Editor’s Note
This article highlights LG Chem’s publication of its 2017 Sustainability Management Report, which details the company’s commitment to responsible sourcing by excluding conflict minerals from its supply chain.
LG Chem announced on the 30th that it has published its ‘Sustainability Management Report’ containing the policy of excluding minerals mined from conflict regions such as the Democratic Republic of the Congo from being used as raw materials. The report details that the company continuously monitors the ‘supply chain’ from the purchase stage of minerals like cobalt to the production of final products such as electric vehicle batteries, and also conducts on-site inspections.
LG Chem stated that it publicly released the ‘2017 Sustainability Management Report’ on its website on the 30th. This is the 12th report since its first publication in 2007. This year’s report highlights the ‘Supply Chain CSR Risk Management’ strategy aimed at establishing a stable and ethical raw material supply chain. LG Chem explained, “In line with the growing social interest in the ethical sourcing of product raw materials, we have been striving to build a sustainable supply chain management system. In 2016, we established a code of conduct for partners with 10 items including human rights, labor, ethics, environment, and safety. In 2017, we prohibited the use of raw materials obtained through unethical means.”
According to the report, LG Chem conducts ‘CSR evaluations’ linked to partner purchasing assessments. First, it regularly evaluates approximately 240 raw material manufacturers on a total of 52 criteria, including prohibition of child labor, worker protection, compliance with working hours, management of conflict minerals, and assessment and elimination of safety, health, and environmental risks. It also evaluates new companies on 10 criteria. LG Chem stated, “We also provide support and cooperation to help partners comply well with these items.”
In particular, the use of the four major minerals—tin, tantalum, tungsten, and gold—mined in the Congo and surrounding regions, where ‘child labor’ has been an issue, is completely excluded.
LG Chem explained. The company added, “We have formed a consultative body with four LG Group companies—Chem, Electronics, Display, and Innotek—to recommend that partners prohibit the use of conflict minerals.”
In the publication’s foreword, Park Jin-soo, Vice Chairman of LG Chem, stated,