LG Corp

In the past year, we created the ESG Committee and Internal Transaction Committee under the board of directors of our ten listed companies, which includes LG Corporation. Further, we enhanced the authority and independence of the Audit Committee and formed an advisory group consisting of experts and representatives from the MZ generation to integrate diverse opinions into our ESG management and implement improvements where necessary. [...] Laying the foundation for ESG management, LG Group has newly established the ESG Committee - through the engagement of all independent directors within the Board of Directors and the CEOs of each affiliate - to deliberate on key company-wide policies relating to ESG. The ESG management system is supervised by the ESG Team within LG Group, and this team takes the lead on major decision-making by selecting ESG agenda, including climate change, for the ESG Committee (composed of 4 independent directors and 1 executive director). [...] The ESG Team at LG Corp. identifies risks associated with climate change and strives to determine and mitigate potential financial impacts on key LG affiliates. Moving forward, we will establish a climate risk management system to identify, classify, and assess climate risks in line with the business characteristics of each affiliate. The risk management system might include identifying and analyzing climate risks and opportunities, analyzing materiality and impacts, managing risks and opportunities, monitoring, and assessment. Through the risk management system, LG will establish mid- to long-term strategies to manage physical and transition risks relating 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[…]LG Display reviews and evaluates risks on all environment management strategy and GHG/energy-related agendas including climate change engagement activities and climate change counter strategy through ESG Environment Team. Through participating in various engagement activities including public hearings and policy meetings, the ESG Environment Team reports the results to CEO on a monthly or quarterly basis and shares with the employees through company website/ email. Goals for engagement activities are established to minimize financial loss and damage in corporate image, and to find new business opportunities; necessary company-wide countermeasures are established and performed when needed. The climate change response department establishes and implements an action plan for greenhouse gas performance and reduction and applies KPIs related to the achievement of company-wide energy reduction targets as performance indicators to encourage voluntary participation of employees and to lead engagement activities consistent with the company strategy. As indirect performance, LGD provides consulting every year to the partners (greenhouse gas overview, emission calculation, and reduction ideas) through Green SCM. LGD manages the climate change-related issues integrated into multi-disciplinary company-wide risk identification, assessment, and management process, and reviews and establishes mid-to long-term climate change strategies based on this.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]LG Innotek established a climate change response team (TFT) in 2009 to establish a greenhouse gas response system. After that, a climate change part was created in the division that the safety environment of the head office to manage climate change response strategies and management from a company-wide perspective. The major responsibilities of the climate change part (HQ's Environmental Safety team at present) are to maintain the consistency of LG Innotek's climate change response strategies by managing the GHG emission status, identifying feasible mitigation activities, monitoring domestic and foreign climate change policy trends, responding to the government's GHG regulations, and participating in the setup of the LG Group's mid- to long-term green management strategies. Moreover, LG Innotek not only reflects any and all outcomes of internal sharing and discussion of climate change-related issues at the monthly safety and environment meetings on future plans with regard to strategy amendments and business activities amendments/supplementation; it also discusses climate change response-relevant issues through the Green Management meetings with officers from inter-affiliate (LG Electronics, LG Display, LG Chem) and analyses trends and applies them to LG Innotek's strategies through meetings with outside experts externally. Recently, the emissions trading management committee was established for the purpose of evaluation and approval of emission trading plans and evaluation of validity of external offset projects to be prepared for ETS, which commenced operation, preventing the risks related to climate change policies. In addition, to maintain consistency between the LG Innotek's climate change strategies and the domestic and international policies(including the Paris Agreement), LG Innotek participates in both policy presentations held by the government and electricity/electronic industries alliance meetings and suggests trends evaluation and opinions so that they can be reflected on the government policies.

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

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?[…]In March 2022, LG Innotek declared its 2030 RE100 and 2040 carbon neutrality goals, which correspond to the target of 1.5 ℃. Therefore, LG Innotek considers achieving the carbon neutrality goal as the most important challenge among issues related to climate change. Also, the company makes all decisions related to climate change, including policy engagement activities, in line with the Paris Agreement.