LG Electronics is committed to creating a workplace where people are respected, safety is ensured, and everyone has the opportunity to grow.
* This image was generated by AI.
LG Electronics upholds its social responsibility to protect workplace safety, health, and human rights through its RBA1)-based production site management program. Aiming to achieve zero critical non-conformances at 100% of production sites by 2030, the company conducts self-assessments and on-site audits to identify and address both potential and actual risks. Additionally, LG Electronics evaluates suppliers' ESG management practices and provides relevant training and consulting support.
1) RBA: Responsible business alliance, the world’s largest industry coalition dedicated to promoting responsible business practices across global supply chains
* Based on 2024 performance
LG Electronics has established a systematic operating framework to practice human rights management, enabling effective collaboration among board committees, a dedicated organization, and relevant departments. Through this framework, the company pursues responsible management to protect the human rights of its employees and stakeholders.
Since first establishing its global labor policy in 2010, LG Electronics has continuously updated the policy to reflect revisions to global human rights standards and the RBA Code of Conduct.
Respect for human dignity / fair treatment / non-harassment
Prohibition of forced labor
Prohibition of child labor
Working hours
Wages and benefits
Freedom of association and collective bargaining
Compliance with labor-related laws and regulations
LG Electronics conducts human rights due diligence on all domestic and overseas production sites, as well as on its suppliers, to identify and assess actual and potential human rights risks that may arise from its business activities.
1) For local communities, the focus is on preventing negative impacts through compliance with relevant laws, and local communities’ feedback is gathered via roundtables when significant changes or issues arise at business sites.
2) In terms of customers, efforts are made to proactively prevent negative impacts across the entire consumer experience and continuously improve service accessibility, enabling diverse users to use products without inconvenience.
As a full member of the Responsible Business Alliance (RBA), LG Electronics conducts regular human rights due diligence at its domestic and overseas production sites, as well as with suppliers, in accordance with the procedures outlined in the UN Guiding Principles on Business and Human Rights (UNGPs).
30 Domestic and overseas production sites, Tier 1 suppliers
Self-assessments and on-site audits
- Total cases: 211)
- 7 Audits based on RBA standards2), 14 audits based on customer standards.
1) Self-assessments3): Low risk sites (8), Medium risk sites (22), High-risk sites (0)
2) On-site audits4): Non-compliance cases decreased by 3.4% compared to the previous year
1) Of the 21 cases, 19 were customer-requested audits and 2 were commissioned to third-party professional agencies for internal assessment purposes.
2) Third-party on-site audits (VAP, Validated Assessment Program) accounted for 5 cases, and 2 audits followed the CMA (Customer-Managed Audit) standards based on the VAP framework.
3) 'Risk SAQ (Self-Assessment Questionnaire)' from the RBA Code of Conduct 8.0 is applied.
4) Based on customer requested audits: 33 Cases in 2023, 19 cases in 2024.
LG Electronics has established an integrated SHEE (Safety, Health, Environment, and Energy) management system to manage safety, health, environment, and energy, and strives to realize its environmental management and safety & health principles. To this end, the company establishes SHEE policies and mid-to-long-term goals to embed a world-class safety culture at its domestic and overseas business sites. We also endeavor to minimize the environmental impact of our operations through thorough management of emissions, including water resources and chemical substances.
| Goals | Achievements | Plan | |
|---|---|---|---|
| 2024 | Short-term (2025) | Mid-term (~2027) | |
Achieve zero serious industrial accidents
|
0 accidents | 0 accidents | 0 accidents |
Maintain an incident rate at least 30% below the industry average
|
At or below 30% | At or below 30% | At or below 30% |
Achieve zero serious environmental/chemical accidents
|
0 accidents | 0 accidents | 0 accidents |
Develop a new platform for the SHEE Portal
|
Systematization of serious accident inspection items | Development of a new web-based platform |
|
Through LG Electronics' unique 'Safety and Health Management Policy', we have strengthened the expertise and safety training of our employees, and are striving to improve the safety and health management system and disseminate a safety culture.
For the management of global environment, safety, health, and energy, we operate various IT management systems as follows.
LG Electronics proactively identifies potential hazards in business sites through risk assessments. Regular evaluations are conducted across all business sites to detect hazardous and risk factors. Based on the results, the risks are categorized by level of severity and prioritized accordingly. When a risk factor is classified as high-risk, a detailed corrective action plan is established. Upon implementing corrective measures, a quantitative evaluation is conducted to assess the effectiveness of the improvements, based on frequency and severity.
LG Electronics has established a process that allows all employees and suppliers to stop work and evacuate in the event of an imminent danger that could lead to an industrial accident, in accordance with the rights granted under the Industrial Safety and Health Act (ISHA, Korean Act). This process is designed to protect personnel from hazardous situations that may arise during operations, tasks, or the use of equipment. In particular, when a hazardous risk factor is identified, work stoppage is enforced immediately, and a Stop Work Order (SWO) is visibly posted at the site. Once the SWO is issued, a strict protocol is followed in which the Chief Safety/Health Officer verifies that the risk has been resolved. Work may only resume after official approval is granted. This process enhances on-site safety and contributes to establishing a company-wide safety culture.
This diagram shows the step-by-step response process for managing hazardous situations at worksites.
Occurrence of a hazardous situation
Imminent risk of industrial accident
Suspension of work
Employees or contractors must immediately stop work and evacuate
Reporting
The situation must be reported to the supervisor and the site safety and health team (or safety unit).
Corrective actions
The supervisor and the head of the site safety management department must verify the risk factors and implement corrective measures. (*Work suspension remains in effect until all measures to prevent further harm are completed.)
Resumption of work
The head of the safety management department or a designated safety officer must confirm the elimination of the risk and verify the implementation of safety measures before work can resume.
LG Electronics has established a physical and mental health management plan to promote the health of its employees and operates the following facilities and programs.
We intensively manage individuals requiring follow-up and high-risk groups based on the results of regular medical checkups.
We operate an affiliated clinic, health management rooms, and psychological counseling centers to establish plans and run programs for mental and physical health promotion.
We conduct activities such as smoking cessation, metabolic syndrome management, weight management, and job stress caring.
LG Electronics has established measures to promptly respond to accidents and prevent recurrence based on its standardized accident reporting manual.
Initial report
Information report
Accident investigation and measures to prevent recurrence
Accident closing report
| Category | Frequency | Subject |
|---|---|---|
| Board reporting on safety and health | Annually | Regular reporting and approving of key safety and health matters to the board of directors |
| Occupational safety and health committee | Quarterly | Deliberation and resolution of important matters concerning the safety and health of workers |
| Executive council on safety and health | Monthly | Deliberation and resolution by executives on important matters of the safety and environment center |
LG Electronics prioritizes environmental protection as a core value of our business activities and strictly complies with environmental laws and international agreements. We continuously strive to minimize our environmental impact, setting environmental impact reduction targets in connection with the UN Sustainable Development Goals (SDGs) and working to implement them.
Download environmental management policySince 2013, we have been systematically managing the entire lifecycle of chemical substances based on our proprietary 'LG Chemical Management System (LGCMS)'. Initially applied to all domestic business sites in 2013, the system was expanded to include all overseas business sites starting in 2021. Through LGCMS, we continue our efforts for the reduction and substitution of hazardous chemical substances.
All chemical substances used for production and r&d across domestic and International business sites
Prior acquistion of chemical substance information, including Material Safety Data Sheets (MSDS) and LoC (Letter of Confirmation)
Preliminary review by speicalized departments on regulatory compliance by country and the hazards/risks of substances
Only chemical substances that have passed the preliminary screening process are permitted for receiving
Receiving allowed only after verifying appropriate storage and usage locations
All products in use are managed with chemical product labeling
Designation of chemical substance managers and training for relevant personnel
Operation and management of chemical handling facilities in compliance with legal requirements
Periodic inventory checks of chemical products to verify current status and dispose of unused products
Disposal in accordance with national waste management regulations
To comply with chemical regulations, we monitor global chemical regulations and laws to revise/amend internal standards and establish corresponding strategies. Additionally, we conduct activities for the elimination and substitution of hazardous substances in accordance with internal management standards for each of the following stages (annually).
Compliance with chemical substance handling standards and facility operation
Preparation and maintenance of MSDS/Substance specifications, etc.
Hazard review of substances for R&D purposes
Monitoring and compliance with relevant environmental laws and regulations
Review of chemical substance components used in the production stage
Conducting environmental status assessments of production sites and monitoring the improvement of identified deficiencies
Installation and operation of environmental pollution prevention facilities
Continuous operation and improvement of environmental management processes
Operation of chemical substance-related information management systems
Prior review of newly handled chemical substances
Strengthening management of hazardous chemical substances and rba-managed substances
LG Electronics effectively manages water resources by building a comprehensive water inventory, assessing various water-related risks, including source depletion, quality degradation, increased usage, and monitoring water consumption at production sites.
Risk assessment and monitoring
Based on the water inventory, we regularly assess water resources risks (water scarcity, water quality deterioration, increased usage) and monitor water consumption at production sites.
Water use efficiency improvement
We enhance water use efficiency by introducing a 'Zero Liquid Discharge (ZLD) system', which allows already used water to be recycled for landscaping or industrial purposes.
Contingency management
We prepare contingency plans for unexpected water supply disruptions by securing emergency water reserves, managing facilities to enable operation for at least two days even during a water supply disruption.
LG Electronics operates tailored training programs for employees who handle hazardous chemicals to ensure safety.
| Target group | Training content | Training method |
|---|---|---|
| For workers at sites handling hazardous substances |
Chemical substance safety management Incident response and action protocols Evacuation procedures Hazardous substance handling guidelines |
Combination of on-site safety training and online education |
| For R&D employees |
Chemical substance management Customized safety and health education tailored to laboratory characteristics |
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This table summarizes the status of environmental, safety and health, energy, and quality certifications across LG Electronics’ global operations. major international standards such as ISO 14001, ISO 45001, ISO 50001, and ISO 9001 are applied across sites in the americas, Americas, Europe, Asia, and other regions.
* Excluding newly established subsidiaries (1 in the U.S., 1 in Mexico) that have not yet stabilized mass production
** As of December 2024
Based on the philosophy of 'Trust and Communication, Change and Innovation, and Shared Destiny,' LG Electronics is creating a new future together by growing continuously with its suppliers. To this end, in addition to providing substantial support through the '5 Major Strategic Tasks for Shared Growth,' we build a better supply chain by strengthening ESG risk management as a member of the Responsible Business Alliance (RBA).
Vigorous efforts for sustainable growth with suppliers
LG Electronics has established and operates a comprehensive risk management framework to systematically identify and manage ESG risks across its supply chain.
| Classification | Unit | 2025 |
|---|---|---|
| Tier 1 suppliers1) | Companies | 1,080 |
| Core Tier 1 suppliers2) | 215 (Transaction volume: Top 70% or above) |
LG Electronics confirms compliance with the supplier code of conduct and international trade regulations when selecting new suppliers, and assesses them based on the following evaluation factors:
Suppliers
Procurement team
Compliance team
Procurement team
This diagram shows the evaluation items for new supplier assessment. Environment is a mandatory item, while other factors are weighted: Management including ESG assessment (20%), Cost (30%), Responsiveness / Delivery (10%), Quality (30%), and Technology (10%).
LG Electronics establishes management standards and conducts due diligence on relevant suppliers in accordance with the 'OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (CAHRAs)', and transparently discloses this information.
* Conflict minerals refer to Tin, Tantalum, Tungsten, and Gold (3TG) mined in the Democratic Republic of the Congo (DRC) and adjoining countries. These minerals are linked to social issues that cause severe human rights violations by becoming a funding source for armed groups.
LG Electronics conducts due diligence on whether raw materials and components supplied by Tier 1 suppliers include conflict minerals, in accordance with the OECD Guidance.
Tier 1 suppliers are required to document the conflict mineral verification procedures and evidence, register the relevant information in the LG Electronics conflict minerals management system, and verify the use of conflict minerals by tier 2 and lower-tier suppliers.
LG Electronics requires all smelters in its supply chain to secure RMAP (Responsible Minerals Assurance Process) certification. As a result, we achieved the target of 100% use of RMAP-certified smelters for 3TG (Conflict Minerals) by 2021 (Tantalum/Tungsten in 2019, Tin in 2020, Gold in 2021).
In addition to 3TG, to address social issues such as child labor, we are establishing responsible mineral sourcing practices, including commencing the tracing of cobalt in the supply chain since 2019.
LG Electronics established management standards to operate the requirements and processes of the conflict minerals management system, referencing the U.S. securities and exchange commission (SEC) reporting standards and the OECD Guidance.
These management standards are comprehensively applied to all products that LG Electronics internally develops, produces, sells, and supplies, as well as all products and raw materials supplied by our suppliers.
Comprised of departments responsible for compliance with responsible mineral policies/standards, fulfillment of social responsibilities, and mineral purchasing and procurement.
In addition to 3TG, we are establishing responsible mineral sourcing practices, including commencing the tracing of cobalt in the supply chain since 2019, to address social issues such as child labor.
* Responsible minerals initiative (RMI): Provides member companies with regular updates on global smelter mineral usage and hosts forums to share best practices for addressing conflict mineral issues.
