Supplier Support
ESG Management in the Supply Chain
As a global company, LG Display joined the Responsible Business Alliance (RBA) in 2021 to systematically manage ESG risks across its entire supply chain and is committed to creating sustainable value in collaboration with diverse stakeholders, including customers and suppliers. Acknowledging the critical importance of sustainable supply chain management, the company conducts thorough inspections and continuous improvements to ensure that both its own domestic and international worksites, as well as those of its suppliers, operate in accordance with the RBA assessment methodology and customer ESG requirements. In addition, LG Display supports a range of ESG capacity-building programs for its partners. Going forward, we will continue to reinforce sustainability across the supply chain by advancing its supply chain management policies and evaluation systems.
ESG Management Policy in the Supply Chain
LG Display established the ESG Code of Conduct for Suppliers to establish a safe working environment at its domestic and overseas worksites for product manufacturing as well as those of its suppliers, respect its employees, and fulfill its responsibilities as an environmentally friendly and ethical company.
Major Categories of LG Display ESG Code of Conduct for Suppliers
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Labor & Human Rights
Voluntary labor, protection of minors, working hours, wages and benefits, humane treatment, non-discrimination, freedom of association
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Safety & Health
Industrial safety, emergency evacuation, industrial accidents and illnesses, industrial health, physically demanding work, machine safety devices, hygiene/food/housing, safety and health education
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Environment
Environmental permits and reporting, pollution prevention and resource conservation, hazardous chemicals, wastewater/solid waste, air pollution, product substance regulations, water management
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Business Ethics
Compliance with Jeong-do management and prohibition of unfair profits, information disclosure, intellectual property protection, identity protection and prohibition of retaliation, community contribution, customer/personal information protection, fair trade/advertising and competition, avoidance of conflicts of interest
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Management System
Statement of commitment, management responsibilities, legal/customer compliance, risk assessment and management, improvement goals, training, communication, employee participation, evaluation and improvement measures, documentation and records, supplier responsibilities
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Conflict Minerals
Responsible procurement of minerals
New Supplier Selection
Suppliers can submit proposals to LG Display through the LG Display Supplier Portal (scs.lgdisplay.com). We review the proposals, feasibility, supply capabilities, management policies, and registers potential suppliers if they are eligible to participate in development. Potential suppliers are registered as new suppliers after undergoing due diligence by specialized departments in areas such as purchasing, quality, safety, environment, AEO (Authorized Economic Operator), conflict minerals, ESG, and security. In addition, to minimize ESG risks in the supply chain and realize ESG management, we have been conducting ESG assessments when registering new suppliers since 2022.
New Supplier Selection Process and Evaluation
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- Business Proposal Submission by Supplier
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- Registration as a Potential Supplier
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- Credit (financial) evaluation
- Purchase consultation evaluation
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- Registration as a New Supplier
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- On-site evaluation (purchasing, quality, safety, environment, AEO, conflict minerals, ESG, security)
ESG Evaluation System for Suppliers
LG Display has established an ESG evaluation system for suppliers to manage ESG risks in the supply chain more effectively. Through this system, we have established a system to check compliance with ESG supply chain codes of conduct at least once a year for major suppliers.
ESG Evaluation Process for Suppliers
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Select Suppliers for Evaluation
- Consideration: Country of origin, transaction category, transaction amount, scale, and strategic importance
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Conduct SAQs (Documentary Evaluation)
- Revise and clarify questionnaires
- Supplier review compliance with ESG supply chain code of conduct
- Analyze results and select targets for on-site evaluation
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Supplier Training
- Train for latest ESG supply chain codes of conduct
- Introduce major risk cases and provide improvement guides
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Improvement Verification
- Check completion of improvements (documents and on-site)
- Confirm final ESG risk level
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Development and Execution of Improvement Plans
- Support suppliers in developing improvement plans for identified issues
- Monitor the status of improvements
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Third-Party and Secondary On-site Inspections
- Conduct on-site inspections through document review and site visits, interview employees
- Provide improvement guides for issues identified in self assessment
Supplier Self Assessment Questionnaire
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Labor and Human Rights
Voluntary labor, protection of young workers, working hours, wages and benefits, humane treatment, prohibition of discrimination and harassment, freedom of association
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Business Ethics
Compliance with ethical management, prohibition of improper gains, information disclosure, protection of intellectual property, fair trade/advertising and competition, protection and prohibition of retaliation against whistleblowers, protection of personal information
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Safety and Health
Industrial safety, emergency preparedness, prevention of workplace injuries and illnesses, occupational health, physically demanding work, machine safety devices, hygiene/food/housing, safety and health education
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Management Framework
Policy statement of compliance, management responsibilities and duties, response to legal and customer requirements, risk assessment and management, improvement goals and education, communication, employee participation, evaluation and corrective actions, documentation and records, supplier responsibility
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Environment
Environmental impact reporting, pollution prevention and resource reduction, hazardous substances, proper waste management, air emissions, product content restrictions, water and wastewater management, energy consumption and greenhouse gas emissions
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Conflict Minerals
Responsible sourcing of minerals