LG Innotek, one of the leading South Korean electronic component manufacturers, shared its ESG-related accomplishments in the 2020-21 Sustainability Report. The company also announced that it had lowered its greenhouse gas emissions by 11% last year.
In particular, LG Innotek reduced a total amount of 45,000 tons of carbon dioxide equivalent. This amount also equates to the volume of greenhouse gas soaked up by around 3.9 million trees annually.
During the same timeframe, the company sales jumped by 20%. As a result, LG Innotek reached a notable achievement in reducing greenhouse gases since emissions usually increase alongside sales growth.
“For a corporation to last for 100 years, it must fulfill social responsibilities while promoting the business competitiveness and consumer value,” said Jeong Cheol-Dong, CEO of LG Innotek. The CEO also shared that LG Innotek aims to strengthen its ESG management and further advance its sustainability.
Reinforcing ESG Management
Furthermore, LG Innotek demonstrated its dedication in reinforcing its ESG (environmental, social, and governance) management in the recently published report. The company also introduced its latest ESG vision and other organizational structures.
Previously, the LG Corp. subsidiary established the ‘Global No.1 Material and Component Company to Bring a Better Tomorrow,’ an ESG vision system incorporating specific assignments and strategies for each ESG field.
LG Innotek also strengthened relevant organizations as part of its ESG efforts. For instance, it created the ESG Board Committee within its BOD, which functions as the highest-ranking ESG review board.
Besides the ESG Board Committee, the company established the ESG Executive Committee to promote company-wide ESG projects. In addition to expanding ESG-related operations, the new units reinforce communication and nourish relationships between the company and its shareholders.
Increasing ESG Efforts
First off, for the ESG’s environment department, LG Innotek effectively conducted green management tasks with its ‘zero environmental impact’ goal. Some of the activities include expanding high-efficiency production facility applications and developing renewable energy solutions.
Thanks to these measures, the company saved a total of 5.2 billion won ($4.5 million) in energy costs last year. LG Innotek also shrank its water resource consumption by 7% by investing more in recycling facilities and managing water usage.
Meanwhile, in the social department, LG Innotek would elevate social value by establishing more connections with communities, employees, and partners. In particular, the company introduced the PRIDE Activity, wherein employees would undertake over 30 activities, encouraging company pride.
Some of the tasks include building digital work environments, enhancing in-house cafeterias, and operating hub offices. The company also plans to mutually grow with supplies through extensive educational and technical support and ESG assessment implementations.
Lastly, in the governance department, LG Innotek scaled up its shareholder-centric policies and BOD transparency. For example, the company recently launched an e-voting system, doubling dividend payments and upholding shareholder rights.
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