Publication of 2020-2021 Sustainability Management Report
Revamping ESG Vision System and Strengthening Organization and Activities
LG Innotek employees are introducing the '2020-2021 Sustainability Management Report.' [Photo by LG Innotek]
[Asia Economy Reporter Kim Heung-soon] LG Innotek announced on the 12th that it reduced greenhouse gas emissions by 45,000 tons compared to the previous year.
According to the 2020-2021 Sustainability Management Report published by LG Innotek on the same day, the amount of greenhouse gas emissions reduced last year is equivalent to the amount absorbed by 3.9 million trees in one year. The reduction rate was 11% compared to the previous year, which the company explained is a meaningful figure considering that sales increased by about 20% during the same period. This is because, in manufacturing, greenhouse gas emissions generally increase as sales increase.
In this Sustainability Management Report, LG Innotek revealed a new vision and organization to strengthen ESG (Environmental, Social, and Governance) management, a recent hot topic in the business world. First, it established an ESG Committee within the board of directors as the highest deliberative body for ESG, and also operates an 'ESG Committee' chaired by the Chief Financial Officer (CFO) with participation from specialized departments in each area.
As major achievements of ESG activities, the report introduced greenhouse gas reduction efforts such as the adoption of renewable energy and expansion of high-efficiency production facilities. The energy cost savings LG Innotek achieved last year totaled 5.2 billion KRW. The company also expanded investments in water recycling facilities and managed water usage per unit, reducing water consumption by 7% compared to the previous year.
In the social sector, LG Innotek continues activities for employees, partners, and local communities with the goal of 'partnerships that enhance social value.' To boost employee pride, the company is promoting more than 30 initiatives including operating hub offices, building digital work systems, and improving cafeteria environments.
For partner companies, LG Innotek manages ESG risks through financial support such as a 103 billion KRW win-win growth fund and partner company diagnostic activities. For local communities, the company used a total budget of 3 billion KRW last year to carry out activities benefiting 163 domestic and international beneficiary organizations, approximately 37,000 youth, and underprivileged neighbors.
In addition, in the governance sector, LG Innotek doubled dividends compared to the previous year and introduced electronic voting systems to promote shareholder-friendly policies. To enhance management transparency, it established an independent internal audit department within the Audit Committee and created an internal transactions committee within the board of directors.
Jung Cheol-dong, CEO of LG Innotek, said, "To become a company that lasts 100 years, we must fulfill our corporate social responsibilities along with strengthening business competitiveness by enhancing customer value." He added, "We will continue to strengthen ESG management to put this into practice."
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