LG Energy Solution Establishes 'ESG Committee' to Accelerate ESG Management

The highest ESG management deliberation body for strategy formulation and mid-to-long-term goal review
Shin Minam appointed as ESG Committee Chairperson
Half of outside directors are women... enhancing diversity

Former K-Auction CEO Shin Minam (from left), Professor Yeo Misook of Hanyang University Law School, Professor Ahn Deokgeun of Seoul National University Graduate School of International Studies, Professor Han Seungsu of Korea University Business Administration Department

[Asia Economy Reporter Hwang Yoon-joo] LG Energy Solution is stepping up its ESG (Environmental, Social, and Governance) management.

LG Energy Solution announced on the 15th that it has established an ESG Committee within its board of directors.

The ESG Committee will analyze plans and performance related to ESG management activities and prepare countermeasures in case of significant ESG-related risks. The committee will meet once every six months as a rule but may convene more frequently if necessary.

The committee members consist of all outside directors (Shin Minam, Yeo Misook, An Deokgeun, Han Seungsu) and the CEO Kim Jonghyun as an inside director, totaling five members. Outside director Shin Minam was appointed as the chairperson.

At this board meeting, LG Energy Solution also resolved to establish the 'Internal Transactions Committee,' 'Audit Committee,' and 'Outside Director Candidate Recommendation Committee.'

The Internal Transactions Committee will review transactions subject to regulations against private interests under the Fair Trade Act, transactions with major shareholders and related parties under the Commercial Act, and other internal transactions requiring board approval under relevant laws to enhance transparency and fairness in internal dealings.

The Internal Transactions Committee is composed of three outside directors (Yeo Misook, An Deokgeun, Han Seungsu) and one inside director, CFO Executive Director Lee Changsil, totaling four members. Outside director Yeo Misook was appointed as the chairperson.

Additionally, the board resolved to establish the 'Audit Committee' to strengthen internal controls and management transparency and the 'Outside Director Candidate Recommendation Committee' to enhance legitimacy and fairness in the outside director appointment process. The Audit Committee consists of all outside directors (Han Seungsu, Shin Minam, Yeo Misook, An Deokgeun), with outside director Han Seungsu appointed as chairperson.

The Outside Director Candidate Recommendation Committee is composed of two outside directors (An Deokgeun, Shin Minam) and LG Chem Vice Chairman Shin Hakcheol, who is a non-executive director. Outside director An Deokgeun was appointed as chairperson.

An LG Energy Solution official stated, "We will fulfill the company's social role across all ESG areas?environment, society, and governance?and strengthen sustainable management."

Meanwhile, on the 4th, LG Energy Solution newly appointed four outside directors who are members of the ESG Committee. Shin Minam, former CEO of K Auction, is an expert in the renewable energy industry, having served as president of the Dusan Fuel Cell BU and a McKinsey consultant. Yeo Misook, a professor at Hanyang University Law School, is a legal expert who served as a presiding judge at the Seoul High Court. An Deokgeun, a professor at Seoul National University Graduate School of International Studies, is a global trade expert contributing to global management activities, and Han Seungsu, a professor at Korea University Business School, is an accounting and finance expert expected to contribute to enhancing LG Energy Solution's financial soundness.