Environmental Management
Environmental Management Framework
Governance
LG Display is strengthening environmental management across its entire business by implementing corporate environmental policies and strategies that have been reviewed and approved by the ESG Committee. The Chief of Safety and Environment Officer (CSEO) is responsible for promoting environmental management tasks, and the company is expanding its environmental management team and other subordinate organizations with relevant experts to operate a precise environmental framework. To systematically manage environmental and energy performance, we sets annual company-wide goals and reports on their achievement to the ESG Management Council. Additionally, we use a in-house system to manage department goal achievement status and, in cases of underachievement, conduct analysis and establishes and implements departmental improvement measures. Furthermore, we have assigned a dedicated environmental management officer to respond to environmental regulations and incorporate environmental impact indicators into Key Performance Indicators (KPIs), actively utilizing them in our evaluation and compensation system.
System
LG Display continuously strives to minimize environmental impact and conserve energy throughout all processes, from design to manufacturing, in accordance with global standards and regulations. We regularly update our framework and receives internal and external audits. To enhance environmental and energy management, domestic sites (Paju, Gumi) and overseas business sites in China (Guangzhou, Nanjing, Yantai) and Vietnam (Hai Phong) have obtained ISO14001 (Environmental Management System) and ISO50001 (Energy Management System) certifications. These certifications cover the entire process from design to manufacturing for TFT LCD and OLED products.
Policy
Based on its environmental management policy, LG Display is responding quickly to issues such as climate change and resource depletion through activities such as energy conservation, efficiency improvement, water resource protection, and waste management. In addition, LG Display applies its environmental management policy to its supply chain, including third-party manufacturers, joint venture partners, and outsourcing partners.
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Environmental Management at Business Sites |
LG Display has obtained and operates ISO 14001 (Environmental Management System) certification for all of its domestic and overseas production facilities, centered on its company-wide environmental organization, in order to efficiently manage the environment of its production and business facilities. Through this, we manage process procedures such as target management, education and training, document and record management, and internal audits, as well as internal standards for each section. |
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| Compliance with Environmental Regulations | LG Display not only complies with relevant laws and regulations in all of its business activities, but also sets and manages internal standards that are stricter than legal requirements. To this end, an internal diagnostic organization periodically conducts inspections from the perspective of environmental compliance risk management. |
| Supplier Selection and Continuous Evaluation | LG Display has established and operates the “LG Display ESG Supply Chain Code of Conduct” to ensure that its suppliers and other key business partners involved in product manufacturing establish safe working environments, respect workers, and operate their businesses in an environmentally friendly and ethical manner. The company encourages all suppliers to agree to and comply with this code. In addition, it conducts annual ESG evaluations of major suppliers to reduce environmental risks throughout the supply chain. |
| Product and Service Development, Logistics | LG Display is promoting the development of clean production technologies to minimize the negative environmental impact throughout the entire life cycle of its products, from research and development, purchasing, production, transportation, to disposal, and to actively contribute to reducing greenhouse gases. |
| Waste Management | LG Display has established and operates waste management standards for all processes from waste generation to disposal, and has developed and utilizes its own system to monitor these processes in real time. This ensures transparency throughout the entire waste disposal process. |
| Production and Maintenance | LG Display has established and operates an environmental management manual to minimize environmental pollution during the operation and maintenance of production facilities. In addition, we operate an environmental framework to improve environmental impact in accordance with the PDCA (Plan-Do-Check-Act) cycle every year. |
| Environmental Education | LG Display provides appropriate education and training to its employees to raise environmental awareness and minimize the impact of corporate activities on the environment. |
| New Projects | Before embarking on new projects, LG Display utilizes business environmental management plans and environmental impact assessments that reflect detailed environmental management methods for environmental management at new project sites. |
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Pre-Due Diligence for Acquisitions and Mergers |
Before acquiring or merging with another company, LG Display conducts due diligence on the company to identify and respond to environmental risks in advance. In addition, we introduce and manage evaluations for each major environmental medium and reflect the evaluation results as key factors in mergers and acquisitions. |
| Distribution and Transportation | LG Display uses recycled packaging materials to minimize the negative environmental impact of product distribution and transportation. We also identify carbon emissions generated during product transportation and strive to reduce them. |
Accident Response System
LG Display has established and operates emergency response guidelines to respond effectively in the event of an emergency. The emergency response guidelines include criteria for classifying environmental accidents by type, a communication system in the event of an emergency, criteria for operating emergency response committees for each type of accident, and accident response scenarios for each situation. We strive to respond quickly and minimize damage in accordance with these guidelines.
Compliance with Regulations
LG Display employs specialists in various fields and installs and operates various environmental pollution prevention facilities to thoroughly and effectively comply with environmental regulations. In addition, with the acquisition of integrated environmental permits from the Ministry of Environment in 2023, we are expanding our investment in improving environmental facilities and systems to comply with continuously strengthened environmental regulations.
Furthermore, to manage environmental compliance risks, the company has established an internal audit team to periodically review compliance with regulations and assess risk status at domestic and international facilities.
For new projects, the company conducts preliminary due diligence, and during mergers and acquisitions, relevant departments review environmental regulations, requirements for natural environment and ecosystem protection, and legal standards to conduct environmental impact assessments and implement corresponding environmental management plans.