LG Innotek strengthens the substance of ESG management

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  • The company has released the 2021-2022 Sustainability Report which includes its ESG performance.

– The company declares carbon neutrality in 2040 and joins RE100.

– “The key players in ‘CX Innovation’ are employees.” The company plans to step up its PRIDE activities.

The company separates the Chairman of the Board of Directors and Chief Executive Officer and appoints a woman to his new outside director position to establish sound corporate governance.

  • Cheoldong Jeong, the CEO, says“The company will continue to strengthen the substance of its ESG management.”

Seoul, South Korea, July 29, 2022 /PRNewswire/ — LG Innotek (Managing Director Cheoldong Jeong) announced on July 12 that it had released ‘2021-2022 sustainability report‘, which includes its ESG (environmental, social, and corporate governance) management activities and performance for the year. This report summarizes the company’s efforts after announcing 2021 as the first year of ESG management and outlines its future ESG management strategies.

According to the report, the company has established the following three strategies and plans to implement them conscientiously: to Add substance to ESG management by linking it to their business strategies and performancece; to Conduct activities that focus on its key ESG objectives, taking into account its resources and capabilities; to Strengthen its ability to implement its ESG plans by internalizing its organizational ESG culture.

LG Innotek established an ESG committee on its board last year and this year built a team dedicated to ESG management. In addition, the company appointed Chang Tae Kimthe Chief Financial Officer, to the Chair of the ESG Committee to strengthen its ability to implement its ESG plans in collaboration with the departments that have expertise in their fields.

This report shows the company’s ESG performance, specifically its notable results achieved during the year environmental area. The company last March announced a goal of becoming carbon neutral by 2040, while also setting out a RE100 plan to source 100% of its electricity from renewable sources by 2030. It is on track to join RE100 earlier this month.

LG Innotek has also reaped some rewards when it comes to resource recycling. Last year, the company recycled more than 88% of the waste it produced. Especially his gum factories 2 and 3 recycled 22,000 tons of waste and reduced greenhouse gas emissions by almost 970 tons. This is the factories were rated platinum by ZWTL (Zero Waste to Landfill) last year. The platinum grade is the highest grade a company can receive. The company plans to obtain the ZWTL certification in all production sites South Korea until the end of this year.

The company’s water resource recycling rate for 2021 was 53.4%, which is comparable to 2020. However, if the amount (ton) of water resources consumed was divided by its revenue (100 million KRW) the resulting water usage rate fell by 33.7% compared to the previous year. To acknowledge this, the Carbon Disclosure Project (CDP), a climate change assessment organization, A-listed LG Innotek in water management, which earned the company the “Best Company in Water Management” five years in a row starting in 2017.

The report summarized in the social area various activities carried out by LG Innotek for joint growth with its partner companies. The company signed with its partner companies a ‘ESG Support Agreement for Suppliers’ At the beginning of last month, for the first time in the electrical and electronics industry, comprehensive support for partner companies through the development of ESG goals, training courses, competence diagnostics, consulting, etc. LG Innotek operates a joint growth fund of KRW 103 billion for the partner companies so that they can borrow money for their management at a lower than the market interest rate. As a result of these activities, the company was selected as one of the awarded for five consecutive years and selected as the top honorable company in the Win-Win Growth Index run by the Korea Commission for Corporate Partnership.

LG Innotek recognizes that the main agents of Customer Experience (CX) innovation are employees and have been running PRIDE activities since 2020 to increase the pride of its employees. The PRIDE activities include various activities to drastically change the ways, systems and ways of working. In 2022, the company plans to further intensify PRIDE activities.

Last year the company spent a total 4.17 billion KRW for his activities in the area of ​​corporate social responsibility. The money was spent on activities to promote the education and well-being of youth and to help disadvantaged people become financially independent. This year the company plans to spend in total 63 billion KRW.

In which governance sectorLG Innotek has laid the foundation to strengthen its transparency and establish sound corporate governance. In March of this year, the company separated from the CEO out as Chief Executive Officer and appointed a woman (Heejung Lee, Professor at Korea University School of Law) to a new position as External Director to ensure diversity. At the general meeting of shareholders, three external directors were appointed to the audit committee of the board, thereby strengthening the independence of the audit committee.

The company has also actively pursued a shareholder-friendly policy. Last year, its dividend was for shareholders KRW 71 billion, which is four times the previous year’s dividend. The company also announced that it will maintain the dividend payout ratio of 10% or higher for the next three years (fiscal years 2022-2024) based on the consolidated financial statements.

Cheoldong Jeong, the CEO said, “2021 has been a tough year due to the unrelenting pandemic and global supply chain slowdown. Despite this, the company has achieved significant business results.” He added: “LG Innotek will strengthen the substance of its ESG management to continue to grow with its stakeholders, including its customers, partner companies and society.”

The sustainability report can be found on the LG Innotek website (www.lginnotek.com).

About LG Innotek Co.,Ltd

LG Innotek is a state-of-the-art materials and components manufacturer and a subsidiary of the LG Group. The company’s businesses include core components for mobile, automotive, display, semiconductor and IoT products. In addition, the company has worked closely with mobile device, home appliance and automotive manufacturers, producing camera modules, automotive electronic components, wireless communication modules and substrate materials.

LG Innotek is headquartered in Seoul, Korea and its sales offices are located in Germany, United States of America, China, Japanand Taiwan with production sites in China, Vietnam, Indonesia, Mexicoand Poland. For more information, visit the website: www.lginnotek.com

SOURCE LG Innotek

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