Conflict Minerals

LG Electronics is inspecting and assessing suppliers and smelters to address social issues that may arise in the production and procurement of major raw materials and minerals as well as evaluating and managing risks in the supply chain. In addition, we are providing training to suppliers on improving awareness of the use of responsible minerals and making efforts to establish a sustainable supply chain through the use of certified smelters.

  • Work with only RMAP-conformant smelters 100%

    • We Prohibit the use minerals mined in conflict areas or those that violate labor/human rights or cause environment damage during the mining process.
    • We monitor the origin of the four major conflict minerals (tantalum, tungsten, tin and gold) used in our products and components, and require RMAP(Responsible Mineral Assurance Process) certification for and refiners in our supply chain.
    • We monitor the origin of the four major conflict minerals (tantalum, tungsten, tin and gold) used in our products and components, and require RMAP(Responsible Mineral Assurance Process) certification for and refiners in our supply chain.
    • We provide education for our suppliers to improve awareness of responsible mineral use, and alongside, LG Chemical and LG Display, we jointly recommend our suppliers to use RMAP-certified smelters.
    • Aside from the four major conflict minerals, we are also participating in global activities to trace the origin of minerals, such as cobalt and mica, that may be associated with issues including forced labor and child labor.
    • RMAP certification for Tantalum smelters is completed, and Tungsten and Tin is certified in 2020, gold 100% certification will be completed by 2021.

| Conformant Smelter Management |
Target: Achieve 100% use of RMAP-conformant smelter in 2021
Tantalum (Unit: Smelter)
Conformant
2018 36
2019 36
2020 34
Active
2018 0
2019 0
2020 0
Non-conformant
2018 0
2019 0
2020 1
Tin (Unit: Smelter)
Conformant
2018 72
2019 73
2020 53
Active
2018 1
2019 0
2020 6
Non-conformant
2018 6
2019 10
2020 24
Tungsten (Unit: Smelter)
Conformant
2018 40
2019 49
2020 40
Active
2018 0
2019 1
2020 1
Non-conformant
2018 2
2019 0
2020 4
Non-conformant
Conformant
2018 99
2019 102
2020 103
Active
2018 3
2019 0
2020 1
Non-conformant
2018 26
2019 11
2020 7
*RMAP(Responsible Mineral Assurance Process) : a due diligence and assurance program by the RMI for smelters not using conflict minerals

  • Conflict Mineral System

  • Conflict Mineral Management Policy

    • LGE conducts due diligence on materials supplied by 1st-tier suppliers to ensure our responsible mineral sourcing criteria are met.
    • All our 1st-tier suppliers are required to document their conflict mineral screening and grounds and submit information to the LGE Conflict Mineral Management System
    • We also check whether 2nd-tier or lower tier suppliers use or supply conflict minerals. We require all smelters in our supply chain to be RMAP-conformant or certified by other industry accepted mechanism, and maintain close communication with our suppliers and partners to promote the certification process.

  • Conflict Minerals Management Standards

    • LGE has established a conflict minerals management standard to implement the requirements and processes of the conflict minerals management in accordance with the reporting standards of the US SEC (Securities and Exchange Commission) and the OECD Guidance.
    • Conflict mineral management standards apply to all products solely developed, produced, sold and supplied by LG Electronics, to all products and raw materials developed and produced by our suppliers, and to all products and raw materials developed by LG Electronics but produced by our suppliers
    • LG Electronics regularly reviews and revises the standards and provides training to LG Electronics members and suppliers to guide the requirements of the standards.

  • Conflict Minerals Managing System

    • LG Electronics operates a global unit responsible for complying with policies and standards concerning responsible minerals, fulfilling social responsibilities, purchasing and procuring minerals, and taking the following measures to ensure that programs for responsible mineral procurement are effectively implemented:
    • Global communication via the website and email(conflict-mineral@lge.com)
     - Analysis of external status including customer requests, regulatory compliance, use of RMI tools, international forums, NGO and media requirements
     - Conflict Minerals Management System (HSMS/CMMS) operation of the on a regular basis to manage changes concerning our suppliers and to maintain/improve information on certain smelters
     - Internal report and request for support to improve the effectiveness of the conflict minerals management program, and response to customer requests and risks Participation in the RMI working group (conflict mineral due diligence, smelter participation requests, and disclosure of information on minerals) to support inspection activities and the identification of mineral origins, as an RMI members


    * RMI provides the status of conflict minerals of global smelters to its members and organizes a forum to share best practice to resolve issues.
    * Conflict mineral website - https://www.lg.com/global/conflict-minerals-business-partner


  • Inspection and Due Diligence of Conflict Minerals and Risk Assessment

  • Inspection and Due Diligence of Conflict Minerals and Risk Assessment

    • LGE uses the HSMS (Hazardous Substances Management System) and the CMMS (Conflict Minerals Management System) to collect information about conflict minerals in its materials
    • All our suppliers, smelters, and refiners are required to submit information on the production and procurement of conflict minerals including tantalum, tin, tungsten, and gold contained in both primary and secondary raw materials.
    • Since 2019, we have also collected the origin of cobalt in addition to the four major conflict minerals
    • When suppliers or others submit information about conflict minerals contained in raw materials, we cross-check the information with our conflict minerals management system. Then, we use the HSMS to check whether conflict minerals or cobalt are included in the raw materials.
    • We collect information about suppliers that use conflict minerals through the results of RMI’s RMAP due diligence and its certifications, RCOI (Reasonable Country of Origin sourcing Information), and other available data, based on which we check the origin of the conflict minerals and identify major risk factors.

  • Risk Assessment Conflict Minerals

    • LGE assesses the level of risks in the procurement of conflict minerals and cobalt based on the data about their raw material, origin, and smelter or refiner RMAP validation status, and presents the process and ways to respond according to the level.
    • Since May 2020, we have conducted monthly monitoring on information concerning conflict minerals and cobalt submitted by our suppliers.
    • Through such monitoring, we are inspecting components and suppliers using prohibited smelters, faulty smelters, and non-conformant smelters.
    • We are requesting and checking for accurate information on the origin of conflict minerals and cobalt products from 1,886 suppliers whose origin and distribution channels are registered, and are taking necessary measures such as suspending transactions for suppliers, smelters, and refineries that are deemed to be at high risk or have no potential for improvement.

| Risk Assessment Process of Conflict Minerals |
Inspections • Inspect whether conflict minerals and cobalt are included in the supplied raw materials   - HSMS (Hazardous Substance Management System)   - CMMS (Conflict Mineral Management System) Due Diligence • Reflect the status of RMAP conformance according to RMI's due diligence program • Check the risk of conflict minerals and cobalt in the supply chain according to the RMI's due diligence • Monitor on a monthly basis   - Manage the status of faulty/prohibited/non-conformant smelters Assessments • Evaluate the risk level of conflict minerals based on the results of due diligence (e.g. RMI) and encourage suppliers with high risks to make improvements Inspections • Inspect whether conflict minerals and cobalt are included in the supplied raw materials   - HSMS (Hazardous Substance Management System)   - CMMS (Conflict Mineral Management System) Due Diligence • Reflect the status of RMAP conformance according to RMI's due diligence program • Check the risk of conflict minerals and cobalt in the supply chain according to the RMI's due diligence • Monitor on a monthly basis   - Manage the status of faulty/prohibited/non-conformant smelters Assessments • Evaluate the risk level of conflict minerals based on the results of due diligence (e.g. RMI) and encourage suppliers with high risks to make improvements