Responsible Supply Chain

For companies conducting business globally, managing the supply chain doesn’t end with purchasing raw materials from proven suppliers. As diverse suppliers and stakeholders are connected in the supply chain, the increase in environmental and social risks require us to to comply with the laws and regulations of all regions where the supply chain is located. LG Chem’s suppliers shall also apply and manage the same strict sustainability standards as ours.

12 RESPONSIBLE CONSUMPTION AND PRODUCTION Responsible Supply Chain LG Chem

17 PARTNERSHIPS FOR THE GOALS Responsible Supply Chain LG Chem

재생

Responsible supply chain development and management

Our approach

Responsible Sourcing Policy

The issue of children’s labor in the cobalt supply chain, the raw material for cathodes, is difficult for LG Chem to solve on our own. LG Chem has participated in international initiatives such as the Responsible Minerals Initiative (RMI) in 2019 to cooperate proactively and share mutual sentiments in partnership with other companies in the supply chain.

LG Chem established responsible sourcing policy for raw materials procurement in 2020. This plicy specifies a variety of porcurement for raw materials suppliers. LG Chem complies with the ‘OECD Due Diligence Guidance for Responsible Supply Chains’. We are expanding our responsible sourcing system throughout our buying activities.

Last chapter of LG Chem’s sustainability strategy, <br>Beginning of value management for society! Responsible Supply Chain. Responsible Supply Chain LG Chem

Last chapter of LG Chem’s sustainability strategy,
Beginning of value management for society! Responsible Supply Chain.

Today, we will talk about the last sustainability management. First, climate change response and sustainability strategy for the environment. Second, sustainable technology innovation for customers. Lastly, responsible supply chain management for society.

Responsible Sourcing PolicyRead More

Establishment of Supply Chain ESG Management System

LG Chem has established a supply chain ESG management system to build a sustainable supply chain. This system comprehensively inspects and addresses the risks in the ESG areas within the supply chain.

The system is operated for all partner companies, conducting ESG self-assessments to identify specific risks associated with each partner company. Based on the results and significance of these self-assessments, we select partner companies for on-site inspections.

Through third-party on-site inspections, we identify risk elements, develop improvement plans, and require and monitor the implementation of these measures.

Audit Report Huayou CobaltRead More Audit Report on CDMRead More

Establishment of LG Chem Partner Company Code of Conduct

LG Chem has established and announced the Code of Conduct for suppliers since 2016. The Code of Conduct for suppliers consists of the following matters that the suppliers must adhere to: human rights, labor, ethical management, health, safety, environmental sustainability, responsible mineral procurement, and grievance syste.

LG Chem proactively validates the propriety of supply chain management systems from the selection of new suppliers based on the Supplier Code of Conduct and continuously manages the risk of supply chain through regular CSR evaluation and monitoring. The Code of Conduct for suppliers is diclosed via the LG Chem website and the procurement portal.

Code of Conduct for SuppliersDownload

Grievance Handling Channel for Suppliers

LG Chem operates a grievance handling channel where all stakeholders can report instances of labor and human rights violations, involving employees of all collaborating companies in the supply chain.

All stakeholders have the opportunity to report violations occurring in our suppliers. Following the submission of a grievance, the responsible department conducts an insepection, and the results of the investigation are ultimately provided as feedback to the informant.

The confidentiality of the informant's identity and the contents of the report are rigorously safeguarded throughout the grievance handling process. We are committed to ensuring that there is no retaliation or adverse consequences for reporting.

Grievance submission

Reviewing in responsible department

Content Verification and inspection conducted

Processing completed And sharing a result to informant

We will confirm the details of your report and provide information about the investigation within 5 business days of submission.
The outcome of the investigation will be shared within 10 business days.
If the investigation is not completed within this time frame, we will provide interim results along with an estimated completion date.