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EESH Management

Global EESH Management System

LG Electronics has contributed to building cleaner and safer society as well as reducing risk through EESH Management process for all of business sites. Especially, we have raised efficiency and execution ability for EESH management through establishing Global EESH policy and PEMI (Plan, Execution, Monitoring, Improvement) cycle.

Global EESH System Operating Process

Environment Safety Group (ESG) laid the foundation for the operation of LGE’s global EESH standards by integrating its PEMI (plan, execution, monitoring, improvement) cycle as well as its global EESH policy. In addition, ESG has facilitated PEMI activities at all of LGE’s business sites through 12 core elements.

INTEGRATED GLOBAL EESH MANAGEMENT SYSTEM

ACTIVITIES OF PRODUCTION SITES

- Energy

LG Electronics has integrated various energy consumption indicators into GHG emissions and reductions and manages them accordingly. Also it has obtained the ISO 50001 (Energy Management Systems) certification for all production sites in Korea and key R&D facilities to facilitate the enterprise-wide reduction of energy consumption.
In 2013, LGE reduced 199,000 tons of GHG emissions associated with production compared to 2008 through such activities as production process innovation, facility/operation efficiency improvement, renewable energy use, etc.

Major activities for reducing energy consumption include: expansion of renewable energy facilities and investments (solar power generation systems at production sites, waste heat recovery systems); adoption of high efficiency equipment (high efficiency cooler and cooling towers for Plasma Display Panel production); implementation of the building management system (BdMS); and improvement of energy consumption and utility equipment efficiency.

- Reducing water use

LG electronics manages the amount of water it uses and reuses at global production sites and major R&D facilities. in 2013, the total volume of water used at our business sites amounted to approximately 11.5 million tons, and 640,000 tons of the water was reused. we estimate that the volume of water used at our business sites will continue to increase due to production capacity expansion (including solar panels) and our growing business portfolio (new businesses, including evcomponents). Despite the upward projection for water use at our sites, LG electronics set a target to reduce 20% of water use by 2020, compared to 2007 (intensity target per revenue in KRw). To this end, we are implementing a wide range of conservation efforts to manage water use and reuse. For instance, the seocho R&D Campus in Korea collects and recycles rainwater, and the noida plant in india built a zero discharge system that recycles all industrial wastewater from the plant and reuses it after treatment. in 2013, we established a water inventory of our production sites in Korea and completed third-party validation of the data.

- Environment

Minimizing discharge of waste

LG electronics makes ongoing efforts to treat the waste we generate and discharge in a safe manner, i.e. minimizing the amount of waste to be buried or incinerated, and dentifying more items to recycle. Based on such efforts, we now recycle disposed refrigerator doors that used to be incinerated, and reuse wooden pallets. we also increased the overall recycling rate to 3% by improving the efficiency of our production processes and make continuous efforts to reduce carbon intensity per KRW. In 2014, we will make continuous efforts to minimize waste generation and emission by setting internal targets for keeping the waste treated by landfill or incineration to a minimum and by improving the system to facilitate phased reduction efforts.

TOXIC1) (to land, water, air)
−No toxic chemical releases to land, water, air
−No toxic chemicals listed in EPA TRI
1) Mexico (Reynosa, TV Factory), KOREA (Pyeongtaek, TV R&D center)

- Safety

LG Electronics takes worksite safety very seriously and pursues every possible precaution to prevent accidents from occurring at its production sites and diligently prepares to handle emergency situations. At ChangwonⅡPlant, LGE introduced a Behavior-Based Safety (BBS) program to prevent accidents caused by human error.
This safety program detects human error in advance and prevents any accidents from happening, and will be implemented at all LGE production sites in Korea.

- Enhancing fire Prevention Efforts

LG electronics carries out a wide range of projects to enhance our fire prevention capabilities on an annual basis. in 2013, we cooperated with reinsurers and engaged in diverse efforts, such as “Fire Risk Index” setup, cost-benefit analysis of fire risk management, and gap analysis against advanced chemical management systems.

fire Risk index
Based on advanced standards for disaster risk management including the FM Global1)standards and the nFpaCode2), LG Electronics identified 20 key fire safety factors from the viewpoint of reinsurers. we assessed all our Korean sites and overseas production subsidiaries (China, Russia, india, etc.) against the key factors and made necessary improvement efforts. through these activities, we have developed a standard index against which we can assess the fire safety performance of all our business sites across the world. the index also enables us to make comparative analyses of business sites and to establish site-specific improvement measures.

Cost-Benefit Analysis for fire Risk Management
This analysis was performed to quantify fire risks at our business sites through the event tree analysis (eta), calculating the amount of potential losses before/after improvement efforts by applying a set frequency to the amount of losses per key production process incurred by fire, and reduced the amount of potential losses through investments. our analysis on the solar panel plant at Gumi identified a total of 44 improvement points. we selected the top 22 items in terms of Roiand made investments accordingly to bring down annual potential losses by 65.5% (from KRw1.23 billion to KRw0.42 billion)

- Promoting Employee health Promotion & Enhancing working Conditions

LG electronics operates the Total Health Promotion program on an annual basis to promote and protect employee health. Based on the results of regular medical check-ups, we provide health consultations to employees with diagnosed conditions, and help our employees cope with emotional stress with counseling centers. we also maintain permanent medical staff (medical doctor or nurse) at all our Korean and overseas business sites to ensure immediate responses to medical emergencies and to facilitate on-site management of employee health.
in partnership with the seocho Community Health Center in Korea, the seocho R&D Campus and the woomyeon R&D Campus operate a health program for employees with metabolic syndrome. in 2013, the program selected 119 employees as subjects for intensive management and offered disease education, nutritional consultation, physical training, and U-Health rental devices. thanks to extensive support, program participants have made great improvement, with 88 enrollees (73.9%) lowering their exposure risk level by 1 point or more. LG electronics also makes diverse efforts to improve working conditions for its employees. For instance, we analyzed the cause of loud noises (close to 90 dB) from a welding production line (refrigerator uknit) at the Changwon plant and, based on our analysis, replaced equipment and developed a new technology to reduce the noise level by up to 12 dB. we were also able to cut additional 11 dB by improving air guns used in the production process. LG electronics is committed to promoting employee health and improving working conditions and intends to continue its ongoing efforts in these areas.

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