LG Innotek Publishes 2022-2023 'Sustainability Report'

Achieved 20% Carbon Neutrality in One Year
Received 'ZWTL' Platinum Certification
R&D Investment Increased by 33% Compared to Previous Year

LG Innotek announced on the 7th that it has published the 2022-2023 'Sustainability Report' detailing its ESG (Environmental, Social, Governance) management performance.

LG Innotek has joined RE100 in the environmental sector and committed to switching 100% of the electricity used at its business sites to renewable energy by 2030. Along with this, the company declared it will achieve 100% carbon neutrality by 2040. It also joined the Science Based Targets initiative (SBTi) and has embarked on systematic activities toward carbon neutrality.

LG Innotek employees are reviewing the recently published 2022-2023 'Sustainability Report.' [Photo by LG Innotek]

The company is progressing toward its goals, recording a renewable energy transition rate of 22% (RE22) and a carbon neutrality achievement rate of 20%. Additionally, it was recognized for its efforts in resource circulation, including establishing a waste management system, reusing process auxiliary materials, and reducing plastic packaging usage, earning the 'Resource Circulation Leading Company Minister of Environment Award' last year. LG Innotek’s Gumi, Pyeongtaek, and Gwangju plants obtained the 'Zero Waste to Landfill (ZWTL)' certification from the global safety certification body UL. Notably, last year, the Pyeongtaek plant achieved 100% resource circulation following Gumi, earning the highest platinum grade.

In the social sector, employee participation in social contribution activities stood out. Following the launch of an internal online social contribution portal last year, more than 3,000 employees engaged in social contribution activities through online donation funding and non-face-to-face volunteer work. Furthermore, the company has continuously worked toward mutual growth with its partners, achieving the highest grade in the mutual growth index evaluation for six consecutive years as of last year. LG Innotek was also recognized for its excellent organizational culture by receiving the 'Comprehensive Grand Prize' for Best Workplace from GPTW Korea.

In governance, LG Innotek has focused on establishing a transparent and sound management environment. As a result, it received ISO 37301 (Compliance Management) certification, the UNGC (United Nations Global Compact) Anti-Corruption Excellence Award, and ISO 22301 (Business Continuity Management System) certification last year. The company also expanded shareholder-friendly policies, with total dividends amounting to 98.2 billion KRW last year, a significant increase from 71 billion KRW the previous year. This fulfilled the dividend policy of maintaining a payout ratio of over 10% through 2024.

Alongside ESG management, the report highlighted LG Innotek’s various efforts to secure future business competitiveness. The company invested 752.8 billion KRW in R&D last year alone to advance core technologies and discover high value-added new businesses in future growth areas. This represents an approximately 33% increase compared to 564.2 billion KRW in 2021. During the same period, the number of industry-academia projects nearly doubled, significantly expanding industry-academia cooperation.

Jung Cheol-dong, President of LG Innotek, stated, "LG Innotek will continue sincere ESG management and establish itself as the 'Global No.1 materials and components company' by providing differentiated customer value."

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