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Product Stewardship

Eco-friendly Company
By providing more eco-friendly and competitive materials and solutions, LG Chem wants to contribute to the success of our customers as well as to create a sustainable future.

Product Stewardship Vision

VISION
Eco-product Solution Partner
MISSION
Make All Products Into Eco-Products Regulation Compliance / Internal Code Observance
CORE TASKS
  1. 01. Product Stewardship
    • Establish eco-product policy
    • Define work procedures
    • Comply with laws and regulations
    • Meet customer requirements
  2. 02. Product Safety
    • Issue MSDS
    • Assess risks
    • Assess hazards
  3. 03. Advocacy
    • Respond to new laws
    • Respond to NGOs
    • Respond to government authorities
  4. 04. Regulatory Affairs
    • Monitor laws and regulations
    • Audit regulator compliance
    • Respond to regulatory bodies

Customer Value Enhancement Respond to the Global Market (New Business Opportunities)

Eco-product Solution Partner [Eco=Ecology+Economy] : This term refers to providing business divisions and stakeholders with solutions which are effective and valuable in terms of the environment and the economy over the entire product lifecycle from R&D to disposal.

Eco-Product Development

As a company that produces and supplies globally the materials and products that are necessary for modern industries to develop and people’s convenience, we have a great responsibility for the impact that our products have on the environment and the health. Therefore, we always contemplate on how to reduce the negative impact when it does exist. As a preliminary step, we focus on reducing or removing the harmful substances included in our products. We are currently managing the content (%) of such substances to maintain these below the permitted level as set by Korea and other countries in order to minimize the products’ negative impact on environment and health. On top of that, we are working hard to increase the proportion of eco-products in our product portfolio (e.g. green energy and next-generation cutting edge materials) by developing new future-oriented technologies.

Efforts to Manage Harmful Substances

  1. 01 LG Chem thoroughly checks the management of materials based on our environmental product management practices for every product. Depending on the severity of the risk, we divide all the harmful substances into three categories. We have set our system so that no material can be purchased until after it has passed through this management verification process.
  2. 02 Using our system, all verification tasks pertaining to materials suspected of being highly dangerous and the EU REACH processing specifications are done electronically so that after they have been reviewed, the results can be checked online and a compliance certificate following a set legal format can be immediately received by our client.
  3. 03 Since 2010, information on the composition of products has been integrated into the ERP’s BOS (Bill of Substance) module. Therefore, the presence or amount of harmful substances in the products manufactured and/or sold can be monitored in real time and checked at the request of customers.
  4. 04 The receipts of an MSDS for all materials purchased from suppliers are checked, and exceptional cases are also recorded in detail via the electronic approval system. Therefore, it is possible to collect and store the MSDS for all materials electronically, which enables to identify the hazards and risks of each material.

Management of Conflict Minerals

LG Chem is fully committed to prohibiting the use of conflict minerals collected from the disputed territories thereby, taking the initiative in becoming a socially responsible company.

Overview of Conflict Mineral Disputes

'Conflict minerals' refer to four minerals (tin, tantalum, tungsten, and gold) mined in the Democratic Republic of Congo and the neighboring nations, including Sudan, Rwanda, Burundi, Uganda, Congo, Zambia, Angola, Tanzania, and 10 nations from the Central African Republic. These territories are currently controlled by militant groups of insurgents and conquering armies that mine and distribute minerals to secure funds. This practice continues to cause disputes and often results in casualties, human rights violations, and labor exploitation.
In July 2010, the U.S. Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act which lay the foundation for legal restrictions on conflict minerals. Every company, listed in the U.S securities market, must fairly disclose and annually report the use of conflict minerals to the Securities and Exchange Commission(SEC) by May 31st. Some Korean companies with obligation are also influenced by this Act, as a supplier to the U.S firms.

LG Chem's Action

LG Chem supports the prohibition of conflict minerals to prevent environmental pollution, casualties, human rights violations, and labor exploitation. LG Chem is also making an effort to comply with the regulation in support of the prohibition.
We conduct surveys on our suppliers to collect and manage information on the components of conflict minerals and the data is monitored through an IT system from the procurement stage. The use of conflict minerals is essentially prohibited in principle as stated under LG Chem's Eco-SCM guideline distributed to our suppliers.

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