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.

To be a Global Top EESH Company, LG Electronics has developed a roadmap for strategic tasks. We will Establish EESH framework through developing systems such as establishment of Global EESH Standard in 2009, Strengthen execution ability through development of Audit and education program in 2010, Operate integrated EESH management system globally in 2011,

2009 - Establishment of Global EESH Standard - Establishment of GHS System - Development application of Environmental indicators) - Support for EESH management of overseas sites

2010 - Establishment of Global EESH Audit process - Integration of EESH management process for domestic sites - Application of corporate-wide GHS System - Establishment of EESH performance evaluation system - Introduction of BCP Process in all domestic sites

2011 - Integration of Global EESH Management process - Development of the EESH Risk Management Manual - Establishment of the health management system for overseas sites - Establishment of corporate-wide BCP Process



The 2nd Global Conference for Enhancing the Capacity of

LGE held the 2nd Global EESH Conference at the Pyeongtaek Learning Center in May 2010, participated by over 200 EESH managers from Korea and overseas. Participants discussed ways to protect the environment, reduce energy consumption, and improve safety activities. They also presented best practices and held technology seminars which improved the awareness level and formed consensus as the global enterprise. Participants were also educated about the Global EESH Management System initiated by headquarters. The conference provided an opportunity for LGE to integrate global EESH activities. In addition, managers from overseas subsidiaries visited a recycling center in Korea and learned about the advanced recycling system. EESH managers underwent various training programs for each worksite to improve their capabilities. In particular, this conference focused on introducing new technologies and enhancing the capabilities of managers, which resulted in increased NPS index among participants compared to the 1st Conference held in 2008(75% in 2008 > 78.2% in 2010).



Best Practice Expo for First-aid and Fire PreventionM

Environment & Safety Group at headquarters held a Best Practice(BP) expo for first-aid and fire prevention. A total of 11 teams participated in the expo and shared BP for fire prevention at each business site. The expo was focused on proliferating the BP and improving the employees’ capability in handling emergency situations. The event was centered not on the professionals but on the employees, which increased employee awareness. The BP expo was held for the first time in an attempt to share know-how between employees at each site and the Fire Prevention Center. LGE is planning to hold the BP expo for first-aid and fire prevention every year to improve crisis management capabilities of employees at all the worksites.



ACTIVITIES OF PRODUCTION SITES

- Energy

LGE has been continuously implementing energy conservation and GHG reduction activities. In 2010, some production sites implemented a pilot energy management system to strengthen monitoring and systematic management of energy conservation activities. Particularly, the Noida plant in India received the world’s first EN 16001 certification from the British Standards Institution(BSI). In Korea, the Changwon II plant and Pyeongtaek site received the energy management system certification, from Korea Energy Management Corporation and BSI, respectively. In 2011, LGE is planning to establish an energy management system for the Changwon I plant and Gumi site and prepare for the certification. In addition to such activities, LGE is continuously making improvements on aged and worn-out facilities to ensure a stable energy supply. Particularly, the Changwon II plant installed a 154KV transformer, a circuit breaker, and an emergency power supply back-up system to prepare for the blackout caused by cable malfunction. Please refer to page 44 for more information on energy conservation activities.

- Environment

LGE is giving its best effort to improve the manufacturing process and managing the source of pollution by minimizing emission of environmental pollution that is created during the manufacturing process. Production sites in Korea, excepting Cheongju and Gumi, are composed of mostly simple assembly process which generate less environmental pollutants compared to other manufacturing industries. However, LGE is continuously making efforts to seek out best practice to strictly manage environmental impact. At the Pyeongtaek site, the LCD module packages were previously incinerated, but they are now cleaned and reused. This was achieved through continuous cooperation with partners and resulted in saving incineration and package costs by over 3.6 billion KRW annually (based on monthly production of 30,000 units). At the Cheongju site, the amount of daily wastewater from the membrane production process was reduced from 10 tons to 5 tons, by filtering it once again before discharge. The generated waste and wastewater increased dramatically in 2010 compared to 2009 because of increasing sludge from changed manufacturing process in Gumi PDP site, waste from closed video tape plant in Cheongju site, and waste and mass production initiated from solar plant in Gumi site. Please refer to pages 80 to 82 for environmental data at other sites in Korea and overseas. In addition, LGE’s employees are continuously participating in environmental protection activities. In particular, employees are involved in various volunteer activities and participate in events on special days for the environment such as the Water day, Arbor day, Children’s day, Ocean day, World Environment day, and Recycling day, to contribute towards environmental protection for the local community.

- Safety

LGE is making an effort to identify potential accidents and share corrective measures by holding BP presentation events. The number of accidents occurring at the Changwon site is decreasing due to the identification of possible causes of accidents and shared BP cases. In addition, LGE’s Labor Union and Honorary Industrial Safety Inspector conducts cooperative investigation of the worksites to ensure a safe, working environment, and compliance with safety and health guidelines. Together with these efforts, LGE has established an accident prevention plan for every seasons and has been implementing various activities to improve awareness of safety and health among employees. In response to the increasing number of traffic due to increase of logistics and new employees at the Pyeongtaek site, LGE installed a Digital DFS(Driver Feedback Sign) system, an audible speed warning system, to prevent traffic accidents. In addition, LGE has been managing the Incident Rate(IR) index since 2008. The IR index is calculated by dividing the number of injury and illness cases with days away from work by the total working hours. Thus, lower value signifies a lower accident rate. Since its first calculation in 2008, the IR index has continuously declined.

- Fire prevention

LGE has adopted history card and management manual systems for fire prevention facilities to manage facilities in an optimal way. LGE also issues a Non-Conformance Report card to ensure the proper operation of the Standard Operating Procedure(SOP) monitoring system. All employees are trained on the usage of the fire extinguisher which is specially designed for training. In addition, employees at the Fire Prevention Center are dispatched to 119 Emergency Rescue Centers for training on fire extinguishing, emergency rescues and evacuation activities. Moreover, headquarters conducts unannounced drills so that employees can be always prepared for accidents and be aware of response measures. Every worksite has established a cooperative relationship with the local fire department for the safety of local community. For example, the Gumi site has provided direct support such as dispatch of fire engines for five times in 2010. In addition, LGE also conducts regular training to prepare against leakage of hazardous substances at each worksite. Through such activities, LGE is enhancing employees’ awareness on characteristics of hazardous substances and training them for urgent cases.

- Health

LGE has been implementing a Total Health Program(THP) to improve the health of employees. LGE is continuously promoting quit smoking and overweight management programs in all of its business sites while relieving the employees’ stress through psychiatric counseling service. Such efforts allow employees to better focus on their work. In addition, LGE is making an effort to reduce noise and improve the ventilation system for a better working environment. In case of the Changwon I plant, a tornado ventilation hood was installed to reduce welding fume, which significantly improved the working environment. Pyeongtaek site has jointly developed a web-based daily habit control program(for both on and off-line) in cooperation with a university to assist employees with a metabolic syndrome. The program includes 16 weeks of concentrated control and 2 months of post-activities. Employees learned how to self-manage their daily habits and reduced the risk of metabolic syndrome by 16%. Furthermore, every business site reduced the number of smoking rooms or isolated smoking area to prevent non-smokers from second-hand smoking, along with implementing quit smoking programs for smokers. Particularly, Changwon is soon to be declared a smoke-free site in 2011.