PERFORMANCE
DATA

153

CONTENTS

154

ESG performance data

156

GRI index

170

SASB index

176

TCFD index

182

Assurance statement

186

155

ESG PERFORMANCE DATA

156

157

Greenhouse Gas Emissions

Unit

Scope 1+2
Emissions

Scope 1
Emissions

Scope 2Emissions

Scope 3 ➎EmissionsGlobal2020 ➊

2021 ➋

2022 ➌

tCO2e

9,520,581

10,335,203

10,043,289

Korea

tCO2e

8,064,869

8,839,571

8,614,876

excl. Korea

tCO2e1,455,712

1,495,632

1,428,413

0.55280.42940.3948Emission intensity ➍tCO2e / KRW 1M

GlobaltCO2e5,390,035

5,439,321

5,638,675

Korea

tCO2e

5,195,758

5,290,343

5,489,590

excl. Korea

tCO2e

194,277

148,978

149,085

Emission intensity

tCO2e / KRW 1M

0.31300.22600.2217

GlobaltCO2e4,130,546

4,895,882

4,404,614

Korea

tCO2e

2,869,111

3,549,228

3,125,286

excl. Korea

tCO2e1,261,435

1,346,654

1,279,328

0.23990.20340.1732

Energy Consumption

Unit2020 ➊

2021 ➋

2022 ➌

Total Energy
Consumption

TJ

132,593

178,405

151,401

Korea

TJ

122,807

169,105

142,386excl. Korea

TJ

9,786

9,300

9,015

Energy intensity ➍TJ / KRW 1M

0.00770.00740.0060GlobalDirect Energy
Consumption(Fuel)

GlobalTJ

98,446109,043

107,352

Korea

TJ

94,976

106,349

104,876excl. Korea

TJ

3,470

2,694

2,476

TJ / KRW 1M

0.00570.00450.0042

TJ

34,147

69,36244,049TJ

27,83162,75637,510

TJ

6,316

6,606

6,539

0.00200.00290.0017

1,760

306,316

761,967

Energy intensity
Indirect Energy
GlobalConsumption
Korea ➎
(Steam, Electricity)
excl. Korea
Energy intensity
Renewable Energy Global
Consumption ➏TJ / KRW 1M
MWh➊ Figures for energy consumption in 2020 have been partially revised due to changes in organizational boundaries.

Emission intensity

tCO2e / KRW 1M

Total

tCO2e

1,244,528

1,339,125

1,213,600

1. Purchased goods and services

tCO2e517,985

571,164

425,556

2. Capital goods

tCO2e

14

56

83

3. Fuel and energy-related activities(not included in Scope 1 or 2)tCO2e

121,904

175,732

193,940

4. Upstream transportationand distribution

tCO2e

318,438

197,919

124,744

Figures for indirect energy consumption have been partially corrected due to the consistent use of the unit
conversion factor (1 MWh = 0.0036 TJ).
➋ Figures for energy consumption in Korea in 2021 have been revised based on the verification results of the Ministryof Environment.
➌ Figures for energy consumption in Korea in 2022 may be revised in the future based on the verification results of
the Ministry of Environment.
➍ Energy Intensity = Global Energy Consumption / Revenues excluding LG Energy Solution, and Common and others➎ Figures for electricity consumption in Korea include purchased electricity and self-generated electricity.
➏ Means of renewable energy procurement include green pricing, RECs (solar, wind), and self-generation (solar).

5. Waste generated in operations ➏tCO2e59,99363,35861,972

Water Resources Management

Unit

Water
Withdrawal ➊㎥

6. Business travel

tCO2e

2,265

970

621

7. Employee commuting

tCO2e

4,737

7,488

10,474

8. Investments ➐tCO2e

219,190

322,438

396,210➊ Figures for Scope 1 and Scope 2 emissions in 2020 have been revised due to changes in the organizational boundaries.
➋ Figures for Scope 1 and Scope 2 emissions in Korea in 2021 have been partially revised based on the verification resultsof the Ministry of Environment.
➌ Figures for Scope 1 and Scope 2 emissions in Korea in 2022 are based on values reported to the Ministry of Environment,
and the above figures are subject to revision depending on the verification outcomes.
➍ Emission Intensity = Global GHG Emissions / Revenues excluding LG Energy Solution, and Common and others➎ Scope 3 emissions have been calculated on the relevant categories of GHG Protocol’s Corporate Value Chain (Scope 3)
Accounting and Reporting Standard (2011), and we plan to increase the scope of data collection.
➏ Figures reflect the combined GHG emissions from waste and wastewater discharge.
➐ Figures are based on the values reported to the Ministry of Environment, and the above figures are subject to revision
depending on the verification outcomes.

RE:ACT TO ZEROESG PERFORMANCE DATA

Wastewater
Discharge ➌WaterConsumption

Total

2020

2021

2022

66,937,657

78,063,643

74,781,261

Surface water

㎥

-

-

-

Groundwater㎥

501,077444,068

440,512

Seawater

㎥

-

-

-

Municipal water㎥

66,420,490

77,597,935

74,326,951

Other ➋㎥

16,09021,64013,798Water withdrawal intensity㎥ / KRW 1M

3.88693.24342.9400in regions with water stress㎥

4,496,621

4,521,147

4,457,410

Total

㎥

20,915,171

21,449,266

21,190,129

Water discharge intensity㎥ / KRW 1M

1.21450.89120.8331in regions with water stress㎥

1,915,523

1,656,575

1,765,931

Total

㎥

46,022,486

56,614,377

53,591,133

Water consumption intensity㎥ / KRW 1M

2.67242.35222.1069in regions with water stress㎥

2,581,098

2,864,572

2,691,479

%

2.63

2.30

2.57

Water Reuse Rate ➍➊ Figures for water withdrawal in 2020 and 2021 have been partially revised due to changes in organizationalboundaries.
➋ Other water sources include rainwater, reclaimed wastewater, etc.
➌ Figures for wastewater discharge in 2020 and 2021 have been partially revised due to changes in organizationalboundaries and data coverage (includes wastewater not subject to legal reporting).
➍ The amount of recycled water within the operation and purchased reclaimed wastewater have been used to calculate
water reuse rate.

158

PERFORMANCE DATAESG PERFORMANCE DATA

159

Unit

2020

2021

2022

Waste Management

Water Pollutant
Discharge

Metric tons

653

589

472

Waste Generated

0.03790.02450.0186

148

318

457

0.00860.01320.0179COD ➊Discharge intensity
TOC ➊Discharge intensity
SS
Discharge intensity
T-N
Discharge intensity
T-P
Discharge intensity

kg / KRW 1M
Metric tons
kg / KRW 1M
Metric tons
kg / KRW 1M

319
0.0185255
0.0106240
0.0094

Metric tons

252

273

211

kg / KRW 1M

0.01470.01130.008331

25

340.00180.00100.0013

Metric tons
kg / KRW 1M

Nonhazardous Waste

Conservation Act.

Unit

Air Pollutant
Emissions

Metric tons

Dust
Emission intensity
NOx
Emission intensity
SOx
Emission intensity
VOCs
Emission intensity
HAPs
Emission intensity

kg / KRW 1M
Metric tons
kg / KRW 1M
Metric tons
kg / KRW 1M
Metric tons
kg / KRW 1M
Metric tons
kg / KRW 1M

Unit

2021

2022

Metric tons

230,942

278,345279,585

Waste intensity

Metric tons
/ KRW 1M

0.01340.01160.0110Total

Metric tons

110,922

153,981

150,922

Recycling

Metric tons

74,724

108,145

111,612

Incineration(w/ heat recovery)

Metric tons

11,894

22,682

23,149Incineration

Metric tons

16,01812,3596,177

Landfill

Metric tons

8,286

10,795

9,984

Other
Hazardous Waste➊ Reflects the gradual transition of reporting metrics from COD to TOC, in accordance with the Korean Water Environment

Air Pollution Management

2020

Total

Metric tons

-

-

-

Metric tons

120,020

124,364

128,663

Recycling

Metric tons

49,91953,96160,374

Incineration(w/ heat recovery)

Metric tons

46,47853,40754,361

Incineration

Metric tons

22,652

15,501

12,862
1,066

Total

2020

2021

2022

122

167

183

Landfill

Metric tons

972

1,495

0.0072

Other

Metric tons

-

-

-

0.00710.0069

867

4,134

3,823

0.05040.17180.1503

141

184

240

0.00820.00760.0094

577

956

1,206

0.03350.03970.0474

241

273

298

0.01400.01130.0117

Waste Recycling Rateincl. Incineration(w/ heat recovery)

%

79

86

89

excl. Incineration(w/ heat recovery)

%

54

58

62

Site

-

-

3

Zero Waste to Landfill (ZWTL) designations ➊RE:ACT TO ZERO

Water Pollution Management➊ Naju and Iksan (cathode materials) in Korea, Quzhou in China.

Hazardous Substances Management ➊

Unit

2020

2021

2022

Percentage of products containing REACH ➋ Annex 17
substances

%

29.80

16.10

9.69

Percentage of products containing REACH SVHCs ➌substances

%

2.39

1.57

2.47

Percentage of products containing CMR ➍ substances

%

5.99

2.71

4.65

Hazardous chemicals risk assessment ➎

%

13.59

25.09

26.33

➊ Calculated the percentage of the number of products containing each substance to the number of products soldper year.
➋ The EU’s system of Registration, Evaluation, Authorization and Restriction of Chemicals.
➌ Substances of Very High Concern; highly hazardous substances listed in Annex XIV of the EU’s REACH
regulations.
➍ Carcinogenic, Mutagenic and Reprotoxic chemicals.
➎ Percentage of substances completed/exempt from substance registration among the constituent substancesof the sold product.

Reused/Recycled Materials

Unit

2020

2021

2022

Percentage of reused/recycled materials ➊ input

%

1.30

1.44

1.68

➊ The amount of Post-Consumer Recycled Polycarbonate (PCR PC) input relative to the total PC input has been used

to calculate the percentage of reused/recycled materials input.

160

PERFORMANCE DATAESG PERFORMANCE DATA

161

Unit

2020

2021

2022 ➊

Employees

Fatality Rate ➋Rate

0.01150.0056-

TRIR ➌

Rate

0.65060.76420.6079LTIR ➍

Rate

0.2476

0.2454

0.0968

Fatality Rate

Rate

0.0051

-

TRIR

Rate

0.3345LTIR

Rate

0.1774

PSE ➏

Case

PSER ➐

Subcontractors

Process Safety ➎Diversity, Equity & Inclusion

Unit

2020

2021

2022

Person18,244

18,792

19,627

Korea

Person12,552

13,906

14,572China

Person

4,394

3,564

3,705

0.0104Asia-Pacific (excl. China)

Person

706

627

578

0.50781.1025

EuropePerson

318

419

471

0.21320.3640Americas

Person

274

276

301

5

-

1

Rate

0.0135-0.0035

Case

1

1

1

No. of Employees ➊by Region

Person

110

110

113

Male

Person

104

101

103

FemalePerson6

910

No. of Employees by
Non-fixed term
Employment Contract (Korea)
Fixed-term

Person12,402

13,652

14,249Person

150

254

323

➊ The accident rate is calculated by applying actual hours worked from 2022 onward.
➋ Fatality Rate: Total number of fatality cases * 200,000 / total hours worked➌ Total Recordable Incident Rate: Total number of recordable incidents * 200,000 / total hours worked➍ Lost Time Incident Rate: Total number of lost time incidents * 200,000 / total hours worked➎ Process safety events are calculated based on the standards set in the Accident Index, which includes injuries, fires,

No. of Employees by Gender(Korea)Male

Person10,826

11,946

12,356

FemalePerson

1,726

1,960

2,216

Ratio of female employees (non-fixed term)

%

14

14

15

Ratio of female employees (incl. fixed-term)

%

14

14

15

leakages, amount of loss, etc.
➏ Process Safety Events➐ Process Safety Event Rate: Number of process safety events * 200,000 / total hours worked

No. of Employees by Age(Korea, non-fixed term
employees)

Under 30

Person

2,375

2,441

2,508

30 to 49

Person

7,718

8,655

9,110

50 or above

Person

2,309

2,556

2,631

No. of Leaders in Revenue
Generating Positions (Korea)

Male Leaders ➌Person

699

833

910

Female Leaders

Person65

81

96

Ratio of Female Leaders

%

9

9

10

No. of Employees R&D
Positions (Korea, non-fixed
term)

Male

Person

1,704

1,821

2,004

FemalePerson

800

855

962

Ratio of Female

%

32

32

32

Social Minorities

Persons with disabilities ➍Person

330

252

250

National veterans

Person

276

270

286

Non-management level (base salary)

%

76

77

80

Management ➏ level (base salary)

%

93

94

94

Management level (base salary + cash incentives)

%

94

94

94

Executive level (base salary)

%

90

93

86

Total number of employees due to return to work
after taking parental leave

Person

101

129

157

Male

Person22

46

60

FemalePerson79

83

97

Total number of employees that did return to work Person
after parental leave

101

129

157

Transport Incidents Road
Rail

Case

-

-

-

Ship

Case

1

-

-

No. of Executives ➋Total

Gender Pay Gap ➎Parental Leave

Total

Male

Person22

46

60

FemalePerson79

83

97

RE:ACT TO ZERO

Employee and Process EH&S

➊ Calculated based on the number of employees at the end of the fourth quarter of each year.
➋ Refers to executive officers and registered directors at the vice president level and above.
➌ Refers to employees at the positions of team leader and above, excluding executives.
➍ Figures represent the number of employees reported to the Korea Employment Agency for Persons with Disabilities.

Figures of 2020 are before the spin-off of LG Energy Solution.
➎ Ratio of average female to male compensation, calculated by dividing the average compensation of all women ina position by the average compensation of all men in the same position. There are no distinctions based on gender,
while factors such as years of service contribute to the pay gap.
➏ Refers to employees at the level of professionals/senior managers or above, excluding executives.

162

PERFORMANCE DATAESG PERFORMANCE DATA

163

Unit

2020

2021

2022

Supply Chain Management

Unit

2020

2021

2022

New Employee Hires Total

Person

1,166

3,140

2,651

No. of Suppliers

Total no. of suppliers ➊

#

1,252

1,262

1,433

Korea

Person

402

1,560

1,431

Total no. of key suppliers ➋

#

216

240

178

excl. Korea

Person

764

1,580

1,220

#

163

232

762

by Employment
Contract (Korea)

Non-fixed term

Person

319

1,330

1,261

No. of suppliers
that completed self-assessment

Fixed-term

Person

83

230

170

No. of key suppliers
that completed self-assessment

#

46

53

77

by Gender (Korea)

Male

Person

320

1,255

1,070

#

39

42

169

FemalePerson

82

305

361

No. of high-risk suppliers ➌subject to on-site audit

Under 30

Person

187

759

849

#

-

-

17

30 to 49

Person

144

635

469

No. of high-risk suppliers
that completed on-site audit

50 or above

Person

71

166

113

No. of high-risk key suppliers
subject to on-site audit

#

11

-

1

No. of high-risk key suppliers
that completed on-site audit

#

-

-

-

by Age (Korea)

Employee Turnover

2020

2021

2022

➊ Suppliers refer to domestic and overseas suppliers with records of annual purchase amount of KRW 100M or more

Total

Person

270

306

344

by Gender (Korea)

Male

Person

239

245

257

and 3 or more POs issued.
➋ Key suppliers refer to suppliers in the top 90% of purchase amounts, including companies of all sizes.
➌ High-risk suppliers refer to suppliers who fall under high risk rating as a result of self-assessment, or fall into

FemalePerson31

61

87

Under 30

Person

107

133

161

30 to 49

Person

152

158

173

50 or above

Training and Development
Training Hours ➊(Korea, non-fixed
term employees)

Total

Unit

11

2020

15

2021

10

425,420567,604

506,803Hour

362,611449,714412,266

FemaleHour

62,809117,890

94,537

34.3

41.6

35.6

FemaleHour / Person
Hour

77,55869,17095,990Hour

73,30457,67586,004

Hour

4,254

11,496

9,986

1,253,990

1,564,100

2,139,966

101

115

150

Total

KRW 10K

Average training cost
per employee

KRW 10K /Personthe high-risk group due to a score below the standard, findings of critical non-conformance items, and etc.

Local Communities and Social Contributions

Unit

2020

2021

2022

Social Contributions

KRW 100M

15,132

16,194

21,725

Charitable donations

KRW 100M

13,28815,216

21,072

Community investments

KRW 100M

1,314

496

540

Commercial initiatives

KRW 100M

531

482

113

Total

2022

Hour

Mandatory Training Total
Hours (Korea)
Male

Training Cost
(Korea)PersonMale

Average training hours
per employee

164

On-site ESG Audit

No. of Voluntary
Turnover (Korea)

by Age (Korea)

Unit

ESG Self-Assessment

Employee Volunteer Hours

Hour

4,879

4,965

3,371

Ethics, Anti-Corruption, and Fair Trade

Unit

2020

2021

2022

Corruption

No. of investigated cases

Case

5

7

14

No. of handled cases

Case

2

3

4

No. of legal investigations

Case

1

-

-

No. of legal actions

Case

-

-

-

No. of employees participating
Personin Jeong-Do management ➊ training

12,511

13,431

15,159No. of employees participatingin fair trade ➋ training

14,444

14,413

15,191

Unfair Trade Practices

Ethics Training

Person➊ Includes content on Jeong-Do management and the Code of Ethics.
➋ Includes content on subcontractors and compliance.

Labor and Human Rights

Unit

2020

2021

2022

Labor Union(Korea)No. of employees eligible to join

Person

6,745

7,337

7,447

No. of employees participating

Person

5,075

5,436

5,410

Information Security and Cybersecurity

Unit

2020

2021

2022

Percentage of employees
participating

%

75

74

73

Information Security Training

Site

4

4

16

Percentage of Employees Covered by Collective
Agreements (Korea)

%

100

100

100

Information Security
Training

Awareness activities

#

12

12

12

Average training hours per
employee

Min

30

30

30

PERFORMANCE DATARE:ACT TO ZERO

Employee Hires

ESG PERFORMANCE DATA

165

Unit

2020

2021

2022

Other Economic Performances

Unit

2020

2021

2022

Contributions to Trade Associations ➊KRW 1M

2,091

2,223

2,497

Revenues

KRW 1M

29,984,350

42,599,284

51,864,888

Contributions to Political Campaigns ➋KRW 1M---

Petrochemicals

KRW 1M

14,015,584

20,175,492

21,151,355

Advanced Materials

KRW 1M

2,547,495

3,202,981

3,435,076

Life Sciences

KRW 1M

658,277

690,346

849,289

LG Energy Solution

KRW 1M

12,363,524

17,803,863

25,586,365

Common and others

KRW 1M

399,470

726,602842,803

Revenue excluding LG Energy Solution, and Common
and others ➋KRW 1M

17,221,356

24,068,819

25,435,720

R&D Expenses

KRW 1M

719,339

710,071869,634

Sustainability technology/product KRW 1M
development ➌34,36890,250134,604➊ Contributions have been made to the following top 5 organizations in 2022:— World Economic Forum (WEF) : 431,259,000 (KRW)— Korea Association of Business Executives : 331,082,000 (KRW)— PC/BPA Council : 291,471,000 (KRW)— Korea Petrochemical Association : 206,088,000 (KRW)— Korea Vinyl Environmental Council : 202,500,000 (KRW)➋ The Political Funds Act prohibits companies to sponsor political organizations.

Tax Strategies
Total Reported
Taxes ➊

Unit

2020

2021

2022

KRW 1M

367,839

1,235,790

641,482

Korea

KRW 1M

692,538

672,683

747,539

Asia (excl. Korea)

KRW 1M

290,065

565,833

389,245

EuropeKRW 1M

6,800- 61,505

186,016

Americas

KRW 1M

53,112

2,421

4,141

OthersKRW 1M

141

39

247

Consolidated Adjustments

KRW 1M- 674,817

56,319- 685,706

KRW 1M

513,128

1,281,796

1,707,449

Total

Cash Payment on Corporate Tax

Total revenue

Total

RE:ACT TO ZERO

Public Policy and Regulation➊ Based on consolidated financial statements of FY 2022.
➋ Represents simple deductions of revenues of LG Energy Solution and Common and others from total, this figure

has been used to calculate intensity of environmental performance data; Common and others include revenuesof FarmHannong. For details, please refer to the notes to the consolidated financial statements.
➌ Includes expenses for projects in the areas of bio materials, recycling, and carbon neutrality.

➊ Based on consolidated financial statements from 2022.

Customer Satisfaction

Unit

2020

2021

2022

Customer
Scope ➊
Satisfaction Survey
Score

%

100

100

100

Score

80

79

84

➊ Refers to the percentage of business units that have conducted customer satisfaction surveys. Since 2020, the Customer

Value Innovation Team has been conducting customer satisfaction surveys for customers across all business units.

166

PERFORMANCE DATAESG PERFORMANCE DATA

167

168

PERFORMANCE DATAESG PERFORMANCE DATA

169

GRI INDEX

170

171

Disclosure

172

Disclosure
201-1

Direct economic value generated and distributed

p. 167

Location

Notes

GRI 201

201-2

Financial implications and other risks and opportunities due toclimate change

p. 184-185

Company
websiteGRI 201

201-3

Defined benefit plan obligations and other retirement plans-

GRI 203

203-1

Infrastructure investments and services supported

p. 146-150,
165, 179

GRI 203203-2

Significant indirect economic impacts

p. 146-150

GRI 205

205-1

Operations assessed for risks related to corruption

p. 84-85

GRI 205

205-2

Communication and training about anti-corruption policies
and proceduresp. 84-85, 165

GRI 205

205-3

Confirmed incidents of corruption and actions taken

p. 165

GRI 206

206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices-

GRI 207

207-4

Country-by-country reporting

p. 166

GRI 2

2-1

Organizational details

p. 12-13, 18-19

GRI 2

2-2

Entities included in the organization’s sustainability reporting

p. 2

GRI 2

2-3

Reporting period, frequency and contact point

p. 2, 192

GRI 2

2-4

Restatements of information

p. 2, 158-159

GRI 2

2-5

External assurance

p. 188-189

GRI 2

2-6

Activities, value chain and other business relationships

p. 12-15, 18-19,
130-136

GRI 2

2-7

Employees

p. 163

GRI 2

2-8

Workers who are not employees

p. 162-163

GRI 2

2-9

Governance structure and compositionp. 62-75

GRI 2

2-10

Nomination and selection of the highest governance bodyp. 62-68

GRI 2

2-11

Chair of the highest governance bodyp. 64-65

GRI 2

2-12

Role of the highest governance body in overseeing themanagement of impacts

p. 70-75

GRI 2

2-13

Delegation of responsibility for managing impacts

p. 76-78

GRI 2

2-14

Role of the highest governance body in sustainability reportingp. 72-73

GRI 2

2-15

Conflicts of interest

p. 68

GRI 2

2-16

Communication of critical concerns

p. 70-74

GRI 2

2-17

Collective knowledge of the highest governance bodyp. 64-67

GRI 2

2-18

Evaluation of the performance of the highest governance body

p. 75

GRI 2

2-19

Remuneration policies

p. 75

Business
Report-VIII.-2.

GRI 2

2-20

Process to determine remuneration-

Business
Report-VIII.-2.

GRI 2

2-21

Annual total compensation ratio-

Business
Report-VIII.-2.

GRI 2

2-22

Statement on sustainable development strategy

p. 6-9

GRI 2

2-23

Policy commitments

p. 46-49, 117, 132,
139

GRI 2

2-24

Embedding policy commitments

p. 40-43, 46-47,
118-127, 133-134,
139, 143

GRI 2

2-25

Processes to remediate negative impacts

p. 143

GRI 2

2-26

Mechanisms for seeking advice and raising concernsp. 88-89

GRI 2

2-27

Compliance with laws and regulations

p. 80-86

GRI 2

2-28

Membership associations

p. 54-55

GRI 2

2-29

Approach to stakeholder engagement

p. 33

GRI 2

2-30

Collective bargaining agreements

p. 164

GRI 3

3-1

Process to determine material topics

p. 30-32

GRI 3

3-2

List of material topics

p. 34-37

GRI 3

3-3

Management of material topics

p. 34-37

PERFORMANCE DATA

Location

GRI 201

Business
Report-II.-1.

Notes

Business
Report-III.-3.

RE:ACT TO ZEROGRI INDEX

Business
Report-XI.-3.

Company
websiteCompany
websiteCompany
websiteGRI INDEX

173

NotesDisclosure

Location

301-2

Recycled input materials used

p. 161

GRI 401

401-1

New employee hires and employee turnoverp. 164

GRI 302

302-1

Energy consumption within the organization

p. 159

GRI 401

401-3

Parental leave

p. 163

GRI 302

302-2

Energy consumption outside of the organization

p. 159

GRI 403403-1

Occupational health and safety management systemp. 116-119

GRI 302

302-3

Energy intensity

p. 159

GRI 403403-2

p. 120-127

GRI 303

303-3

Water withdrawal

p. 159Hazard identification, risk assessment, and incident
investigation

GRI 303

303-4

Water discharge

p. 159

GRI 403403-3

Occupational health services

p. 120-127

GRI 303

303-5

Water consumption

p. 159

GRI 403403-4

p. 120-127

GRI 304

304-3

Habitats protected or restored-

Worker participation, consultation, and communication on
occupational health and safety

GRI 403403-5

Worker training on occupational health and safety

p. 119, 124

GRI 305

305-1

Direct (Scope 1) GHG emissions

p. 158

GRI 403403-6

Promotion of worker healthp. 127, 142

GRI 403403-7

Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships

p. 125

GRI 403403-8

Workers covered by an occupational health and safety
management systemp. 162

GRI 403403-9

Work-related injuries

p. 162

GRI 403403-10Work-related ill healthp. 162

GRI 404

404-1

Average hours of training per year per employee

p. 164

GRI 404404-2

Programs for upgrading employee skills and transition
assistance programs

p. 140-141

GRI 404404-3

Percentage of employees receiving regular performance andcareer development reviews

p. 140-141

Company
websiteNotes

GRI 305

305-2

Energy indirect (Scope 2) GHG emissions

p. 158

GRI 305

305-3

Other indirect (Scope 3) GHG emissions

p. 158

GRI 305

305-4

GHG emissions intensity

p. 158

GRI 305

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant p. 160
air emissions

GRI 306

306-1

Waste generation and significant waste-related impacts

p. 110-112

GRI 306

306-2

Management of significant waste-related impacts

p. 110-112

GRI 306306-3

Waste generated

p. 161

GRI 306

306-4

Waste diverted from disposal

p. 161

GRI 306

306-5

Waste directed to disposal

p. 161

GRI 308308-1

New suppliers that were screened using environmental criteria

p. 165

GRI 405

405-1

Diversity of governance bodies and employees

p. 163

p. 130-136, 165

GRI 405405-2

Ratio of basic salary and remuneration of women to men

p. 163

GRI 407407-1

Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

p. 164

GRI 408408-1

Operations and suppliers at significant risk for incidents of child p. 130-136,
labor
139

GRI 409409-1

Operations and suppliers at significant risk for incidents offorced or compulsory laborp. 130-136,
139

GRI 413413-1

Operations with local community engagement, impact
assessments, and development programs

p. 146-150

GRI 414414-1

New suppliers that were screened using social criteria

p. 165

GRI 414414-2

Negative social impacts in the supply chain and actions taken

p. 130-136,
165

GRI 415415-1

Political contributions

p. 166

GRI 416416-1

Assessment of the health and safety impacts of product andservice categories

p. 161

GRI 416416-2

Incidents of non-compliance concerning the health and safety
impacts of products and services-

GRI 417417-1

Requirements for product and service information and labeling -Company
websiteGRI 417417-2

Incidents of non-compliance concerning product and service
information and labeling-Business
Report-XI-3.

GRI 417417-3

Incidents of non-compliance concerning marketing
communications-

Business
Report-XI-3.

GRI 308174

Location

GRI 301

308-2

Negative environmental impacts in the supply chain andactions taken

PERFORMANCE DATAGRI INDEXRE:ACT TO ZERO

Disclosure

Business
Report-XI-3.

175

SASB INDEX

176

177

TopicCode

Greenhouse GasRT-CH-110a.1
Emissions
RT-CH-110a.2

Air Quality

Code

Accounting MetricCommunity
Relations

RT-CH-210a.1

Discussion of engagement processes to
We aim to build close relationships withmanage risks and opportunities associated local communities by thoroughly managing
with community interests
the environment and safety around ourbusiness sites, providing employment
and development opportunities to local
communities, and running partnershipprograms. We also engage a wide rangeof stakeholders through employee
volunteer works and community
partnership programs.

Disclosures

Gross global Scope 1 emissions, percentage 5,489,590 tCO2e, 97% (emissions in Korea
covered under emissions-limiting regulations subject to K-ETS relative to global Scope 1
emissions)
Discussion of long-term and short-term
strategy or plan to manage Scope 1
emissions, emissions reduction targets,and an analysis of performance against
those targets

LG Chem promotes direct reduction
investments by taking into account theemission characteristics of each process.
Upstream carbon emissions will be
reduced by introducing mid- to long-term
innovative technologies such as CCUS
(Carbon Capture Utilization and Storage)
and electrolytic furnaces at NCC (Naphtha
Cracking Center) plants, while downstream
carbon emissions will be reduced bymanaging energy demand, via switching to
low-carbon fuels, introducing high-efficiency
equipment, and recovering and utilizing
unused energy.

Air emissions of the following pollutants:(1) NOX (excluding N2O),(2) SOX,(3) volatile organic compounds (VOCs), and(4) hazardous air pollutants (HAPs)(1) 3,823 tons
(2) 240 tons
(3) 1,206 tons
(4) 298 tons

EnergyManagement

RT-CH-130a.1(1) Total energy consumed,(2) percentage grid electricity,(3) percentage renewable,(4) total self-generated energy(1) 151,401 TJ(2) Domestic 13%, Overseas 59%(3) Domestic 1.7%, Overseas 44%(4) 1,470 GWh

Water
Management

RT-CH-140a.1(1) Total water withdrawn,(2) total water consumed, percentage ofeach in regions with High or Extremely HighBaseline Water Stress(1) 74,772,006 m3, 6% (Percentage of water
withdrawn from regions with water stress)(2) 53,581,878 m3, 5% (Percentage of water
consumption from regions with water stress)

Hazardous
Waste
Management

178

RT-CH-120a.1

Accounting Metric

Topic

RT-CH-140a.2 Number of incidents of non-complianceassociated with water quality permits,standards, and regulations

4 incidents

RT-CH-140a.3 Description of water management risks anddiscussion of strategies and practices tomitigate those risks

As problems of water scarcity intensify
throughout the world, so does the need forintelligent water management. We manage
water use at our business sites every stepof the way, from water withdrawal throughthe manufacturing stage, which includes
raw material processing and cooling, to thedischarge of properly treated wastewater.
In particular, we aim to identify and minimize
the amount of water withdrawal andconsumption in water-stressed areas.

RT-CH-150a.1(1) 128,663 tons
(2) 89% (incl. incineration w/ heat recovery)
62% (excl. incineration w/ heat recovery)

Amount of hazardous waste generated,
percentage recycled

PERFORMANCE DATA

Workforce
RT-CH-320a.1
Health & Safety

Disclosures(1) Total recordable incident rate (TRIR)(1) (a) 0.6079 (b) 1.1025
and (2) fatality rate for (a) direct employees (2) (a) 0(b) 0.0104
and(b) contract employees

RT-CH-320a.2

Description of efforts to assess, monitor,
and reduce exposure of employees andcontract workers to long-term (chronic)
health risks

LG Chem makes environment, health,and safety its top management priorities
and core tasks, and has establishedcorporate-wide environmental and safety
regulations and guidelines.

Product Design RT-CH-410a.1
for Use-phase
Efficiency

Revenue from products designed for usephase resource efficiency

19% (Excluding revenues from LG Energy
Solution)

Safety &RT-CH-410b.1
Environmental
Stewardship ofChemicals(1) Percentage of products that contain(1) 33.93 %Globally Harmonized System of(2) 82.38 %Classification and Labeling of Chemicals(GHS) Category 1 and 2 Health andEnvironmental Hazardous Substances,(2) percentage of such products that haveundergone a hazard assessment

RT-CH-410b.2

SASB INDEXRE:ACT TO ZEROSASB INDEX

Discussion of strategy to(1) manage chemicals of concern and(2) develop alternatives with reduced
human and/or environmental impact(1) In accordance with our productenvironmental management guidelines,
we rigorously identify substances
requiring supervision from the raw
material stage on. Hazardous substances
are categorized as one of three types
depending on their risk level, and wehave an operational system to ensurethat all such materials can be purchased
only after confirming the details of theirrespective management requirements.
We also observe the percentage of
products containing restricted substances(Annex 17), SVHC substances, and CMR
substances under REACH, and proactively
check for hazardous risks.
(2) By integrating information of productingredients into a Bill of Substance (BoS)
management system, we are constantly
monitoring whether and how manyhazardous substances are contained in
the products we produce and sell. We
are stepping up our efforts to reduce
the harmful substances contained in our
products, and we have also introduced
a process to identify product toxicity as
one of the Sustainable Value criteria forclassifying products with distinguishedsocial and environmental values in termsof sustainability from the product design
stage.

179

TopicCode

Accounting Metric

Disclosures

Genetically
Modified
Organisms

RT-CH-410c.1

Percentage of products by revenue that
contain genetically modified organisms(GMOs)

N/A

Managementof the Legal &Regulatory
Environment

RT-CH-530a.1 Discussion of corporate positions related
to government regulations and/or policy
proposals that address environmental andsocial factors affecting the industry

We are constantly seeking out public-private
partnerships by identifying policy issues andregulations that may affect our businessand pursuing government proposals. We
participate in policy-making through our
local public affairs networks at home andoverseas, and continuously monitor new
legislation and policies that may affect our
global business. We also belong to domestic
and overseas industry associations that
represent our business areas, through which
we convey industry opinions, and collaborate
with various stakeholders by engaging
in professional networking activities likeexternal seminars, forums, and conferences.
We secure incentives in connection withmajor investments, maintain and identify
quota tariffs, and conduct policy support
activities related to growth engines.

Operational
RT-CH-540a.1 Process Safety Incidents Count (PSIC),
Safety,Process Safety Total Incident Rate (PSTIR),
Emergency
and Process Safety Incident Severity Rate
Preparedness &(PSISR)
Response
RT-CHNumber of transport incidents

Number of Process Safety Events (PSEs) : 1
Process Safety Event Rate (PSER) : 0.0035

1

540a.2180

PERFORMANCE DATASASB INDEX181

TCFD INDEX

182

183

Recommendations

Recommendations
Disclosures

Governancea. Describe the board’s oversightof climate-related risks andopportunities.

b. Describe management’s rolein assessing and managing
climate-related risks andopportunities.

In April 2021, LG Chem established the ESG Committee to integrate into all of its
practices the concept of sustainability, which encompasses both financial (growth)and non-financial (ESG) aspects, as a core value for growth. In line with our Diversity
Principle, more than two thirds of the committee is comprised of independent
directors that neither have common backgrounds, nor represent specific interests.
As of 2022, the chairperson of LG Chem’s ESG Committee is an independent
director, and the company is working to achieve greater sustainability and diversity
by appointing two new female independent directors. To solidify the ESG
management system, the Committee meets twice a year (once each in the first andsecond halves) to solicit sustainability-related opinions, and report on and resolve
major ESG issues. The committee discusses the company’s fundamental
sustainability policies, mid- to long-term goals, and ESG management strategies.
The committee also checks the performance of its activities for the Net-Zero goal,
which it reports regularly to the BOD. Recognizing the growing importance of ESG
management and compliance on the global stage, LG Chem has decided to bolster
the compliance review function of the BOD through the ESG Committee.
LG Chem’s management established the Chief Sustainability Strategy Officer(CSSO) in 2021 to reinforce a systematic and professional approach to achieving
sustainability. As the control tower on corporate-wide sustainability issues,
the CSSO is responsible for accelerating sustainable management practices,
actively communicating with stakeholders, and creating viable solutions groundedin science and technology. The CSSO monitors carbon reduction implementation
results and performance of key sustainability indicators at least semi-annually,
and reports them to the CEO. In addition, the CSSO leads the establishment andimplementation of the corporate-wide sustainability management strategy by
specifying the course of low-carbon business transformation measures and R&D
by business division.

Strategya. Describe the climate-relatedrisks and opportunities theorganization has identified overthe short, medium, and long term.

184

Disclosures

Risk Management

LG Chem proactively identifies and assesses the actual and potential impacts ofclimate change across the entire value chain. In the short-term, we recognize carbon
emission regulations, extreme weather events, and changing consumer perceptions
as risk factors. The uncertainty of domestic emission allowance allocations andthe intensification of regulations around the world are both major transition risks withpotential financial impacts, while the growing frequency and intensity of extreme
weather events is a major physical risk that may affect business operations like raw
material procurement and production. Potential mid- to long-term risks include risingtemperatures, and increased internal operating costs due to our efforts to reduce
GHG emissions in and around our business sites. Nevertheless, we also believe that
greater customer demand for low-carbon products is a powerful opportunity, andare reorganizing our business portfolio around sustainability.

b. Describe the impact ofclimate-related risks andopportunities on theorganization’s businesses,
strategy, and financial planning.

LG Chem introduced an internal carbon price (ICP) to proactively identify financial
risks arising from future carbon emissions and accelerate the transition to a
low-carbon management system. ICP is mainly used for mid- to long-term businessplanning and investment review. We are actively incentivizing carbon reduction
activities and investments by applying a carbon price that exceeds the current priceof emission allowances in our mid- to long-term business planning, and accounting
for regulatory costs associated with carbon emissions in our investment economic
analysis. In doing so, we are proactively responding to the uncertainty withallocations of domestic emissions allowances, and the trend toward stricter
carbon-related regulations on a global scale.

c. Describe the resilience ofthe organization’s strategy, taking
into consideration different
climate-related scenarios,
including a 2°C or lower scenario.

To keep pace with sustainable growth as a Top Global Sciecne Company, LG Chem
has set a goal of Net-Zero by 2050. To achieve this, we have established an internalcarbon reduction roadmap, starting with BAU refinement work, and have materialized
action plans. We have also joined the Science-Based Targets initiative (SBTi) todemonstrate our leadership and commitment to carbon neutrality, and are working
to establish emission reduction targets based on the 1.5°C pathway.

PERFORMANCE DATA

a. Describe the organization’s
processes for identifying andassessing climate-related risks.

LG Chem identifies risks and opportunities centered on five key sustainability
tasks: climate action, renewable energy transition, circular economy,
environmental protection, and responsible supply chain. We conduct simulationsof the financial impacts of changes in the external policy and regulatoryenvironment (e.g. the adjustment of emission quotas, the introduction of carbon
border taxes), and review data trends in indicators like GHG emissions andenergy consumption, on a regular basis.

b. Describe the organization’s
processes for managing
climate-related risks.

LG Chem is the first Korean company in the industry to establish an integrated
carbon management system, the Net-Zero Management System (NZMS). We use
NZMS as an important tool for business decision-making, comparing andreviewing the economic feasibility of investments for each carbon reduction task,
and conducting simulations considering changes in the external environment (e.g.
in the price of carbon credits). We also regularly report these issues to the BOD
to strengthen corporate governance and develop board-centered responsible
management practices that allow for a robust response to climate change.

c. Describe how processes
for identifying, assessing, andmanaging climate-relatedrisks are integrated into theorganization’s overall risk
management.

LG Chem has established a corporate-wide organic structure of cooperation toaccelerate sustainability and push for efficient implementation. We operate
a dedicated sustainability organization under the CSSO to analyze domestic andglobal legislative and regulatory trends, as well as changing global megatrends
and stakeholder requirements, and thereby identify areas of improvement andcheck the status of ESG projects for each department within the organization.
Major sustainability issues like climate change are discussed at management
meetings involving the C-Level (monthly) and the ESG Committee meetings with
the BOD (bi-annually), and integrated into the corporate-wide compliance, risk
identification, inspection, and evaluation processes in line with the strengtheningof ESG regulations.

RE:ACT TO ZEROTCFD INDEX

Metrics and Targets
a. Disclose the metrics usedby the organization to assessclimaterelated risks andopportunities in line with its
strategy and risk management
process.

In 2019, LG Chem established a sustainability vision and strategy centered onnine core areas. In 2020, we declared our mid- to long-term goals, whichcentered on five key sustainability tasks, including carbon-neutral growth.
In 2021, to invigorate communications with various stakeholders and strengthen
competitiveness, LG Chem selected 20 key indicators to prioritize in terms ofenvironmental, social, governance, and growth, based on the concept of
stakeholder capitalism as proposed by the World Economic Forum (WEF),
and we are staying abreast of global megatrends and stakeholder demands
as they evolve year to year.

b. Disclose Scope 1, Scope2, and, if appropriate, Scope
3 greenhouse gas (GHG)
emissions, and the related risks.

Scope 1: 5,638,675 tCO2e
Scope 2: 4,404,614 tCO2e
Scope 3: 1,213,600 tCO2e

c. Describe the targets usedby the organization to manage
climate-related risks andopportunities and performanceagainst targets.

In February 2022, LG Chem advanced its carbon-neutral growth goal by 20 years
and announced a new target of “2030 Carbon-neutral Growth” and “2050
Net-Zero” for Scope 1 and 2 emissions. To achieve this new goal, LG Chem is
actively promoting new processes like switching to eco-friendly raw materials andfuels, and expanding the use of renewable energy. To enhance the low-carbon
competitiveness of our products, we are establishing a management system forthe voluntary area of emissions reporting (Scope 3) beyond the regulated areas(Scope 1 and 2).

TCFD INDEX

185

ASSURANCE STATEMENT

186

187

Relating to LG Chem, Ltd.’s Sustainability Report for the calendar year 2022
This Assurance Statement has been prepared for LG Chem, Ltd. in accordance withour contract but is intended for the readers of this Report.

Terms of Engagement
LRQA was commissioned by LG Chem, Ltd. (LG Chem) to provide independent
assurance on its ‘LG Chem Sustainability Report 2022’ (“the report”) against LG
Chem’s data management procedure to a “limited level of assurance and materialityof professional judgement” using ISAE 3000 and ISAE 3410.
Our assurance engagement covered evaluating the accuracy and reliability of
ESG performance data and information on pages 158-167 in the report relating to
LG Chem’s operations and activities in domestic and overseas sites❶ from 1 January2022 to 31 December 2022.
Our assurance engagement excluded the data and information of LG Chem’s
suppliers, contractors and any third parties mentioned in the report.
LRQA’s responsibility is only to LG Chem. LRQA disclaims any liability or
responsibility to others as explained in the end footnote. LG Chem’s responsibility isfor collecting, aggregating, analysing and presenting all the data and information
within the report and for maintaining effective internal controls over the systems fromwhich the report is derived. Ultimately, the report has been approved by, and remains
the responsibility of LG Chem.

LRQA’s Opinion
Based on LRQA’s approach nothing has come to our attention that would cause us
to believe that LG Chem has not, in all material respects, disclosed accurate andreliable performance data and information as all errors identified during the assurance
engagement were corrected.
The opinion expressed is formed on the basis of a limited level of assurance
and at the materiality of the professional judgement of the verifier.
Note: The extent of evidence-gathering for a limited assurance engagement isless than for a reasonable assurance engagement. Limited assurance engagements
focus on aggregated data rather than physically checking source data at sites.
Consequently, the level of assurance obtained in a limited assurance engagement issubstantially lower than the assurance that would have been obtained had a reasonableassurance engagement been performed.

LRQA’s approach
LRQA’s assurance engagements are carried out in accordance with our verification
procedure. The following tasks though were undertaken as part of the evidence
gathering process for this assurance engagement:➊ Our engagement excluded verification of direct and indirect GHG emissions, and energy consumptionsof overseas sites.

188

PERFORMANCE DATA

• Auditing LG Chem’s data management systems to confirm that there wereno significant errors, omissions or mis- statements in the report. We did thisby reviewing the effectiveness of data handling procedures, instructions andsystems, including those for internal verification. We also spoke with those key
people responsible for compiling the data and drafting the report.
• Checking whether direct (Scope 1) and indirect (Scope 2) GHG emissions,and energy consumptions in domestic sites were transposed correctly fromthe GHG inventory which was verified by the third-party assurance provider.
• Verifying other indirect GHG emissions (Scope 3) based on GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard• Checking whether financial data were transposed correctly from the financial
statements.
• Reviewing additional evidence made available by LG Chem at its head officein Seoul.

RE:ACT TO ZEROLRQA INDEPENDENT ASSURANCE STATEMENTLRQA’s standards, competence and independence
LRQA implements and maintains a comprehensive management system that meets
accreditation requirements for ISO 14065 Greenhouse gases – Requirements forgreenhouse gas validation and verification bodies for use in accreditation or otherforms of recognition and ISO/IEC 17021 Conformity assessment – Requirements forbodies providing audit and certification of management systems that are at least
as demanding as the requirements of the International Standard on Quality Control 1and comply with the Code of Ethics for Professional Accountants issued by
the International Ethics Standards Board for Accountants.
LRQA ensures the selection of appropriately qualified individuals basedon their qualifications, training and experience. The outcome of all verification andcertification assessments is then internally reviewed by senior management toensure that the approach applied is rigorous and transparent.
LRQA is LG Chem’s certification body for ISO 9001 and ISO 14001. We also
provide LG Chem with a range of training services related to management systems.
The verification and certification assessments, together with the training, arethe only work undertaken by LRQA for LG Chem and as such does not compromise
our independence or impartiality.
Dated: 29 June 2023
Tae-Kyoung Kim
LRQA Lead Verifier
On behalf of LRQA
2nd Floor, T Tower, 30, Sowol-ro 2-gil, Jung-gu, Seoul, Republic of Korea
LRQA reference: SEO00000269
LRQA Group Limited, its affiliates and subsidiaries, and their respective officers, employees or agents are, individuallyand collectively, referred to in this clause as 'LRQA'. LRQA assumes no responsibility and shall not be liable to any
person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever
provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or
advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract.
The English version of this Assurance Statement is the only valid version. LRQA assumes no responsibility for versions
translated into other languages.
This Assurance Statement is only valid when published with the Report to which it refers. It may only be reproduced inits entirety.
Copyright © LRQA, 2023.

189

190

PERFORMANCE DATAASSURANCE STATEMENT

191

We value your feedback. We welcome any questions,comments or suggestions you may have regarding this reportand our performance.

Please contact
LG Chem Sustainability Strategy Team
Address: 128, Yeoui-daero, Yeongdeungpo-gu, Seoul 128 LG Twin Tower
07336, Republic of Korea
Email: sustain@lgchem.com

Related Information
Annual Business Report
Corporate Governance Report
LG Code of Ethics
Compliance Guideline
Responsible Sourcing Policy
Supplier Code of Conduct
Global Human Rights and Labor Policy
Social Partnerships
LETZero Product Book