High Evaluation of Resource Circulation Systems Including Energy, Waste, and Water Resources
and Systematic Climate Strategies
LG Electronics has been recognized for its environmental, social, and governance (ESG) management performance and capabilities on the global stage.
LG Electronics was selected as the top 1% in the Home Appliances and Leisure Goods industry group in the 2023 Standard & Poor's (S&P) Global Sustainability Assessment. [Photo by LG Electronics Newsroom]
According to LG Electronics Newsroom on the 19th, LG Electronics was selected as a 'Top 1%' company at the '2023 Standard & Poor's (S&P) Global Sustainability Awards' held the previous day at The Plaza Hotel in Jung-gu, Seoul. S&P is a global credit rating agency.
LG Electronics was rated in the top tier, 'Top 1%', in the S&P Global 'Corporate Sustainability Assessment.' Among 109 companies in the 'Home Appliances and Leisure Goods' industry group, it received the highest score of 71 points. Out of approximately 9,400 companies across 62 industry groups evaluated, 66 companies earned the Top 1% rating. Among domestic companies, six, including LG Electronics, were selected as Top 1%.
S&P Global publishes the 'Sustainability Yearbook' based on the results of the Dow Jones Sustainability Indices (DJSI), which evaluate corporate sustainability worldwide. This report announces the 'Corporate Sustainability Assessment' results considering the previous year's performance in ESG fields. Outstanding companies are selected by industry group in Top 1%, 5%, and 10% tiers.
LG Electronics received positive evaluations in environmental and governance aspects. In particular, it achieved perfect scores in resource circulation areas such as energy, waste, and water resources in the environmental sector. It also earned high marks for its systematic climate strategy.
LG Electronics set the '2030 Carbon Neutrality' goal in 2019 and became the first domestic home appliance company to have its greenhouse gas reduction targets verified by the Science Based Targets initiative (SBTi).
In the '2023-2024 Sustainability Report' released last month, LG Electronics transparently disclosed greenhouse gas emissions by calculating all 15 Scope 3 emission categories. Scope 3 includes greenhouse gas emissions generated not only during production but also throughout the supply chain of partner companies, distribution, and consumer product usage.
The company is expanding its product lineup using recycled plastics, mainly in large home appliances, and increasing usage. It is accelerating 'plastic-free' activities, such as developing paper cushioning materials needed for product packaging.
In the governance sector, corporate ethics, innovative management, and transparent disclosure were highlighted. LG Electronics translated the 'LG Code of Ethics' and 'LG Electronics Code of Conduct' into more than 10 languages and distributed them to global business sites to encourage employees to comply with corporate ethics. Notably, this year, it announced the 'Human Rights Principles,' consolidating scattered human rights policies into one.
Under the ESG management vision of 'Better Life For All,' LG Electronics has established six ESG strategies and is carrying out various activities. The six strategies are divided into the '3C' areas for the planet (Carbon Neutrality, Circular Economy, Eco-friendly Technology) and the '3D' areas for people (Safe Workplace, Diversity and Inclusion, Product and Service Accessibility).
An LG Electronics official said, "We will continue to fulfill our responsibilities and roles in economic, environmental, and social fields and move toward a future where we can grow together."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
