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.
8 DECENT WORK AND ECONOMIC GROWTH Responsible Supply Chain LG Chem 12 RESPONSIBLE CONSUMPTION AND PRODUCTION Responsible Supply Chain LG Chem 17 PARTNERSHIPS FOR THE GOALS Responsible Supply Chain LG Chem
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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.

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.
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.
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.
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Grievance submission

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Reviewing in responsible department

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Content Verification and inspection conducted

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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.