LG Electronics (LG) has earned a place in the Dow Jones Sustainability World Index (DJSI World) for the eleventh consecutive year, illustrating the company’s ongoing leadership in responsible ESG management.
The DJSI World lists only the top 10 percent of over 2,500 global companies in terms of corporate sustainability, evaluating each organization based on in-depth analyses of their environmental, social and governance practices. Updated annually, the DJSI World is widely viewed by investors, governments and other key stakeholders around the globe, as a reliable indicator of corporates’ ESG commitment.
LG scored well in all three areas of ESG management in this year’s Index. Receiving high marks for its various environmentally-focused initiatives, the company is actively reducing greenhouse gas emissions and water usage while also increasing recycling rates, converting to renewable energy sources and making steady progress toward its goal of achieving carbon neutrality by 2030. LG reduced the total amount of direct and indirect greenhouse gas emissions from its domestic and overseas sites by 40 percent last year (compared to 2017 levels).
In terms of the social criteria measured, LG garnered a favorable assessment from the DJSI World for its strong efforts in supply chain management, workplace diversity and for the creation of an inclusive culture. The company also earned a positive evaluation for implementing transparent and responsible governance practices, including the disclosure of its Board Skills Matrix (BSM), establishment of the board guidelines on independence, expertise and diversity.
Dedicated to realizing a more inclusive society through providing products that are truly accessible, in Korea, LG recently introduced cost-free braille stickers to enable people with visual impairments to more conveniently operate appliances. The company has also shown its commitment to meeting the highest global standards with the acquisition of ISO37301 certification from the British Standards Institution (BSI). Developed by the International Organization for Standardization (ISO), ISO37301 is an internationally-recognized standard for assessing whether a company’s compliance management policies and risk management systems conform to global standards.
In addition to being listed in the DJSI World for 11 years in a row, LG has made the DJSI Asia Pacific Index for 13 consecutive years, and the DJSI Korea Index for 14 consecutive years. Assessing the same criteria as the DJSI World, the Asia Pacific Index includes the top 20 percent of the top 600 companies in the Asia-Pacific region, while the DJSI Korea Index recognizes the top 30 percent of the top 200 companies based in South Korea.
Furthermore, LG has been awarded Platinum status for the second straight year by independent, globally-trusted provider of business sustainability ratings, EcoVadis – putting LG in the top one percent of all companies in terms of sustainability initiatives. And for the last two years, LG has been given an ‘A’ grade by global investment research firm, Morgan Stanley Capital International (MSCI).
LG’s ESG management practices and goals, including the mid- to long-term strategic tasks the company established earlier this year, are clearly laid out in its Better Life Plan 2030. The plan embodies LG’s commitment to realizing a more inclusive and diverse society by embracing differences and forming close-knit circles of alliance with company employees, corporate partners and stakeholders.
“We will continue to do everything we can to realize our vision for a more sustainable future, leveraging our experience, innovative technologies and global presence to help make life better for all,” said Hong Sung-min, head of LG’s ESG department.