on the main/
auxiliary raw material data, the country of origin data, and smelters•	Monitor the monthly updated data on the conflict minerals and cobalt submitted by suppliers-	Check parts and suppliers that used prohibited smelters, faulty smelters, and uncertified
smelters
Implementation•	Request and check information on the origin of conflict minerals and cobalt from 1,572
activities
suppliers whose origins and distribution channels are registered•	Implement measures such as suspending transactions with suppliers, smelters, and refineries
taken to those considered high-risk groups or deemed as having no chance of improving

STEP 1: Target Selection

STEP 2: Self-assessment

Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality

Inspections

Inspect whether conflict minerals and cobalt are included in the supplied raw materials• Hazardous Substance Management System(HSMS)•	Conflict Mineral Management System(CMMS)

Due Diligence•	Reflect the status of RMAP conformance according to RMI’s due diligence program•	Check the risk of conflict minerals and cobalt in LGE's supply chain according to the
RMI’s due diligence•	Monitor on a monthly basis- manage the status of faulty/prohibited/non-conformant smelters

Assessments•	Evaluate the risk level of conflict minerals based on the results of due diligence(e.g. RNI) and encourage suppliers with high risks to make improvements

GRI Standards Index

STEP 3: On-site assessment and consultation for improvement

SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

STEP 4: Third-party audits

STEP 5: Improvement activities and Progress monitoring23

Supply Chain Management
I.

Corporate Overview
Management Philosophy
Message from the CEO

Business Status

II.

Environmental

Production sites

All production sites(33)Suppliers

1st-tier suppliers with over KRW 100 million(about USD 87,420) of purchases in theprevious year(1,289 suppliers from 28 countries)

Outsourcing
company

Suppliers with over KRW 100 million(about USD 87,420) of purchases in the previous year
and potential business in the next 2 years(34 suppliers)

Carbon Neutral
Circular Economy
	Product StewardshipIII.

Tool used

In-depth survey based on the RBA on-site audit manual

Customers

Potential risk

Potential risks identified are registered to encourage the business site to make improvements

Employees

Self-diagnosis

Check the in-house IT self-diagnosis system(PU-SRM)

Follow-up actions

Provide guidance such as establishment of improvement plans to address the derived risks

Safety and Environment

Social Contribution

IV.

i-SAQ(In-depth Self Assessment Questionnaire)Jeong-Do Management•	Overview: In-depth survey based on the RBA on-site audit manual•	Purpose: To improve the reliability of self-assessment and on-site inspection results•	Requirement: Mandatory submission of proof for 49 questions out of 92•	Survey composition: 37 questions on labor, 28 questions on safety and health, 16 questions on environment, and 11
questions on ethics/suppliers•	Periodic review: Update survey questions according to revisions to the RBA Code of Conduct and on-site circumstances

Appendix

All

Labor/Human Rights

Safety and Health

Environment

Ethics/Suppliers

No. of business sites

Korea

○

○

○

○

○

7

China

○

○

○

○

○

8

America

○

◑

○

○

◑

6

Europe/CIS

○

◑

○

○

◑

3

Middle East/Africa

○

◑

○

○

○

3

Asia

○

○

○

○

○

6

○: Low Risk ◑: Moderate Risk ●: High Risk

• Identify business sites with high risks based on the results of self-assessment•	Conduct on-site assessment and consultation for improvement by analyzing the impact and the seriousness of
the risks on businessCorporate Governance

Information Protection

Classification

STEP 3: On-site assessment and consultation for improvement

GovernanceCompliance Management

V.

STEP 2: Self-assessment

SocialSupply Chain Management| 2021 Self-Assessment Risk by Classification/Region |STEP 1: Target Selection

About LG Electronics* Not conducted in 2021 due to COVID-19

Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index| 2021 Self-Assessment Results |Number of business sites(33)Unit

Labor/Human Rights
Health and Safety
Businesssites

Low-Risk

Moderate

High-Risk

27

5

1

30

3

0

31

2

0

TCFD Report

Environment

Governance Index

Ethics/Suppliers

24

7

2

Independent Assurance Statement

Total

29

4

0

Low-Risk Rating of LGE Production sites

Completion of Major Corrective actions

88%(29/33 Sites)

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOKat Production sites
71%(20/28 Cases)24

Supply Chain Management
I.

Corporate Overview
Management Philosophy
Message from the CEO

STEP 4: Third-party audits

About LG Electronics
Business Status

II.

Environmental
Carbon Neutral•	Conduct independent third-party audits to ensure the objectivity of the assessment and improve the CSR risk
management capabilities of each business site•	Conduct a total of four third-party reviews for four Korea and overseas production sites at the request ofcustomers(including RBA third-party audits; 2021)

Circular Economy
	Product StewardshipIII.

Social| Result of Third-party audits in 2021 |Classification

Supply Chain Management
Safety and Environment

Labor

Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance

SHEE1

Jeong-Do Management
Compliance Management
Information Protection

EthicsV.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition

Detailed items for review

Unit

No. of cases

Working hours

9

Voluntary work2

Wages and benefits

1

Industrial hygiene

1

Occupational injury and illness

1

Occupational safety

Cases

1

Physically demanding work

1

Hazardous substances

3

Protection of identity andnon-retaliation

1

Audits and assessments

1

Supplier responsibilities

1

Management
1 Safety, Health, Environment, Energy

Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

STEP 5: Improvement activities and Progress monitoring•	Take prompt measures to improve any non-conformance issues identified•	Manage progress through regular monitoring•	Consistent or common issues or non-conformities that are difficult to deal with at a business site are takena corporate-wide approach through cooperation with relevant teams and reestablishment of policies andguidelines

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

25

Safety and Environment
I.

Corporate Overview
Management Philosophy
Message from the CEO

Safe Workplace

About LG Electronics

Integrated SHEE(Safety & Health, Environment, Energy)Management regulations for Safety & Health and Environment

Business Status•	Established corporate-level SHEE policies and regulations in 2009•	We established and declared the 'Safety & Health and Environmental Management Policy' which contains our•	Have made continuous improvements for the policies and regulations in line with global standards
II.

Environmental
Carbon Neutral•	Operation of integrated system of SHEE standards for Safety and Health, Environment, Energy at the company

with the 'Safety & Health and Environmental Management Policy', and strive to preserve the environment andlevel, centered on SHEE management regulations

achieve a sustainable society

Circular Economy
	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment

strategy to implement safety & health and environmental management•	We fulfill our responsibilities and obligations to create a safe and healthy workplace for all employees in accordance

Improvement of Safety & Environment IT System

Mid-to Long-Term SHEE Goals• Unify employees' work safety & environment management channel on SHEE portal• Integrate company-wide business database and references through the SHEE Portal•	Achieve carbon neutral in the production stage by 2030

- Monitor the usage rate on a monthly basis for a total of 42 modules and strengthen utilization	(50% reduction within business sites in comparison to 2017)

Customers• Reuse 95% of waste from business sites by 2030

Employees• Expand the SHEE management system internationally

Social Contribution•	Increase average of SHEE capabilities at overseas business sites• Plan to use as a data-sharing channel among HQ, companies and subsidiaries•	Strengthen and computerize employees' safety & environment management and supervision functions throughthe SHEE portal

Safety & Environment Evaluation System
IV.

Governance•	Establish/operate an evaluation system to operate a safe & healthy workplace

Corporate Governance•	Prevent accidents by preemptively identifying risk factors for safety & environment in the workplace andManagement Process of SHEE Standards Systemproactively improving risks

Jeong-Do Management•	Produce of diagnosis guide: Improve the level of regular SHEE diagnosis, strengthen evaluation standards, improve

Compliance Management

evaluation system, and enhance management capabilities

Information Protection

V.

Appendix
Sustainability Management Performance Data

Collectstakeholder
feedback

Identify issues
requiringcorporate-level
responses•	The role of the chief executive officer of each production site and subsidiary:
Revise/amend
relevant principles

SHEE·Quality Certification Status

Reflect resultsin the SHEE
standards-	Report the results of SHEE diagnosis and safety & health management system evaluation and its improvementtasks, and continuously monitor the improvement of risk factors

Reporting to the BOD

Membership·Awards & Recognition•	In accordance to the revisions made to the Occupational Safety & Health Act, it is now mandatory for the CEO

Materiality

to establish a plan for the company’s safety & health every year, report and obtain approval on the plan to the

GRI Standards Index

BOD(since January 2021)

SASB Index•	Juridical reporting matters

TCFD Report

1) Safety & health management policy

Governance Index

2) Composition, personnel, and roles of the safety & health organization

Independent Assurance Statement

3) Current safety and health-related budget and facilities
4) Activities related to safety & health carried out in the previous year and those planned for the coming year•	Company-wide risk response abilities are ensured by reporting on company-wide safety and environmental issues
to the BOD

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

26

Safety and Environment
I.

Efficient Resource Management

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy

Strengthening the Accident Reporting System

Water Resource Management•	Establish measures for immediate response to accident and prevention of recurrence through the establishment

Classification

Details

Outline•	Undertake various initiatives to manage water reuse amount and wastewater
discharge, as well as to reduce water consumption at the production sites andlaboratories in Korea and overseas

Implementation activities•	Establish water inventory•	Evaluate water risk(lack of water resources, the degradation of water quality,
increasing water consumption) and monitor the amount of water consumption at
all production sites•	Recycle used water for watering plants or as industrial water through the zerodischarge system•	Establish wastewater treatment facilities and recycling systems•	Manage measures to secure emergency water reserves to enable the operation of
production facilities for at least two days in case of an unexpected interruption towater supply

and revision of accident reporting standards and manuals•	In case of non-compliance with the accident reporting procedure, reflect penalty in the evaluation of SHEE items in
the executives KPI•	When an accident report is reduced or concealed in purpose, the KPI is recorded as 0 and reported to Jeong-Do
Management

	Product Stewardship

III.

Time of Occurrence

Implementation Activities

Within 1 hour

Conduct quick initial reporting(by call, text, and message)

Within 24 hours

Prepare and share information reports, and establish countermeasures to respond to
accidents and prevent recurrence

Customers

Within 2 weeks

Investigate accident and establish measures to prevent recurrence

Employees

Within 6 months

Submit final report on progress and register closure of incident

SocialSupply Chain Management
Safety and Environment

Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

Establishing a Rapid Crisis Response System•	Reflect the provisions of the Serious Disaster Punishment Act and its Enforcement Decree into the crisis response
system•	Collect objective opinions in cooperation with the local fire department during evacuation/fire drills• Enhance crisis response capabilities by supplementing the crisis response scenarios• Conduct annual evacuation drills for each building to continuously manage the evacuation time of employees•	Develop a CMIS App(Crisis Management Information System) for all affiliates to establish a system that allows

V.

Appendix

quick response in case of an accident| Wastewater Discharge(Korea) |Business site

Secondary Treatment Facilities

Body of Water Affected by Discharge

Yangjae R&D Campus

Tancheon Water Reuse Center

Tan Stream

Magok LG Science Park

Seonam Water Reuse Center

Han RiverCheongju

Cheongju Sewage Treatment Center

Seoknam Stream

Gumi

Gumi Sewage Treatment Center

Gwangam Stream

Changwon

Deokjong Sewage Treatment Center

Jinhae Bay

Sustainability Management Performance Data
SHEE·Quality Certification Status

Establishing the Crisis Response Process

Membership·Awards & Recognition•	The safety and environment standards are established and revised to establish processes and unify the company-

Materiality

wide crisis response process:GRI Standards Index-	Minimize the damage from the safety and environmental risks(such as loss of life and disruption of production)

SASB Index
TCFD Reportthrough an immediate response and prompt handling in case of a crisis
Classification

Details

Crisis situations

Serious disasters, fire accidents, hazardous substance/flammable gas leaks, infectious diseases,•	chemical leaks, leaks of pollutants(affecting air/water quality), UT supply interruptions, blackout
accidents, natural disasters, etc.

Smart Working
Committee

Common, firefighting, safety, health, chemical, water/air, waste, electricity/building, energy/UT, etc.
•	
Establishment/revision and distribution of company-wide standard manuals•	
38 cases revised in 2020, 36 cases established in 2021
•	

Governance Index
Independent Assurance Statement| Water Intake in 2021 |Water Source*

Ground water

Ratio(%)

963

9

Municipal water andothers(Municipal)*

5,286

50

Municipal water andothers(Industrial water)*

4,219

41

44

0

10,454100

Others(Including Vietnam)
Total

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

1,000 Tons

* Based on production sites in Korea

27

Safety and Environment
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral┃Chemical Substance Management Process┃| Water Discharge in 2021 |Discharged Source

1,000 Tons

Water reused

Ratio(%)

667

14

External treatment facilities

4,151

86

Internal treatment facilities--

1.Pre-screening•	Working departments submit a request for use•	Chemical substance information is submitted•	Expert teams conduct pre-evaluation•	Approval or disapproval is notified

Circular Economy
	Product Stewardship* Based on business sites in Korea with internal wastewater treatment facilities

III.

2.Purchase

SocialSupply Chain Management

Chemical Substance Management

Safety and Environment•	Our chemical substance management practices have been based on LG Chemical Management System(LGCMS)

Customers

since 2013

3.Warehousing•	Managers for handling chemical substances areappointed• Training for handlers are conducted•	Proper storage space is selected and chemical
substance is stored

4.Use•	Use of chemical substance is tracked, andlosses are minimized•	Chemical use discharged within permitted limits
through physicochemical methods

Employees
Social Contribution

IV.

GovernanceClassification

Details

Preliminary screening
subject•	All chemical substances for production and R&D purposes stored or used at any
production site in Korea•	Chemical substances procured from suppliers

Safe storage ofchemicals•	Purpose: To ensure the safe storage of chemical substances•	Regularly examine chemical storage facilities at each production sites•	Install chemical leakage prevention facilities

Corporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status•	Level 1: Ban the use of the chemical substances in question
Emergency response•	Level 2: Reduce the use of the chemical substances in question
procedures•	Level 3: Monitor the chemical substances in question
Implementation
activities•	Develop methods to analyze new chemical substances that are of social concern• Develop an IT system to track the entire process of chemical substance management

Membership·Awards & Recognition

5.Disposal

Training on Chemical Substance Management•	
On-site and online training on issues related to safety management of chemical substances, responses tochemical-related accidents, instructions and evacuation methods, and handling of hazardous materials for workers

Materiality

working at places where hazardous materials are used

GRI Standards Index•	Safety & health education specific to laboratories regarding the management of chemical substances for

SASB Index

employees working in the field of research and development

TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

28

Safety and Environment
I.

Internalizing of Safety Culture

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics┃Response to the Regulations on Chemicals┃•	Each business division conducts 'Safety Talk' every month to discuss major issues in safety environment at

Business Status

II.

Environmental

Analysis of regulations

Supply chain	Product StewardshipIII.

• Review laws on chemicals and prepare countermeasures• Handle external affairs related to chemical substances

Social•	Comply with chemical substance handling standards and operatefacilities•	Prepare and distribute MSDS, component statements, etc.

R&D

•	Risk check for substances to be used for research and development

Production quality•	Review the chemical composition of materials used in the production
phase

Business operations•	Operate information management system related to chemical
substances•	Preliminary review of new chemicals to be handled

Supply Chain Management
Safety and Environment
Customers
Employees

GovernanceCompliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition•	Produced promotional materials related to the seven safety principles that must be prioritized by all of ouremployees-	Animations, cartoons and brochures, banners, etc. are created to enhance employees' safety awarenessParticipatory safety education(Korea)•	A participatory safety education infrastructure was established and a safety experience center was installed to•	Experiential safety education: Experiential safety education(experiential VR education, facility safety experience,
CPR practice, fire evacuation experience, etc.) directly related to the safety risk in the specific workplace is provided•	The safety management plan and risk assessment are continuously supplemented/developed to keep up with theactual situations

Corporate Governance
Jeong-Do Management

Safety culture campaign

operate experiential safety education course(since 2018)

Social ContributionIV.

management meetings on a regular basis•	‘Safety Walk’ is operated under the supervision of the management to secure safety leadership by quarter and toestablish a safety culture

Carbon Neutral
Circular Economy

Leadership in action

Compliance with Environmental Laws
•	Purpose: To comply with environmental regulations and to eliminate the risk of violating environmental regulationsin advance•	Implementation activities: Conducting environmental assessment at production sites, monitoring activities for
improvement of diagnosis points, installing and operating environmental pollution prevention facilities, andoperating and improving environmental management processes•	In response to COVID-19, non-face-to-face online education content is developed and WebEx training is conducted

Operation of counseling centers(Korea)
Classification

Details

Purpose•	To resolve various concerns and psychological difficulties that employees
experience in their daily lives

Effect•	Contribute to psychological stability of employees•	Enhance job value by improving work immersion

Implementation activities• Personal grievance handling•	Facilitate interpersonal relationships and communication across the organization•	Stress management•	Consulting for leadership•	Family programs such as couples and children counseling•	Host info. sessions: Establish a system to monitor regulatory compliance by region, sector and workplace and shareenvironmental regulatory trends on a regular basis

Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

Higher standards for environmental pollutant emissions•	The concentration of air and water pollutants discharged from our business site is maintained at 70% of the legal
discharge limit•	Each business site operates its own pollutant discharge reduction system taking into account the characteristics ofchemical substances and raw materials handled at the site•	In 2021, there was no leakage of pollutants exceeding legal standards, and no damage was incurred

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

29

Customers
I.

Corporate Overview
Management Philosophy
Message from the CEO

Services for Customer Satisfaction

About LG Electronics

Goals for customer satisfaction

Launched KakaoTalk(messenger) Chat CounselingBusiness Status

Classification

Details•	Launched KakaoTalk chat counseling(April 2021)

Time customer
prefer•	From supplier-oriented consultation channel(calls) to a preferred mobile-based(chat)24-hour communication channel → Kakao Talk chat(since April 2021)•	SE organizations, not individuals, respond through advanced real-time situation
management → real-time situation management(since April 2021)

Methods customer
prefer•	New experiences are provided to customers through customized services based on
product changes and customer life patterns → sign language consulting service(since
October 2021)•	Improved accessibility through the use of the most popular messenger in South Korea(used by 98% of local users)
II.

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment
Customers•	Shifting from the previous focus on voice, text/image/content can provide accurate information to customers•	Counseling history can be checked from both sides

Sign Language Counselors in Service•	Launched sign language customers service with 2 sign language consultants in operation(since October 2021)•	Sign language interpretation support is provided for customers with hearing impairment during sign language
counseling and business trips/internal services for customers with hearing and speech impairments•	The same quality of consultation is provided anytime and anywhere through a standard
Solving problems incloud platform suitable for the pandemic → expansion of cloud call centers(since Julyways customer prefer2021)•	Plan to increase stall in accordance with continued promotion and higher demand for sign language counseling┃Track Record of Sign Language Counseling┃

Employees
Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

Conducting customer satisfaction survey

Classification•	Surveying and managing customer satisfaction by sending text messages and receiving replies from customers

October 2021

39

November 2021

76

December 2021

48

January 2022

69

Number of counseling sessions

who have experienced LGE services(Korea)•	Surveying and managing customer satisfaction by phone for customer who have experienced LGE
services(Overseas)

Securing advanced real-time support system•	Established a real-time customer appointment and response system to systematically provide the best service toV.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report

Expansion of cloud call centers in overseas

customers at the time they want(April 2021)•	After conducting cloud environment safety test in January 2021, it was applied to a total of 12 countries, starting

Securing database for customers with disabilities

with the United States in July•	We established a pre-registering information of customer with disabilities through publicity and guidance at the•	Equally easy to access and use at home and in the office, providing the same quality

development centers and federations/associations(for Korea Disabled people’s Development Institute(KODDI), Korea┃Customer Satisfaction Survey┃

Blind Union(KBU), and the Korea Association of the Deaf)(since October 2021)┃The Number of Registered Disabled Customers┃
Type of Disability(As of the end of 2021)

No. of customers

Governance Index
Independent Assurance Statement

Visual impairment

171

Hearing impairment

131

Language impairment

3

Classification

Unit

Korea

2019

2020

2021

93.2

95.1

95.2

68.0

64.0

66.8

%
Overseas* 	Customer satisfaction in overseas was negatively influenced by the fact that, repair were sometimes impossible or delayed due to the lockdowns
caused by the COVID-19 crisis* Registered before October 25: 12 persons(6 persons with visual impairment, 6 persons with hearing impairment)

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

30

Customers
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy

	Product Stewardship

Integration of our In-House Customer System, on ‘One View’

Technology Olympics Held in 2021

Major Awards in 2021

•	Establish an integrated system that shows consumers' history about their experience with our products and① Korea Technology Olympics Held(Nov. 1-26)

Country

services, such as product purchase and delivery, membership, services, and after-sales support in one place

Benefits and Spillover Effect of the Technology•	Systematize responses to customer issues by integrating customers' journey company-wide and share information
on customer issues among contact points: Limited information by phase → provides history of all phases of thecustomer journey•	Enable systematic response to customers during employees' work execution by linking individual systems managed
at various points of contact, so that the dispersed data could be viewed in one place•	Strengthen the customer response system for each type of customer issue, and enhance response capabilities for

III.

Socialeach contact point

Olympics•	Korea service engineers are provided with
opportunities to boost their sense of belonging after

South
Korea

Customer-Oriented Change

Social Contribution

Honored as a meritorious
entity on Electronics & IT Day(for introducing service
management innovation
activities from a customer
perspective such as One View
and GPS-based business trip
status management system)

October

KoreanStandards
Association→ It aims to contribute to the improvement of

Employees

Ministryof Trade,
Industry andEnergyeach region and branch is raised through healthy

outstanding technical know-how

Customers

Description

their transition to direct employment by LGE•	Repair capability is improved by discovering

Safety and Environment

Host•	The pride of excellent engineers representing
competition

Supply Chain ManagementMonthcustomer service quality

Contact Center Innovation
Award(for customer-centered 24/7
service through KakaoTalk
chat)

Process of executing the Technology Olympics
IV.

[ Contact Point-Oriented ]Governance•	The finals have been lightened and optimized in line

[ Customer-Oriented ]with the pandemic situation

Corporate Governance
Jeong-Do Management

Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status

Relocation& Installation
Response limited
to installation

DeliveryResponse limited
to delivery

Relocation& Installation

LGE Korea Sales &Marketing Company

TCFD Report
Governance Index
Independent Assurance Statement

Response
limited to care

Services

Delivery

PantosCustomer
Consultation

Care

Response
limited toconsultation

Hi-M Solutek•	Preliminary - operated by staff in charge of each

Flipkart

MiddleEast/
AfricaKOICA

KOICA Appreciation Plaquefor CSR activities

Indonesia February CCSL

Highest rating for call center
service satisfaction

Philippines

DTI

Silver Award(Consumer
Excellence) in DTI's Product
Service Evaluation Program

RussiaConsumer
AgencyAwarded customer
satisfaction grand prize foraddressing pain points basedon customer empathy

Taiwanregion(Nov. 1-12)
Management & Technology Hall(Nov. 25-26)

January•	Nov. 25: Opening Ceremony and Semi-Finals•	Nov. 26: Finals and Awards & Closing Ceremony
Consultation•	A total of 121 persons participated in the preliminary
round, and a total of 18 persons were awarded by

Response
limited toservices

Response from the customer’s perspective is impossible
as contact-point specific information cannot be shared

India

Selected and awarded as thebest company for quick air
conditioner installation(by Flipkart, the largest
online company with morethan 50% market share in
India)

System(Baeeum Madang Live)GRI Standards Index
SASB Index

ISO

Simultaneous acquisition of
two international standard
certifications for the firsttime in the Taiwanese home
appliance industry
ISO 9001(quality
management), ISO 10002(customer-oriented)

establishment of the Academy Education Broadcasting

One View

Care

Acquired consumer-oriented
management certification•	Finals – Operated at the Pyeongtaek Learning Center
PantosCustomer

Membership·Awards & Recognition
Materiality

Response
limited tosales

Fair Trade
Commission

December•	Technology Olympics livecast in accordance with theMarketing& SalesMarketing& SalesCompliance Management

Services

HiTeleservice

LGE CSManagement
CenterCompany-wide integration of customer journey
map(from sale to services) enables all employees
to respond to customers

product category② Central Asian Technology Olympics Held(Oct. 5-7)
•	Held online the same way as last year due to
COVID-19	→ With the offline time, space, and cost limitations
alleviated, the largest number of countries andparticipants participated(A total of 83 persons

Selected as the bestcompany in the category ofhome appliances in the Call
Center Quality Index(selected as the number one
company in the categoryof home appliances as aresult of evaluation of sevenessential call center quality
factors)

October
Russiarepresenting 30 customers from 9 countries)

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

31

Customers
I.

Corporate Overview
Management Philosophy
Message from the CEO

II.

About LG Electronics

Home Appliances

Business Status

Product

Type of Disability

FeatureContent

Type of Disability Feature

Environmental

Water Purifier,
Air Purifier,
Air Conditioner

Visualimpairment

Audio guide

Each time a button is pressed, the name of the button or theselected option is read aloud by voice, and a description of a function
or a voice guide about the current status of the product is provided
so that everyone can use the home appliance without difficulty

All

Carbon Neutral
Circular Economy
	Product Stewardship

III.

Examples of accessibility features by product and type of disabilities

Robotic Vacuum, Visually impaired/
Refrigerator,
Physically
Air Conditioner
challenged

SocialTV

Voice
recognition

A simple voice command activates the product, making it easier for
everyone to use the productEasy handle

The product door can be opened easily even with small force, and thehandle and the direction in which the door opens can be changed to
the left or right to increase convenience

Supply Chain Management
Safety and Environment
Customers

Refrigerator

Physicallychallenged

Employees

Auto smart
drawers

When you open the freezer door, the inner drawer automaticallymoves forward, allowing you to easily retrieve items deep in thefreezer without bending your back too much

Auto smart
door

The lower right door of the refrigerator automatically opens when
you put your foot on the mark on the bottom of the refrigerator
without using your hands, increasing user convenience

Auto lift

At the push of a button, the drawer at the bottom automatically
opens and the container inside rises to knee-high level, making it
easy to use even if you are in a wheelchair or have hand limitation

Auto door
open fordryingEven if the user does not open the door directly, the door of the
product automatically opens slightly when the cleaning is finished,
and moisture escapes to enhance natural drying

Social Contribution

IV.

GovernanceCorporate Governance

Dish Washer

Jeong-Do Management
Compliance Management
Information Protection

V.

Physicallychallenged

Electric Cooktop Low vision

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status

Washing
Machine/Dryer

Physicallychallenged

Membership·Awards & Recognition
Materiality
GRI Standards Index

Visually impaired/
Physicallychallenged

SASB Index

The length of the indicator lamp changes depending on the intensity
Heat indicator of the fire, so you can check whether induction is being used or its
status at a glance

Push opendoor

The product door can be easily opened with small force by pressing
the right center part of the door

Eye-levelstorage box

If you install an eye-level storage box under the washing machine ordryer, your hands can reach the innermost area of the drum, making
it easy to take out your wet or dried laundry

Mini wash
Eye-levelstorage box

If you install the mini-wash under the washing machine or dryer, yourhands can reach the innermost area of the drum, so you can easily
take out your wet or dried laundry

Independent Assurance Statement

Air Conditioner
Physicallychallenged

Accessibility shortcuts are provided to make it easier to access and set the features

Go to Accessibility

prepared for the convenience of the disabled. If you press and hold the mute button
for more than 1 second, you can easily set accessibility features provided by the TV
In order for visually impaired people to use the TV more conveniently, menu names

Read the menu aloud and actions are read aloud by voice. When the function is turned on, voice speed,
volume, and pitch level can be set in detailFor people
with visual
impairments

Describe the screen
aloud

Increase contrast
Switch to B/WColor inversion

For the visually impaired, the content of the TV screen being watched is read aloudby voice(however, it is available only if the TV program you are watching supports
this function)
Adjust contrast between light and dark areas of the TV menu to make the text on
the TV menu more legible
By changing the colors of the menus provided on the video and screen to black andwhite tones, the ambiguous boundaries due to color are made clear
Improve visibility by reversing background and letter colors to read TV menus better
A function that simultaneously outputs sound through the TV speaker and a

TV sound share

For people
with hearing
impairments

Bluetooth device so that customers with hearing impairments can watch TVwith their family or friends(earphone and headphone types are recommended forBluetooth devices)
Customers can watch the broadcast with subtitles, and you can move the subtitles

Subtitle

to the desired location using the direction buttons on the remote control(however,this function is only available if the broadcast program you are watching supports
subtitles)* LGE Products Accessibility Webpage: https://www.lg.com/global/customer-accessibility

The filter clean bot automatically removes dust from the ultra-fine

Filter clean bot filter, which was previously difficult to separate and clean, so themachine becomes convenient to use and maintain

TCFD Report
Governance Index

Content

Auto moving
bucket

The humidifying water tank automatically moves forward when you
put your foot close to it, making it easy to fill and empty the watertank

Auto moving
filterWhen the button is pressed, the filter, which is difficult to separate
because it is located on the back or in a higher part of the air
conditioner, automatically comes forward, making it easy to manage
the filter

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

32

Employees
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental

HR Management
Key Initiatives for 2022

Social responsibility of the Labor Union•	Encourage innovation in the way we work and our systems in order to achieve sustainable growth even in new
business environments•	Operate a HR management and training system to enable every employee to be able to maximize theirprofessional capabilities•	LGE union member: As a member of society, a union member carries out the USR(Union Social Responsibility)
activities•	The value of USR activities was recognized by the UN Economic and Social Council, and the union was granted‘special consultative status’ as an NGO(2021)•	Introduce the USR activities based on consultative status to the international community and spread a sound laborculture•	Plan to participate in LGE's ESG management and practice it together

Carbon Neutral
Circular Economy

Classification

Details	Product Stewardship

Evaluation and •	Objectivity of evaluation is secured through frequent performance management, peer evaluation, and objection system•	The performance-based compensation system is strengthened
Compensation •	Compensation fairness and transparency are improved

III.

Types of Job
Position•	A simple corporate structure is operated to build a horizontal, creative, and autonomous organizational culture(a role/capability/performance-oriented three level structure)•	The selection and promotion system for leading and active organizations is continuously expanded

TalentDevelopment•	Reinforce core talent development• Reinforce personalized training

Work-life
Balance•	Activate voicemail and payment system•	Operate recommended vacation and refresh system• Improve meeting and reporting culture•	Manage working hours•	Office Dress Code Liberalization in effect at all times•	Operate childcare and breastfeeding facilities in 10 business sites in Korea

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data

Junior Board•	Serves the role of enhancing communication between the management and employees as an organization that
represents staff-level administrative workers•	Conveys the VOE(Voice of Employees) and discusses relevant agenda items through joint meetings withmanagement•	Shares best practices of the organizational culture company-wide•	Carries out various social contribution activities, such as promoting a culture of donations for charitable causes andvolunteering using LGE's products┃Activities of the Junior Board(Korea)┃┃LGE Global Labor Policy┃(Revised in 2021)

Members

Respect for Human Dignity

Working Hours

Prohibition of Forced Labor

Wages and Benefits

Prohibition of Child Labor

Freedom of Association

Fair Treatment/Non-Harassment

Compliance with Labor Laws and Regulations•	Convey VOE to the Junior Board- Junior Board Bulletin Board- Focus group interviews- One-on-one grievance meetings•	Open Communication with top management

SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

Labor-Management Relations•	Have established LGE's own concept of ‘labor-management relations’, creating common value based on mutual
trust and respect•	Established various channels for labor and management to engage in joint discussions on major labor issues•	Faithfully adhere to duty of fair representation for the multiple labor unions•	Major changes to business operations are discussed in depth by labor and management as soon as they take place•	Prevent the occurrence of lost opportunities due to labor-management disputes by holding regular discussions ofissues and non-dispute negotiations regarding wages and collective bargaining, and lay the foundation for utilizing
all workforce capabilities for growth┃Labor-Management Relations at Business Sites(Korea)┃
Members of the Labor Union(As of January 2022)
Dispute-Free Period Agreed by Labor and Management
for Wage Negotiations and Collective Bargaining

11,888 persons(33% of all employees)

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOKJUNIOR BOARD
297 Staff-Level Members(including 16 Junior Board representatives)
LGE Junior Board Council

Junior Board Council at the company level

Regular Junior Board meetings•	Share the management performance ofthe company•	Hold meetings with the CEO•	Listen to opinions regarding systematicchanges at the corporate level•	Share the corporate-level activities of
the Junior Board•	Share management performance ofeach company•	Hold meetings with heads of company•	Listen to opinions regarding systematicchanges at the company level•	Share the activities of the Junior Board
at the company level•	Deliver VOE for each organization•	Discuss requests from businessdivisions and business sites•	Share the activities of the Junior Board

33 years

33

Employees
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

Strategic Direction for the Organizational Culture•	Establish an organizational culture that can achieve the CX1 vision of 'customer satisfaction'•	Derive and internalize a Code of Conduct based on employee participation

Revitalizing Management-Employee Communication•	Reinforce positive employee experiences•	Establish a culture of horizontal communication where diverse opinions and suggestions are exchanged regardless- A workplace of empathy, trust, creativity, challenge, immersion, and growthII.

Environmental
Carbon Neutral
Circular Economy

of position by activating communication between top management and employees

1 CX: Customer Experience

LGE's Aims for Customer Experience	Product Stewardship

CX Vision
III.

Instant
Customer
Satisfaction

SocialSupply Chain Management
Safety and Environment
Customers
Employees

Empathy and Trust: Strengthening communication and exchange

Innovative
Experience

F

U

N

First

UniqueNewClassification

Details

Purpose•	To internalize the organization's goals and management strategies in eachmember's work•	To continue to listen to the opinions of different groups

Channel of communication
with CEO•	Operate 'CEO Talk' to communicate with members about the direction of change
in business, leadership, and cultural perspectives, as well as listen to ideas andencourage hard work

Channel of communication
with CFO•	Quarterly company performance is shared through 'Stories on Management withMembers', and questions about overall management are answered through Q&A

Social Contribution

IV.

Governance

Basic
Values

Quality

Cost

Delivery•	Due to COVID-19, there has been a rise in real-time online communication activities using video conferencing

Corporate Governancesystems, live studio, and open chat rooms are thriving

Jeong-Do Management
Compliance Management

Pride

Information Protection

V.

Appendix

Performance

Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality

Positive

A company its members will speak highly of
What gets better for the company

What gets better for employees

Corporate Performance/Profit
Increased productivity

Employee's happiness
Experience and growth through work

Increasing positive employee experience andreducing negative employee experience

GRI Standards Index

Empathy and Trust

SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

Strengthening Online Communication Channels

Creativity and Initiative• Mutual trust• Cooperation/Collaboration• Reasonable decision-making• Clarity of systematization• Psychological stability• Active expression of opinions• Mutual trust• Respect/Consideration• Autonomy

Classification

Details•	LAN meeting with the head of H&A company
Online Communication
Channels•	Heart-to-Heart Talk at Korea Sales Headquarters•	CTO All Hands Meeting•	Open Community at each company

LG Way Employee Survey•	Every year, we have conducted the LG Way survey to measure where there is a 'customer-oriented organizational
Workplace of
Immersion and Growth• Organizational support• Cooperation/Collaboration• Autonomy• Psychological stability

culture' for all employees and to practically change the culture•	The results of the survey are delivered in the same form as a medical report to all leaders of LG Electronics fromthe corporate level to the team unit to make a substantial change within the organization• In 2022, 18,060 office workers and 6,447 technical workers participated•	All leaders share results transparently, discuss ways to improve organizational culture together and use it as a

Code of Conduct / Employee Participation

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

driving force to create customer value

34

Employees
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral

Creativity and Initiative: Encouraging discovery of ideas and taking initiatives basedon employee participation

A Workplace of Immersion and Growth: Innovating working methods optimized
for a changed environment and caring for employees

LG IdeaPot, a Crowdsourcing Platform for Employee Ideas

A Work Culture Centered on Autonomy, Self-Leadership, and Performance through Remote WorkClassification

Details

Overview•	A crowdsourcing platform through which all employees, both in Korea and overseas, arewelcomed to suggest ideas regarding solving various technical difficulties and developing new
products and services that reflect customer value

Idea proposal•	Participation in idea contests(contest challenge)•	Constant suggestions of ideas(Idea Box) for products and services

Utilization•	LG Gram laptop idea contest•	Wireless earphone idea contest•	COVID-19 products and services idea contest

Circular Economy
	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management

LGE Adventure(LGE+VENTURE) for Fostering In-House Ventures•	We aim to contribute to building a creative organizational culture by encouraging members to take initiatives andto pursue innovation through LGE Adventure
Classification

Details

Overview of
LGE Adventure•	Use the diverse ideas of employees as "new growth engine" resources•	In-house development system to spread the "organizational culture that takes on challenges"

Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status

Implementation •	Collected ideas for future new businesses and products/services through the LG IdeaPot
activities
platform

Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index

Process•	Five final teams were selected from a total of 81 ideas submitted•	Two final in-house venture teams were selected though online pitches•	Two selected teams are supported with external offices spaces, flexible work schedules,
support funds, and 'accelerators' so that they can execute tasks for one year•	Offer the opportunity to proceed with commercialization within our company or as anindependent as a start-up if deemed to have business potential and accords with the decisionof the in-house venture team

Independent Assurance Statement•	Implemented remote work in line with the government's social distancing levels since March 2020•	Provided necessary information, such as ‘LG’s Smart Remote Work’ guide, and training on ‘Remote Work – How to
Successfully Manage an Organization’ to employees•	Strengthened IT infrastructure in order to facilitate remote work-	Since 2018, we have been establishing an environment based on cloud computing through which work can bedone remotely, regardless of location-	Created a work environment where all types of work can be conducted without physical contact through videoconferencing(WebEx, ZOOM, G-Screen) and collaboration tools(Collab, WorkTalk)•	Results of internal surveys for remote work:-	Implementation of remote work is bringing positive changes to the handling of:		 Meetings(64%), Reporting(57%), Work dinner culture(54%)-	About 63% of respondents preferred implementing a system of remote work as a new way of working•	Created opportunities to move away from conventional ways of working towards ‘maximizing employee autonomy
and self-leadership’ and establishing ‘a truly performance-oriented work style•	Will continue to implement and improve the remote working system even after COVID-19 in order to change theway employees work and enhance productivity

Corporate Travelers and Non face-to-face Caring Program During COVID-19•	Carry out a separate non face-to-face caring program for employees who need to go on business trips forunavoidable reasons•	Before business trip: Provide individual psychological counseling and offer red ginseng, masks, hand sanitizer, firstaid kits, and thermometers to business travelers and their families•	After returning from a business trip: Provide a meal voucher, Korean beef set, and daily necessities set, and support
rest with family through a separate recovery program•	Support activities:-	Provide meal kits
-	Various psychological counseling programs(day for handling stress, day for healing with aroma)-	Heart-healing programs(making candles at home, non-face-to-face volunteer work, emotional health class)Care Programs for Various Stages of the Employee Lifecycle•	Operate care programs tailored to different job positions and age groups in order to enhance job satisfaction andincrease happiness in the workplace•	Offer messages from senior management and gifts to congratulate and encourage employees who have children
entering elementary school or taking college entrance exams•	Host events with invited families, a healing camp for married couples, and family-participating programs("Mom andDad, Where Are You Going") etc. by each company

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

35

Employees
I.

Strategic Direction for Talent Cultivation

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

Respect for diversity

Business Status•	All employees and partners have the right to pursue happiness regarding dignity, value, and work as human beings•	Nurture future leaders who are creative and capable of embracing challenges by providing optimal learning•	We instituted various systematic measures to enable all employees to carry out their work and develop theirII.

Environmental
Carbon Neutral
Circular Economy

potential to the fullest without experiencing any discrimination or any others disadvantages on account of gender,
race, education, religion, etc.

Strategic Direction for Diversity and Inclusion

	Product Stewardship

III.

Classification

Details

Expansion of talent pool•	Expand points of contact(M.O.T.) for strategic recruitment of female talent andoperate various programs-	Recruit female professors who are excellent in R&D(SW, AI, big data, etc.) throughrecommendation and conduct online recruitment briefing sessions-	Use the recruitment platform to secure a pool(longlist) of excellent female talents
by field and review recruitment in the necessary fields in advance•	Recruit external heavyweight female professionals and develop an internal pool offemale leaders/professionals-	Recruit talented females from outside and increase their weight in executives andorganizational leaders through internal promotions-	Increase and nurture the leader/expert pool by expanding the selection of female
core talent•	Discover in-house positions that can be filled by people with disabilities and conduct
a separate announcement for recruitment-	Consider the lightness and severity of R&D office support and SW coding duties
and reflect them in the annual manpower operation•	Expand employment of people with disabilities by expanding occupations suitablefor people with disabilities-	Establish new occupations suitable for persons with severe disabilities inworkplaces where such occupations are not established•	Review expansion of employment through transfer of company-wide beautification
contract work to Hanuri

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index

Improvement to system

SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

Change in awarenesstoward development•	Improve systems and expand support to bolster the selection and nurture of female
talent-	Review measures to expand support for dispatching expatriates with the aim of
expanding female leaders' jobs-	Improve caring measures such as maternity protection and parental leave

solutions in order to achieve continued business success and create future growth engines•	Operate the ‘Design Thinking’ program under the theme of Customer Experience/Digital Transformation forcustomer-centric business transformation•	Implement a learning journey design to support personalized learning based on job competency and prepare asystem to improve employees' learning experience

Cultivate future business leaders and key talents•	Identify young and talented employees who display great entrepreneurial potential to develop future businessleaders that can take us forward within the next 10 to 15 years•	Operate a track-specific training system to ensure the systematic and continued growth of key talents•	Support growth based on ‘Individual GROW map’(each individual’s roadmap to growth) with a focus on experience,
exposure, and education for a specific period•	Support personalized learning(ensure self-awareness and leadership skills) by designing a learning journey from along-term perspective to prepare for the role of a future leader

Spread the "Design Thinking Program" to bolster the CX competency•	Adopt and operate 'Customized design thinking' workshops and consulting programs to build customer empathy
Customer/Project

Customer value innovation, new product, new business, DX 'task workshop'

Job/Title'Customer experience workshop' by leader/new employee/talent group

Organizational culture'Employee experience workshop' to support the C-D-P1 way of working

1 C-D-P: Customer experience, Digital Innovation, Performance creation•	Create a space dedicated to ‘Design Thinking’ for immersive participation, and provide an environment where ideas
can be spread and collective intelligence can be exercised•	Refine ideas based on customer empathy, and apply rapid prototyping to support learning how to effectively apply
customer feedback•	Develop a ‘Design Thinking’ program for business contribution, and spread and internalize a customer-centered way
of working within the organization by nurturing professional facilitators in the company•	Develop programs to raise awareness of diversity and inclusion among all employees•	Organize nurturing programs to strengthen the female leader pipeline-	Establish a mid-to long-term development plan according to the expansion of
female talent-	Upgrade leadership skills for nurturing female leaders* LGE Diversity & Inclusion Policy Webpage: https://www.lg.com/global/our-sustainability-policies

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

36

Employees
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral

Strengthen the capacity of DX(Digital Transformation)

Design a learning journey to improve the employee learning experience•	Establish a training process for evaluation/certification by division/sector for Domain DX capability building andprovide opportunities to improve employees’ DX expertise•	Build a learning ecosystem(autonomous/repeated/entertaining) that supports self-directed learning, participation,

Level 1(Applying)

III.

SocialCustomers
Employees

Cultivate leaders of DX tasks who can understand digital technology in general and use
data visualization and basic machine learning techniques-	Establish a support system that enables prior/repeat learning regardless of location and time so that employees

Level 3(Consulting)

Cultivate DX execution consultants who can understand internal/external DX trends
and promote DX activities within the organization based on rich execution experience-	Operate a platform-based learning system to provide digital learning materials for each module by competency/

Cultivate leaders for ‘Organizational Culture Innovation’•	Select and continuously improve leadership education/content themes to promote leadership change in linewith the times and environment

Social Contribution

IV.

In line with the trend

Select ‘hot skills’ topics such as AI, DX, and Agile and increase relevant training

Employee immersion

Increase training focused on the MZ generation and emotional caring(focusing on diversity and inclusiveness)

Leadership in coaching

Demonstrate communicative leadership and expand personalized leader coaching toform a coaching-based organizational culture

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition

Reinforce Employee Competency and Career Development
One-On-One Caring System

Materiality
GRI Standards Index- Step 1: Set the mid-to long-term development direction(set the development path and position; summarize

TCFD Report
Governance Index
Independent Assurance Statement

can acquire the necessary competencies for their job
level(e-library)*What is E-Library?
•	As an electronic library where you can find what you need anytime and anywhere, it provides micro-content thatcan be learned in 10 to 15 minutes•	It has 89 Korean and 201 overseas categories(about 3,383 content items; as of May 2022)-	A variety of high-quality educational content items are available at home and abroad* Korea: Find content providers such as K-MOOC, Fast Campus, Ubob, etc. and promote contracts* Overseas: Secure on-time content and increase learning opportunities through LinkedIn Learning

Bolster global business capabilities•	Establish a weekly global nurturing monitoring system and self-checking process for each corporation’s nurturing
health for timely overseas nurturing support•	Select a theme related to job competency to prepare for the future abroad and provide training

Sales(Partner)

Support the improvement of key partners' capabilities for optimizing customer
experience(providing a level-specific training curriculum and operating a dedicated training
platform)Marketing(Online)

Reinforce online D2C1 competency in overseas business through online brand shop
activation training support and support the optimization of ‘Customer Decision Journey’

Production

Reinforce future capabilities by developing and supporting ‘smart factory’ related education
to expand production automation•	Set up a standard career development map for each of the entrepreneur/function leader/expert track and establish
a CDP plan suitable for each individual's desired role

SASB Index-	Promote changes in the recognition/reward system to promote self-directed learning

Level 2(Leading)Supply Chain Management
Safety and Environment-	Expand the contact points between learning and work for field work application•	Learner-led 'On-Demand Education System'

Circular Economy
	Product Stewardship

Can suggest tasks based on conceptual understanding of DX and improves capability
for basic data analysis by using the data analysis package

and collaboration

existing jobs and experiences; and summarize the necessary job experience)- Step 2: Identify strengths/desired improvements- Step 3: Establish a training action plan(establish a training plan; and a job competency development plan)

1 D2C : Direct to Customer•	Check grievances and support issues in the first half and second half, and collect coaching/feedback from thesuperior

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

37

Employees
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy

	Product Stewardship

Suppliers’ Consortium for National Human Resource Development| Selected 12 times as an excellent training organization(by the Ministry of Employment and Labor) |(Plan for 2022)•	Have been conducting educational support activities for suppliers to encourage social contribution and shared
growth through the Consortium for National Human Resource Development since 2006

Supporting suppliers' training design

Implementing leadership/job skill training

600 committed suppliers

Approximately 1,600 employees•	Conduct a variety of training programs aimed at improving the job skills of the employees of our suppliers• Support adopting Robotic Process Automation(RPA) for suppliers to improve job productivity•	Eligibility:-	A small and medium-sized company that pays employment insurance premiums in Korea as an LGE supplier or
non-partner-	A company that has signed the LG Electronics National Human Resources Development Consortium Agreement

III.

SocialSupply Chain Management
Safety and Environment
Customers┃LGE’s Employee Training System┃

Employees

All employees

Business Leaders/Core TalentSocial Contribution

Korea
IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management

Entry-Level/
Required per Position

Duty

Overseas
Business Function College

New 'Department' Leader/
Division Leader

MVP1 -Ⅴ

MVP-Ⅱ

Materials
QualityFirst-Time Team Leader

SCM

Dream Happiness(30s)

New Manager

Manufacturing
Marketing
Product/
Part Leader

B2B

Self-Reflection(from fourth-year employees)

New Employee

Self-Development(from second-year employees)

Global New Hire Onboarding

New R&D Personnel
New Business Leader
New Division Leader
Entrepreneur Candidates

Customer Service
FinanceHR

EIP4

Entry-level employee

Global Core
TalentR&D Personnel
Enhancement

MBA

Independent Assurance Statement

Manager
Enhancement

GLP3

MVP -Ⅰ

Procurement

Design Happiness(50s)

Expatriate Employee
Candidate

SASB Index

Governance Index

New VPs

Marketing/Sale

Materiality

Experienced Employee Training Course

MVP-Ⅲ

Membership·Awards & Recognition

TCFD ReportCompany Leader

Production/Quality/SCM

Team Leader Enhancement

Sustainability Management Performance Data

GRI Standards Index

Global Biz.
LeaderBusiness Management(Finance/HR)SW

Appendix

SHEE·Quality Certification Status

My LG,My Life

Global CEO
Conference

Job

R&D
MVP-Ⅳ

V.

Required per Position/Duty

EnDP2

Information Protection

DesignProduct PlanningLife planning

1 MVP: My Vision Planning
2 EnDP: Entrepreneurship Development Program
3 GLP: Global Leadership Pool
4 EIP: Early Identified Pool

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

38

Social Contribution
I.

Corporate Overview
Management Philosophy

Circular Economy/Future Generation: for the Youth

Others Social Contribution Activities

Program

Promotion System of Social Contribution

Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy

SocialSupply Chain Management
Safety and Environment

Global IT Challenge
for Youth with disabilities(Global IT Challenge, GITC)(2011~)

LG-KOICA Hope Vocational
Training School(2014~)•	Cooperated with the Ethiopian government, KOICA, and NGOs, tosupport youth independence through technical education•	Provided vocational education for ICT jobs for self-reliance of youths andwomen'One Heart’ psychologicalstability and self-reliancesupport for children whose
institutional care has ended(2021~)•	In partnership with the Community Chest of Korea(CCK) and Korea Foodfor the Hungry International(KFHI), LGE developed and launched the'One Heart' application, an online and offline psychological counselingplatform, so that young people preparing for their independence(children
whose institutional care has ended) can stand on their own feet(October2021)•	LGE donated 500 microwave ovens to help young people become
self-reliant, and over the next three years, it will provide professionalcounseling to about 1,000 people, including young people preparing for
an independent life and young people whose institutional case is bout toend

Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality

Details•	Designed to create a foundation for social advancements, such as
admittance to college and employment, and to contribute to improving
awareness regarding people with disabilities in participating countries bybridging the information gap among young people with disabilities•	GITC is the world's only IT festival for young students with disabilities,
and adolescents with various types of disabilities(physical, hearing, visual,or developmental) from twenty countries participate in five individual
events at the IT Paralympics

	Product StewardshipIII.

UN SDGs

LG Hope School(2021~)•	Utilized a solar-powered charging system in order to create anenvironment for children, who had previously been unable to attend
school due to child labor, to go to school•	Collaborated with a korean start up company ‘YOLK’ in 2021 to installsolar-powered charging system at three schools in Goma. A total of 750
auxiliary batteries that are capable of being recharged during class were
provided to the children

ProgramUN SDGs

Executive social
contribution fundin operation(Korea: 2004~/
Overseas: 2019~)•	Voluntary participation of our executives contributing 0.5% of their salary for social
contribution activities•	Conducts various activities both korea and overseas by matching 50% of executive
donations with grants•	Provide support through the Steering Committee(1 chairperson and 5 members)
determining the appropriateness of activities

Employee
Volunteer Group(2010~)•	Activities in which LGE employees give back to the local community by using theirtalent•	Product inspection and free repair for social welfare facilities, development of interactive
chatbots for non-profit organizations, etc.

Menu items for
donation(2011~)•	Donating the saved amount of budget when employees select menus with reduced
portions for donation in the company cafeteria| Building Social Contribution Fund(Korea) |Classification

Unit

The Executive Social
Contribution Fund
The Employees Social
Contribution Fund

USD

2021

318,212333,074

330,451

319,087

253,521220,301

Classification

Unit

2019

2020

2021

No. of Volunteers

Person

692

708

520

Unit

2019

2020

2021

4.9

12.2

23.9

USD million

11.6

2.4

2.0

5.5

8.3

14.2

| Types of Social Contribution Cost |Classification
Community Investment
Charitable Donation
Commercial Activities

Independent Assurance Statement

2020| Number of Employee Volunteers Participated by year(Korea) |SASB Index

Governance Index

2019* Exchange Rate: USD 1 = KRW 1,143.89

GRI Standards Index

TCFD Report

Details| Participation in Voluntary Activities |Unit
PersonLG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

Employees in Korea

Employees in Overseas
Countries

The Use of Workday Volunteer Program

1,640

929

36

39

Social Contribution
I.

Corporate Overview
Management Philosophy
Message from the CEO

II.

About LG Electronics

Social Contribution Activities linked to Products, Technology, and Infrastructure

Business Status

ProgramEnvironmental

LG Hope Screen

UN SDGs•	Using LG billboards located in New York Times Square and London Piccadilly Square, we provided free advertisements to UN international organizations and non-profit organizations•	In 2021, on the occasion of 'World Food Day(October 16)' set by the United Nations Food and Agriculture Organization(UN FAO), LGE posted a promotional video on the video screen thatsuggested that many people should pay attention and make efforts to end hunger, for three days from October 15•	Launched a campaign in 25 countries where participants upload videos on social media that show the importance and value of homes, depicting how people can maintain healthier lifestyles whilestaying at home in this era of the new normal•	By filming and sharing short videos displaying a daily pleasure felt while staying at home, we built new homes for low-income families in India, Vietnam, and Kenya in response, where residential
facilities are often inadequate•	Built community centers for communal living(with communal kitchens, communal toilets and drainage facilities) together with Habitat

Carbon Neutral
Circular Economy
	Product StewardshipIII.

SocialSupply Chain Management

Details

LG ComeHome Challenge(2020~)

Stylers donated to a COVID-19
hospital(2021~)•	We donated twenty units of 'Trom Styler Black Edition 2' to four COVID-19 hospitals in Seoul metropolitan area(Bagae Hospital in Pyeongtaek City, Soonchunhyang University Bucheon Hospitalin Bucheon City, Hyundai Hospital in Namyangju City, and Osan Hankook Hospital in Osan City; July 2021)

Safety and Environment
Customers

IV.

Employees

Community Support Programs(Overseas)

Social Contribution

ProgramGovernance

UN SDGs•	Have been running a contest program since 2017 to support ‘Resolving Local Social Issues’.
•	Select plans for resolving local issues submitted by customers and residents, and appoints selected people as LG Ambassadors to promote activities aimed at solving these local community
problems with LGE’s support•	Have expanded our LG Ambassador program to five countries in 2020, providing opportunities to more residents across the world•	In collaboration with Community Chest of Korea and Habitat for Humanity Korea, started a residential improvement project in the Ethiopian Veterans Village•	Used a budget of KRW 700 million(about USD 612,000) to renovate homes for veterans and low-income families, built community kitchens and toilets, installed drainage facilities, and built
communal shower facilities•	Conduct training on CCTV, camera repair and maintenance, which is a specific course within the electronic device repair course

LG Ambassador Challenge(2017~)

Corporate Governance
Jeong-Do Management

Information Protection

Residential Improvement Project for
the Ethiopian Veterans Village(HopeVillage)(2021~2023)

Appendix

Cholera Vaccinations in Ethiopia(2021~)•	Participated in a cholera vaccination campaign(conducted by International Vaccine Institute(IVI)) from 2010 to 2015
•	Plans to inoculate 40,000 people with inexpensive and easy-to-carry oral vaccines over three years from 2021

COVID-19 support for India(2021~)•	LGE donated a total of KRW 6 billion(about USD 5.2 million) to 21 temporary hospitals to be built in 10 cities in India(May 2021)•	LGE donated to the hospitals so that they could acquire beds, medicines, and medical equipment necessary for the operation of hospital departments, such as the COVID-19 ward and ICU, anddonated medical monitors, refrigerators, and water purifiers produced by LGE

Compliance Management

V.

Details

Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index

Community Support Programs(Korea)
ProgramUN SDGs

Details

TCFD Report
Governance Index

One Company, One Post(2015~)•	Formed a sisterhood with the 3rd ROK Special Forces Brigade and deliver consolation funds and necessary products to them as a token of our gratitude and encouragement for the hard work of
our soldiers

Agricultural Cooperation Fund(2020~)•	Supply home appliances to underprivileged neighborhoods, in addition to delivering laptops to underprivileged college freshmen living in sister villages•	Volunteer work during busy farming seasons or when labor is needed•	Participate in recovery work following disasters such as earthquakes and floods

Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

40

I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental

G OV E R N A NC E

Carbon Neutral
Circular Economy
	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment

42

Corporate Governance

47

Compliance Management

Customers

45

Jeong-Do Management

51

Information Protection

Employees
Social Contribution

IV. GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

LG Electronics, as a global corporate citizen, carries out activities to assess and identify ESG-related risks and tocreate and internalize an ESG culture to ensure transparent corporate management. In particular, we operate theV.

Appendix
Sustainability Management Performance Data

Board Committees by identifying the needs and expectations of global stakeholders, and protecting shareholders'

SHEE·Quality Certification Statusrights and interests, and promoting the sustainable growth by implementing a BOD-centered responsible

Membership·Awards & Recognition

management. In addition, based on Jeong-Do Management, which is our unique way of conducting business, weMateriality

are forming the foundation of the thinking and behavior of everyone associated with LGE by embodying it in our

GRI Standards Index
SASB Index

declarative Code of Ethics and practice guidelines. Furthermore, we implement compliance management through

TCFD Report

the establishment of a compliance risk management system by a dedicated organization, in addition to setting

Governance Index

compliance goals and managing performance.

Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

41

Corporate Governance
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

BOD-Centered Responsible Management
Composition of the BOD
		II.

Classification Name

GenderCircular Economy
	Product Stewardship

SocialNonexecutive
Director

Supply Chain Management
Safety and Environment
Customers

Executive
Directors

Employees

GovernancePosition/Major Career
Experience

Last Appointed Note

Bong-Seok
Male
Kwon

COO of the Holding
Company

March 2020•	Chairman of the Board•	Management Committee•	Independent Director Candidate
Recommendation Committee

William(Joo-Wan) Male
Cho

CEO

January 2022

•	Chairman of the Management
Committee•	ESG Committee

Doo-Yong
Bae

CFO

March 2020

•	Management Committee•	Internal Trading Committee

March 2019•	Audit Committee•	ESG Committee•	Internal Trading Committee•	Chairman of the Independent Director
Candidate Recommendation Committee

Male

Social Contribution

IV.

Sang-Goo
Male
Lee

Professor, Departmentof Computer Scienceand Engineering, Seoul
National University

Yong-Ho
Baek

Professor, Graduate
School of Policy Sciences, March 2017
Ewha Womans University• Audit Committee• Chairman of the ESG Committee

Professor, School of Law,
March 2021
Korea University•	Audit Committee•	ESG Committee•	Chairman of the Internal Trading
Committee•	Independent Director Candidate
Recommendation Committee

Associate Professor,
Graduate School ofFinance, KAIST•	Chairman of the Audit Committee•	ESG Committee•	Internal Trading Committee

Corporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Unit
(As of June 2022)

Number of Meetings Held

Approved Agenda Items

Briefed Agenda Items

11

47

15

Average Attendance Rate

Attendance Rate of Executive
Directors

Attendance Rate of Independent
Directors

100

100

100

Cases

Environmental
Carbon Neutral

III.

| Activities of BOD in 2021 |•	The BOD is composed of seven members in order to facilitate efficient decision-making•	The BOD comprehensively evaluates independence, expertise, and diversity when appointing directors

AppendixMale

Independent
Directors
Soo-JinKang

FemaleSustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality

Chung-Yuel
Male
Ryu

March 2022

GRI Standards Index* In the case of re-election, the date of initial appointment is stated

SASB Index* BOD Composition: Four independent directors(57%), two executive directors(29%), one non-executive director(14%)

TCFD Report
Governance Index
Independent Assurance Statement* BOD gender ratio: Six males(86%), one female(14%)

Operation of the BOD•	The BOD fulfills its role of managerial supervision by accurately evaluating, and proposing a wide spectrum of opinions on
major management issues and work conducted by management•	BOD: Explores new growth engines and measures aimed at corporate growth with a broad perspective•	Management: Focuses on its professional roles such as product and strategy development•	Independent director system: Independent directors are given the opportunity to participate in the business operations of
the company by serving as objecting outside experts in terms of monitoring and checking management

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

| Attendance Rate of BOD in 2021 |Unit%

Appointment of BOD Chair•	BOD Regulations: The Chair of the BOD may be appointed from among the executive directors including the CEO, others
non-executive directors, and independent directors•	The BOD seeks to facilitate the implementation of responsible management and improve the transparency of its own
operations through the appointment of a Chairman who is separate from the CEO•	The Chairman of the BOD leads the deliberation and resolution of matters approved by the AGM1, the approval of financial
statements, revisions to the Articles of Association, financing, and others major business matters
1 AGM: Annual General Meeting

Diversity of the BOD•	When appointing directors, the BOD does not discriminate in terms of gender, race, ethnicity, religion, political views,
culture, etc.

Independence of the BOD•	We delegate decision-making rights to the BOD and business execution rights to the top-tier management•	For transactions that may cause conflicts of interest between any of the directors and our company, it can only beapproved upon full consideration by the BOD prior to such transactions taking place•	The majority of the BOD members are independent directors, thereby ensuring that the BOD provides oversight on
corporate governance and executive management•	The earliest appointed independent director assumes the role of senior independent director, representing the others
independent directors and coordinating their opinions

Grounds for Ineligibility for Independent Directors•	Directors, executive directors, and employees who are engaged in the regular business of the company, or directors, auditors, executive
directors, and employees who have been engaged in the regular business of the company within the last two years•	The largest shareholder, his/her spouse, lineal ascendants, and lineal descendants•	Directors, auditors, executive directors, and employees of the corporation, if the largest shareholder is a corporation•	Spouses, lineal ascendants, and lineal descendants of directors, auditors, and executive directors•	Directors, auditors, executive directors, and employees of a parent company or a subsidiary company of the company•	Directors, auditors, executive directors, and employees of a corporation which has a significant interest in the company, such as
business relations with the company•	Directors, auditors, executive directors, and employees of anothers company for which directors, executive directors, and employees of
the company serve as directors and executive directors

42Corporate Governance
I.

Corporate Overview
Management Philosophy
Message from the CEO

BOD-Centered Responsible Management

About LG Electronics

Expertise of the BOD

Committee under the BOD

Business Status•	Independent directors have expertise in the fields of management/accounting, policy/business administration, R&D,

Classification

Responsibilities and Activities

ESG Committee(1 executive director,
4 independent directors)•	Achieve long-term and sustainable growth through the enhancement of Environmental, Social, and Governance(ESG) management•	Establish basic policies and strategies aimed at ESG management•	Establish mid-to long-term ESG goals•	Discuss agenda items such as carbon emission and environmentally hazardous substance management, eco-friendly productdevelopment, and fair trade in the work environment

Internal Transaction Committee(1 executive director,
3 independent directors)•	Enhance the fairness of transactions and the transparency of company management by strengthening the company’s internal
control over internal transactions•	Decide on matters related to internal transactions

Audit Committee(4 independent directors)•	Conduct audits of business matters, accounting, etc.
•	Review and present opinions on matters that may affect the independence of external auditors•	Hold the authority to request appointment, change, or dismissal of external auditors•	Ensure independence by being composed of only independent directors, and secure expertise via the inclusion of at least one
accounting/finance expert as a member

Management Committee(2 executive directors,
1 non-executive director)•	Respond to changes in the business environment in a flexible manner and improve the operation efficiency of the BOD•	Discuss the direction of corporate management through engagement with, and by collecting feedback from, shareholders andstakeholders•	Carry out deliberation and resolution of managerial matters delegated by the BOD

Independent Director Candidate
Recommendation Committee(One non-executive director andtwo independent directors)•	Recommend candidates when appointing new independent directors•	Conduct substantial reviews of recommended candidates in accordance with the Commercial Act, others relevant laws andregulations, and the regulations of the Independent Director Candidate Recommendation Committee•	Secure impartiality and independence by ensuring that the majority of the committee is composed of independent directors

and legal
II.

Environmental
Carbon Neutral
Circular Economy

	Product Stewardship•	We provide independent directors with an overview of LGE and offer training on the operation, role, and legal
responsibilities of the BOD so as to facilitate a quick understanding of the current status of the management of
LGE•	Independent directors visit and inspect our business sites in Korea and overseas for a better understanding of ourbusiness operations•	In order to enhance the expertise of the Audit Committee, we provide training on recent trends and developments

III.

Socialin the field of financial audits. We also established the Internal Financial Audit Team as an organization dedicatedSupply Chain Management

to support the Audit Committee

Safety and Environment
Customers
Employees
Social ContributionIV.

to provide the necessary support to the BOD in order to enable it to fulfill its duties| Board Skills Matrix |(As of June 2022)

Classification

Bong-Seok William
Kwon
Cho

Doo-Yong Yong-Ho
Bae
Baek

Sang-Goo Soo-Jin
Lee
Kang

Corporate Governance

Leadership

●

●

●

●

Jeong-Do Management- CEO experience●●

GovernanceCompliance Management
Information Protection

V.

•	We established a Board Secretariat with a view to supporting the activities of the BOD and its subcommittees, andAppendix
Sustainability Management Performance Data

- CFO experience
Management/
Accounting
Policy/Business
Administration

SHEE·Quality Certification Status

R&D

Membership·Awards & Recognition

Legal

Materiality

Appointed Year●

Chung-Yuel
Ryu

71%
29%

●
●

●

●

●

●

●
●

2020

2022

2020

2019

Independence

TCFD Report

Subcommittees*

A, B

A, E

Age

58

GenderMale

Governance Index
Independent Assurance Statement

2021

2022

●

●

●

●

A, C

D, E

B, C, D, E

B, C, D, E

C, D, E

59

56

65

60

51

51

Male

Male

Male

Male

FemaleMale*	A: Management Committee / B: Independent Director Candidate Recommendation Committee /C: Internal Trading Committee / D: Audit Committee / E: ESG Committee•	Performance is evaluated for up to three years for the purpose of the payment of bonuses•	The criteria and methods for calculating compensation for top-tier management are publicly disclosed
Indicators

57%

Quantitative

Sales, operating profit, etc.

14%

Qualitative

Cash flow, liquidity, product, risk, etc.

29%

GRI Standards Index
SASB Index•	The performance of the management is evaluated using quantitative and qualitative indicators

43%
●

2017

Evaluation of management performance

Classification

14%

●
●

Rate

Average of
2.1 years
57%

Compensation System for Top-Tier Management•	Compensation for top-tier management is paid in accordance with the criteria established by the BOD, taking into
account positions and duties held, and is within the amount approved by the AGM•	Bonuses corresponding to 0-150% of the total remuneration are based on the evaluation of quantitative andqualitative indicators and are in accordance with the executive remuneration regulations

Average of
57.1
Female14.3%| BOD Compensation |Classification(As of 2021)

Unit

Bong-Seok Kwon
Doo-Yong Bae

USD

Independent Directors

Remuneration

Bonus

Total

Averageper Person

1,193,296

1,171,441

2,364,737-523,651

379,407903,058---

341,816

85,672* Exchange Rate: USD 1 = KRW 1,143.89

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

43

Corporate Governance
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

Sustainability Propulsion Organization
We established a rational and transparent ESG decision-making system by establishing a system that leads to 'Stakeholder > Business Department >executive director(CEO), deliberates and decides on agenda related to ESG management twice a year. In addition, the existing Sustainability Management

Environmental
Carbon Neutral┃Sustainability Propulsion Organization Chart┃

Circular Economy

Social

Details

Foundation of
Establishment

Article 33 of the Articles of Association, Articles 13 and
14 of the Board of Directors Regulations

Member

4 Independent directors and 1 Executive director(CEO)

Goal

Strengthening ESG management on Environmental, Social,
Governance and realizing long-term and sustainablegrowthBoard of Directors

	Product Stewardship

III.

Classification

Consultative Body is expanded to ESG Council organized by CFO and is held four times a year. The direction of ESG management activities discussed in
the council, progress status, and major issues have been reported to the ESG Committee for discussion.

II.

ESG Committee

ESG Council > Management Meeting > ESG committee > Board of Directors'. The ESG Committee, which consists of four independent directors and one

SupportDepartment

ESG Committee

Supply Chain Management

Company-wide Management Meeting(CEO)Safety and Environment
Customers
Employees

CFO

Social Contribution•	Establishing ESG Basic Policy and Mid- and Long-Term
IV.

Goals
•	ESG Management Activity Planning and Performance

Council Secretariat

Governance

Role

Corporate GovernanceSupervision• Supervise ESG-related risk responses

ESG Council: Implementation of Strategic Tasks and Communication

Jeong-Do Management
Compliance Management
Information Protection

HQ
V.

Appendix

Labor Rights Manufacturing
Environment

Eco-friendly
Products

Suppliers

EthicalManagement

Strategy

Compliance

HR
Labor
Management

Research Lab
R&D

Procurement

Jeong-Do
Management

Business
Strategy

Legal Group

Safety &Environment

External Communication
Investor
Relation

PR

Marketing
Branding

Customer
Customer
Satisfaction

ESG Council
Classification

Details

Member

CFO and related departments by headquarters division

Role

Discuss short-, mid-, and long-term plans, progress,
and improvements related to environmental, social, andgovernance

Sustainability Management Performance Data
SHEE·Quality Certification Status

Business Division

Membership·Awards & Recognition
Materiality
GRI Standards Index

Strategic Planning

SASB Index

Production Planning

Outsourcing Company

Subsidiaries /Business Sites

Internal/
External Suppliers

TCFD Report
Governance Index

Product Planning, Research Lab etc.

HR

Independent Assurance Statement

Suppliers

Purchasing

Marketing

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

44

Jeong-Do Management
I.

Corporate Overview
Management Philosophy
Message from the CEO

Willing to Practice Jeong-Do Management

About LG Electronics

Code of Ethics

Jeong-Do management risk prevention system and process

Business Status• Established in 1994

•	We have established a Jeong-Do Management risk diagnostic system to prevent risks and instill the spirit of Jeong-•	The Code of Ethics is composed of the preamble – the public declaration of our ethical values rooted in “customerII.

Environmental
Carbon Neutral
Circular Economy

	Product Stewardshipvalue creation” and “people-oriented management” – and the ‘Practical Guidelines’ which provides detailed
guidelines on employee conduct

manage issues relating to receivables, expenses etc.

•	We published the Code of Ethics and the Practical Guidelines on our website•	In 2021, we established a pre-assessment system and process for vulnerable areas of overseas subsidiaries,(https://www.lg.com/global/about-our-brand#jeongdo-management)

strengthened preventive activities, and developed scenarios(21 cases) for checking abnormal symptoms with•	Reinforcement of ethical standards regulations and lower practice guidelines through continuous revisionsystem construction(6 revisions, ~2021)
III.

Social| Measures Taken in 2021 |•	Distributed to 120 global subsidiaries
Classification

Supply Chain Management
Safety and Environment

Whistleblower System

Customers•	We have established a whistleblower system as a means of reporting violations of Jeong-Do Management by our

Employees

employees

Social Contribution- Jeong-Do Management portal

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix

No. of Cases

Ratio(%)

Severe disciplinary action

76

55

Light disciplinary

52

38

Disciplinary dismissal & resignation
Total- Online whistleblower system(http://ethics.lg.co.kr)
IV.

Do Management in our employees•	We implemented a two-track process where both the business department and the audit department can jointly

LGE Code of Ethics- Win-win channel for suppliers(reporting of grievances experienced by external stakeholders)•	All reports received through the whistleblower system are thoroughly protected via the internal reporting system•	Any matters related to corruption and illegalities are subject to disciplinary action in accordance with the

Chapter 1. Responsibilities and Duties to Customers
Chapter 2. Fair Competition

seriousness of the violation

Chapter 3. Fair Transactions
Chapter 4. Basic Ethics for Employees| Number of Cases Reported |Chapter 5. Corporate Responsibilities for Employees

Unit

2019

2020

2021

Chapter 6. Responsibilities to the Nation and Society

SHEE·Quality Certification Status

Case

656

457

270

Jeong-Do Management Counseling Center

Membership·Awards & Recognition

GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

7100- Mobile reporting system

Sustainability Management Performance Data

Materiality

9137| Types of Cases Reporting in 2021 |Classification

No. of Cases

Ratio(%)

Complaints(Customer complaints, supplier grievances etc.)

164

61

Corruption & Irregularities

30

11

Others(HR issues, unfair trade etc.)

76

28

Total

270

100

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

LGE Code of Conduct
Chapter 1. Honesty and integrity to customers
Chapter 2. Decent working environment
Chapter 3. Fair competition
Chapter 4. Responsibility to the local community
Chapter 5. Increase shareholder value

Classification

Details

Counseling
Channel

The Jeong-Do Management Counseling Center offers various channels for providing one-on-one
counseling to employees for inquiries related to Jeong-Do Management- Online system using intranet(chatbot, etc.)- Counseling via telephone- Counseling via e-mailConfidentiality

The content of any counseling conducted is kept confidential. However, such information can bedisclosed at the discretion of the person receiving the counseling

Education andSharing

FAQ are compiled and shared with all employees through online channels or during training programs
held in Korea and overseas

45Jeong-Do Management
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

No. of Cases

Ratio(%)

Interpretations of the Code of Ethics

27

24

Carbon Neutral

Cash gifts for congratulatory or condolatory events0-

Circular Economy

Procedures for receiving gifts or conflicts of interest

29

26

Business expenses

27

24

SocialOthers29

26

Supply Chain Management

Total

112

100

Business Status

II.

Expansion of workplace harassment/sexual harassment prevention training| Types of Inquiries Made at the Jeong-Do Management Counseling Center in 2021 |Inquiry

Environmental

	Product Stewardship•	Contribute to the establishment of a sound organizational culture by providing workplace harassment and sexual
harassment prevention education| Workplace/Sexual Harassment Prevention Training |Classification

Unit

2020

2021

Number of Trainees

Person

2,292

3,231

* Targets for new and vulnerable organizations

III.

•	Enact and comply with informant protection regulations and operate a reward system for reporting corruption in

Safety and Environment
Customers
Employees
Social Contribution

IV.

Governanceorder to eradicate corruption

Jeong-Do Management training and activities aimed at increasing awarenessClassification•	We provide regular training and conduct promotional activities to provide a foundation for the employees' decisionClassification

Details

Training•	Conduct collective and online training for our employees in Korea and overseas•	Share cases of non-compliance exposed in self-assessment of Jeong-Do Management withall employees•	Provide company-wide training for technicians

Awareness•	Distribute information on cases that violate Jeong-Do Management through the Jeong-Do
Management newsletters and webtoons for employees

Survey•	Conduct a survey on Jeong-Do Management for suppliers and employees•	Use to prevent recurrence of unfair behavior and establish the direction of improvement byassessing the level of awareness and analyzing results

Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition

SASB Index•	Do not disclose any information that reveals or suggests the identity of the informant
without consent•	Carry out investigations by a limited number of people who have committed to adhering tostrict principles of confidentiality•	Operate a safe security system•	If it is recognized that an informant suffered a negative consequences as a result ofReporting system
submitting a report, take measures to redress these consequences or provide equivalent
compensation•	Implement a reward system for reporting on the corruption of our employees and people
Reward system•	Submit documents that support the claims of misconduct that they are reportingfor reporting•	Irregularities that require immediate attention may be reported without the submission ofirregularities
supporting documents

Voluntary reporting system•	We prohibit the reception of gifts or others valuables. Any employees who unavoidably receive such gifts must

Materiality
GRI Standards Index

Details

Information
Protection as a
Top Priority

making process and behaviors

Corporate Governance
Jeong-Do Management

Protection of informants and reward system for reporting irregularities

submit a report, and then we handle the issue in accordance with the relevant guidelines and regulations

2021 Participation in the Jeong-Do management training•	Online/Offline Jeong-Do Management training provided for all employees in South Korea

TCFD Report
Governance Index| Jeong-Do Management Online/Offline Training |Independent Assurance Statement

Classification

Unit

OnlineOffline2020

15,715
PersonTotal

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOKClassification

Details

Reporting and
Returning of
Items•	Gifts or others valuables unavoidably accepted by employees should be self-reported andreturned.

Items that Cannot
Be Returned•	Items that cannot be returned are donated to social welfare institutions. Following this,
our Code of Ethics, a letter of request for cooperation, and a document which verifies the
donation are sent to stakeholders and the head of the company in question•	Items that cannot be donated are put up for in-house auction, all proceeds of which go
toward social contribution causes

2021

15,895

3,506

1,480

19,221

17,37546

Compliance Management
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

Compliance Risk Management
Compliance risk management system

Compliance program cycle
Identification &Assessment

Business Status

Compliance Bureau
II.

Environmental
Carbon Neutral
Circular Economy

Compliance
Planning Team	Product StewardshipIII.

•	Operating under the CEO

SocialCompliance Team

Supply Chain Management•	Legal and policy support including providing advice on global regulatory trends andcompliance, improvement of in-house regulations and systems, and legal solutions forcompliance risks through compliance inspection•	Prevention and mitigation of compliance risks through compliance program design andoperation, emerging risk sensing, risk level monitoring and work process improvement,
and compliance awareness activities such as compliance training

Mitigation

Monitoring

ReportingResearch regulatory
developments

Online/offline compliancetraining

Compliance Check/Investigationand Measurements

Compliance committee

Monitor key violations andsanctionsImprove work policy andprocesses

Monitor risk management
activities

Report to BOD

Emerging risk sensing andrisk pool management

Provide compliance advice andconsulting

Operate key performanceindicators in terms of compliance

Disclose to the public

Assess levels ofrisk management

Respond to stakeholder requests

Employees’ compliance self-check

Compliance risk management organization

Safety and Environment
Customers
Employees

Compliance
Investigation Team•	Minimizes the possibility of compliance risks through ongoing and periodic
investigations both Korea and internationally

HQ
Compliance Bureau1

Companies
Compliance Manager2

Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management

Business Division
Compliance Manager2

Commitment to compliance•	We have expressed our active commitment to compliance by creating a new "Compliance Management" page on
our website(https://www.lg.com/global/compliance)

Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data

Goals and plans for compliance risk management

Risk Owner3

Risk Owner4

Risk Owner4

1 Manages compliance matters at the corporate level2	Operates and supports compliance programs at each business site level3	Department representative at the corporate level who is in charge of each risk
4 Responsible for managing risks at each business site level

Personnel
in Compliance
Organizations

ComplianceManagers

Risk
Owner

156 employees
500

employees

Mid-to Long- Term Goals

Enhancement of corporate transparency and reliability

Early identification of compliance risks andestablishment of a preemptive response system

Improvement of risk management

Establishment of worksite-oriented autonomous
management systems

SHEE·Quality Certification Status
Membership·Awards & Recognition

Subsidiaries
Compliance Manager2

Materiality

Compliance management standards
Compliance Control Standards
Compliance Risk
Management Policy

Corporate Policies andStandards on each Risk

Code of Conduct

Compliance Activity Guidelines

GRI Standards Index

Compliance self-check surveys

SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

Implementation Plans

Advanced case analysis and benchmarking

Strengthening of monitoring and responses to internaland external issues(laws and regulations etc.)

Performance evaluation of on-site self-management
activities and customized consulting

Preemptive assessment of social issues, strengtheningof corporate compliance assessment•	Employees voluntarily check their level of compliance in terms of risks that are prioritized on a company-wide level•	Target risks: Bribery, discrimination, sexual harassment, personal information, competitive information, contacting
competitors, cartel, intellectual property rights, insider trading, advertising, and quality(As of 2021)

Classification

Survey targets
Survey participants

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

Unit

Person

Total

Korea

Overseas

47,37228,451

18,92135,15521,08814,06747

Compliance Management
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

Online compliance training customized for employees| Offline Compliance Training |Business Status•	We request employees who have completed the online compliance training to submit the Pledge of Online

Classification

Compliance(2 versions for heads of organization and general employees)
II.

Environmental

Circular Economy
	Product StewardshipIII.

Details

Customized by job•	Organize a detailed training course that reflects the job specificity such as admin,sales, and technology

Customized by region/
language•	Provide support in 8 languages including Korean, English, Arabic, and Russian• European regions operate separate specialized courses

Expertise•	Develop courses in collaboration with a trusted external compliance education
institution

Employees
Social Contribution

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management

148(9)

201(5)

116(2)

165(6)

154(5)

196(5)New Business Leader Training

32(1)

31(2)

42(1)

Onboarding Training for Expatriate Managers

8(1)

24(2)

30(2)

PersonOperation of compliance reporting channel
New in-depth fair trade compliance training course

Classification

Details

ChannelAn integrated hotline operated through LG hotline(http://ethics.lg.co.kr)

FeaturesReporting corruption, illegal acts, acceptance of money or favors, entertainment andwining and dining, and sexual harassment

Type of report

Acceptance of money or entertainment, asset embezzlement or misappropriation,
environmental/safety accidents, unfair trade, manipulation of documents/numbers,
sexual and workplace harassment•	We are operating an online intensive training course for Korea and overseas sales staff for fair trade compliance
risk

IV.

2021

* Offline training was replaced by online training due to COVID-19* The number in parentheses indicates the number of training sessions conducted

Safety and Environment
Customers

2020

Leadership Training for Expatriates

SocialSupply Chain Management

2019

Training for New Team Leaders

FeatureCarbon Neutral•	Completed by a total of 1,588 persons in 2021(1,327 Korean workers in international sales; 261 overseas project
managers)| Online Compliance Training |Classification

Unit

2019

2020

2021

Number of persons subject to training

29,84529,30428,451

Number of recipients of training

27,57827,531

26,86818,41718,801

18,921

Advice on compliance laws and regulations and internal propagation

Membership·Awards & Recognition

Number of recipients of training

16,38918,043

17,651•	Analyze major laws and regulations in Korea and overseas in order to provide compliance advice and business

Materiality

Number of persons subject to training

48,262

48,10547,372

Information Protection

Korea
V.

Unit

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status

GRI Standards Index
SASB Index

Number of persons subject to training

Overseas

Personguides•	Frequently monitor the status of the enactment and revision of laws, share notes on major issues, and hold

Total
Number of recipients of training

43,96745,57444,519briefing sessions

TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

48

Compliance Management
I.

Fair Trade ComplianceCorporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

Strengthen Anti-Corruption Compliance Activities

Promote and internalize awareness of fair trade

Business Status•	We aim for fair and transparent business processing in accordance with the principles and standards. In particular,• Build a strong sense of trust with customers and suppliers through fair competition and transactions

we established the principle of prohibiting corruption in which business is obtained or maintained through illegal/
II.

Environmental

through establishment of a fair trade culture

Carbon Neutral

Classification

Classification

Details

Training

Conduct mandatory fair trade education for all employees every year
(occasional training by business division and organization)• Assessed major expenses such as donations to high-risk areas

Messagefrom the management

Spread awareness of fair trade through a message from management such as CEO
letter•	Provided online training for all employees and collection of pledges outlining
employees’ commitment to practicing compliance

Newsletter

Send a fair trade newsletter to all employees at Korea and global business sites every
month

Circular Economy
	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment

Details•	Conducted voluntary assessments of risk likelihood and impact at each business site

Efforts to raise anticorruption awarenessamong employees
and prevent violationsof related laws andregulations

Customers•	Conducted self-check of employees' compliance with the relevant code of conduct•	Engaged in anti-corruption pledge and anti-corruption working group activities
organized by the "Business Integrity Society" of UN Global Compact in 2021

Employees
Social ContributionIV.

•	Prevent monetary and non-monetary losses, reputational damage, and a decrease in corporate credit rating,unfair methods such as bribery

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

Fair trade compliance program

Compliance Key Performance Indicator(KPI)•	We undertake periodic activities aimed at raising the awareness of our employees in terms of cartels, unfair trade•	Key performance indicators in 2021: Adherence to implementation of compliance risk prevention activities, online training•	We look out for legal risks via follow-up monitoring

practices, unfair labeling and advertising, and unfair subcontracting practices

completion rate, compliance committee meeting fidelity, risk mitigation action plan, progress report, and compliance violation

Fair trade risk assessment and management

cases

Compliance Committee•	Reinforce the leader’s commitment to compliance and promote a culture of compliance within the organization•	Review major legal regulations and sanctions by country and discuss practical issues and risks in the fieldV.

Appendix
Sustainability Management Performance Data•	Establish an annual compliance risk mitigation activity plan for worksites through the compliance committee andshare progress

SHEE·Quality Certification Status
Membership·Awards & Recognition

Corporate-level Compliance Committee Meetings

Business Site-level Compliance Committee Meetings

SASB Index

Members of top management meeting at HQ•	Head of organization and CFO•	

TCFD Report

Department representative at HQ who is in•	Compliance managers•	

Materiality•	Establishment and application of
supplementary measures after
reviewing all existing improvement andmanagement activities every year•	Establishment andrevision of company
standards•	Introduction of IT
systemProviding
Guidelines

GRI Standards Index

Governance Index

charge of each risk

Risk Improvement
and Management

Risk management officers and others employees•	•	Employee training•	Message frommanagement

Independent Assurance Statement

Support for compliance activities for the suppliers

Increasing
Employee
Awareness

Monitoring•	Regular monitoring
and random
inspection•	Work
improvement•	Conduct basic compliance training for major suppliers•	Encourage suppliers to comply with international trade regulations and strengthen monitoring

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

49

Compliance Management
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics┃Inspection and Management of Fair Trade Risks┃Business Status

II.

Select Risks

Evaluate Risks

Establish a Risk Management Plan

Implement Measures to Mitigate Risks

Unfair trade, labeling & advertising

Identify fair trade violations

Summarize risk assessment results

Analyze causes and results of violations

Unfair subcontracting practices

Identify key risk factors

Select key risks

Identify and prioritize improvement measures

Cartels

Evaluate violations by classification

Establish a risk management plan

Perform and monitor improvement activities

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social Contribution

IV.

GovernanceEradication of unfair trade and unfair labeling and advertising

Cartel Prevention

Corporate Governance•	We execute business activities following a preliminary review by the relevant departments in accordance with the•	Contact with competitors is prohibited in order to prevent the formation of cartel

Jeong-Do Management
Compliance Management
Information Protection

enactment and amendment of laws and changes in the business environment•	We examine corporate systems in accordance with the guidelines of the relevant departments in an effort toprevent unfair trade practices•	We thoroughly review labelling and advertising from the product planning and R&D stages to the final stage when

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement•	In unavoidable cases, employees are permitted to contact competitors after a prior report is submitted•	Implementation of internal control procedure for preventing the formation of cartels- Improvements and training in line with enactment and amendment of laws, changes in the business environment- Monitor through our systemadvertising is exposed to the public, through our legal system and by working in cooperation with the relevant- Self-administered surveys conducted by heads of organizations prone to cartel formation

departments including legal affairs- On-site inspection without prior notice, etc.

•	We conduct improvement activities such as frequent inspection and follow-up monitoring of labelling andadvertising to identify if there is anything that consumers may mistake as unfair labelling or advertising

Pursuit of fair subcontracting practices•	We pursue fair subcontracting practices in order to achieve win-win growth with our suppliers through mutual
cooperation•	In order to ensure fairness and transparency in subcontracting transactions, we provide education on related laws
and regulations, check the status of and improve subcontracting practices, and implement new systems, etc.
•	In order to protect the technologies of our suppliers, we engage in improvement activities such as implementing a
supplier data request system and enacting joint development contracts

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

50

Information Protection
I.

Corporate Overview
Management Philosophy
Message from the CEO

Privacy Data Protection and Product Security

About LG Electronics

Foundational system for privacy information protection

Impact assessment of privacy data

Business Status• In response to the implementation of the EU General Data Protection Regulation(EU GDPR), and the strengthening•	Through impact assessment of privacy data, we evaluate and mitigate risk factors and make improvements to theof consumer privacy protection regulations(United States, Brazil, and India), we are striving to proactively identify andII.

Environmental
Carbon Neutral
Circular Economy

	Product Stewardship

improve risk factors in privacy information

adequacy of our privacy protection measures•	We make continuous upgrades to our impact assessment framework of privacy data so that we can respond to•	We strictly adhere to the five basic principles of privacy protectionchanges in laws and regulations, as well as technology trends- Minimum data collection- Protection of the rights of customers to be informed- Measures to ensure security- Only using data for the purpose for which it was collected

III.

Social- Safe disposal

Supply Chain Management• We operate an organization dedicated to information security and provide mock training and education

Safety and Environment• We disclose the safe and legal process of privacy information handling in a transparent manner

Customers*	In 2021, no fines were imposed for personal information data breaches or violations

Employees

Measures for privacy information protection

Social Contribution

GovernanceCorporate Governance• In the case of personal information leakage issue, share it with customers*	No such cases in 2021

Technical Measures

Information Protection

V.

Appendix
Sustainability Management Performance DataManagerial Measures

SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index

Impact Assessment•	SSL1

Jeong-Do Management
Compliance Management②
Handleand analyze
subjects⑥
Executemeasures• Notify customers of the use of personal information once a yearIV.

①
Identify
subjects•	Minimization of printing privacy•	Access control measuresinformation•	One-way encryption storage•	Prior approval by privacy manager•	Limited personnel with access privileges•	Security of information processing PCs•	Controlled entry into Information Security •	Documentation of the purpose of
Officecollecting information•	Manage access privileges•	Separation of privacy information servers•	Measures enabling search/change of•	Observance of the information usage

Measures to Protect

privacy information and cancellation ofCustomer Rights

membership

Framework of Privacy Data⑤
Establish
improvement
measures③
Conduct
checklist
assessment④
Conduct risk
assessment

period•	Response to request for revocation of•	Inquiries by phone or e-mailconsent

1 SSL: Secure Socket Layer, standard security technology that enables secure transfer of privacy information through an encryption algorithm

Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

51

Information Protection
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

Integrated Information Security Management System

Business Status•	We have established a framework for integrated management of the privacy information of our customers in order┃Certifications for Integrated Information Security Management System┃

to promote the efficient use of and prevent leakage of information
II.

Environmental
Carbon Neutral
Circular Economy•	We have acquired Korean and international certifications for our privacy information protection system, thereby
certifying the security of data protection.

┃Framework for Privacy Protection Assessment┃	Product Stewardship

III.

PolicySocialSupply Chain Management
Safety and Environment

Company-wide Regulations
on Information Security
Privacy Protection Rules

Management
SystemCPO1Organization

Customers

Dedicated privacy protection team

Employees

Diagnostics/
Audit/
Certification

TSS4

Diagnostics
ISO3

ISMS5

Company-wide employee training

Training/
Promotion

Response to privacy data breaches

GSI2

Training for suppliers

Protection of rights of data subjects

Social Contribution

IV.

Collection

LifeCycle

Information Protection

V.

Storage

Use/Provision

Minimum data collection

Privacy data processing
guidelines

Consent to collection

Management by a consignee

Information security awareness training
1) Mandatory e-learning for all employees(once a year)2) Security training for new hires and information security officers/managers
3) Weekly security message(once a week) and security letter(once a month)Nurturing software security specialist•	We lead product software security activities and provide a software security specialist training course to enhance

Destruction•	Software security specialists trained through our program and certification courses actively contribute to product-

Privacy data destruction

Foundational system for production security

Privacy impact assessment / measures for ensuring safety

Sustainability Management Performance Data

Database access control

SHEE·Quality Certification Status
PC encryption

Membership·Awards & Recognition
Materiality

SASB Index• ISMS-P

specific security technology development and global compliance activities

Appendix

GRI Standards Index• ISO 27001• ISO 27018• ISO 29100• ISO 27701

the capabilities of our software developers with a view to developing key security technologies

Corporate GovernanceCompliance Management

Korea Certification•	We cultivated world-class experts through a partnership with Carnegie Mellon University(2021)

Governance

Jeong-Do Management

International Certifications

Protective
measures

Server access control

SSL6

Privacy-i
WAS access control

Governance Index
Independent Assurance Statement

Reflect in our standard security
requirements and guidelines

Product development

Build a unified collaboration
system in response
to security regulations

Identify the current statusof global/local regulatory
information

Implement pre-assessment
and response by productPrint-i

Database encryption

TCFD Report

Document shredder

Monitor global
security regulations(UNR No.155 etc.)

Complete erasure solution

Integrated monitoring

1 CPO(Chief Privacy Officer)
2 GSI(Global Security Index)
3 ISO(International Organization for Standardization)
4 TSS(Team Security Score)
5 ISMS(Information Security Management System)
6 SSL(Secure Socket Layer)

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

52

Information Protection
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

Product Security Management System

LGEs' product security activity standard: LG-SDL

Business Status•	In accordance with LG-SDL, our product security activity standard, product development is carried out in compliance•	Since 2017, we established in-house standards for core security activities to be performed at each stage of thewith security activities and standards at each stage of development
II.

Environmental
Carbon Neutral
Circular Economy

software development process and applied them before product launch•	We were able to ensure the security of our products by detecting and removing potential security vulnerabilities

Classification

Details

LGE
ISAC•	Organization specializing in mock hacking(Information Security Analysis Center)•	Checking vulnerabilities of IoT products and internal/external server systems

Bug
Bounty•	Reward system for reporting security vulnerabilities•	Reporting software security vulnerabilities, paying rewards

Security
Diagnostics•	Requesting internal/external security experts to check security vulnerabilities•	Establishing proactive and preemptive security accident prevention measuresfrom products in the early stages of software development

	Product StewardshipIII.

Evaluate the characteristics of each product and the degree of importance in terms of
security designated to each productSocialSupply Chain Management| Core Activities Performed at Each Stage of the LG-SDL Software Development Process |Safety and Environment

Offer guideline for security activities, detect potential security vulnerabilities

Customers
Employees
Social Contribution

IV.

LG Electronics Product Security Activity Standard

LG Electronics Product Security Guide

LG Electronics Product Security Certification

Supplier Security Management Policy

Company-wide/Development security team

Breach test teamProduct development team

Quality team

Security awareness training

Secure coding training

Review results of LG-SDL activities

PolicyIssue a Product Security Certification

GovernanceCorporate Governance
Jeong-Do Management

Organization

Compliance Management· Reviewing security design

DesignInformation Protection

V.

AppendixTraining

Sustainability Management Performance Data

Cybersecurity engineering training

Product security technology training

Cyber breach response process

Security event classification standards

Security update

Bug Bounty Program

SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality

Cyber
breachresponse

GRI Standards Index
SASB Index· Security training· Training of software
security specialist

TCFD Report
Governance Index
Independent Assurance Statement· Defining productsecurity grading· Planning LG-SDL· Analyzing security
requirements

NIST Cybersecurity Framework 1

NIST 800-35 2

ETSI EN 303 645 3

ISO/SAE 21434 4

Requirements

Realization

Preparation

Test· Achieving security· Analyzing security
vulnerabilities ofopen source· Analyzing static
security· Testing security
functions· Fuzz testing· Breach testing

Referencestandards

1 	National Institute of Standards and Technology’s Cyber Security Improvement Framework
2 	Security controls for security and privacy guidelines required by the U.S. government and critical infrastructure3 	European Telecommunications Standards Association’s Security Requirements for IoT Products
4 	Cyber Security Engineering Standards for Vehicles made by ISO International Organization and Society of Automotive Engineers(SAE)LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

· Responding tosecurity issues
following productlaunchResponse

Release· Review/certificationof final productsecurity53

I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental

A PPEN D IX

Carbon Neutral
Circular Economy
	Product StewardshipIII.

SocialSupply Chain Management

55	Sustainability Management

Safety and Environment
Customers

Performance Data

Employees

64	SHEE·Quality Certification Status

Social Contribution

64	Membership·Awards & Recognition
IV.

65	Materiality

69	TCFD Report67	GRI Standards Index

75	Governance Index

68	SASB Index

76	Independent AssuranceStatement

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

54

Sustainability Management Performance Data
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

2021

2019

2020

2021

1. Net sales

49,336.7

50,754.8

65,322.4

17,268.7

20,316.1

24,030.1

Carbon Neutral

2. Cost of sales

36,515.7

37,196.9

48,823.6

Circular Economy

Trade receivables

5,560.2

6,254.9

7,139.2

3. Gross profit

12,820.9

13,557.9

16,498.9

Inventories

5,125.9

6,510.4

8,527.1

4. Selling and marketing expenses

9,941.9

10,144.0

13,121.1

Others current assets

6,582.6

7,550.8

8,363.8

Social

5. Operating income

2,879.1

3,413.9

3,377.7

21,948.2

21,824.5

22,724.0

Supply Chain Management

6. Financial income

331.6

519.2

521.2

Investments in jointly controlled entities
and associates

3,972.9

3,909.1

4,501.5

7. Financial expense

490.2

780.5

603.6

Tangible assets

12,680.8

12,216.2

12,851.6(919.8)(21.1)

392.4

Intangible assets

2,353.3

2,744.2

2,135.99. Others non-operating income

1,050.5

2,052.0

1,638.3

Others non-current assets

2,941.3

2,955.0

3,235.0

10. Others non-operating expenses

1,462.9

2,260.7

2,228.4

Total assets

39,216.9

42,140.6

46,754.0

11. Profit(loss) before income tax

1,388.3

2,922.8

3,097.7

Ⅰ. Current liabilities

15,436.7

17,665.6

20,648.8

518.6

521.4

855.5

Ⅱ. Non-current liabilities

9,421.2

9,139.5

8,535.4

869.7

2,401.4

2,242.2

Total liabilities

24,857.9

26,805.1

29,184.1(712.4)(597.2)(1,005.2)

Ⅰ. Paid-in capital

3,490.2

3,490.2

3,490.2

157.3

1,804.2

1,237.0

Capital stock

790.4

790.4

790.4

Share premium

2,699.7

2,699.7

2,699.7

Ⅱ. Retained earnings

10,365.8

11,935.4

12,618.0

GRI Standards Index

Ⅲ. Accumulated others comprehensive loss

(1,145.0)(1,746.6)(967.4)

SASB Index

Ⅳ. Others components of equity(183.4)(183.4)(77.5)

Ⅴ. Non-controlling interest

1,831.5

1,839.9

2,506.7

Total equity

14,359.0

15,335.5

17,569.9

Total liabilities and equity

39,216.9

42,140.6

46,754.0

Environmental

Customers
Employees
Social Contribution

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management

8. Equity method profit(loss)

12. Income tax expense

Appendix

13. Net income(loss) from continuing
operations
14. Net income(loss) fromdiscontinued operations

Sustainability Management Performance Data

15. Profit(loss) for the year

Information Protection

V.

Classification

Summary of Consolidated Statements of Financial position
2020

Safety and EnvironmentIV.

Financial Performance(Consolidated)
2019	Product StewardshipIII.

Economic data

SHEE·Quality Certification Status
Membership·Awards & Recognition

Unit

USD
million* 2019 and 2020 data were re-reported due to the withdrawal of the MC company* Exchange Rate: USD 1 = KRW 1,143.89

Materiality

TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOKClassification

Unit

Ⅰ. Current Assets

Ⅱ. Non-current assets

USD
million55

Sustainability Management Performance Data
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

Economic data
Economic Value Generated Distributed and Retained(Separated)
Classification

Unit

Amount of Direct Purchase from Local Suppliers

Percentage of Direct Purchases by Classification

Classification

2021

Classification

Korea

10.2

Display Components

32.1

163.2

Asia

7.7

Mechanical Parts

31.3

24,447.1

China

4.7

Circuits

2019

2020

2021

Sales

21,391

21,624.3

24,283.8

Non-operating income and financial profits(261.5)500

21,129.6

22,124.2

Economic value generated(A)20,550.8

20,492.7

23,893.6

Americas3,350.8

3,417.4

3,885.9

Capital costs

261.0

314.0

289.6

Taxes & Dues

31.5

31.2

35.7

Employees

Donations

12.8

8.2

7.9

Social Contribution

Economic value distributed(B)24,206.7

24,263.6

28,112.6

Economic value retained(A-B)(3,077.2)(2,139.5)(3,665.6)

SocialSupply Chain Management
Safety and Environment

Operating expenses
Wages & Fringe benefit expenses

Unit

USD
billion

Unit

2021

17.6
%

5.0

Semi-Conductors

8.8

Europe, CIS

2.8

Raw Materials

7.8

MEA

0.1

Others2.4

USD million

Customers

IV.

GovernanceClassification

Corporate Governance
Jeong-Do Management
Compliance Management
Information Protection

Financial Assistance Received from Government(Korea)
Classification

Appendix

Unit

2019

2020

2021

13.3

83.1

71.6

651.3

599.3

565.1

USD million

Sustainability Management Performance Data

Investment grants, R&D grants, and others relevant
types of grant1

SHEE·Quality Certification Status

1 Amount of investment in major facilities states in LG Electronics' operating report

Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index

Defined Benefit Plan Obligations and Others Retirement Plants(Korea)
Classification

Unit

2019

2020

2021

2,266.2

2,524.1

2,775.4

96.0

99.8

99.9

2,167.1

2,518.3

2,774.0

100

100

100

TCFD Report

Expected amountUSD million

Governance Index

Expected ratio%

Independent Assurance Statement

The extent to which the scheme’s liabilities are estimatedto be covered by the assets that have been set aside to USD million
meet them
Percentage of salary contributed by employee or employer

Unit

Korea

Tax relief and tax credits
V.

Amount of Local Purchases by Key Subsidiaries by Product%

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

Total Purchase of 2021 Local Purchase of 2021
10.7

7.7

Nanjing New Technology
Co. Ltd, China

Monitor

1.6

0.8

Taizhou, China

Refrigerator

1.0

0.9

Nanjing, China

Washing Machine

0.7

0.6

Hai Phong, Vietnam

Washing Machine

1.6

0.5

Cibitung, Indonesia

TV

1.6

0.7

Reynosa, Mexico

TV

2.5

0.0

Mexicali, Mexico

TV

1.0

0.1

Mlawa, Poland

TV

3.1

1.1

Others

6.8

3.6

Total

30.5

16.0

USD
billion56

Sustainability Management Performance Data
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

Environmental data
Energy Consumption within the Organization
Classification

GHG Emissions(Scope 1, 2)
Unit

LNG(Korea)
II.

Environmental

LNG(Overseas)

2021

827

879

632

741

714

0

0

0

Non-renewable sources Coal(Overseas)

0

0

0

Others(Korea)

72

74

70

Others(Overseas)

534

658

500

2,205

2,352

1,916

5

6

19

Coal(Korea)

Circular Economy

III.

2020

772

Carbon Neutral

	Product Stewardship2019

SocialSupply Chain Management
Safety and Environment

Subtotal

CustomersIV.

Indirect GHG emissions(Scope 2)

0

0

0

Biomass000Corporate Governance

Others

62

79

233

Jeong-Do Management

Subtotal

67

85

252

Electricity(Korea)

2,946

2,9041

2,508

Electricity(Overseas)

2,664

2,7261

2,942

395

394

397

Air Emissions

6

3

3

Classification

Information Protection

Appendix

Energy purchased
Steam(Korea)

Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report

Steam(Overseas)* Applicable business site
- Korea: Business sites in Korea under the operational control of LG Electronics- Overseas: Overseas production subsidiaries of LG Electronics(30 subsidiaries)* Energy subject to verification: Energy used at combustion facilities and externally supplied power and heat at business sites*	Calculation of energy consumption: Based on net calorific value, steam includes steam consumption through waste heat recovery in Korea*	Verification status: Third-party assurance was completed on all Korean and overseas production sites(verification of fugitive emissions fromrefrigeration is excluded)
1 Change in 2020 Energy Purchase Data: Energy usage in 2021 with third-party verified electricity usage applied

Governance Index

Korea

466

294

173

Overseas

137

146

160

385

382

325

Korea

1,000 tCO2eq

Overseas
1,000 tCO2eq / USD 100 million

481

472

494

1,469

1,294

1,152

2.43

2.34

1.76

GHG Emissions(Scope 3)
Classification

Unit

2019

Business trip
Others indirect GHG
Use of sold products
emissions(Scope 3)
In-house suppliers(Korea)

58,337

20,692

11,581tCO2eq33,290,000

58,069,372

63,154,027

9,137

5,067

4,827

2020

2021

* Verification status: Third-party assurance was completed on emissions from business trips by employees* Reasons for removing emissions from rental buildings: Excluded from CDP verification items

NOx(Nitrogen Oxide)

SOx(Sulfur Oxides)

VOCs(Volatile Organic
Compounds)

Independent Assurance Statement

2021

GHG emissions intensity(Unit: USD)Wind power

Governance2020* Applicable business sites- Korea: Business sites in Korea under the operational control of LG Electronics- Overseas: Overseas production subsidiaries of LG Electronics(30 subsidiaries)* Basis of Assessment- Korea: GHG Trade Scheme for quantification and reporting of GHG emissions, Guideline for GHG Trade Scheme management- Overseas: ISO 14064-3:2006(GHG - Part 3: Specification with guidance for the validation and verification of GHG assertions)* Assessment- Korea: LGE’s GHG Inventory Report, LGE’s Process of managing and collecting GHG Data, calculating and reporting emissions- Overseas: LGE’s GHG Emission Report, LGE’s Process of managing and collecting GHG Data, calculating and reporting emissions

Social Contribution

Renewable Energy

2019

Total(Scope 1 + Scope 2)

Solar power
TJ

Unit

Direct GHG emissions(Scope 1)

Employees

Compliance Management

V.

Classification

Dust

2019

2020

2021

Korea

Unit

29.7

37.2

15.9

Overseas

58.5

21.8

45.7

Total

88.2

59.0

61.6
4.8

Korea

0.2

0

Overseas

12.8

3.4

6.5

Total

13.0

3.4

11.3

Korea

Ton

8.9

265.5

23.9

Overseas

106.5

187.0

231.5

Total

115.4

452.5

255.4

Korea

7.6

11.0

12.4

Overseas

61.9

35.0

29.1

Total

69.5

46.0

41.5

* Cheongju business site was sold to LG Chem in 2021, therefore it is excluded from the 2021 data scope

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

57

Sustainability Management Performance Data
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

II.

Environmental data
Waste by Type and Disposal Method

Business Status

Classification

Environmental

Total weight ofhazardous waste(Korea)

Carbon Neutral

Customers

2021

Classification

Recycling

1,102

2,870

499

Water reused

Incineration

633

670

436

Landfill

853

-

5

41,40652,90644,647

Total weight according
to treatment methods(non-hazardous)

Incineration

Landfill

Social Contribution

Total
IV.

GovernanceV.

103,410

142,427

166,315

195,333

210,962

7,197

6,776

4,394

1,436

7,196

7,211

Water Pollutants Emissions

Total

8,633

13,972

11,605Classification

Korea

202

174

699

11,833

8,372

5,655

Overseas

Ton

Overseas

12,035

8,546

6,354

Korea

48,80559,85649,739Overseas116,679

157,995

179,181

Total

165,484

217,851

228,920

Jeong-Do Management
Compliance Management

Significant Spills

Information Protection

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

Classification
Number of Spills
Volume of Spills

1,000 Tons

External Treatment Facility & Others

144,816* All the wastes generated from the business sites of LG Electronics are treated by a local certified waste treatment service provider* Cheongju business site was sold to LG Chem in 2021, therefore it is excluded from the 2021 data scope* GumiA2 business site has not produced starting 2021 and is being used as a warehouse, therefore it is excluded from the 2021 data scope

Corporate GovernanceInternal Treatment Facility

Total

Total

Employees

Unit

Overseas
Korea

SocialSafety and Environment

2020

Recycling	Product Stewardship

Supply Chain Management

2019

Korea

Circular Economy

III.

Waste Water Treatment
Unit

2019

Cases

0

Ton

0

2020
0
0

2021

Water drainage(Limited to treatment
facilities at the company)

Unit

Unit

2019

2020

N/A

N/A

N/A

1,091

963

Wastewater from other organization
Municipal water supplies or others public
or private water
1,000 Tons
- Municipal water

207

198

-

11,031

11,553

9,505

4,635

6,554

5,286

- Industrial water

6,396

4,999

4,219

667

4,978

4,863

4,151

9

11

-

Korea

5,052,360

4,860,870

4,151,137

Overseas1,452,320

1,247,527

1,134,492

Total

5,285,629

Wastewater quality
T-N

T-P

2021

1,162

541

2021

COD

0

Ground water

175

2020

0

Surface water

2021

2019

Water Withdrawal by Source
Classification

2020* Applicable business site: Korea business sites* Cheongju business site was sold to LG Chem in 2021, therefore it is excluded from the 2021 data scope* Waste water treatment amount does not include water reused

SS
Unit

2019

6,504,680

6,108,397

Korea

44.8

32.0

17.4

Overseas

179.7

265.0

167.3

Total

224.5

297.0

184.7

Korea

26.4

21.2

17.2

32.3

46.2

66.9

Total

58.7

67.4

84.1

Korea

116.2

81.8

66.3

9.1

11.9

29.8

Total

125.3

93.7

96.1

Korea

2.1

0.6

0.4

Overseas

3.1

3.9

1.7

Total

5.2

4.5

2.1

Overseas

Ton

Overseas* Cheongju business site was sold to LG Chem in 2021, therefore it is excluded from the 2021 data scope* Correction of overseas data in 2020: Correction of data on business sites in Tennessee* Reflected missing CTO data in 2019, 2020

Non-compliance with Environmental Laws and Regulations
Classification

Unit

2019

2020

2021

Others--44

Total monetary value of significant fines

USD

11,2770

201,066

Total

12,40012,842

10,512

Total number of non-monetary sanctions

Cases

0

0

0

* Cheongju business site was sold to LG Chem in 2021, therefore it is excluded from the 2021 data scope* Applicable business sites: Korea 9(Production and R&D business sites), Overseas 30(Production sites)* Scope2(Indirect water consumption) excluded

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

* Summary of violations of regulations subject to fines over KRW 10 million(about USD 8,742 in accordance with the annual report)

58

Sustainability Management Performance Data
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Social Data
New Suppliers that were Screened Using Social Criteria
Unit

2019

2020

2021

Classification

Unit

2019

2020

2021(LGE)

20213

Percentage of new suppliers that were screened using social criteria

%

100

100

100

LTIFR1

%

0.75

0.67

0.61

0.64

%

0

0

0

0

Fatality

0

0

0

2

Environmental
Carbon Neutral
Circular Economy

	Product Stewardship

2

OIFR

Local Personnel at Major Business Sites
Classification

SocialSupply Chain Management

Ratio

Employees%* Senior employees: Personnel who have been assigned duties

Customers

Negative Social Impacts in the Supply Chain and Actions Taken

Social Contribution

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Senior management

Safety and Environment

Employees

IV.

Fatality(No. of case)
Unit

Number of local employees
III.

Safety DataClassification

Appendix

Unit

Classification
Number of suppliers assessed for social impacts(Suppliers that have performed self-assessment by year)
Number of suppliers identified as having significant actual andpotential negative social impacts
Percentage of suppliers identified as having significant actualand potential negative social impacts with which improvements
were agreed upon as a result of assessment
Number of suppliers identified as having significant actual andpotential negative social impacts with which relationships were
terminated as a result of assessment

2019

2020

2021

6,908

7,744

15,326

134

114

160

1.9

1.5

1.0

2019

2020

2021

1 LTIFR: Lost-Time Injuries Frequency Rate(Number of lost-time injuries x 1,000,000)/(Total hours worked in accounting period)	LTIFR(Lost-Time Injuries Frequency Rate) is an accident index that differs from occupational accident rate and Frequency Rate of Injury(FR) andincludes not only industrial accidents, but also all labor losses of more than one day.
2 OIFR: Occupational Injuries Frequency Rate(Number of occupational illness cases x1,000,000)/(Total hours worked in accounting period)	LG Electronics has employees who work in special conditions or who work with special materials undergo a special medical checkup on anannual basis. The results indicate that none of our employees contract-ed occupational diseases for the period between 2019-2021.
3 In-house partner company, excluding construction companies* Applicable employees: All employees home and abroad including those in overseas production subsidiaries of LG Electronics.
* For LTIFR and OIFR, calculation is based on average figures for Korean and overseas employees

1,665

1,416

1,967

The Number of Employees by Region

0

0

0

Suppliers%

Suppliers

Free Training for Suppliers(Korea)

Membership·Awards & Recognition

Classification

Materiality
GRI Standards Index

100

0

100

0

100

0

2019

2020

2021

The number of suppliers

Suppliers

349

562

456

The number of participating employees

Employees

1,610

1,201

2,610

Unit

2019

2020

2021

The number of funded suppliers

Suppliers

30

29

26

The amount of fund

USD million

23.9

30.0

24.8

SASB Index

Amount of Funding for Suppliers(Korea)

Governance Index

Classification

Independent Assurance Statement

Direct Funding
Win-win growth fundWin-win payment

106

92

78

36

Hours

141,987,149

138,173,948

128,471,904

55,981,427

2019

2020

2021

Korea

40,11039,74536,499

China

6,588

6,060

5,720

Asia

6,702

8,219

7,973

CIS

1,475

1,507

1,490

North America

3,370

3,350

3,559

EuropeUnit

TCFD Report

Case

Total Hours Worked

Classification

Sustainability Management Performance Data
SHEE·Quality Certification Status

Lost-time Injuries(No. of case)

The number of funded suppliers

Suppliers

174

122

120

The amount of fund

USD million

100.4

95.2

90.3

The number of funded suppliers

Suppliers

1,564

1,552

1,527

The amount of fund

USD million

6,589.4

6,249.2

7,020.9

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

Unit

4,286

4,488

4,470

India

Employees

4,230

4,431

4,344

Japan

259

268

221

Central and South America

5,727

6,550

8,738

Middle East & Africa

1,224

1,270

1,323

Total

73,97175,88874,337

Total Number of Employees by Employment Contract
Classification

The number of employees
by employment contract
and gender

Unit
Permanent

Temporary

Male
FemaleMale
FemaleEmployees

2019

2020

2021

58,682

59,106

57,102

14,42014,864

15,525

569

1,544

1,421

302

374

289

59

Sustainability Management Performance Data
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

Social Data
New Employee Hires and Employee TurnoverBusiness Status

Classification

Environmental

Number of newly hired
employees by age group

Diversity of Governance and Employees
Unit

2019

2020

2021

5,722

7,869

12,093

6,444

3,210

6,863

Over 50

786

371

425

Below 30

44.2

68.7

62.4

49.8

28.0

35.4

6.0

3.3

2.2

10,124

8,709

12,910

2,828

2,741

6,471

78.2

76.1

66.6

21.8

23.9

33.4

4,401

4,468

9,693

Workers with Disabilities(Korea)

6,234

3,884

9,860

Classification

Corporate GovernanceOver 50

981

1,134

1,341

Jeong-Do Management

Below 30

37.9

47.1

46.4

53.7

40.9

47.2

8.4

12.0

6.4

7,984

7,254

14,965

3,632

2,232

5,929

68.7

76.5

71.6

31.3

23.5

28.4

2019

2020

2021

225(7.5)

191(8.3)

244(10)750(3.1)

627(2.6)

764(3.6)20(1.0)15(0.6)19(0.6)

Below 30
II.

Carbon Neutral
Circular Economy
	Product Stewardship

III.

Ratio of newly hired employees by
age group

Safety and Environment
Customers
Employees

GovernanceCompliance Management

Male

Ratio of newly hired employees bygenderMale

Appendix

Turnover ratio by age group

FemaleEmployees%

Female30-50

Employees

30-50

%

Over 50
Number of turnover by gender

Sustainability Management Performance Data
SHEE·Quality Certification Status%

Below 30
Number of turnover by age group

Information Protection

V.

30-50

Total number of newly hired
employees by gender

Social Contribution

IV.

Employees

Over 50

SocialSupply Chain Management

30-50

Turnover ratio by gender

Membership·Awards & Recognition

Male
FemaleEmployees

Male%FemaleMateriality
GRI Standards Index
SASB Index
TCFD Report

Total Number and Percentage of Voluntary Resignation(Korea)
Classification

Governance Index

Below 30

Independent Assurance Statement

30-50

Unit

Employees(%)

Over 50Classification

Unit

2019

2020

2021

100

100

86

0

0

14

Male

59,24960,65258,523

Female14,722

15,23815,814

11,142

14,521

12,87755,85852,32253,355

6,971

9,047

8,105

2019

2020

2021

373

376

380

393

375

390

Severe

57

56

61

Total

450

431

451

2.2

2.2

2.3

Male
Gender ratio of the BOD%
FemaleNumber of employees
by gender

Below 30

Employees

Number of employees by age 30-50
Over 50

Unit

Number of disabled workers in Hanuri1
Mild
Employees
Number of disabled workers

Employment rate%

1	Hanuri: It is a business established by LGE to expand employment of workers with disabilities, where workers are in charge of managing cafes,
environmental restoration, dishwashing and dormitories, etc.
*	Employment rate: It is the combined employment rate of disabled workers in LGE and Hanuri. It is calculated as “converted number of workers
with disabilities / number of workers subject to application”-	Converted number of disabled workers in Hanuri: When the number of persons in a standard business site for disabled workers is calculated
as the parent company, severe(male/female) x 2 / mild(female) x 1 / mild(male) x 0.5-Converted number of disabled workers in LGE: Severe(male/female) x 2 / Mild(male/female) x 1* Applying to employee’s resignation based on his/her own judgement not pertaining to the company’s position(resignation, voluntary retirement,
etc. due to personal circumstances)

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

60

Sustainability Management Performance Data
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics

II.

Social Data
Parental Leave(Korea)

Average Hours of Employee Training

Business Status

Classification

Environmental

Total number of employees who took parental
leave

Carbon Neutral

Unit

2020

2021

Classification

Male

62.5

47.4

148.8

310

Female

63.7

48.1

192.0

618

531

Male

15.6

13.3

12.2

Social

180

206

196

16.3

12.7

11.7

Female

410

319

237

Male

42.9

32.7

84.6

Total

590

525

433

Female

33.0

24.9

65.8

Ratio of employees who came back to work after Male
parental leave
Female

92.8

92.0

70.0

83.5

82.5

70.1

Average Hours of Training by Age

121

146

172

Classification

310

316

273

Total number of employees who came back towork after parental leave

Supply Chain Management
Safety and Environment
Customers

Male

224

280

221

Female

383

338

Total

607

Employees

Classification
Korea1

Overseas

Total

Hours

2019

2020

2021

P3

64.7

55.7

172.3

P2

68.5

58.4

246.8

P1

148.0

84.1

229.8

Others

56.4

43.2

47.8

G4

17.7

14.6

10.4

G3

24.1

21.3

19.9

G2

23.8

21.9

21.6

27.3

22.3

24.3

15.2

15.4

0.6

P3

64.7

55.7

172.3

Korea

1 Included K-MOOC online training hours starting from 2021

%

Unit

Overseas
2020

2021

G1

26-30

133.1

113.1

249.8

Others

31-35

79.0

67.4

254.9

36-40

65.1

55.6

239.3

41-45

64.3

52.7

208.9

P2

68.5

58.4

246.8

46-50

52.6

45.2

164.8

P1

148.0

84.1

229.8

Compliance Management

51-55

42.5

36.5

80.9

Information Protection

56-60

32.8

28.6

48.8

G4

17.7

14.6

10.4

Others

147.3

135.5

214.6

G3

24.1

21.3

19.9

26-30

21.7

20.3

23.9

31-35

22.6

20.4

21.1

G2

23.8

21.9

21.6

G1

27.3

22.3

24.3

Others

33.6

25.9

12.4

Social Contribution

GovernanceCorporate Governance
Jeong-Do Management

Male
Total number of employees that returned to work
after parental ended that were still employed 12 Female
months after their return to
Total
Ratio of employees that returned to work afterparental ended that were still employed 12months after their return toMaleFemaleEmployees

%

431

462

445

62.4

65.2

83.5

63.1

82.5

Korea

85.6

Ratios of Standard Entry Level Wage by Gender Compared to Local Minimum Wage(Korea)
V.

FemaleUnit

2019

Employees

IV.

2021

Male

	Product Stewardship

III.

2020

Average Hours of Training by Position

2019

Circular Economy

2019

Appendix

Classification

Sustainability Management Performance Data
SHEE·Quality Certification Status

New Male Employee

Membership·Awards & Recognition
Materiality

New Female Employee

GRI Standards Index

Unit

2019

2020

2021

Office Position

169

166

175

36-40

22.3

21.4

18.7

Technical Position

103

106

118

41-45

20.6

19.2

16.2

169

166

175

19.0

16.5

17.0

103

106

118

51-55

17.0

14.5

15.7

56-60

15.2

13.2

14.7

Others

20.1

18.2

34.8

26-30

76.7

59.7

109.7

31-35

56.9

48.1

148.8

36-40

46.9

40.8

141.9

41-45

50.7

41.6

133.6

46-50

42.3

36.4

116.7

51-55

32.9

28.7

57.9

56-60

25.7

21.8

35.7

Others

48.4

34.0

51.1

Office Position%

Technical Position

Overseas

SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

Percentage of Employees receiving Regular Performance and Career Development Reviews
Classification

2019

2020

2021

Male

100

100

100

Female

100

100

100

Office position

Unit

Unit

%

Technical position

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

100
100

100
100

100
100

Total

46-50

Hours

Hours

Total

* P1: Junior, P2: Senior, P3: Manager*	Overseas business sites have different classification criteria bycountry61

Sustainability Management Performance Data
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental

Social Data
Average Hours of Training by Program(Offline)

Average Hours of Training by Program(Online)

Communication and Training about Anti-corruption Policies and ProceduresClassification

Classification

Classification

Korea

Carbon Neutral
Circular Economy
	Product Stewardship

Overseas
III.

SocialSupply Chain Management
Safety and Environment
Customers

Total

Unit

2019

2020

2021

Leadership

16.7

33.2

12.3

Job Duty

17.7

18.1

18.1

Others29.9

22.4

Leadership

10.5

Unit

2019

2020

2021

Leadership

3.9

3.9

6.6

Job Duty

4.3

3.6

1.5

14.6

Others

2.1

2.3

10.6

2.5

5.8

Leadership

3.7

8.5

5.0

22.6

5.0

16.9

1.1

1.1

2.2

Others

8.3

8.4

6.5

Others

1.5

1.4

2.0

Leadership

14.9

23.3

10.2

Leadership

3.9

4.5

5.8

Confirmed Incidents of Corruption and Actions Taken

Job Duty

17.7

18.1

18.1

Job Duty

4.3

3.6

1.5

Classification

Others

14.1

12.8

8.7

Others

2.0

2.1

8.8

Job Duty

Hours

Korea

Overseas

Job Duty

Total

Hours

Employees
Social Contribution

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality

Impact Assessment of Local Community

2021

0

0

0

0

0

0

0

0

2019

2020

2021

475(100)

472(100)

365(100)

2019

2020

2021

38

38

33

38

38

33

%

100

100

100

Classification

Unit

2019

2020

2021

The number of hours of training on the Human Rights
Policy and procedures related to the business

Hours

2,059

487

831

909

433

831

151

0

0

176

433

831

0

0

0

Classification

2

1

1

Security personnel trained in human rights policies orprocedures

2

1

1

0

0

0

0

0

0

%

* Held Accessibility Stakeholder Advisory meeting in 2021 related to accessibility

SASB Index

Classification

Unit

2019

2020

2021

Incidents of violations involving rights of indigenous people

Case

0

0

0

Governance Index

Total Number and Percentage of Operations Assessed for Risks Related to Corruption
Classification

Unit

2019

2020

2021

Number of business sites

Sites

104

106

101

%

100

100

99

Case

Confirmed incidents when contracts with business partners were
terminated or not renewed due to violations related to corruption

0

Ratio of formal local community grievance processes

7(100)

2020

0

The number of representative bodies to deal with impacts

7(100)00EA7(100)

2019%

The number of local community consultation committees andprocesses that include vulnerable groups

2021

17,004(90) 18,043(96) 17,651(93)

Unit

2021

The number of countries which held stakeholder consultation on CSR

2020

1,665(100) 1,416(100) 1,967(100)Number of Corruption Cases

2020

Ratio of business sites subject to social impact assessments(including
gender impact assessments) based on participatory processes
Number of community development programs based on community
needs

Ratio of business sites

Suppliers(%)
Employees(%)

Number and ratio of members who received anotice or training

2019

Incidents of Violations Involving Rights of Indigenous People

Independent Assurance Statement

Overseas

201927,520(92) 27,531(94) 36,868(94)Number and ratio of suppliers who received anotice or training

Unit

GRI Standards Index

TCFD Report

Korea

Employees(%)

Confirmed incidents in which employees were dismissed or disciplined
for corruption

Classification
IV.

Unit

Number and ratio of the membersof the Board of Directors who received
a notice or training
Number and ratio of members who received anotice or training

Ratio of Security Personnel Trained in Human Rights Policies or Procedures(Korea)
Unit
Employees(%)

Business Sites that have been Subject to Human Rights Impact Assessments
Classification

Unit

The number of business sites where the company operates
The number of businesses subject to the assessment of
human rights impact
The ratio of business sites subject to the assessment of
human rights impact

Businesssites* Evaluation of global production sites

Training on Human Rights Policies or Procedures(Korea)

The number of employees who received
training on the Human Rights Policy andprocedures related to the business

By position
By job type
OnlineEmployees*	Education by job type includes purchasing university, marketing university, expatriate leadership, and corporate head education, and has not been
conducted in 2020 and 2021 due to COVID-19

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

62

Sustainability Management Performance DataI.

Emerging risk

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Incidents of Discrimination and Corrective Actions Taken(Korea)
Classification

Unit

2019

2020

2021

The number of cases of discriminatory incidents

Case

0

0

0

2019

2020

2021

0

0

0

0

0

0

0

0

0

2) LGE’s risk mitigation plans

Carbon Neutral
Circular Economy

Substantiated Complaints Concerning Breaches of Customer Privacy and Losses of Customer
Data(Korea)
Classification

III.

SocialSupply Chain Management

Complaints received from outside parties and substantiatedby the organization

Safety and Environment

Complaints from regulatory bodies

Customers

Total number of identified leaks, thefts, or losses ofcustomer data

Employees

Unit

Case

Social Contribution

Assessment of the Health ad Safety Impacts of Product and Service Categories
IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management

Classification

Unit

2019

2020

2021

Percentage of major product and service categories forwhich health and safety impacts are assessed

%

100

100

100

Information Protection

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index

Classification
Incidents of non-compliance with regulations resulting
in a fine or penalty
Incidents of non-compliance with regulations resulting
in a warning

Unit

Incident

Incidents of non-compliance with voluntary codes

SASB Index

Up to 80% of a product's impact on the environment is determined during the product design phase. Therefore,
LG Electronics considers product recyclability from the product design/planning stage and then moves to
product development as a way to mitigate risks related to plastic regulations. In addition, we participate
in developing new materials that can replace common plastic materials at the company's internal material
technology center as well as with external chemical companies. We also established a packaging and productwaste circulation system as a plan to build a circular economy platform where plastic waste generated from ourcompany’s products can be reapplied to our products.

2. Periodic outbreak of the pandemic

Incidents of Non-compliance Concerning the Health and Safety Impacts of Products and Services
V.

1) Definition of risks & business impact
In June 2019, the EU Commission issued guidelines to ban the distribution and sales of certain disposable
plastic products and to increase their recycling rate. And at the 5th UNEA, it has been agreed to “End Plastic
Pollution: Towards an internationally legally binding instrument.” As a result, we are predicting to see stricter
plastic-related regulations, such as regulations that manage the percentage of plastics recycled in products
such as packaging materials, regulations placing responsibility on manufacturers for a portion of recycling anddisposal costs, and higher plastic taxes on non-recyclable plastics. If such regulations are strengthened in the
future, we are expected to face risks such as profit and loss issues as a result of high recycled plastic raw
material costs, and production disruptions due to supply shortages, given that many exterior and interior partsof LG Electronics’ products are made of plastic.

Environmental

	Product Stewardship

1. Increased risks due to Europe’s regulations on plastic reduction

2019

2020

2021

0

0

0

0

0

0

0

0

0

1) Definition of risks & business impact
Various abnormal climates can frequently occur due to the impact of climate change, pushing human and wildlife
habitats closer to each others in abnormal ways. This can cause simultaneous epidemics and such unexpected
outbreaks can lead to periodic pandemic outbreaks. The regular outbreaks of pandemics can be considered ahigh risk factor for LG Electronics' supply chain, which has several production lines in various countries aroundthe world, and can also have significant adverse effects on its sales by diminishing consumer behavior.

2) LGE’s risk mitigation plans

TCFD Report

To prepare for the pandemic extending to a long-term phenomena, LG Electronics is building and expanding
flexible work systems for its office workers, such as work-from-home systems and flexible work systems. As
for the production line, we are establishing BCP(business continuity plan) by expanding facilities equipped with
automatic equipment such as the Changwon LG Smart Park. In order to minimize climate change, which is thefundamental cause, we declared our goal for carbon neutral by 2030 and we are continuing to exert proactive
efforts to reduce carbon emissions through various approaches, such as improving energy efficiency in the
production process and participating in the UN CDM project.

Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

63

SHEE·Quality Certification Status Membership·Awards & Recognition
I.

Corporate Overview
Management Philosophy
Message from the CEO(As of June 2022)

About LG Electronics
Business Status

Region
North America

II.

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD ReportCountryUSA
MexicoMexicoMexicoBrazilPolandPolandRussiaSubsidiary
LGETN(Tennessee)

LGEMM(Monterrey)
South, Central
LGERS(Reynosa)
America
LGEMX(Mexicali)
LGESP_M(Manaus)
LGEMA(Mlawa)
Europe/CIS
LGEWR(Wroclaw)
LGERA(Ruza)
LGEEG
Egypt
(10th of Ramadan)
Middle East Asia
Saudi Arabia LGESR(Riyadh)
TurkeyLGEAT(Istanbul)
India
LGEIL_N(Noida)
India
India
LGEIL_P(Pune)
ThailandLGETH(Rayong)
Vietnam
LGEVH(Haiphong)Southeast Asia
Indonesia
LGEIN_C(Cibitung)Indonesia
LGEIN_T(Tangerang)
China
LGEPN(Nanjing)
China
LGENT(Nanjing)
China
LGENV(Nanjing)
China
LGETR(Taizhou)
China
China
LGETA(Tianjin)
China
LGEQA(Qingdao)
China
LGEQH(Qinhuangdao)
China
LGEHZ(Huizhou)
Korea
Changwon1
Korea
Changwon2
Korea
Gumi
Korea
Korea
Pyeongtaek
Pyeongtaek(Chiller)
Korea

Environmental
Management

Health and
SafetyEnergy-ISO 45001--

ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001

ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001

ISO 50001
ISO 50001
ISO 50001
ISO 50001

ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
CIG-023

ISO 14001

ISO 45001-

ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001
ISO 14001

ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001
ISO 45001

ISO 50001
ISO 50001
ISO 50001
ISO 50001
ISO 50001
ISO 50001
ISO 50001
ISO 50001
ISO 50001
ISO 50001
ISO 50001
ISO 50001
ISO 50001
ISO 50001

QualityMemberships
Korea Electronics Association

Korea Chemicals Management Association

GS1 Korea

Korea International Trade Association

Korea Products Safety Association

Korea Authorized Economic Operator Association

Fair Competition Federation

The National Academy of Engineeringof Korea

Korea Electronics Association(International Trade Cooperation)

Korea Association of Information &Telecommunication

Korea Employers Federation

Korea Listed Companies Association

Trade related IPR Protection
Association

Korea Association of Industrial
Technology Security
Professionals in Business Industrial
Health Association

ISO 9001

UN Global Compact

Maekyung Safety & Environment

ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
IATF 16949
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001
ISO 9001

Awards & Recognition*	LGEUS(Huntsville), LGESA(Johannesburg), LGEHN (Hangzhou), Incheon and Cheongju subsidiaries are excluded due to business withdrawal, sale,etc.

Korea Radio Promotion Association

Korea Investor Relations Service
Target Gender Equity
Responsible Minerals Initiative

DateAwarded Awards & Recognitions

Awarded by2022.05.

"Excellence in Sustainability" Award at the Energy Star Award 2022

U.S Environmental Protection Agency

2022.04.

iF Design award(20 models)International Forum Design GmbH of Germany

2022.03.

Gold Tier at the SMM Award 2021

U.S Environmental Protection Agency

2022.03.

Red Dot Design Award 2022(25 models)

Red Dot of Germany

2022.01.

CES 2022 Innovation Award

Consumer Technology Association

2021.10.

2021 Korea IR Grand Prize Winner in the KOSPI category

Korea Investors Service

2021.08.

Best Corporate in Green Goods of the Year Award

Korea Green Product Network

2021.07.

Energy Winner of the Year Award

Consumers Korea

2021.04.

iF Design award(28 models)International Forum Design GmbH of Germany

2021.04.

Red Dot Design Award 2021(31 models)

Red Dot of Germany

2021.01.

CES 2021 Innovation Award

Consumer Technology Association

2021.01.

Technology and Engineering Emmy Award(LG OLED TV)

U.S National Academy of Television Arts
and Science(NATAS)

Results of Response to External Global Assessments
External Assessments

Major Achievements

Assessment Agency

DJSI1

1st place for the 8th consecutive year(Industry Leader)2
Listed on DJSI World for 10 consecutive years
Listed on DJSI Asia Pacific for 12 consecutive years
Listed on DJSI Korea for 13 consecutive years

S&P Global Sustainable1

MSCI3 ESG Ratings

Grade AMSCICDP Climate

Grade A- in Climate Change

CDP

EcoVadis ESG Rating

Platinum Grade

EcoVadis

KCGS

Comprehensive Grade A

KCGS

Global 100

Selected(99th)

Corporate Knights

FTSE Russell’s ESG Ratings

Listed in FTSE4Good

FTSE Russell

Governance Index
Independent Assurance Statement

Responsible Business AllianceKorea Chamber of Commerce and Industry Korea Display Industry Association

1 DJSI: Dow Jones Sustainability Index 2 Home appliances and leisure goods industry 3 MSCI: Morgan Stanley Capital International

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

64

Materiality
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Materiality Assessment Process
In order to identify material issues in sustainability, LGE adopted global sustainability initiatives and assessment systems including GRI, SDGs, SASB, RBA, and TCFD. In addition, the identified issues were prioritized and analyzed in terms of
their impact from a comprehensive perspective in line with the company's vision, strategy, industry trends, media exposure and internal and external surveys.

Environmental

Step 01 Fundamental Analysis of the Issue Pool

Step 02 Deriving an Issue Pool

Step 03 Assessment of Materiality

Step 04 Materiality Assessment and Report

Based on the analysis of global standards and initiatives for
global sustainability management, evaluation system analysis,best practices in the industry, and media research, we haveidentified trends in sustainability

A pool of 39 issues have been created in line with sustainability
management based on industrial standards, assessment, trends,
internal practices and perspectives of external stake-holders

To analyze areas that LGE needs to focus on within the poolof 39 issues, the company assessed the priority of each issue
based on the results of the stakeholder surveys

Through prioritization of issues, 15 material issues have been
identified and the selected issues and its content are sharedthrough the sustainability report

Carbon Neutral
Circular Economy
	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment
Customers

Sustainability
information
disclosure
standards

Sustainability
management
assessment
systems

Sustainability
management
progress

External
stakeholders'areas ofinterest

GRI, SASB,
TCFD

DJSI, FTSE,
KCGS, MSCI

LGEs internal
directions

Media, RBA

Employees
Social Contribution

IV.

Governance

Overview of Stakeholder Survey
PeriodMethod2022.04.04
1,038 Internal stakeholders,
Respondents~04.101,502 external stakeholders
OnlinesurveysContent of ESG management-related
awareness, material issues forsurveyLGEMateriality Map

Classification and Reporting of Material Issues

5.0

No. Material Issue

Jeong-Do Management
Compliance Management
Information Protection

V.

Social Interest

Corporate Governance1

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
2

Membership·Awards & Recognition

3

Materiality
GRI Standards Index

10

SASB Index

8

TCFD Report

6
11

9

Governance Index
14

Independent Assurance Statement

12
13

15

7

2.1

Business Impact
0

2.3

5.0

Page

1

Quality management of products/services[416] Customer Health and Safety

2Strategic pursuit of social contribution[413] Local Community

Social Contribution

39-40, 62

3

Reduction of GHG/energy emissions[302] Energy, [305] Emission

Carbon Neutral

9-10, 57

4

Suppliers' ESG risk analysis and improvement[414] Supplier Social Assessment

Supply Chain Mgmt.

18-25, 59

5

Human resource development and management[401] Employment,[404] Training and Education

Employees

33-38, 60-61

6

Operation of win-win growth programs

Non-GRI

Supply Chain Mgmt.

18-25

7

Pursuit of work-life balance

Non-GRI

Employees

33-38

8

Pursuit of diversity and inclusion[405] Diversity and Equal Opportunity Employees

33-38, 60

Non-GRI

Customers

30-32

Development of products/services
that are easy for anyone to use
Talent attraction and retention(including
10
performance evaluation and compensation)

4

Report Content

Product Stewardship 13-16, 63

9
5

GRI Standard Topic[401] Employment

Employees

33-38, 60

11 Enhancement of customer communication

Non-GRI

Customers

30-32

12 Expansion of eco-friendly products[416] Customer Health and Safety

Product Stewardship 13-16, 63

Development of climate change response strategies
13[201] Economic Performanceand business risk assessment

TCFD Report

69-74

14 Enhancement of safety and health in the workplace [403] Occupation Health and Safety

Safety andEnvironment

26-29

15 Expansion of recycling of waste and waste products [306] Effluents and Waste

Circular Economy

11-12, 58* 2.3 and 2.1 represents the average of all scores

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

65

Materiality
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental

Stakeholder Engagement
LG Electronics recognizes the importance of communication between stakeholders in promoting sustainability management. Accordingly, we set executives and employees(Korea and overseas), customers, suppliers, and investors, etc. as
major stakeholders of LGE and collected opinions on the company’s sustainability. And we conducted stakeholder surveys to proactively reflect their opinions in our business activities. In the future, we will transparently disclose informationand strengthen stakeholder communication so that various stakeholders can directly or indirectly participate in management activities and present their opinions and take part in creating a better future for LG Electronics.
* Survey result: Stakeholder surveys were conducted with internal stakeholders(employees and management in Korea and overseas) and external stakeholders(customers, suppliers, local communities, ESG experts, etc.) as targets and the results were organized into 6 sectors, with the sector withthe highest response rate as the standard.

Carbon Neutral
Circular Economy
	Product Stewardship

III.

IV.

No. Sector category

Issues by sector

1

Economy/Corporate GovernanceTransparent disclosure of information

Supply Chain Management

2

Employees

Talent attraction and retention

Safety and Environment

3

Environment

Customers

4

Customers

Employees

5Social Contribution

6

GovernanceInternal Stakeholder Survey - Employees(Overseas)

SocialCorporate Governance

V.

Internal Stakeholder Survey - Employees(Korea)

External Stakeholder Survey - Customers
Response rate(%)

No. Sector category

Issues by sector

48.1

1

Economy/Corporate GovernanceTransparent disclosure of information

44.0

66.4

2

Employees

Talent attraction and retention

48.7

GHG/Energy Emissions Reduction

46.4

3

Environment

GHG/Energy Emissions Reduction

51.0

Enhancement of customer communication

54.1

4

Customers

Enhancement of customer communication

67.8

Local Communities

Strategic Social Contribution

79.5

5

Local Communities

Strategic Social Contribution

76.2

Suppliers

Win-win growth program operation

67.9

6

Suppliers

Win-win growth program operation

75.4

External Stakeholder Survey - Suppliers, Media/Local Community, Academic/
ESG experts, Shareholders/Investors etc.

Jeong-Do Management

No. Sector category

Issues by sector

Compliance Management

1

Economy/Corporate GovernanceTechnology innovation and R&D

58.3

No. Sector category

Issues by sector

Information Protection

2

Employees

Pursuit to work-life balance

80.6

1

Economy/Corporate GovernanceTransparent disclosure of information

44.9

3

Environment

GHG/Energy Emissions Reduction

47.2

2

Employees

Talent attraction and retention

59.0

Environment

GHG/Energy Emissions Reduction

56.4

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition

Response rate(%)

Response rate(%)

Response rate(%)

4

Customers

Enhancement of customer communication

47.2

3

5

Local Communities

Strategic Social Contribution

79.5

4

Customers

Product/service quality management

55.1

6

Suppliers

Win-win growth program operation

66.7

5

Local Communities

Strategic Social Contribution

74.4

6

Suppliers

Win-win growth program operation

57.7

Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

66

GRI Standards Index
I.

Corporate Overview
Management Philosophy

Universal Standards

Topic Specific Standards

Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy

Name of the Organization

6

102-02

Activities, brands, products and services

7102-03

Location of headquarters

6

102-04

Location of operations

6
6

102-06

Markets served

6102-07

Scale of the organization

6

Social102-08

Information on employees and others workers

6, 59-60

Supply Chain Management

102-09Supply chain

6, 18-25

Safety and Environment

102-10Significant changes to the organization and its supply chain-

102-11

Precautionary Principle or approach

23-25, 45-50

102-12External initiatives

39-40, 64

102-13

Membership of associations

64

102-14

Statement from senior decision-maker

Governance102-16

Corporate Governance102-18Jeong-Do Management

Employees
Social Contribution

V.

102-01

Ownership and legal form

Customers

IV.

ReportingPage

102-05

	Product Stewardship

III.

Standard Indicators
Disclosures Title

NoteStandard Indicators
Topic

Economic
Performance

Annual ReportMarket Presence
Procurement
Practices

Withdrawal of MC
Company(April 2021)
Anti-corruption

ReportingDisclosures Title

Page

201-1

Direct economic value generated and distributed

56

201-2

Financial implications and others risks and opportunities due toclimate change

69-74

201-3

Defined benefit plan obligations and others retirement plans

56

201-4

Financial assistance received from government

56

202-1

Ratios of standard entry level wage by gender compared to local
minimum wage

61

202-2

Proportion of senior management hired from the local community

59

204-1

Proportion of spending on local suppliers

56

205-1

Operations assessed for risks related to corruption

62

205-2

Communication and training about anti-corruption policies andprocedures

62

205-3

Confirmed incidents of corruption and actions taken

62

Note

5

Anti-Competitive
206-1
Behavior

Legal actions for anti-competitive behavior, anti-trust, and monopoly
Annual45-46, 49-50
practices
ReportValues, principles, standards, and norms of behavior

4, 45-46

Materials

301-3

Reclaimed products and their packaging materials

13-16

Governance structure

42-44

Energy302-1

Energy consumption within the organization

57

102-19Delegating authority

42-44

Interactions with water as a shared resource

58

Compliance Management102-40

List of stakeholder groups

64-66

Water andEffluents

303-1
303-3

Water recycled and reused

58

Information Protection

102-41

Collective bargaining agreements

64

305-1

Direct(Scope 1) GHG emissions

57

102-42

Identifying and selecting stakeholders

64-66

305-2

Energy indirect(Scope 2) GHG emissions

57

Appendix102-43

Approach to stakeholder engagement

64-66

305-3

Others indirect(Scope 3) GHG emissions

57

Sustainability Management Performance Data

102-44

Key topics and concerns raised

64-66

Entities included in the consolidated financial statements

55-56

GHG emissions intensity

57

SHEE·Quality Certification Status

102-45305-4

Membership·Awards & Recognition

102-46

Defining report content and topic Boundaries

2

305-7

Nitrogen oxides(NOx), sulfur oxides(SOx), and others significant air
emissions57

102-47

List of material topics

65-66

Waste Generated

58

Restatements of information-

No restatements

Effluents and
Waste

306-3

102-48306-4

Waste diverted from disposal

58

SASB Index

102-49Changes in reporting-

Withdrawal of MC
Company(April 2021)

Environmental
Compliance

307-1

Non-compliances with environmental laws and regulations

58

TCFD Report102-50

Reporting period

2

401-1

New employee hires and employee turnover

60

Governance Index

102-51

Date of most recent report2

Independent Assurance Statement102-52

Reporting cycle

2

401-2

Benefits provided to full-time employees that are not provided totemporary or part-time employees

34-38

401-3

Parental leave

61

Materiality
GRI Standards Index

102-53

Contact point for questions regarding the report

Emissions
Annual Report

LGE website*
Employment

2102-54Claims of reporting in accordance with the GRI Standards

2102-55

GRI content index

67-68

102-56External assurance

76-77

103

Management Approach

8, 17

403-1
Occupational
Healthand Safety

403-2
403-4

Workers representation in formal joint management–worker healthand safety committees
Types of injury and rates of injury, occupational diseases, lost days,
and absenteeism, and number of work-related fatalities
Health and safety topics covered in formal agreements with tradeunions

26-29
59
26-29

* https://www.lg.com/global/sustainability-report

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

67

GRI Standards Index
I.

SASB Index

Corporate Overview
Management Philosophy
Message from the CEO

Standard Indicators

About LG Electronics
Business Status

II.

Environmental
Carbon Neutral

Topic

Training and
Education

Circular Economy
	Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance

Information Protection

V.

Appendix

Membership·Awards & Recognition

SASB Index

61

404-2

Independent Assurance Statement

Programs for upgrading employee skills and transition
assistance programs
Percentage of employees receiving regular performance andcareer development reviews
Diversity of governance bodies and employees

60

406-1

Incidents of discrimination and corrective actions taken

63Child Labor

408-1

Operations and suppliers at significant risk for incidents ofchild labor

20-25

409-1

Operations and suppliers at significant risk for incidents offorced or compulsory labor

20-25

410-1

Security personnel trained in human rights policies orprocedures

62

411-1

Incidents of violations involving rights of indigenous peoples

62

412-1

Operations that have been subject to human rights reviews or
62
impact assessments

412-2

Employee training on human rights policies or procedures

Human Rights
Assessment

Local
Communities

Supplier Social
Assessment
Customer
Health and
Safety

413-1
413-2

Marketing andLabeling

Operations with local community engagement, impact
assessments, and development programs
Operations with significant actual and potential negative
impacts on local communities

Negative social impacts in the supply chain and actions taken 59

417-2
417-3

Information
Protection

418-1

Socioeconomic
Compliance419-1

Non-compliance with laws and regulations in the social andeconomic area

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

the Technology and Communications sector, which has high potential to have a significant financial impact on ourbusiness.
Annual Report

Sustainability Disclosure Topics & Accounting Metrics
Topic

Accounting MetricClassification

Unit

Code

Cross Reference

Page

Product
Security

Approach to identify and address data
security risks in products

Discussion &Analysisn/a

TC-HW230a.1

Privacy Protection and
Product Security

51-53

Employee
Diversity &Inclusion

Percentage of gender and ratio/ethnicity
Quantitativein(1) executive officers,(2) engineers, andindicator(3) others

TC-HW330a.1

Sustainability
Performance Data

59-60

TC-HW410a.1--

Improving Energy
Efficiency

16

Collecting E-waste

12

Product
Lifecycle
Management

62

414-2

416-2

industry, the standard categorized sustainability information with a high level of financial importance into 77

disclosing, since 2020, sustainability-related information corresponding to the Hardware industry group within

62

New suppliers that were screened using social criteria

416-1

standard established by the US Sustainability Accounting Standards Boards in 2011. For the first time in thethe specificity of each industry. LGE has been actively supporting the implementation of the SASB standards by

62

414-1

Assessment of the health and safety impacts of product andservice categories
Incidents of non-compliance concerning the health and safety
impacts of products and services
Incidents of non-compliance concerning product and service
information and labeling
Incidents of non-compliance concerning marketing
communications
Substantiated complaints concerning breaches of customer
privacy and losses of customer data

The SASB(Sustainability Accounting Standards Board) Standard is an industry-specific sustainability accounting

industries in 11 areas in accordance with the “SICS(Sustainable Industry Classification System)”, taking into account61-

Forced orCompulsory
Labor
Security
Practices
Rights ofIndigenous
Peoples

Note

36-38

405-1

TCFD Report
Governance Index

Average hours of training per year per employee

Ratio of basic salary and remuneration of women to men

Materiality
GRI Standards Index

404-1

405-2

Sustainability Management Performance Data
SHEE·Quality Certification Status

Page

Nondiscrimination

Jeong-Do Management
Compliance Management

Disclosures Title

404-3
Diversity and
Equal
Opportunity

Reporting

59

63
Supply Chain
Management

63-

None incident
occurred in 2021
(see Annual report)

63-

Materials
Sourcing
Annual Report

Percentage of the sales of products
containing IEC 62474 flammable
substances

Quantitative
indicator

Percentage of the sales of products thatmeet EPEAT requirements or equivalent

Quantitative
indicator

TC-HW410a.2

Percentage of the sales of products thatmeet ENERGY STAR standards

Quantitative
indicator

TC-HW410a.3

Weight of take back and recyclability of
expired products and electronic wastes

Quantitative
indicator

Percentage of 1st-tier supplier facilities
audited in (a) all facilities and (b) RBA
VAP as high-risk facilities or equivalent

Quantitative
indicator

Percentage of 1st-tier supplier’s (1)RBA VAP or non-conformity with others
companies and (2) (a) priority nonconformities and (b) others corrective
actions for non-conformities%

Ton, %TC-HW410a.4
TC-HW430a.1

Risk Management at
Production Sites%
Quantitative
indicator

Description of risk management related to Discussion &the use of important raw materials
Analysis

23-25

TC-HW430a.2

n/a

TC-HW440a.1

23-25

Establishmentof a Sustainable
Management Systemwith Suppliers

19-21

68

TCFD Report
I.

Corporate Overview
Management Philosophy
Message from the CEO

Climate-related Issues and the Role of the International Community
As the intensity and frequencies of extreme weather events caused by global warming are rising, climate change

Accordingly, climate-related issues that the international community is currently attempting to respond to are nothas begun to be perceived as a major threat to society. Through its Global Risk Report 2021, the World Economic

only causing extreme weather phenomena, but also causing major changes in the overall global economy and social

Forum selected climate-related issues such as extreme weather or failure to take action on climate change, along

structures, such as the society’s energy use, production within the industry, and transportation methods. In orderwith issues regarding infectious disease due to the ongoing COVID-19 pandemic, as the most threatening issues

to respond to these changes and overcome the climate change crisis, the government of each country is adopting

Environmental

in 2021. Following the signing of the climate change agreement at the 1992 summit in Rio de Janeiro by various

various policies and systems. Following these changes, companies are also continuing efforts to respond to changes

Carbon Neutral

world leaders, the international community has emphasized the importance of the agreement and has continued

to social, economic, and trade structures, such as reducing carbon emissions, using renewable energy, and developing

Circular Economy

to have discussions and come to agreements on climate change over the fast few decades. Through the Parisand investing in low-carbon green technologies.

	Product Stewardship

Agreement adopted in December 2015 at the United Nations Climate Change Conference, specific reduction targets

Here at LGE, we recognize that climate change is a major issue that, not anyone else, but we must take responsibility

were established aimed at maintaining the global average temperature rise to below 2℃, and preferably limiting

for and resolve, thus striving to achieve these goals by establishing specific directions and strategies. Starting in

Socialto 1.5℃, compared to pre-industrial levels. In addition, the IPCC(Intergovernmental Panel on Climate Change), an

2021, we have been disclosing climate-related information that aligns with the TCFD* guidelines through our

Supply Chain Management

intergovernmental consultative body related to climate change, published a study through its 5th assessment reportsustainability report to satisfy the demands of the international community, and we plan to continuously supplement

suggesting that 40-70% of global greenhouse gas emissions must be reduced by 2050 in order to keep the global

this information and disclose the results in a transparent manner.

About LG Electronics
Business Status

II.

III.

Safety and Environment
Customers
Employees
Social Contribution

IV.

Governanceaverage temperature rise to below 2℃.
* TCFD(Task Force on Climate-related Financial Disclosures)
The TCFD is a task force established by the Financial Stability Board, as mandated by the G20 finance ministers and central bank governors, for the purpose of requesting voluntary and consistent disclosure of climate-related information. TCFD published their ‘Recommendations on Disclosure of
Climate-related Financial Impacts’ in 2017. These recommendations demand that the risks and opportunities that organizations face in relation to climate change be identified, and that the processes, indicators, and goals for managing these risks and opportunities be disclosed in detail.

TCFD Framework

Corporate Governanceab

The BOD’s oversight of climate-related risks and opportunities

The role of management in assessing andmanaging climate-related risks and opportunities

Jeong-Do Management
Compliance Management

Governance

Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status

Strategy

Membership·Awards & Recognition

a

b

c

Climate-related risks and opportunities
the organization has identified overthe short, medium, and long term

Impact of climate-related risks and opportunities interms of business and strategic and financial planning

Resilience of organizational strategies inconsideration of climate change scenarios

a

b

c

Organizational processes for identifying
and assessing climate-related risks

Organizational processes for
managing climate-related risks

Integrated management of organizational risks
in the process of identifying, assessing,and managing climate-related risks

a

b

c

Scope 1, 2, 3 GHG emissions and related risks

Climate-related risks and opportunities,
and target subjects whose performance should bemeasured against goals

Materiality
GRI Standards Index
SASB Index
TCFD Report

Risk Management

Governance Index
Independent Assurance Statement

Metrics and Targets

Metrics to assessclimate-related risks and opportunities

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

69

TCFD Report
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

1. Governance
LGE operates a Safety and Environment Committee under the supervision of the management for effective
company-wide decision-making and management regarding climate change issues. In April 2021, we establishedan ESG Committee which operates under the BOD to supervise and review overall ESG management activities andstrategic directions, including climate change issues.

II.

four independent directors and one executive director, treats issues related to the environment and energy sector

Circular Economy

Board of Directors

including response to climate change, as one of its key areas.

Management

The Role of Top-Tier Management in Assessing and Managing Climate-Related Risks
and Opportunities

SocialSupply Chain Management
Safety and Environment
Customers

ESG Committee

Employees

Safety and Environment
Committee(Supervised by CEO)

GovernanceCorporate Governance

LGE's top management recognizes that climate change is an important issue that can affect LGE's overallmanagement, and even the international community. Accordingly, it is constantly reviewing risks and opportunities

Safety andEnvironment Council(Supervised by CFO)

Social ContributionIV.

and sustainable growth by strengthening ESG management regarding Environmental, Social, Governance as well as
goals and necessary strategies throughout the overall ESG management. The ESG Committee, which consists ofCarbon NeutralIII.

LGE established an ESG Committee under the supervision of the BOD in April 2021. In order to realize long-termclimate change, the ESG Committee is responsible for reviewing and making decisions on the foundational policies,

Environmental

	Product Stewardship

BOD-level Supervision of Climate-Related Risks and Opportunities

ESG Department

Safety and EnvironmentGrouprelated to climate change. In particular, key management members(CFO, CHO, CTO, CSO) and the CEO as thehead make up the Safety and Environment Committee, which is constructed to review company-wide safety andenvironment and climate change-related issues, therefore assesses risks and opportunities related to climatechange. In addition, the committee carries out decision-making on major issues related to climate change such as
establishing mid-to long-term GHG reduction goals and making investment decisions on major large-scale reductions
businesses. We reflect the decisions made by the committee into the company regulations and enforce them.

Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

70

TCFD Report
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

2. Strategy
We plan to disclose to stakeholders that the 2030 carbon-neutral goal and implementation are strategies based on long-term climate change scenarios, and to analyze climate change risks and opportunities in more detail and establish
response plans in a systematic manner. Therefore, we conducted a review of climate change risks and opportunities through the following analysis
Classification of Risks

II.

Description

Financial
ImpactClassification

Effects on LGE and response plans

Short-term

LG Electronics is a company subject to the Korean greenhouse gas emission trading system, and if it emits more than the greenhouse gas emission allowance
granted by the Korean government, it is obligated to purchase greenhouse gas emission rights and comply with the laws. LG Electronics may purchase emission
rights due to increased production due to growth in home appliances, expansion of automobile parts business, etc., and in Korea, there may be an increase inpurchase costs due to rising greenhouse gas emission costs in Korea, and the increase in greenhouse gas emissions debt may have an effect on financial solidity.
Each business sector and energy facility survey is responsible for carrying out risk assessment related to increased greenhouse gas emissions for assets held andnew assets due to climate change, and the Safety and Environment Group of the headquarters reviews and manages company-wide policy based on the evaluation
results. In addition, LG Electronics has established a carbon fund which is being used to invest in technologies and facilities to reduce greenhouse gas emissions, andhas reduced the purchase cost of emission rights by more than 580,000 tons in 2021, which is equivalent to KRW 1.9 billion(about USD 1.7 million) in purchasing
costs of emission rights.

Short-term

Regulations related to climate change in Korea and overseas, such as the carbon border adjustment system and the expansion of climate risk/opportunity disclosure
obligations, are showing a continuous growth in trend, and because LGE operates a number of operations overseas, emerging new regulations in countries abroad
can pose great risks to business strategies and operations. LGE is unlikely to be directly affected by the European CBAM(Carbon Border Adjustment Mechanism)
but regarding stricter regulations such as expansion of applicable industries, the ESG Committee monitors new policies that may influence business operations tocontinuously review and manage them.

-Decrease in sales and adverse
Higheffects on transactions

Short-term

Legal issues including environmental litigation regarding climate change can seriously affect our reputation and brand image. LGE is obligated to report greenhousegas emissions and energy use to the Korean government every year. In order to meet legal requirements, LGE is analyzing/responding to major legal risks related toclimate change, focusing on the safety and environment group of its headquarters. LGE has completed the construction of the greenhouse gas inventory at all
workplaces in accordance with the Korean government's legal requirements, and has completed the submission of the greenhouse gas emission statement and thirdparty verification report every year.

-Increased spending due totechnology transfer andpostponed development of
new technology

HighLong-term

As customer demands for energy-efficient, low-carbon, eco-friendly products increase, technologies aimed at meeting these demands are also rapidly evolving. Also,with the government of each country demanding response to high-efficient energy such as strengthening energy-efficient standard levels for home appliances, thecompany needs technology development as a response.
We monitor risk factors that may arise from technology transfer or the failed development of new technologies related to climate change.

Market-Decrease in existing products/
services as a result of changes Highin customers' preference

Mid-term

Lately in the market, an increasing number of customers and purchasers have been demanding information on carbon emissions and renewable energy use. Failure
to meet these demands is a risk factor that can lead to a loss of business opportunities. In order to actively reflect these market demands, each department
within our company is conducting related risk assessments, and risk factors are managed at the corporate level through the ESG Committee. As LGE is expanding
its automobile parts business, automobile buyers are requiring specific goals and implementation of the expansion of carbon neutral and renewable energy use.
Accordingly, LG Electronics is planning to convert 60% of its global power consumption into renewable energy by 2030 and 100% by 2050.

Reputation-Reputational decline leading
to failed investment attraction
Highand negatively affects businessdeals

Long-term

Damage to LGEs' reputation due to climate-related issues would result in us being unable to meet the expectations of investors who perceive climate change
response as an important element of consideration when making investments, which may, in turn, adversely affect our ability to raise capital. Accordingly, we actively
promote our climate change response activities and manage the performance thereof, thereby managing external reputational risks.
In 2019, LGE set a goal of achieving carbon neutrality by 2030 and established a roadmap for implementation. In order to verify the adequacy of LGEs' carbonneutral goals, we have joined the Science-Based Target Initiative in 2021 to complete verification of the target level and to manage reputation risks to investors,
stakeholders and general customers by announcing progress on the implementation roadmap every year.

Acute-Expenses due to asset
damageMediumShort-term

The frequency and intensity of natural disasters caused by climate change are increasing. In particular, natural disasters such as tropical cyclones can directly
damage our production facilities, buildings, and others assets in a short period of time. In order to respond to these acute physical risks, we regularly conduct risk
assessments at our various business sites.

Chronic-Cause of a rise in business
operation costMediumLong-term

Chronic physical risks can lead to increased business operation costs. For example, if the temperature at our manufacturing sites rises due to global warming,
additional energy use may be required at these facilities in order to maintain a constant temperature. In turn, this may result in additional operating costs and anincrease in carbon emissions. At LGE, each of our business departments primarily manages long-term physical risks, especially risk factors that lead to increased
costs, and corporate-level discussions are conducted through the ESG Committee.

Environmental
Carbon Neutral
Circular Economy

	Product StewardshipIII.

SocialCurrent-Increased cost of purchasing
emission permits-Increase in greenhouse gas
emissions debt

Emerging-Risks posed to business
operations due to a lack of
response to new policies

High

Regulation

Supply Chain Management
Safety and Environment
Customers
Employees

High

Social Contribution

IV.

GovernanceCorporate Governance

Legal
Transition Risk

Jeong-Do Management
Compliance Management

Technology

Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

Physical Risk

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

71

TCFD Report
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

3. Risk Management
LGEs' climate-related risks are identified through top-down and bottom-up approaches under the supervision of
the corporate-level Safety & Environment Council and are integrally managed as part of the corporate-level risk
management process.

II.

Environmental
Carbon Neutral

Top-Down Risk Identification and Assessment

Circular Economy

LGEs’ ESG Committee is the highest-level decision-making body for overall ESG issues such as environment and	Product Stewardshipenergy/climate change across all business units and all business sites attended by the CEO and independent
directors. This committee manages LGEs' large-scale investment decisions on activities to reduce climate change

III.

SocialSupply Chain Management
Safety and Environment
Customers
Employees

risks, approval of new businesses related to climate change, and approval and performance management of LGEs'
mid-to long-term greenhouse gas reduction strategies as well as expanded use of renewable power. The strategies
and objectives of each business unit and management organizations are reflected in the overall company's climatechange policies and directions determined by this Committee.

Social Contribution

Bottom-Up Risk Identification and Assessment
IV.

Governance

The Asset level defines the risks and opportunities to be managed on a daily basis derived from the assessment ofCorporate Governancerisks and opportunities, and manages the status of monthly implementation based on the environmental, safety, andJeong-Do Management

energy/greenhouse gas regulations at the working level. This management is based on the International Organization

Compliance Management

for Standardization(ISO) 50001 Energy Management System and is managed under daily, monthly and annual

Information Protectionplans using the Plan, Do, Check and Act virtuous cycle of ISO 50001. In addition, the risks and opportunities that
correspond to LGEs' specific products and solutions are managed by each independent business unit and are taking

V.

Appendixnecessary measures.

Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report

A Framework for Integrated Management of Climate Change Risks
The ESG Council holds quarterly discussions on company-wide and integrated management of climate change risks
and opportunities. LGEs' approach to integrated management of climate change risks effectively manages risks
while all departments and managers take the approach to discuss problems, solutions, and new opportunities in one
discussion process to seek new opportunities. The ESG Council is led by the CFO and is attended by decision-makers

Governance Index

from all departments related to issues on the agenda, to share assessments of risks or opportunities for each issue

Independent Assurance Statementand develop necessary measures. Also, it is responsible for delegating financial investments, allocating resources
as well as establishing detailed strategies to mitigate climate change risks and seize new opportunities. Key issues
discussed in the council are reported to the CEO and the ESG committee to establish future directions and final
decisions.

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

72

TCFD Report
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business StatusII.

LG Electronics establishes and implements risk management measures by identifying the impact of major risk factors related to climate change and reflecting the results derived through scenario analysis.

1. Definition of Major Risks

Environmental

LG Electronics categorizes the risks caused by climate change into business impact and reputation impact in terms of social awareness. Business impact is risk caused by impact from climate change risks that pose a financial threat to

Carbon Neutral

projects or production/sales reduction, and to address this, we establish and manage categorized, preemptive response strategies, such as possible financial losses and casualties. Reputation risk is defined as risk that results in financial

Circular Economy

loss due to corporate image damage and legal sanctions and conflicts in relation to climate change. In particular, LGE, whose main product is consumer goods, classifies reputation risk as a major impact because legal sanctions or a decline	Product StewardshipIII.

LG Electronics' Risk Management Process

in corporate image due to disputes can lead to stagnant or decreased sales. Physical risk is the financial risk caused by direct damage to assets such as facilities and buildings and reduced production/sales due to increased cost between
operations due to higher frequency and intensity of natural disasters caused by climate change.

SocialSupply Chain Management
Safety and Environment

2. Impact on LGE by Scenario and Countermeasures
Classification

2°C Scenario

4°C Scenario

Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance

Details

Jeong-Do Management
Compliance Management
Information Protection

V.

This scenario limits atmospheric CO2 concentrations arising from humanity’s use of fossil fuels to450ppm by the year 2100(IEA 450 scenario). In order to reduce the rise in global temperatures tobelow 2℃, the IEA1 is proposing that the international community adopts prompt and innovative
reduction methods. From a regulatory perspective, emissions trading will be introduced for OECD
countries including South Korea, with the expectation that others key countries outside of theOECD(China, Brazil, Russia) will also join this scheme. In addition, further investment in carbon
reduction is expected to increase across a wide range of sectors, and the availability of power
generation sources, particularly those with improved energy efficiency, renewable energy, andnuclear energy that can replace fossil fuel energy, is predicted to continuously expand. 48% of theOECD countries, 30% of non-OECD countries and 18% of others countries are expected to comprisethe developed and developing countries’ investments for carbon reduction.

This scenario predicts the catastrophic consequences that are expected to occur as a result of global
warming if current policies and efforts to respond to climate change are insufficient, and if prompt
and ambitious targets and strategies are not implemented. In particular, the 4°C scenario focuseson the material risks arising as a result of global warming. The enhancement of capabilities tothoroughly and preemptively review the potential impact on global producers and suppliers, including
damage to businesses in coastal regions that will occur due to rising sea levels, depletion of water
resources in different regions, and major storms and floods will require significant commitment of
resources.

Regulatory risks related to greenhouse gas emissions, including carbon taxes, carbon borderadjustments and emission trading systems for LG Electronics' production sites located in more than
15 countries, are expected to increase. The risk of rising raw material prices for LG Electronics'
products produced through the global supply chain is expected. The demand for energy efficiency
is expected to increase as well, so we are planning to continue to invest in R&D and launch new
products to secure competitiveness in energy efficiency of home appliances. Moreover, LGE has set atarget of reducing carbon emissions by 50% by 2030 and completed verification from SBTi2 to meet
the IEA450 scenario sufficiently.

We are examining our business portfolio and changes to business strategy for improved response toenvironmental changes, and for the sustainability of our global production sites and supply chain. We
are strengthening investment to improve capability to respond to physical risks arising from major
environmental disasters. We feel the need for additional self-rescue efforts others than carbon
neutrality(LG Electronics' goal) in 2030. We are also striving to strengthen external communicationthat can contribute to social changes such as policy changes and improved customer awareness.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index

LG Electronics
Impact &Response

TCFD Report
Governance Index

1		 IEA: International Energy Agency
2 SBTi: Science Based Targets initiative

Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

73

TCFD Report
I.

Corporate Overview
Management Philosophy
Message from the CEO

4. Metrics and Targets

About LG Electronics

GHG Reduction Goals for Implementing Carbon Neutrality

Energy Consumption within the Organization

Business Status

Based on the 1.5℃ scenario, LGE established a goal of 54.6% in reduction by 2030 and completed verification withClassification

SBTi on its 2021 GHG reduction goal amount to establish realistic goals that take macroeconomic variables intoII.

Environmental
Carbon Neutral
Circular Economy

consideration. To achieve these goals, LGE is regularly monitoring the amount of GHG emissions and will continue todevelop and supplement its reduction programs to actualize the achievement of the goals

Unit

2019

2020

2021

LNG city gas(Korea)

827

879

632

LNG city gas(Overseas)

772

741

714

0

0

0

Coal(Korea)

	Product Stewardship1. Scope 1 & 2 : Reduce an absolute amount of 54.6% by 2030 compared to 2017
(SBTi verification completed in 2021)

III.

SocialGHG Emissions(Scopes 1, 2)

Supply Chain Management

Classification

Non-renewable fuelCoal(Overseas)

0

0

0

Others(Korea)

72

74

70

Others(Overseas)

Safety and Environment
Customers
Employees
Social Contribution

Subtotal

Unit

Direct GHG emissions(Scope1)

2019

2020

2021

Korea

466

294

173

Overseas

137

146

160

385

382

481

472

Korea

Indirect GHG emissions(Scope2)

1,000 tCO₂eq

Overseas

Total(Scope 1 + Scope 2)
IV.

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index

GHG emissions intensity(Unit: USD)

1,000 tCO₂eq /USD 100 million

GHG Emissions(Scope 3)
Classification

Independent Assurance Statement

Others indirect GHG
emissions(Scope3)

Unit
Business trip
Use of sold products

1,000 tCO₂eq

0

Others

62

79

233

494

Subtotal

2.43

2.34

1.76

2021

58,337

20,692

11,58158,069,372

63,154,027

9,137

5,067

4,827

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

0

325

1,152

* Verification status: Third-party assurance was completed on emissions from business trips by employees and rental buildings* Reasons for removing emissions from rental buildings: Excluded from CDP verification items

19

033,290,000In-house suppliers(Korea)

6
0

1,294

2020

5

TJ

0

1,469

2019

500
1,916

0

2. Scope 3 : Reduce an absolute amount of 20% by 2030 compared to 2020
(SBTi verification completed in 2021)

Governance Index

658
2,352

Biomass* Business Sites Subject to Verification- Korea: Business sites in South Korea under the operational control of LG Electronics- Overseas: Overseas production sites of LG Electronics(30)* Verification Principles and Standards- Korea: Guidelines for Emission Reporting and Certification of Greenhouse Gas Emission Trading System, Verification Guidelines for Greenhouse
		 Gas Trading System Operation- Overseas: ISO 14064-3:2006(Greenhouse Gas - Part 3: Rules and Usage Guidelines for Feasibility Assessment and Verification of Greenhouse
		 Gas Declaration)* Verification Method- Korea: LG Electronics GHG Emissions and Energy Consumption Statement, LG Electronics GHG Data Management and Collection, Emission
		 Calculation and Reporting Process- Overseas: LG Electronics Greenhouse Gas Emission Report, LG Electronics Greenhouse Gas Data Management and Collection, Emission 				 Calculation and Reporting Process

TCFD Report

Solar power

534
2,205

Wind power
Renewable energy

Energy purchase

67

85

252

Electricity(Korea)

2,946

2,9041

2,508

Electricity(Overseas)

2,664

2,7261

2,942

395

394

397

6

3

3

Steam(Korea)
Steam(Overseas)* Business Sites Subject to Verification- Korea: Business sites in South Korea under the operational control of LG Electronics- Overseas: Overseas production sites of LG Electronics(30)* Energy subject to verification: Energy used at combustion facilities and externally supplied power and heat at business sites* Calculation of energy consumption: Based on net calorific value, steam includes steam consumption through waste heat recovery in Korea* Verification Status: Third-party verification completed(excluding fugitive emissions from refrigeration)
1 Change in 2020 Energy Purchase Data : Energy usage in 2021 with third-party verified electricity usage applied

Goals for 2030 Carbon Neutrality
1. 50% absolute reduction ofemissions, in comparison to 2017,by 2030

2. Reduction of greenhouse gas
emissions through participation in
the UN CDM project•	Continue to invest in reduction
facilities in order to reduce
emissions(we first invested in 2015,
and investment has been increasing
every year since)- Energy efficiency improvement, lowefficiency old equipment replacement,etc.

•	Contribute to the reduction ofemissions from the use of our
products by expanding the supplyof high-efficiency products such as
refrigerators and air conditioners toIndia•	We are acquiring authentication andcertificate in the form of recognitionof our reduction performance fromthe UN

3. Expansion of renewable energy•	Aim to completely switch torenewable energy by 2050
- Switch to 100% renewable energy for
all of our operations in North America
by the end of 2021, and switch to100% renewable energy for global
production subsidiaries by 2025(withexception to those in Korea)

74

Governance Index
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

Recognizing that the soundness and transparency of corporate governance as an integral part of sustainable growth, corporate value, and protection of stakeholders’ interests, LGE is committed to board-oriented management and creating
sound and transparent governance. In 2021 in particular, in accordance with Article 24-2 of the Disclosure Regulations on the Securities Market, a corporate governance report was established to help investors understand our governance.
In the report, details of LGE corporate governance policies, as well as the rights, roles, and functions of shareholders and board of directors provided while reporting the status of internal and external auditors. LGE corporate governancereport is disclosed to all stakeholders through the Financial Supervisory Service Electronic Disclosure System(http://dart.fss.or.kr/)

II.

Environmental
Carbon Neutral

Key Corporate Governance Indicator Compliance

Circular Economy
	Product Stewardship

Followed
Classification Key Indicators

O
III.

Social

1. Shareholders are informed 4 weeks before the general meeting of shareholders.*

Description

Remarks

3 weeks(22days) before the meeting in 2022

Items 1-1

X√

Supply Chain Management
Safety and Environment
Customers√

As of 2021 General Shareholders’ Meeting

Items 1-2

3. The general meeting of shareholders is held outside the busy period.*√

Held on March 24, 2022

Items 1-2

4. Shareholders are notified of the dividend policy and plan at least once a year.**√Quarterly performance data and dividend policy is posted on the website

Items 1-4

5. The CEO succession policy(appointment in case of emergency) is established and implemented.

√

Succession policy retained; candidates nominated and fostered every year

Items 3-2

6. Internal control policies are established and implemented.

√

Risk management(board rules), compliance management, internal accounting
management and disclosure management policy are established and implemented

Items 3-3

7. The chairman of the board and CEO are separate.

√

As of March 2019

Items 4-1-

Items 4-3

Shareholders

Employees
Social Contribution

IV.

2. Shareholders can vote electronically.*

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

BoD√1

8. A concentrated voting system is adopted.
V.

Appendix
Sustainability Management Performance Data

9. A policy is established to prevent the appointment of those who can damage corporate value or
violate the rights of shareholders.

√

The internal appointment rules andreview process are available

Items 4-4

10. No external directors serve more than 6 years.

√-

Items 5-1

11. Internal audit body is trained at least once a year.**√External expert training is available

Items 9-1

12. Independent internal audit department(internal audit support organization) is organized.

√

Organized independent internal audit department

Items 9-1

13. There are accounting or financial experts in the internal audit body.

√

There is one accounting expert

Items 9-1

14. The internal audit body holds a meeting with external auditors without the presence ofmanagement at least once a quarter.**√

The body discusses and reports to theauditor on a quarterly basis.

Items 10-2

15. The internal audit body can access important business information.

√

There is one accounting expert

Items 9-1

SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

Audit Body

* The items are based on the general meeting of shareholders held right before the submission of the report.
** The items determine the performance within the disclosure period.
1 There is no plan to introduce a concentrated voting system, as there is a risk that management will deteriorate due to private interests, such as the possibility of seizing the board of directors through speculative capital.

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

75

Independent Assurance Statement
I.

Corporate Overview
Management Philosophy
Message from the CEO

Introduction

KMR's Approach

Korea Management Registrar (KMR) was commissioned by LG Electronics to conduct an independent assurance ofTo perform an assurance engagement within an agreed scope of assessment using the standards outlined above,

its Sustainability Report ESG FACT BOOK 2021-2022 (the “Report”). The data and its presentation in the Report

our Assurance Team undertook the following activities as part of the engagement:

Environmental

is the sole responsibility of the management of LG Electronics. KMR’s responsibility is to perform an assurance• reviewed the overall Report;

Carbon Neutral

engagement as agreed upon in our agreement with LG Electronics and issue an assurance statement.

• reviewed materiality assessment methodology and the assessment report;

About LG Electronics
Business StatusII.

To readers of 2021-2022 LG Electronics Sustainability Report ESG FACT BOOK

• evaluated sustainability strategies, performance data management system, and processes;

Circular Economy

Scope and Standards• interviewed people in charge of preparing the Report;

LG Electronics described its sustainability performance and activities in the Report. Our Assurance Team carried out• reviewed the reliability of the Report's performance data and conducted data sampling;

Socialan assurance engagement in accordance with the AA1000AS v3 and KMR’s assurance standard SRV1000. We are•	assessed the reliability of information using independent external sources such as Financial Supervisory Service’s

Supply Chain Management

providing a Type 2, moderate level assurance. We evaluated the adherence to the AA1000AP (2018) principles of

Safety and Environment

inclusivity, materiality, responsiveness and impact, and the reliability of the information and data provided using theCustomers

Global Reporting Initiative (GRI) Index provided below. The opinion expressed in the Assurance Statement has been

Limitations and Recommendations

Employees

formed at the materiality of the professional judgment of our Assurance Team.

KMR’s assurance engagement is based on the assumption that the data and information provided by LG Electronics

	Product StewardshipIII.

to us as part of our review are provided in good faith. Limited depth of evidence gathering including inquiry andSocial ContributionIV.

DART and public databases.

Confirmation that the Report was prepared in accordance with the Core Options of the GRI standards was included

analytical procedures and limited sampling at lower levels in the organization were applied. To address this, weGovernancein the scope of the assurance. We have reviewed the topic-specific disclosures of standards which were identified inreferred to independent external sources such as DART and National Greenhouse Gas Management System (NGMS)

Corporate Governancethe materiality assessment process

and public databases to challenge the quality and reliability of the information provided.

Compliance Management•	GRI Sustainability Reporting Standards

Conclusion and Opinion

Information Protection•	Universal standards

Based on the document reviews and interviews, we had several discussions with LG Electronics on the revision of the•	Topic specific standards

Report. We reviewed the Report’s final version in order to make sure that our recommendations for improvement

Jeong-Do Management

V.

Appendix- Management approach of Topic Specific Standards

and revision have been reflected. Based on the work performed, it is our opinion that the Report applied the Core

Sustainability Management Performance Data

- GRI 201: Economic Performance

Option of the GRI Standards. Nothing comes to our attention to suggest that the Report was not prepared in

SHEE·Quality Certification Status- GRI 302: Energy

accordance with the AA1000AP (2018) principles.

Membership·Awards & Recognition- GRI 305: Emissions

Materiality- GRI 306: Effluents and Waste

Inclusivity

GRI Standards Index- GRI 401: Employment

LG Electronics has developed and maintained different stakeholder communication channels at all levels to

SASB Index- GRI 403: Occupational Health and Safety

announce and fulfill its responsibilities to the stakeholders. Nothing comes to our attention to suggest that there

TCFD Report- GRI 404: Training and Education

is a key stakeholder group left out in the process. The organization makes efforts to properly reflect opinions andGovernance Index- GRI 405: Diversity and Equal Opportunity

expectations into its strategies.

Independent Assurance Statement- GRI 413: Local Communities- GRI 414: Supplier Social Assessment

Materiality- GRI 416: Customer Health and Safety

LG Electronics has a unique materiality assessment process to decide the impact of issues identified on its

As for the reporting boundary, the engagement excludes the data and information of LG Electronics’ partners,

sustainability performance. We have not found any material topics left out in the process.

suppliers and any third parties.

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

76

Independent Assurance Statement
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy
Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social Contribution

IV.

GovernanceCorporate Governance

Responsiveness
LG Electronics prioritized material issues to provide a comprehensive, balanced report of performance, responses, andfuture 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 LG Electronics’ actions.
ImpactLG Electronics identifies and monitors the direct and indirect impacts of material topics found through the materiality
assessment, and quantifies such impacts as much as possible.
Reliability of Specific Sustainability Performance Information
In addition to the adherence to AA1000AP (2018) principles, we have assessed the reliability of economic,
environmental, and social performance data related to sustainability performance. We interviewed the in-charge
persons and reviewed information on a sampling basis and supporting documents as well as external sources andpublic databases to confirm that the disclosed data is reliable. Any intentional error or misstatement is not notedfrom the data and information disclosed in the Report.

Competence and Independence

Jeong-Do Management

KMR maintains a comprehensive system of quality control including documented policies and procedures inCompliance Management

accordance with ISO/IEC 17021·2015 - Requirements for bodies providing audit and certification of management

Information Protection

systems. This engagement was carried out by an independent team of sustainability assurance professionals. KMR
has no other contract with LG Electronics and did not provide any services to LG Electronics that could compromise

V.

Appendix

the independence of our work.

Sustainability Management Performance Data
SHEE·Quality Certification Status
Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

July 2022 Seoul, Korea

CEO

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

77

History of sustainability reports publication 2006-2022
I.

Corporate Overview
Management Philosophy
Message from the CEO
About LG Electronics
Business Status

II.

Environmental
Carbon Neutral
Circular Economy
Product Stewardship

III.

2006

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social Contribution

IV.

2021

GovernanceCorporate Governance
Jeong-Do Management
Compliance Management
Information Protection

V.

Appendix
Sustainability Management Performance Data

2022

SHEE·Quality Certification Status
Membership·Awards & Recognition

2021-2022 LG ELECTRONICS
SUSTAINABILITY REPORT ESG FACT BOOK

Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index

2021-2022

Independent Assurance Statement

LG Electronics Sustainability Report
ESG STORY BOOK, FACT BOOK
(July 2022)

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

•	Disclosure of mid-to long-term ESG 6 Key Initiatives and KPIs
• Apply GRI(Global Reporting Initiative) Standards

78

Contributors to Sustainability Report Preparation
I.

Corporate Overview
Management Philosophy
Message from the CEO

II.

About LG Electronics

No

Department

Name

Team

Name

Business Status

1

Compliance Office

Seung-Cheol Lee, Senior Vice President

Compliance planning Team

Min-Kyung Kim

Compliance Team

In-Kyoung Lee

Environmental
Carbon Neutral2

Corporate Audit Center

Byeong-Heon Yoo, Senior Vice President

Ethics Bureau TeamHyun-Ah Suh

Circular Economy

3

Information Security Division

Kang-Seok Chung, Division Leader

HQ Information Security Team

Oh-Chan Kwon

4

Customer Value Innovation
Business Management Division

Sang-Wook Woo, Division Leader

Customer Value Innovation Strategy
Management TeamHyun-Min Oh

5

Customer Quality Reserch Lab

Seung-Hyoun Ji, Research Lab Leader

Product Compliance Team

Sang-Yong Lee, Jin-Hyoung Oh

6

Safety & Environment GroupPyoung-Gu Park, Senior Vice President

Safety & Environment Planning Team

Gun-Ho Jeon

Energy/Facility Team

Jin-Young Lee

Overseas Safety Support Team

Jong-Su Sun

Environment Team

Jeong-Seok Lee, Su-Bin Ha

Shared Growth Team

Jun-Suk Yun

Shared Growth Bureau

Ki-Chul Kim

Biz. Leader Development Team

Sang-Ho Shin

Corporate Culture Team

Sung-Su Nam

Product StewardshipIII.

SocialSupply Chain Management
Safety and Environment
Customers
Employees
Social Contribution

IV.

Governance7

Shared Growth Division

Byoung-Soo Kim, Division Leader

Corporate Governance
Jeong-Do Management
Compliance Management

8

Learning and Development Division Seong-Ho Lee, Vice President

Information Protection

V.

Appendix
Sustainability Management Performance Data
SHEE·Quality Certification Status

9

HR Management Division

Do-Yep Nho, Vice President

HR Planning Team

Kyung-Deok Seok, Byoung-Duk Kang

10

Labor Management DivisionSung-Joon Yu, Senior Vice President

Labor Management Cooperation Team

Tae-Ho Lee

11

Government Relations Division

Dae-Sik Yoon, Senior Vice President

ESG Department

Sung-Min Hong, Ho-Sung Joo, Soo-Jeong Jeong,
Yong-Sup Shin, Young-La Lyu, Hye-Hyun Hong,
Eun-Gyeong Kim

Social Contribution TeamJung-Min Song, Geon Choi, Yong-Hee Kim,
Jung-Hyun Park

Fair Trade Team

Sang-Cheol Park

Membership·Awards & Recognition
Materiality
GRI Standards Index
SASB Index
TCFD Report
Governance Index
Independent Assurance Statement

LG ELECTRONICS 2021-2022 SUSTAINABILITY REPORT ESG FACT BOOK

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