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In this installment of On the Job, we go inside LG’s ESG department and take a look at how they’re promoting excellence in ESG.  
In recent years, companies like LG have been incorporating environment, social and governance (ESG) factors into their business strategies and operations since an awareness of the need for ESG in business has become much bigger. As a responsible corporate citizen itself, LG recognizes the importance of applying ESG practices to its day-to-day operations if it wants to achieve its ambitious goals.

With this in mind, the company enlarged its ESG department early this year to carry out its mid-to-long-term ESG vision and strategic tasks. The extended department is responsible for leading the ESG Committee which meets twice a year to deliberate and decide on the company’s overall ESG management activities in detail.

To inspire greater transparency when it comes to ESG communications, LG’s ESG department publishes an
link hidden, please login to view to clearly outline the company’s achievements, goals and plans to its external stakeholders. This year, LG thought its 2022 edition would be the perfect opportunity to unveil its sustainable vision of a Better Life for All, under which the company is expanding the scope of its sustainable practices to create a better life for not only its customers, but for its employees, suppliers and the environment as well.
To carry out this vision, the company launched which shines a bright light on the company’s six commitments by facilitating carbon neutrality, circular economies, eco-conscious products, sustainable supply chains, an inclusive organizational culture and accessible products and services.
One aspect the department is focused in on this year is ensuring all LG employees are on the same page when it comes to the company’s overarching efforts and goals. “In order to strengthen ESG management, all employees and stakeholders should have a high level of understanding of ESG,” said Hong Sung-min, head of LG’s ESG Department.

To get the job done in the timeliest manner, the department institutionalized a mandatory training program for all LG employees. This 30-minute online learning video session introduces the meaning and importance of ESG, LG’s mid-to-long-term plan and the six commitments we have committed to as one. The session was first rolled out to Korean employees on mid-November and was then expanded to employees working at its global offices two weeks later.

The learning session has already received an overwhelming response from LG employees in Korea. “One employee stated that the video lecture explained the company’s ESG vision and commitments clearly so that everyone could understand, and that it was a great opportunity to think about how it applies to his work,” remarked Kim Eun-gyeong, an associate of the ESG department.
To build an inclusive organizational culture, LG is making a conscious effort to carry out ESG activities with employees, with the ESG department actively collecting and applying ideas and feedback from employees. As a result, earlier this year, the company challenged its employees to come together in the collective journey towards circularity by using reusable cups at its headquarters buildling, LG Twin Towers, in Korea. By eliminating the use of paper cups in the office, the company expects to reduce 11 tons of greenhouse gases every year. The company even installed easy-to-use tumbler washers as well as ice makers in office lounges to make the transition easier.
LG Electronics North American headquarters campus located in Englewood Cliffs, New Jersey,
awarded by the U.S. Green Building Council with the 2021 USGBC Leadership Award for its LEED Platinum distinction.
The company also has an ESG Council, overseen by the CFO, that is held quarterly to discuss the direction of ESG management activities as well as the progress and improvement of specific tasks. Made up by decision makers from across various departments, including strategy, planning, energy, human resources, purchasing, R&D and marketing, the council discusses tasks necessary to achieve the company’s ESG goals, such as the use of renewable energy, measures to respond to greenhouse gas emissions in the supply chain, the establishment of diversity and inclusion policies as well as improvement of governance structure.
To go above and beyond, LG aims to strengthen its ESG management next year by expanding the number of eco-friendly elements utilized throughout the entire life cycle of household appliances, ranging from production and use to recovery and recycling. The ESG department has even recently set up ‘Eco-Friendly Supply Chain’ and ‘Eco-Friendly Packaging Strategy’ task teams to promote a leading circular economy.

Going forward, LG’s forward-thinking ESG department hopes to emphasize the authenticity of its ESG practices by establishing specific plans that help implement its commitments and realize its ESG vision, based on external environmental analysis and internal business analysis while ensuring to disclose all related information to its various stakeholders for a level of transparency it can be proud of.
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