LG Chem Ltd

###### ESG Committee

Perspectives of a wide range of stakeholders, including shareholders, are involved in seeking social values as well as creating economic values. LG Chem formed the ESG Committee in April 2021, aimed at serving "sustainability," a concept of encompassing both financial value (growth) and non-financial value (ESG), as well as a root for achieving our core values for corporate growth.

The ESG Committee holds a meeting participated in by at least three members twice a year and may hold a special meeting if necessary. More than two-thirds of the committee consist of outside directors that meet the "principle of diversity" and do not represent common backgrounds or interests. Two female outside directors were newly appointed at the general meeting of shareholders in 2022 to enhance sustainable competitiveness and diversity. In addition, the committee collects opinion about sustainability, deliberates major management agendas, and strengthen the ESG management system by carrying out diverse activities for net-zero, one of the key tasks of LG Chem.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]LG Chem is participating in various engagement activities by supervising all climate change strategy and policy-related activities in the Sustainability Department under the Chief Sustainability Officer (CSO), thereby maintaining consistency of strategies.
After LG Chem establishes a sustainability strategy, all external communication is conducted to achieve the 2050 carbon neutral goal, and it actively participates for expressing company's opinion related to policy by communicating with internal departments and CTO to implement the sustainability strategy.
In particular, the CEO firstly attended the World Economic Forum (WEF) among Korean companies, and officially announced his strategy related to the company's response against climate change. Plus, he states LG Chem would actively implement carbon reductions and cooperate with the government and industry to achieve the Paris Agreement.
With regards to the case of policy-related engagement, the sustainability department and the Corporate Affairs Department propose company's opinion to can be more effectively reflected in government policies via the various methods.
For example, major domestic and foreign policy and legislative information are reported monthly by the Corporate Affairs Department, and shared with the Sustainable Development Department. The recommendations about Korean governance's policy related to climate change are periodically identified by the Sustainable Development. These are internally listed and continuously recommended to the government through meetings with petrochemical associations.
Furthermore, the activities and major decision are continuously reported to the CSO, and we are monitoring it so that the company's position is always consistent.
In particular, the important issues are listed on the agenda at the management meeting and reported to the CEO.
The results of this meeting are shared by the relevant business headquarters/departments. The important agendas are summarized in the sustainability department and reflected in response activities in connection with government policies related to climate change.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Participate actively in and comment on climate change policies and issues. We also participate in regular meetings to understand climate change trends in the industry.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]Actively engage and express opinions on climate change policies and issues. We also participate in regular meetings to keep up with climate change trends in the industry.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]LG Chem is participating in various engagement activities by organizing all activities related to climate change strategies and policies at the Sustainability Department under the Chief Sustainability Strategy Officer (CSO). We communicate with internal organizations such as business units and CTOs to implement sustainable strategies such as achieving 2050 carbon neutral goals, and actively participate in policy and legal engagement activities with Corporate Affairs Department. In particular, for the first time in Korea, the CEO attended the World Economic Forum (WEF) to officially announce his climate change strategy, actively implement carbon reduction and cooperate with the government and industry to achieve the goals of the Paris Agreement. In the case of policy engagements, major domestic and international policy and legislative information are reported to major management every month to better reflect corporate opinions in government policies. We have an internal list of climate change policy recommendations and continue to communicate our opinions to the government through policy meetings with industry associations (e.g., petrochemical associations) in our industries. In addition, key initiatives and decisions are continuously reported to the CSSO to ensure consistency in our position, and issues deemed particularly important are listed on the agenda at executive meetings and reported to the CEO. The results of this meeting and the matters that need to be followed up by public engagements related to climate change are summarized and shared with the relevant business headquarters/business units by the Sustainability Department.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes