Supply Chain
ESG Management in the Supply Chain
As a global company, LG Display joined the Responsible Business Alliance (RBA) in 2021 to systematically manage ESG risks throughout the supply chain and strives to create sustainable values in cooperation with various stakeholders including customers and business partners. Recognizing the importance of sustainable supply chain management, LG Display meticulously inspects and improves the supply chain so that it can be operated and managed in accordance with the RBA evaluation methodology and ESG requirements from customers, not only at its domestic and overseas worksites, but also at the worksites of its suppliers, while supporting various ESG capacity building programs. LG Display will continue to firmly establish sustainability throughout the supply chain by upgrading its supply chain management policies and evaluation management system.
ESG Management Policy in the Supply Chain
LG Display established the ESG Code of Conduct for Suppliers to establish a safe working environment at its domestic and overseas worksites for product manufacturing as well as those of its suppliers, respect its employees, and fulfill its responsibilities as an environmentally friendly and ethical company.
Major Categories of LG Display ESG Code of Conduct for Suppliers
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Labor & Human Rights
Work of one's own free will, protection of minors, working hours, wages and benefits, humane treatment, non-discrimination, freedom of association
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Safety & Health
Occupational safety, emergency evacuation, occupational accidents and illnesses, occupational hygienes, physically demanding work, machine safety protection equipment, hygiene/food/housing, safety and health training
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Environment
Report on environmental licensing, pollution prevention and reduced resource use, hazardous chemicals, wastewater/solid waste, air pollution, regulation of substances contained in products, stormwater management
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Business Ethics
Compliance with Jeong-Do Management, prohibition of unjust enrichment, disclosure of information, protection of intellectual property rights, protection of identity and prohibition of retaliation, contribution to community, protection of customer/personal information, fair trade, advertising and competition, avoidance of conflicts of interest
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Management System
Expression of free will, responsibility of corporate leadership, legal and customer response, risk assessment, improvement goals, training, communication, employee participation, improvement actions based on evaluation, documents and records, supplier responsibilities
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Conflict Minerals
Responsible procurement of minerals
ESG Evaluation System for Suppliers
In order to effectively manage ESG risks from suppliers, LG Display has revamped the ESG evaluation system for suppliers so that major suppliers can check their compliance with the ESG Code of Conduct for Suppliers at least once a year.
ESG Evaluation Process for Suppliers
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Select suppliers
to be evaluated- Considering the size of the transaction amount, business continuity, strategic/technical significance, etc.
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Conduct SAQs and
analyze results- Conduct Self Assessment Questionnaires (SAQs) with suppliers
- Analyze assessment results and areas of vulnerability
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On-site due diligence
by a third party- Select a supplier to be evaluated in consideration of SAQ results and regional risks
- Conduct on-site due diligence by a third party
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Validate improvements
- Validate that improvements have been made (documentation, on-site)
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Develop/implement an improvement plan
- Request improvements for findings
- Develop an improvement plan and support implementation