LG unveiled Sustainability Report to make Better Life for All, with an enduring vision to better the lives of its customers. In the LG Sustainability Report, it comprises six initiatives that detail its commitment to sustainable business practices in all areas of its diverse business operations. LG Electronics (LG) is more than just running a global business, they are also a responsible global corporate citizen too. They provide quality products and services to customers worldwide and making a positive social impact around the planet.
As with its vision, LG’s specific sustainability goals and plans for implementing related practices have constantly evolved over the years. In 2021, LG established a comprehensive framework for its sustainable practices. Key initiatives were re-established and categorised according to a new ESG structure, and corporate ESG communication guidelines were instituted for the first time. In this year 2022, LG has further refined its far-reaching program of ESG initiatives in the new ‘BETTER LIFE PLAN 2030’.
LG’s newly revealed sustainable vision aligns perfectly with its phrase, “Better Life for All“. LG has always consistently shown its commitment to providing a better lifestyle for customers through its innovative products and services, with this catchphrase “Better Life for All“, this signifies yet another step forward for the company. LG therefore is expanding the scope of its sustainable practices with 6 key ESG initiatives to create a better life for its customers, the environment, employees, suppliers, and everyone of us who call this planet Earth – Home.
“LG Electronics have come a long way since our first Environmental report two decades ago. Together with our stakeholders, we have made significant improvements to our business practices and contributed to a cleaner, greener Earth. Taking the next leap forward, LG recognizes that our strategies must evolve according to the ever-changing climate of our environment and society. Detailed in the ‘Better Life Plan 2030’, the initiatives demonstrate our steadfast commitment to creating a Better Life for All,” said Mr Chun SungHo, Managing Director of LG Electronics Singapore.
LG Electronics’ ESG Vision
1. Better Earth – To strive for carbon neutrality and the use of renewable energy
LG will achieve its carbon-neutral goal by 2030 by continuously reducing greenhouse gas emissions at the production stage through process improvement and introducing energy-saving technologies. This can be seen through LG Smart Park, this is LG’s first lighthouse factory for home appliances.
The factor reduces carbon emissions by tapping on the high pressure generated from waste steam from waste incineration plants and supplying energy to the production building. This results in a reduction of carbon emissions by 30% in 2021. LG also aims to convert to 100% renewable energy by 2050 by purchasing new and renewable energy and expanding solar power installation.
2. Better Circularity – To create a circular economy by reusing resources from waste
On the subject about sustainability, LG’s “Better Life for All“, outlines its new focus on creating a regenerative environment for the better well-being of all lives by establishing a circular economy. A circular economy has a production and consumption model that minimises waste and the extraction of new resources.
This will be carried out in several ways:
(a) LG will proactively use eco-friendly materials from the manufacturing stage to minimise environmental pollution. The LG Soundbar has incorporated polyester jersey fabric made from recycled PET bottles, and utilised recycled moulded pulp in its packaging to lower the use of EPS (polystyrene) foam and plastics.
(b) LG will recycle waste generated at production sites to create worksites with zero waste for landfilling by recovering 8 million tons of e-waste and recycling them.
3. Better Eco Products – To create products and services that consider the environment
LG will reduce carbon emissions from using its seven major products by 20% by 2030 (compared to 2020) through energy improvements to new and current products and expand the application of recycled plastics by 2030.
The 2022 LG OLED Evo TVs are a testament to this goal. The TV stand of the C2 65-inch uses a new material, making it 40% lighter than 2021’s model, resulting in a reduction of carbon dioxide emissions during transportation. Eco-friendly materials also applied to the back cover of the TV and remote control, while the packaging uses corrugated cardboard.
LG is ultimately moving on from aiming to do less environmental harm within the traditional linear economy – a system where materials are processed into products and then thrown away after use – to creating an altogether new business process that promotes the recirculation of finite resources. With this new initiative, LG is redirecting more of its environmental efforts to retrieving and recycling used products.
4. Better Workplace – To build a better supply chain through enhanced ESG risk management
While LG has always endeavoured to work closely with partners in its pursuit of sustainability, the company is further establishing guidelines to better collaborate with supply chain partners, nurture a more embracive corporate culture, and introduce products that are accessible to all.
To this end, LG will increase the inspection of production sites and have experts at each worksite to maintain management standards required by international practice to establish a safe and systematic supply chain system. Three targets have been set to achieve this goal: acquire/preserve safety and health management system certification for production sites from 87% (as of 2021) to 100%.
5. Better Society – To unfold a healthy organisational culture that embraces diversity
LG seeks to provide more opportunities for persons with disabilities and expand recruitment efforts to nurture female leaders and experts by growing the employment ratio by 3.5% and 20%, respectively, in Korea. Together, these efforts share LG’s goal of a Better Life for All.
6. Better Access – To develop products and services that are convenient for all
To create universal designs and accessible features that comfort all users, LG will enhance its research and development process and gather feedback from diverse groups of people – from elderly to children, disabled to non-disabled users. In customer service, LG will develop a technical manual for persons with disabilities to enable a barrier-free user experience.
If you would like to know more about LG’s ESG goals, key achievements and activities in the 2021 – 2022 LG Electronics ESG STORY BOOK and FACT BOOK, please visit this link.
* Information and pictures courtesy of LG Electronics and APRW *