LH Fully Adopts ESG Management... Integrated Across All Areas Including Organization and Business

On the 8th, 'ESG Management Declaration Ceremony' Held: "The First Year of ESG Management in 2022"
Detailed Tasks Established Including Creating Eco-friendly Cities and Residential Spaces, Strengthening Housing Support for Vulnerable Groups
Integrating 'Transparency, Integrity, Fairness, and Public Safety' into Management, Organization, and All Business Areas

Kim Hyun-jun, President of LH, is declaring the full-scale adoption of ESG management on the 8th.

Korea Land and Housing Corporation (LH) held the ‘LH ESG Management Declaration Ceremony’ at its headquarters in Jinju on the 8th, declaring 2022 as the inaugural year of ESG management and announcing the full adoption of ESG management.

ESG management is a business activity that pursues sustainable development by creating value through non-financial factors of a company: Environment (E), Social (S), and Governance (G).

At the declaration ceremony, LH President Kim Hyun-jun and other executives and employees pledged through the ESG management declaration that all staff will actively practice ESG and commit to becoming a leading ESG institution.

LH has made multifaceted efforts to create sustainable value through various projects such as housing welfare and housing construction, as well as social contribution activities.

Last year, to enhance public safety, LH President Kim Hyun-jun prioritized safety as the top management policy, focusing on site safety management by conducting safety inspections at construction sites and implementing safety construction pledges by construction supervisors.

Additionally, LH actively worked to improve housing quality and achieve carbon neutrality by enhancing housing performance and energy efficiency for approximately 28,000 aging rental housing units, and by obtaining a preliminary Level 3 certification for zero-energy public housing buildings in Block M1 of the 6-3 Living Zone in Sejong Happy City.

LH was the first in the domestic bond market to successfully issue ESG bonds worth 1.4 trillion KRW, and has continuously pursued transparent and fair management activities such as establishing the LH Innovation Committee and Compliance Officer positions.

Furthermore, to promote ESG expansion, LH reorganized internal and external organizations by establishing the ESG subcommittee of the LH Public Consensus Committee, creating a specialized ESG subcommittee within the board of directors, and forming an ESG consultative body composed of ESG-related departments to provide advice on ESG management execution ideas and plans.

This year, LH plans to officially launch ESG management by establishing an ESG Promotion Team (directly under the president) to oversee ESG management execution.

LH set its ESG vision as ‘A Future Opened by Trust, A Hopeful Tomorrow with LH.’ It established three major strategic goals and twelve strategic directions for each ESG element and will implement detailed tasks to successfully achieve these goals.

In the Environment (E) sector, LH will actively promote zero-energy cities with an energy self-sufficiency rate of over 20% in areas such as the Guri-Galmae Station District, reduce 530,000 tons of greenhouse gases by 2027 through the development of zero-energy housing standard models and technologies, and provide eco-friendly cities and residential spaces to the public. It also plans to invest over 800 billion KRW this year in green remodeling projects for public rental housing to improve residential performance and lead efforts to realize the government’s carbon neutrality policy and residents’ energy welfare through energy savings.

In the Social (S) sector, LH aims to achieve ‘Zero Disaster’ by introducing digital and smart technologies at construction sites, create safe residential spaces protected from fire and earthquakes, and enhance convenience facilities for vulnerable residents by replacing aging facilities. It will also expand integrated housing and social services and strengthen housing support systems for vulnerable groups such as children aging out of care, building an inclusive housing safety net together with the public.

In the Governance (G) sector, LH will internalize a culture of integrity by strengthening the code of conduct for executives and employees, and establish a fair business system across all projects by expanding citizen-participatory evaluation systems. This will ensure that LH’s top values of transparency, integrity, and fairness are integrated into management, organization, and business areas, establishing transparent management.

LH will continuously communicate with various stakeholders such as residents and construction companies to spread and promote ESG, and focus on implementing strategic tasks by continuously monitoring performance through its own ESG consultative body.

In the future, LH plans to link and reflect ESG elements in annual work plans to enhance the sustainability and execution of ESG management, and disclose LH’s ESG management performance online through a sustainable management report.

President Kim said, “Starting with this declaration ceremony, we will enter the ESG management system and prioritize ‘transparency, integrity, fairness, and public safety’ with the goal of reducing 530,000 tons of greenhouse gases and supplying 3.88 million housing units by 2027, becoming an LH trusted by the public.”

This content was produced with the assistance of AI translation services.