Jung Cheol-dong, President of LG Innotek, Emphasizes "Strengthening ESG Management" ... Announces ESG Performance

Publication of the ‘2021-2022 Sustainability Report’ Highlighting ESG Performance

[Asia Economy Reporter Park Sun-mi] LG Innotek has demonstrated its commitment to strengthening ESG (Environmental, Social, Governance) management by publishing the ‘2021-2022 Sustainability Report,’ which details its ESG management activities and annual achievements.

According to the report released on the 12th, LG Innotek has established an RE100 plan to convert 100% of its electricity consumption to renewable energy by 2030. To expedite this plan, the company completed the RE100 membership registration process earlier this month.

LG Innotek also plans to obtain the ‘Zero Waste to Landfill’ certification for all its domestic business sites by the end of the year. Last year, the company’s overall waste recycling rate exceeded 88%, with the Gumi 2 and 3 plants recycling 22,000 tons of waste, reducing nearly 970 tons of greenhouse gas emissions.

In terms of social contribution activities, LG Innotek plans to invest a total of 6.3 billion KRW by the end of the year. Last year, a total of 4.17 billion KRW was invested. In the governance sector, the company has established a foundation for transparent information disclosure and sound governance. In March of this year, the roles of the chairman of the board and the CEO were separated, and to enhance diversity, a new female outside director, Professor Lee Hee-jung from Korea University Law School, was appointed. The audit committee under the board of directors is composed entirely of three outside directors appointed at the general shareholders’ meeting, further strengthening the independence of the audit committee.

LG Innotek has also actively pursued shareholder-friendly policies. Last year, the total dividend amount reached 71 billion KRW, more than quadrupling compared to the previous year. The company also disclosed a dividend policy to maintain a payout ratio of over 10% for the next three fiscal years (2022?2024) based on consolidated financial statements.

President Jung Cheol-dong said, “2021 was a challenging year due to the ongoing pandemic and global supply chain slowdown, but we achieved meaningful management results. LG Innotek will continue to solidify its ESG management to ensure sustainable growth and development together with stakeholders such as customers, partners, and local communities.”