Sustainability Report and ESG Performance Data
LG Chem pursues sustainable innovation based on 『Sustainability Vision』, which includes customer, environment and social value throughout its business activities.
ESG Key Indicators Overview

LG Chem established its sustainability vision and strategy in 2019 based on nine focus areas, and declared mid- to long-term goals including “Carbon-neutral Growth” in 2020. In 2021, seeking to invigorate communications with stakeholders and strengthen business competitiveness, we selected key indicators in the areas of environmental, social, governance, and growth, based on the concept of stakeholder capitalism proposed by the World Economic Forum (WEF). We are constantly assessing sustainability risks and opportunities and conducting a comprehensive review on the potential short-, mid- to long-term business impacts across the entire value chain of the petrochemicals, advanced materials, and life sciences industries. By doing so, we are staying abreast of global megatrends and stakeholder demands as they evolve year to year.

Analysis of Key Stakeholder Interests

LG Chem listens to the needs and concerns of key stakeholders (customers, employees, suppliers, communities, governments, shareholders & investors, and etc.) through various communication channels, and develops solutions and initiatives to address them. We want to continue communicating with stakeholders to identify issues of interest and improve sustainability performance to create differentiated value for stakeholders.

Materiality Assessment Overview

Through the analysis of indicators from global disclosure standards, ESG rating agencies and industry peers, global megatrends, and the interests of our key stakeholders – customers, employees, suppliers, communities, governments, shareholders and investors – against our sustainability strategies, we selected 20 key indicators across four categories: environmental, social, governance, and growth. We are actively introducing ESG key indicators into corporate management.

Reporting Scope

ESG performance data have been collected from LG Chem’s headquarters, sales offices, 32 domestic and global production sites, and R&D campuses, excluding data from LG Energy Solution and FarmHannong. Some financial information has been prepared in accordance with the consolidated financial statements of K-IFRS. Any statement with a different scope of reporting is explicitly noted.

ESG Key Indicators
  • High Impact

  • Medium Impact

  • Low Impact

"Category, Key ESG Indicators, Financial Materiality, Impact Materiality"
Category Key ESG Indicators Financial Materiality Impact Materiality
Environment
Greenhouse Gas Emissions Reduction
Energy Consumption Reduction
Water Withdrawal, Consumption and Discharge
Water Pollutants Reduction
Air Pollutants Reduction
Waste Discharge and Recycling
Product Responsibility and Chemical Stewardship
Reused and Recycled Materials
Society
Employee and Process EH&S
Employee Diversity, Equity and Inclusion
Talent Attraction, Training and Employee Engagement
Human and Labor Rights
Supply Chain Sustainability
Community Engagement
Government
Corporate Governance
Corporate Behavior and Ethics
Cybersecurity and Information Security
Public Policy and Regulation
Growth
Sustainable Solutions
Customer Satisfaction
Greenhouse gas emissions

We seek to reduce and manage our scope 1, 2, and 3 GHG emissions by setting reduction targets and proactively identifying the risks and opportunities arising from our emissions.

Greenhouse Gas Emissions
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 20201) 20212) 20223)
Scope 1+2 Emissions Global tCO2e 9,520,581 10,335,203 10,043,289
Korea tCO2e 8,064,869 8,839,571 8,614,876
excl. Korea tCO2e 1,455,712 1,495,632 1,428,413
Emission intensity4) tCO2e / KRW 1M 0.5528 0.4294 0.3948
Scope 1 Emissions Global tCO2e 5,390,035 5,439,321 5,638,675
Korea tCO2e 5,195,758 5,290,343 5,489,590
excl. Korea tCO2e 194,277 148,978 149,085
Emission intensity tCO2e / KRW 1M 0.3130 0.2260 0.2217
Scope 2 Emissions Global tCO2e 4,130,546 4,895,882 4,404,614
Korea tCO2e 2,869,111 3,549,228 3,125,286
excl. Korea tCO2e 1,261,435 1,346,654 1,279,328
Emission intensity tCO2e / KRW 1M 0.2399 0.2034 0.1732
Scope 35) Emissions Total tCO2e 1,244,528 1,339,125 1,213,600
1. Purchased goods and services tCO2e 517,985 571,164 425,556
2. Capital goods tCO2e 14 56 83
3. Fuel and energy-related activities
(not included in
Scope 1 or 2)
tCO2e 121,904 175,732 193,940
4. Upstream transportation and distribution tCO2e 318,438 197,919 124,744
5. Waste generated in operations6) tCO2e 59,993 63,358 61,972
6. Business travel tCO2e 2,265 970 621
7. Employee commuting tCO2e 4,737 7,488 10,474
8. Investments7) tCO2e 219,190 322,438 396,210

1) Figures for Scope 1 and Scope 2 emissions in 2020 have been revised due to changes in the organizational boundaries.

2) Figures for Scope 1 and Scope 2 emissions in Korea in 2021 have been partially revised based on the verification results of the Ministry of Environment.

3) Figures for Scope 1 and Scope 2 emissions in Korea in 2022 are based on values reported to the Ministry of Environment, and the above figures are subject to revision depending on the verification outcomes.

4) Emission Intensity = Global GHG Emissions / Revenues excluding LG Energy Solution, and Common and others

5) Scope 3 emissions have been calculated on the relevant categories of GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011), and we plan to increase the scope of data collection.

6) Figures reflect the combined GHG emissions from waste and wastewater discharge.

7) Figures are based on the values reported to the Ministry of Environment, and the above figures are subject to revision depending on the verification outcomes.

Energy consumption

We aim to reduce energy consumption and achieve 100% renewable energy use across our operations by improving energy efficiency and actively sourcing renewable energy.

Energy Consumption
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
Total Energy Consumption Global TJ 132,593 178,405 151,401
Korea TJ 122,807 169,105 142,386
excl. Korea TJ 9,786 9,300 9,015
Energy intensity4) TJ / KRW 1M 0.0077 0.0074 0.0060
Direct Energy Consumption (Fuel) Global TJ 98,446 109,043 107,352
Korea TJ 94,976 106,349 104,876
excl. Korea TJ 3,470 2,694 2,476
Energy intensity TJ / KRW 1M 0.0057 0.0045 0.0042
Indirect Energy Consumption
(Steam, Electricity)
Global TJ 34,147 69,362 44,049
Korea 5) TJ 27,831 62,756 37,510
excl. Korea TJ 6,316 6,606 6,539
Energy intensity TJ / KRW 1M 0.0020 0.0029 0.0017
Renewable Energy Consumption6) Global MWh 1,760 306,316 761,967

1) Figures for energy consumption in 2020 have been partially revised due to changes in organizational boundaries. Figures for indirect energy consumption have been partially corrected due to the consistent use of the unit conversion factor (1 MWh = 0.0036 TJ).

2) Figures for energy consumption in Korea in 2021 have been revised based on the verification results of the Ministry of Environment.

3) Figures for energy consumption in Korea in 2022 may be revised in the future based on the verification results of the Ministry of Environment.

4) Energy Intensity = Global Energy Consumption / Revenues excluding LG Energy Solution, and Common and others.

5) Figures for electricity consumption in Korea include purchased electricity and self-generated electricity.

6) Means of renewable energy procurement include green pricing, RECs (solar, wind), and self-generation (solar).

Water withdrawal, consumption, and discharge

As water scarcity intensifies around the world, the need for water management becomes increasingly important. We are closely managing water usage at our sites every step of the way, from withdrawal through the manufacturing stage, which includes raw material processing and cooling, to the discharge of properly treated wastewater. In particular, we aim to identify and minimize water withdrawal and consumption in water-stressed areas.

Water Resources Management
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
Water Withdrawal1) Total m3 66,937,657 78,063,643 74,781,261
Surface water m3 - - -
Groundwater m3 501,077 444,068 440,512
Seawater m3 - - -
Municipal water m3 66,420,490 77,597,935 74,326,951
Other2) m3 16,090 21,640 13,798
Water withdrawal intensity m3 / KRW 1M 3.8869 3.2434 2.9400
in regions with water stress m3 4,496,621 4,521,147 4,457,410
Wastewater Discharge3) Total m3 20,915,171 21,449,266 21,190,129
Water discharge intensity m3 / KRW 1M 1.2145 0.8912 0.8331
in regions with water stress m3 1,915,523 1,656,575 1,765,931
Water Consumption Total m3 46,022,486 56,614,377 53,591,133
Water consumption intensity m3 / KRW 1M 2.6724 2.3522 2.1069
in regions with water stress m3 2,581,098 2,864,572 2,691,479
Water Reuse Rate4) % 2.63 2.30 2.57

1) Figures for water withdrawal in 2020 and 2021 have been partially revised due to changes in organizational boundaries.

2) Other water sources include rainwater, reclaimed wastewater, etc.

3) Figures for wastewater discharge in 2020 and 2021 have been partially revised due to changes in organizational boundaries and data coverage (includes wastewater not subject to legal reporting).

4) The amount of recycled water within the operation and purchased reclaimed wastewater have been used to calculate water reuse rate.

Water pollutants discharge

To return the water used during the manufacturing process back into the aquatic ecosystem, we track the sources and impacts of water pollutants and conduct regular inspections on wastewater discharge facilities.

Water Pollution Management
"Category, Scope, Unit, 2020, 2021, 2022 "
Category Scope Unit 2020 2021 2022
Water Pollutant Discharge COD1) Metric tons 653 589 472
Discharge intensity kg / KRW 1M 0.0379 0.0245 0.0186
TOC1) Metric tons 148 318 457
Discharge intensity kg / KRW 1M 0.0086 0.0132 0.0179
SS Metric tons 319 255 240
Discharge intensity kg / KRW 1M 0.0185 0.0106 0.0094
T-N Metric tons 252 273 211
Discharge intensity kg / KRW 1M 0.0147 0.0113 0.0083
T-P Metric tons 31 25 34
Discharge intensity kg / KRW 1M 0.0018 0.0010 0.0013

1) Reflects the gradual transition of reporting metrics from COD to TOC, in accordance with the Korean Water Environment Conservation Act.

Air pollutant emissions

We strictly comply with the emission standards for air pollutants emitted during the manufacturing process, and we aim to minimize emissions through regular inspections of emission facilities.

Air Pollution Management
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
Air Pollutant Emissions Dust Metric tons 122 167 183
Emission intensity kg / KRW 1M 0.0071 0.0069 0.0072
NOx Metric tons 867 4,134 3,823
Emission intensity kg / KRW 1M 0.0504 0.1718 0.1503
SOx Metric tons 141 184 240
Emission intensity kg / KRW 1M 0.0082 0.0076 0.0094
VOCs Metric tons 577 956 1,206
Emission intensity kg / KRW 1M 0.0335 0.0397 0.0474
HAPs Metric tons 241 273 298
Emission intensity kg / KRW 1M 0.0140 0.0113 0.0117
Waste disposal and recycling

We catalogue and manage the disposal of general waste and hazardous waste, and consider ways to minimize waste generation and maximize recycling by analyzing incineration and landfill wastes.

Waste Management
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
Waste Generated Total Metric tons 230,942 278,345 279,585
Waste intensity Metric tons / KRW 1M 0.0134 0.0116 0.0110
Nonhazardous Waste Total Metric tons 110,922 153,981 150,922
Recycling Metric tons 74,724 108,145 111,612
Incineration
(w/ heat recovery)
Metric tons 11,894 22,682 23,149
Incineration Metric tons 16,018 12,359 6,177
Landfill Metric tons 8,286 10,795 9,984
Other Metric tons - - -
Hazardous Waste Total Metric tons 120,020 124,364 128,663
Recycling Metric tons 49,919 53,961 60,374
Incineration
(w/ heat recovery)
Metric tons 46,478 53,407 54,361
Incineration Metric tons 22,652 15,501 12,862
Landfill Metric tons 972 1,495 1,066
Other Metric tons - - -
Waste Recycling Rate incl. Incineration
(w/ heat recovery)
% 79 86 89
excl. Incineration
(w/ heat recovery)
% 54 58 62
Zero Waste to Landfill (ZWTL) designations1) Site - - 3

1) Naju and Iksan (cathode materials) in Korea, Quzhou in China.

Product responsibility and chemical stewardship

We evaluate risks that may arise during the use, storage, and transportation of hazardous chemical substances, and continue our efforts to reduce the use of hazardous substances in our products. We also conduct Life Cycle Assessments (LCAs) to analyze the environmental impact of our products and identify areas for improvement.

Hazardous Substances Management1)
"Category, Scope, Unit, 2020, 2021, 2022"
Category Unit 2020 2021 2022
Percentage of sold products containing REACH2) Annex 17 substances % 29.80 16.10 9.69
Percentage of sold products containing REACH SVHCs3) substances % 2.39 1.57 2.47
Percentage of sold products containing CMR4) substances % 5.99 2.71 4.65
Hazardous chemicals risk assessment 5) % 13.59 25.09 26.33

1) Calculated the percentage of the number of products containing each substance to the number of products sold per year.

2) The EU’s system of Registration, Evaluation, Authorization and Restriction of Chemicals.

3) Substances of Very High Concern; highly hazardous substances listed in Annex XIV of the EU’s REACH regulations.

4) Carcinogenic, Mutagenic and Reprotoxic chemicals.

5) Percentage of substances completed/exempt from substance registration among the constituent substances of the sold product.

Material reuse and recycle

We are developing various plastic recycling technologies, both mechanical and chemical, and plan to expand the production of recycled plastics.

Reused/Recycled Materials
"Category, Unit, 2020, 2021, 2022"
Category Unit 2020 2021 2022
Percentage of reused/recycled materials1) input % 1.30 1.44 1.68

1) The amount of Post-Consumer Recycled Polycarbonate (PCR PC) input relative to the total PC input has been used to calculate the percentage of reused/recycled materials input.

Employee and process EH&S

As chemical manufacturing is exposed to heavy equipment, hazardous substances, and high temperatures and pressures, employee and process safety is of paramount importance. We have expanded the scope of our EH&S management to include not only our employees, but also in-house subcontractors, and have established an accident prevention system that goes above and beyond legal standards.

Employee and Process EH&S
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 20221)
Employees Fatality Rate2) Rate 0.0115 0.0056 -
TRIR3) Rate 0.6506 0.7642 0.6079
LTIR4) Rate 0.2476 0.2454 0.0968
Subcontractors Fatality Rate Rate 0.0051 - 0.0104
TRIR Rate 0.3345 0.5078 1.1025
LTIR Rate 0.1774 0.2132 0.3640
Process Safety5) PSE6) Case 5 - 1
PSER7) Rate 0.0135 - 0.0035
Transport Incidents Road Case 1 1 1
Rail Case - - -
Ship Case 1 - -

1) The accident rate is calculated by applying actual hours worked from 2022 onward.

2) Fatality Rate: Total number of fatality cases * 200,000 / total hours worked

3) Total Recordable Incident Rate: Total number of recordable incidents * 200,000 / total hours worked

4) Lost Time Incident Rate: Total number of lost time incidents * 200,000 / total hours worked

5) Process safety events are calculated based on the standards set in the Accident Index, which includes injuries, fires, leakages, amount of loss, etc.

6) Process Safety Events

7) Process Safety Event Rate: Number of process safety events * 200,000 / total hours worked

Employee diversity, equity, and inclusion

We identify the diversity of our employees by gender, age, and region in each job group and career level, and monitor the equity of remuneration. We also operate various training and mentoring programs designed to develop a culture that embraces gender, generational, cultural, and cognitive diversity.

Diversity, Equity & Inclusion
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
No. of Employees1) by Region Total Person 18,244 18,792 19,627
Korea Person 12,552 13,906 14,572
China Person 4,394 3,564 3,705
Asia-Pacific
(excl. China)
Person 706 627 578
Europe Person 318 419 471
Americas Person 274 276 301
No. of Executives2) Total Person 110 110 113
Male Person 104 101 103
Female Person 6 9 10
No. of Employees by Employment Contract (Korea) Non-fixed Term Person 12,402 13,652 14,249
Fixed-Term Person 150 254 323
No. of Employees by Gender
(Korea)
Male Person 10,826 11,946 12,356
Female Person 1,726 1,960 2,216
Ratio of Female Employees
(Non-fixed term)
% 14 14 15
Ratio of Female Employees
(incl. Fixed-term)
% 14 14 15
No. of Employees by Age
(Korea, non-fixed term employees)
Under 30 Person 2,375 2,441 2,508
30 to 49 Person 7,718 8,655 9,110
50 or above Person 2,309 2,556 2,631
No. of Leaders in Revenue Generating Positions (Korea) Male Leaders3) Person 699 833 910
Female Leaders Person 65 81 96
Ratio of Female Leaders % 9 9 10
No. of Employees R&D Positions
(Korea, non-fixed term)
Male Person 1,704 1,821 2,004
Female Person 800 855 962
Ratio of Female % 32 32 32
Social Minorities Persons with disabilities4) Person 330 252 250
National veterans Person 276 270 286
Gender Pay Gap5) Non-management level (base salary) % 76 77 80
Management6) level (base salary) % 93 94 94
Management level (base salary + cash incentives) % 94 94 94
Executive level (base salary) % 90 90 86
Parental Leave Total number of employees due to return to work after taking parental leave Person 101 129 157
Male Person 22 46 60
Female Person 79 83 97
Total number of employees that did return to work after parental leave Person 101 129 157
Male Person 22 46 60
Female Person 79 83 97

1) Calculated based on the number of employees at the end of the fourth quarter of each year.

2) Refers to executive officers and registered directors at the vice president level and above.

3) Refers to employees at the positions of team leader and above, excluding executives.

4) Figures represent the number of employees reported to the Korea Employment Agency for Persons with Disabilities. Figures of 2020 are before the spin-off of LG Energy Solution.

5) Ratio of average female to male compensation, calculated by dividing the average compensation of all women in a position by the average compensation of all men in the same position. There are no distinctions based on gender, while factors such as years of service contribute to the pay gap.

6) Refers to employees at the level of professionals/senior managers or above, excluding executives.

Talent attraction, training, and employee engagement

We recruit talented individuals from diverse backgrounds, based on their abilities and competencies. We provide everyone with a variety of growth opportunities to help them enhance their global competencies and leadership capabilities.

Parental Leaves
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
New Employee Hires Total Person 1,166 3,140 2,651
Korea Person 402 1,560 1,431
excl. Korea Person 764 1,580 1,220
by Employment Contract (Korea) Non-fixed Term Person 319 1,330 1,261
Fixed-Term Person 83 230 170
by Gender (Korea) Male Person 320 1,255 1,070
Female Person 82 305 361
by Age (Korea) Under 30 Person 187 759 849
30 to 49 Person 144 635 469
50 or above Person 71 166 113
Employee Turnover
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
No. of Voluntary Turnover (Korea) Total Person 270 306 344
by Gender (Korea) Male Person 239 245 257
Female Person 31 61 87
by Age (Korea) Under 30 Person 107 133 161
30 to 49 Person 152 158 173
50 or above Person 11 15 10
Training and Development
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
Training Hours
(Korea, non-fixed term employees)
Total training hours Hour 425,420 567,604 506,803
Male Hour 362,611 449,714 412,266
Female Hour 62,809 117,890 94,537
Average training hours per employee Hour / Person 34.3 41.6 35.6
Mandatory Training Hours (Korea) Total training hours Hour 77,558 69,170 95,990
Male Hour 73,304 57,675 86,004
Female Hour 4,254 11,496 9,986
Training Cost (Korea) Total cost KRW 10K 1,253,990 1,564,100 2,139,966
Average training cost per employee KRW 10K / Person 101 115 150
Labor and human rights

In accordance with our global human rights labor policy, we conduct self-assessments and on-site inspections into the human rights risks in our workplaces. We plan to revise our human rights policy, improve business processes, and expand training to reduce potential and actual human rights risks and impacts.

Labor and Human Rights
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
Labor Union (Korea) No. of employees eligible to join Person 6,745 7,337 7,447
No. of employees participating Person 5,075 5,436 5,410
Percentage of employees participating % 75% 74% 73%
Percentage of Employees Covered by Collective Agreements (Korea) % 100% 100% 100%
Supply chain sustainability

We conduct periodic risk assessments and provide capacity building opportunities for our suppliers, to establish a sustainable supply chain that grows with our suppliers. We assess potential risk factors such as human rights, EH&S, and ethics through supplier self-assessments and on-site audits, and offer programs to suppliers to help improve ESG competencies.

Supply Chain Management
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
No. of Suppliers Total no. of suppliers1) # 1,252 1,262 1,433
Total no. of key suppliers2) # 216 240 178
ESG Self-Assessment No. of suppliers that completed self-assessment # 163 232 762
No. of key suppliers that completed self-assessment # 46 53 77
On-site ESG Audit No. of high-risk suppliers3) subject to on-site audit # 39 42 169
No. of high-risk suppliers that completed on-site audit # - - 17
No. of high-risk key suppliers subject to on-site audit # 11 - 1
No. of high-risk key suppliers that completed on-site audit # - - -

1) Suppliers refer to domestic and overseas suppliers with records of annual purchase amount of KRW 100M or more and 3 or more POs issued.

2) Key suppliers refer to suppliers in the top 90% of purchase amounts, including companies of all sizes.

3) High-risk suppliers refer to suppliers who fall under high risk rating as a result of self-assessment, or fall into the high-risk group due to a score below the standard, findings of critical non-conformance items, and etc.

Community engagement

We strive to develop strong relationships with our communities by taking care of the environment and safety around our operations, providing employment and local development opportunities to our communities, and running partnership programs.

Local Communities and Social Contributions
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
Social Contributions Total KRW 100M 15,132 16,194 21,725
Charitable donations KRW 100M 13,288 15,216 21,072
Community investments KRW 100M 1,314 496 540
Commercial initiatives KRW 100M 531 482 113
Employee Volunteer Hours Hour 4,879 4,965 3,371
Corporate governance

To ensure efficient and proactive governance, we are establishing a global-level governance structure and strengthening the actual authority and role of the board of directors to internalize board-centered management practices.

Corporate behavior and ethics

We conduct regular inspections on corruption and bribery, and handle identified cases through internal disciplinary or legal procedures. We also provide training on ethics and fair trade practices to raise employee awareness and proactively manage risks.

Ethics, Anti-Corruption and Fair Trade
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
Corruption No. of investigated cases Case 5 7 14
Unfair Trade Practices Case 2 3 4
Unfair Trade Practices No. of legal investigations Case 1 - -
No. of legal actions Case - - -
Ethics Training No. of employees participating in Jeong-Do management1) training Person 12,511 13,431 15,159
No. of employees participating in fair trade2) training Person 14,444 14,413 15,191

1) Includes content on Jeong-Do management and the Code of Ethics.

2) Includes content on subcontractors and compliance.

Information security and cybersecurity

To ensure the safe collection, use, and management of all information related to corporate operations, we continue to assess information security risks based on our enterprise risk management system. We also provide training to raise employee awareness on information security and cybersecurity.

Information Security and Cybersecurity
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
ISO 27001 Certified Business Sites Site 4 4 16
Information Security Training Awareness activities # 12 12 12
Average training hours per employee Min 30 30 30
Public policy and regulation

We are proactively seeking out public-private partnerships by identifying policy issues and regulations that may affect our businesses. We pursue government proposals, and participate in policy-making through our local and overseas public affairs networks.

Public Policy and Regulation
"Category, Unit, 2020, 2021, 2022"
Category Unit 2020 2021 2022
Contributions to Trade Associations1) KRW 1M 2,091 2,223 2,497
Contributions to Political Campaigns2) KRW 1M - - -

1) Contributions have been made to the following top 5 organizations in 2022:

— World Economic Forum (WEF): 431,259,000 (KRW)

— Korea Association of Business Executives: 331,082,000 (KRW)

— PC/BPA Council: 291,471,000 (KRW)

— Korea Petrochemical Association: 206,088,000 (KRW)

— Korea Vinyl Environmental Council: 202,500,000 (KRW)

2) The Political Funds Act prohibits companies to sponsor political organizations.

Tax Strategy

LG Chem recognizes that observing the tax laws of each country in which it operates and fulfilling its duty to pay taxes faithfully as a taxpayer are maximizing shareholder value and are important contributions to national finance. For sustainable management, we comply with the following tax policies and manage tax risks extensively.

Tax Policy

LG Chem observes the following tax-related principles and regulations.

- Fulfill tax reporting and payment obligations faithfully in accordance with the relevant local laws

- Maintain a transparent relationship with the tax authorities and faithfully observe the obligation to submit data requested by the local tax authorities

- Implement a reasonable transfer pricing policy in line with tax laws and OECD transfer pricing guidelines for international transactions with overseas corporations

- Establish an efficient tax management system that calculates the effective tax rate and identifies the taxpayer in each country following the introduction of digital tax

- Prohibit the transfer of income to a tax haven for the purpose of tax evasion

- Release the annual audit report and other information on the electronic disclosure system to provide transparent tax information

Tax Risk Management

LG Chem is responding to tax risks through the following tax management process.

- When making important business decisions, assess tax risks based on advice from external experts and tax authorities

- Report to the executives depending on the type and amount of the tax, and clearly define responsibilities and tasks related to tax reporting and payment

- In the event of tax risks such as tax law-related uncertainties, resolve the risks through collaborating with external experts

Tax Strategies
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
Total Reported Taxes1) Total KRW 1M 367,839 1,235,790 641,482
Korea KRW 1M 692,538 672,683 747,539
Asia (excl. Korea) KRW 1M 290,065 565,833 389,245
Europe KRW 1M 6,800 -61,505 186,016
Americas KRW 1M 53,112 2,421 4,141
Others KRW 1M 141 39 247
Consolidated Adjustments KRW 1M -674,817 56,319 -685,706
Cash Payment on Corporate Tax KRW 1M 513,128 1,281,796 1,707,449

1) Based on consolidated financial statements from 2022.

Sustainable solutions

With an aim to provide superior social and environmental value in terms of sustainability, we have established the Sustainable Solution as an internal standard to check the sustainability contributions of our products and technologies based on six values: climate change, circular economy, water resources, product toxicity, biodiversity, and social value. By collating this information with stakeholder demands, we identify priority areas, and increase investment to secure sustainability competitiveness at the product level.

Other Economic Performances
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
Revenues1) Total revenue KRW 1M 29,984,350 42,599,284 51,864,888
Petrochemicals KRW 1M 14,015,584 20,175,492 21,151,355
Advanced Materials KRW 1M 2,547,495 3,202,981 3,435,076
Life Sciences KRW 1M 658,277 690,346 849,289
LG Energy Solution KRW 1M 12,363,524 17,803,863 25,586,365
Common and others KRW 1M 399,470 726,602 842,803
Revenue excluding LG Energy Solution, and Common and others2) KRW 1M 17,221,356 24,068,819 25,435,720
R&D Expenses Total KRW 1M 719,339 710,071 869,634
Sustainability technology/product development3) KRW 1M 34,368 90,250 134,604

1) Based on consolidated financial statements of FY 2022.

2) Represents simple deductions of revenues of LG Energy Solution and Common and others from total, this figure has been used to calculate intensity of environmental performance data; Common and others include revenues of FarmHannong. For details, please refer to the notes to the consolidated financial statements.

3) Includes expenses for projects in the areas of bio materials, recycling, and carbon neutrality.

Customer satisfaction

By integrating customer grievance management within our internal operations and enhancing customer contact, we aim to prioritize customer-centric thinking across all our processes and deliver exceptional values to our customers.

Customer Satisfaction
"Category, Scope, Unit, 2020, 2021, 2022"
Category Scope Unit 2020 2021 2022
Customer Satisfaction Survey Scope1) % 100 100 100
Score Score 80 79 84

1) Refers to the percentage of business units that have conducted customer satisfaction surveys. Since 2020, the Customer Value Innovation Team has been conducting customer satisfaction surveys for customers across all business units.