LG Innotek published the 2022-2023 Sustainability Report

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Jul 21, 2023, 04:00 ET

Achieved 20% carbon neutrality within one year after the declaration and increased shareholder-friendly policies such as the 10% dividend payout ratio
Increased investment in R&D by 33% from the previous year to strengthen the competitiveness of future business

SEOUL, South Korea, July 21, 2023 /PRNewswire/ -- LG Innotek (CEO Jeong Cheol-dong) announced on the 21st that it had published the '2022-2023 Sustainability Report' that covers the performance of ESG (Environmental·Social·Governance) management.

LG Innotek achieved meaningful results previous year by performing substantial ESG management activities to enhance corporate value.

LG Innotek published the 2022-2023 Sustainability Report

In the environmental field, LG Innotek joined 'RE100' and decided to use renewable electricity in all workplaces by 2030. At the same time, LG Innotek declared that it would achieve 100% Carbon Neutrality by 2040. LG Innotek also joined the Science Based Targets initiative (SBTi) to systematically carry out carbon neutrality activities.

LG Innotek has already achieved the goal quickly by recording the renewable electricity conversion rate of 22% (RE22) and carbon neutrality rate of 20%.

In 2022, LG Innotek received the 'Minister Prize from the Ministry of Environment' as the leading company in resource circulation in recognition of its efforts for resource circulation, such as the development of a waste management system, reusing process subsidiary materials, and reducing the use of plastic packaging materials.

Besides, Gumi, Pyeongtaek, and Gwangju plant of LG Innotek have obtained the 'ZWTL (Zero Waste to Landfill)' certification from UL(Underwriters Laboratories) Solutions, a global safety certification body. In particular, the Pyeongtaek plant acquired the highest grade 'Platinum' last year by achieving 100% resource circulation following the Gumi plant.

In the social field, there is noteworthy in this Sustainability Report that employees participated a lot of social contribution activities. Since the company's online social contribution portal had launched in 2022, more than 3,000 employees have actively participated in various forms of social contribution activities, such as online donation funding and non-face-to-face volunteering.

LG Innotek was selected as the most excellent company for 6 consecutive years in the Win-Win Growth Index operated by Korea Commission for Corporate partnership.

Furthermore, LG Innotek received Grand Prize from the Great Place to Work in Korea Award in recognition of its excellent corporate culture.

In the field of governance, LG Innotek has focused on creating a transparent and sound business environment. As a result, LG Innotek received ISO 37301 (Compliance Management System) certification, Excellent Anti-corruption Company at the Business Integrity Society Summit (BIS) hosted by United Nations Global Compact (UNGC) Korea, and ISO 22301 (Business Continuity Management System) certification last year.

LG Innotek has also strengthened shareholder-friendly policies. In 2022, LG Innotek paid a total of KRW 98.2 billion as a dividend per share, which is a significant increase from the previous year (KRW 71 billion). As a result, LG Innotek successfully implemented its dividend policy of maintaining a dividend payout ratio of 10% or more until 2024.

In addition to ESG management, the Sustainability Report highlights LG Innotek's various efforts to secure the competitiveness of future business.

LG Innotek invested KRW 752.8 billion in R&D last year to advance original technology and identify new value-added businesses in future growth areas. The amount had a 33% increase from 2021 (KRW 564.2 billion). During the same period, LG Innotek also expanded industry-university collaboration significantly by doubling the number of industry-university projects.

"LG Innotek will continue ESG management faithfully as 'Global No.1 Material and Component Company' that provides differentiated customer value." said CEO Jeong Cheol-dong.

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