2018-2019 Sustainability Report Applies the ‘Core Option’ of the Global Reporting Initiative (GRI) Circular Economy 048 Standards with Appropriate Modifications
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GROWTH & CHANGE FOR A BETTER LIFE 1. 2. Report Overview 2018-2019 LG Electronics has expressed our commitment to sustainable growth and change by establishing three mid- to LG ELECTRONICS CORPORATE OVERVIEW SUSTAINABILITY COMMITMENTS long-term goals for sustainability management and nine major tasks to be achieved by 2020 or 2030. SUSTAINABILITY Management Philosophy 004 Mid- to Long-term Goals for Sustainability 020 This report has been compiled for LG Electronics to share our efforts in achieving our sustainability management Management REPORT Message from the CEO 006 goals with our stakeholders. It shows in detail the management approach (MA), activities and performances, Intelligent Life 022 goals and progress by linking key issues derived from a materiality assessment to the company’s sustainability Message from the Management 008 ealthy Life 028 management goals. In the interest of transparency, LG Electronics plans to publish a report every year to disclose CONTENTS Who We Are 010 Green usiness 032 our progress in achieving our mid- to long-term sustainability management goals to the stakeholders. What We Do 012 ero Carbon 036 Reporting Principles and Standards Product Responsibility 040 LG Electronics’ 2018-2019 Sustainability Report applies the ‘Core Option’ of the Global Reporting Initiative (GRI) Circular Economy 048 Standards with appropriate modifications. It complies with 10 principles—in the categories of human rights, Sustainable Supply Chain 052 labor, the environment, and anti-corruption—of the United Nations Global Compact (UNGC), a non-binding pact which encourages businesses worldwide to adopt sustainable and socially responsible policies and to report on Decent Workplaces 058 their implementation. In addition, this report satisfies the four principles (Inclusivity, Materiality, Responsiveness, Social Contribution 064 and Impact) of the AA1000APS (Account Ability Principles Standard), including the obligation to explain sustainability management. Reporting Period This report covers activities undertaken from January 2018 to December 2018, including some key activities 3. 4. conducted until the first half of 2019. LG Electronics is fully aware of the concerns of stakeholders and always strives to respond to such concerns. SUSTAINABILITY FACT BOOK APPENDIX As for quantitative performance, LG Electronics has included three-year data from 2016 to 2018 to facilitate With Our Customers 072 Sustainability Management 100 identification of trends. Performance Data With the Environment 076 EESH·Quality Certification Status 110 With Our Suppliers 080 Scope of Report MembershipAwards Recognition 111 This report covers the activities of the headquarters, Korean and international production sites and sales With the Community 082 Materiality Assessment 112 corporations operated by LG Electronics. Consolidated financial information is prepared in accordance with With Our Employees 086 Independent Assurance Statement 114 the Korean International Financial Reporting Standards (K-IFRS), and some financial information prepared Corporate Governance 090 on a stand-alone basis is presented with a footnote. In the case of social and environmental information, the GRI Standards Index 116 Jeong-Do (Right-Way) Management 092 reporting scope has been annotated in the event of any restriction on the collection of the data. istory of Sustainability Reports 120 Compliance Risk Management 094 Publication Third Party Assurance Fair Trade 096 This report has been verified by an independent assurance corporation (DNV GL) to ensure the accuracy, objectivity and credibility of the report preparation process and all the information created, and the verification was completed in accordance with international verification standards. The results of the third party assurance are detailed on pp. 114-115. The financial information provided in this report has been audited by an independent auditor, and assurance on greenhouse gas emissions and energy usage was carried out in accordance with the verification principles such as ‘Administrative Guidelines for Operation of Emission Trade System’ . GROWTH & CHANGE FOR A BETTER LIFE More information on the sustainability management activities of LG Electronics can be found here. LG Electronics Corporate Website | http://www.lg.com Management Philosophy 004 CORPORATE Message from the CEO 006 Message from the Management 008 Who We Are 010 OVERVIEW What We Do 012 CORPORATE OVERVIEW CORPORATE MANAGEMENT PHILOSOPHY LG Way COMMITMENTS SUSTAINABILITY The LG Way articulates our belief in attaining the vision of becoming the “o. LG” through “Customer - Value Creation” and “People-Oriented Management” as the guiding principle for our thoughts and actions as we stay true to the spirit of “eong-o Management” in our everyday practice. LG Trusted by Customers LG Feared and Respected by Competitors BOOK FACT SUSTAINABILITY Capture the hearts of customers with Produce strong results through “No.1 Management” exceptional quality and brand value. and become an industry leader feared and respected by competitors. CUSTOMERS What we ultimately aspire to achieve COMPETITORS through eong-o Management and its two tenets -- “Customer - Value Creation” and “People-Oriented VISION Management” -- is to become the “o. APPENDIX LG,” a maret-leading company recognied and respected by industry peers as well as the broader maret. INVESTORS LG Coveted by Talented Professionals EMPLOYEES LG Favored by Investors Create a great workplace that inspires talented ecome a favorite investment option for professionals to work with passion and drive. investors by delivering high profits. Management Principles Behavioral Mode Our management principles consist of “Customer - Value Creation” eong-o Management epresses our commitment for strengthening our fundamental that conveys our business obective and “People-Oriented competitiveness continuously and competing fairly as we base our professional conduct and Management” as our operating principle. business practices on the ethical management standards articulated by eong-o Management. People-Oriented Management Fair Transaction Fair Competition Customer-Value Creation Integrity Self-management and creativity / Respect for human dignity Provide equal opportunities ased on Merit Customer first / Delivery of substantive Work transparently according to / Capability development and actualization / and fairtreatment in every Improve capabilities with which one / Innovation-driven creation principles and standards Performance-based reward transactional relationship can fairly win the competition Three Core Elements of ‘Jeong-Do Management’ 004 2018-2019 LG Electronics Sustainability Report 005 CORPORATE OVERVIEW CORPORATE MESSAGE FROM THE CEO SUSTAINABILITY COMMITMENTS SUSTAINABILITY Message from the CEO Using innovative technologies as our foothold, LG Electronics pledges to add higher value to our customers' lives and leap forward as a sustainable company through our strategies of growth and change. We promise to contribute to the sustainable development of our society SUSTAINABILITY FACT BOOK FACT SUSTAINABILITY by fulfilling our social responsibility as a global corporate citizen. To our valued stakeholders Second ased on our bold attempts to change the mindset of our employees, LGE hopes to foster Structural uncertainties in the global economy, increasing competition in industry, and shifts LGE will establish a corporate culture a young, energetic corporate culture where employees endeavor to become the global No. 1. in technological paradigm with AI (Artificial Intelligence) and big data act as both challenges where employees never stop striving even LGE will motivate all employees to freely communicate, actively propose ideas for organi- for sustainable growth as well as opportunities to reinforce fundamental competitiveness in the midst of failure. zational change, giving them the ability to help us achieve our goals. Furthermore through of companies. LG Electronics actively responds to the changing industrial environment by the pursuit of work-life balance, LGE will enhance work efficiency and create a working APPENDIX launching products to lead the market through innovation and developing new business environment where the employees can demonstrate their creativity and professionalism. areas to continuously generate performance. These are the rewarding results of our em- ployees’ efforts in challenging the impossible with creative ideas motivated by a common Lastly LG Electronics intends to create sustainable social and environmental value through goal- providing our customers with a better quality of life. LGE plans to further explore and to become a ‘company that creates a its mid-to long-term goals in sustainability management, established last year. LGE will implement proprietary methods to generate revenue from our key businesses, and through better life for everyone’ LGE will carry out demonstrate its top competence in areas where it can deliver its best performance, includ- improved efficiency, concentrate existing resources on new growth businesses to secure a sustainability management activities for ing product development, the establishment of carbon neutrality and circular systems, the basis for long-term growth. To this end, LG Electronics will abide by the following three poli- the creation of social and environmental creation of high-quality jobs and social contribution activities. In addition, LG Electronics will cies to fulfill its social responsibilities. value. fulfill its social