Policy

Policy

Tax Policy

  • Complying with the spirit as well as the tax laws and fulfilling various tax liabilities are part of the social responsibilities of a company. LG H&H abides by domestic and overseas tax regulations, promptly reporting tax information and fulfilling its tax liabilities. Our employees in charge of tax payment handle their tasks conscientiously to maintain a transparent relationship with the tax authorities.
  • Tax Risk Management
    LG H&H clearly specifies the roles and responsibilities of employees in charge of each category for tax payments to run the tax management group and hire tax professionals for higher expertise, thereby minimizing tax risks that may occur in business transactions. We reduce risks by reviewing tax information prior to the decision-making process. When it is unclear to understand any part of the tax law, we consult with external tax professionals, including accounting firms, to find the optimal solution.
  • Disclosure of Tax Payment Records
    We provide corporate tax information in the audit report publicly announced on DART (Data Analysis, Retrieval and Transfer System) run by the Financial Supervisory Service. We disclose the standards for calculating corporate tax expenses, deferred tax assets, liabilities, the details of corporate tax expenses, and effective tax rates in the financial statement and annotations in the audit report.
  • Fulfillment of Tax Payment Obligations
    In terms of international transactions with overseas subsidiaries, LG H&H applies the transfer pricing policy that corresponds to the tax law in Korea and the OECD transfer price guidelines, as well as the Arm's Length Principle. If there is any expected conflict between different countries, we proactively respond to double taxation based the APA (Advance Pricing Arrangement) system. We also comply with duties for the documentation of transfer prices and the submission of a report by country under the BEPS (Base Erosion and Profit Shifting) project. LG H&H does not employ a tax structure that abuses the differences and loopholes in the tax system between different countries to unreasonably reduce its tax liabilities. We legally allocate the taxable income depending on values generated in each country where we operate our business. In particular, we prohibit the transfer of values, including intangible or financial assets, to any region with a loose tax jurisdiction, such as low effective tax rates. We do not use tax structures without commercial substance and stringently restrict the use of tax havens.

Ethics Guideline

  • LG H&H ('the Company," or "we") shares the management principles of "creating value for customers" and "management based on respect for humans" and promotes self-management based on freedom and responsibility, in line with the spirit of the management charters. We respect the order of a free-market economy that promotes free and fair competition and pursue common interests with all stakeholders based on mutual trust and cooperation to continue growing into a world-class excellent company. In this regard, we established a code of conduct as the guidelines for proper behaviors and value judgment that all employees, partners, and contractors should follow and make ourselves committed to implementing the code of conduct.
  • Duties and Responsibilities for Customers
    1. Respect for Customers
    (1)
    We always listen to customers' voices, believe that the sincere requests of customers are always right, and put customers first in all our judgments and actions.
    2. Creation of Value
    (1)
    We always try to find values that customers need, believing that the development of our customers is our development.
    (2)
    We continue creating true values that can practically help and satisfy customers.
    3. Offering Value
    (1)
    We always tell our customers the truth and always keep our promise to them.
    (2)
    We provide customers with the best quality products and services at reasonable prices and rapidly and accurately respond to their fair requests.
    4. Protection of Information
    (1)
    We do our best to protect customer information safely.
    (2)
    We accurately inform our customers when we use their information and guarantee their right to know.
  • Fair Competition
    1. Pursuit of Free Competition
    (1)
    In accordance with the principle of free competition, we respect global economic order anywhere in the world and gain customers' trust by improving the quality of products and services.
    (2)
    We engage in competition in good faith utilizing our genuine ability and do not infringe upon the interest of our competitors or unfairly take advantage of their weaknesses.
    (3)
    We prohibit monopoly/anti-competitive behaviors.
    2. Compliance with Laws and Regulations
    (1)
    We conduct all business activities in and outside of Korea in compliance with laws and regulations in the countries we operate while respecting customs related to transactions.
  • Fair Transactions
    1. Equal Opportunities
    (1)
    We give all qualified companies equal opportunities to join registration and selection of partners.
    (2)
    We register and select partners in a reasonable manner in accordance with objective and fair review criteria.
    2. Fair Transaction Procedure
    (1)
    All transactions are made fairly with both parties in an equal position; and we make sufficient discussions about the condition and procedures of transactions.
    (2)
    We do not conduct any kinds of illegal behaviors by taking advantage of our superior position.
    (3)
    Information needed for transactions should be provided mutually in a timely manner following adequate procedures, and results of the transactions should be regularly evaluated for mutual improvement.
    (4)
    We prohibit money laundering and internal transactions.
    3. Pursuit of Mutual Development
    (1)
    We provide active support, including technical support and management guidance, so that partners can develop competitiveness and grow in the long term. We share profits created through innovation.
    (2)
    We exert mutual effort together with our partners to foster a clean transaction environment and maintain fair transaction order.
  • Basic Ethics for Employees
    1. Basic Ethics
    (1)
    Employees take pride as LG employees and maintain honest and fair attitudes.
    (2)
    Employees should always try to maintain high ethical standards and keep their own dignity and the reputation of LG H&H.
    2. Completion of Mission
    (1)
    Employees should fulfill their own missions in line with the Company's vision and policies.
    (2)
    Employees should do their best to perform their duties by fair means and comply with related laws and regulations.
    (3)
    Employees should maintain the Company's assets well and protect the secrets obtained during the process of doing their jobs.
    (4)
    Employees should provide active cooperation and communication with other colleagues and departments for higher work efficiency.
    3. Self-development
    (1)
    Employees should define what kind of talent they want to be and stay committed to becoming the talent.
    4. Fair Performance of Duties
    (1)
    Employees should always perform their duties honestly and fairly and should always try to create a sound corporate culture.
    (2)
    Employees do not receive any monetary gains or bribery from stakeholders that can deter fair judgment related to their duties.
    (3)
    Regarding their daily life and duties, employees do not conduct any immoral or unethical behaviors that can be socially criticized.
    5. Avoiding Conflicts of Interest with the Company
    (1)
    Employees avoid any types of behaviors or relations that cause conflicts of interest with the Company.
    (2)
    Employees should not use the Company's assets for personal gain without authorization.
  • Responsibilities for Employees
    1. Respect for Humans
    (1)
    We treat each employee as an independent personal entity with mutual trust and genuine affection for humans.
    (2)
    We do our best so that employees can work with a sense of ownership and feel rewarded and proud.
    (3)
    We take necessary actions, such as establishing systems and providing education and guidelines, so that employees can fairly fulfill their missions.
    2. Fair Treatment
    (1)
    We provide employees with equal opportunities depending on their ability and talent and do not discriminate against them for unfair reasons.
    (2)
    We evaluate the abilities and achievements of employees based on fair criteria and provide them with fair compensation.
    3. Promoting Creativity
    (1)
    We try our best to create an environment to promote employees' creative thinking and autonomous behaviors.
    (2)
    We actively support the development of employees' capabilities and nurture talents in the long term.
    (3)
    We respect the privacy of individuals and create a mature organizational culture based on mutual trust and understanding.
  • Responsibilities for the Country and Society
    1.Reasonable Business
    (1)
    We conduct our business while respecting the social values of the region where we operate, both in and outside of Korea.
    (2)
    We try to expand our business based on the foundation for the Company's stable growth.
    2. Protection of Shareholder's Interest
    (1)
    We protect shareholders' return on investment by realizing profit from efficient and sound management.
    3. Contribution to Social Development
    (1)
    We contribute to national development by creating employment and paying taxes sincerely; and contribute to social development through cultural and welfare projects.
    (2)
    We make donations to eligible charities for clear purposes and prohibit any form of inappropriate profit from such donations.
    (3)
    We strictly prohibit donations and sponsorships for political purposes using the Company's assets, budget, and others.
    4. Emphasis on Environment/Safety/Health
    (1)
    We exert our best effort to prevent environmental pollution and protect nature in order to preserve a clean environment.
    (2)
    We try to establish the best possible safety facilities and take necessary actions to ensure safety/health at business sites.

Environmental management policy

  • Purpose
    Under LG's management ideology, LG Household & Healthcare establishes and implements environmental management policies to provide differentiated products and services to customers in three areas: Healthy, Beautiful and Refreshing. In order to maintain trust with customers as an eco-friendly enterprise, efforts are made to minimize environmental impacts and preemptively respond to environmental risks by establishing an environmental management system.
  • Coverage
    This environmental management policy applies to all global businesses, subsidiaries, partners, service providers, contractors, joint ventures, licensing, and outsourcing partners of LG Household & Health Care.
  • Environmental Management Policy
    1.
    We construct eco-friendly work environment in the whole process of business activities and contribute to continuous growth of our company.
    2.
    In the whole process of production activities from purchase of raw materials to production, distribution, logistics and product use, we establish an Environment ㆍ Safety ㆍ Health management system, regularly inspect it, disclose information transparently, and reflect environment management in major decision-making in all business activities including merger and acquisition.
    3.
    We provide customers with differentiated value by operating the system that minimizes the influence on Environment.
    4.
    Complying with basics and principles, we create Health culture focusing on reduction of influence on environment, such as prevention of environmental pollution, prohibition of use of harmful substances, reduction of wastes and efforts for recycling, reduction of energy and GHG emission, and sustainable water resource management.
    5.
    We comply with laws and regulations and improve the state of them to a global level by proactively establishing self-standards for them one step ahead of those laws and regulations.
    6.
    We fulfill CSR by actively supporting programs for improving Environment in local communities with major business partners including suppliers.
  • Implementation of environmental management policies
    1. Product
    (1) Social Environmental Value Products
    We operate the product standard for social and environmental value by comprehensively considering the environmental impact and the social value of the product. We will make the best efforts to spread products with environmental values such as water resource protection, waste reduction, and energy reduction.
    (2) Packing material
    LG H&H has continued efforts to employ an efficient method for developing eco-friendly containers in the product development phase. LG H&H will continue to improve by establishing tasks such as reduction of containers, improvement of materials, and improvement of recyclability. LG H&H operates the Green Product Review Committee to settle company-wide green management.
    (3) Eco labeling
    LG H&H has been striving to develop and produce products with minimal environmental impact, considering every stage, from pre-manufacturing to after-usage, living up to the consumers’ demand for eco-friendly products through Eco Mark and Carbon Footprint Labeling Certification.
    (4) Hazardous Chemicals
    LG H&H operates its own procedures and guidelines for operating harmful chemicals to ensure safe use of harmful chemicals throughout the product so that consumers can use the product with confidence. We strengthen the human risk assessment and hazardous chemicals verification system, and continue to strive to completely eliminate and minimize hazardous chemicals.
    2. Production and distribution
    (1) GHG/Energy
    We established a greenhouse gas inventory and climate change response system to systematically manage greenhouse gas emissions at all workplaces and formulate greenhouse gas and energy reduction plans. We will continue to invest in improving energy efficiency such as introducing high-efficiency facilities, streamlining facilities, and replacing old equipment and expanding application of renewable energy.
    (2) Water/Waste water
    We establish a greenhouse gas inventory and climate change response system to systematically manage greenhouse gas emissions at all workplaces and formulate greenhouse gas and energy reduction plans. In addition, we secure stable water treatment quality through process improvement, reduce wastewater generation, and establish a monitoring and alarm system to prevent water pollution.
    (3) Waste
    To reduce waste generated in our business sites, we reduced the weight of packaging materials in the product development phase, while managing the amount of waste through the defect rate control in the production phase. Generated waste is not incinerated or buried, but used as resources through recycling and resource recovery, increasing our recycling rate.
    (4) Distribution and Logistics
    We are reinforcing the logistics system by continuously optimizing the operation of logistics in each field, including process improvement, transport and unloading. To this end, we cooperate with partner companies and promote the improvement of the logistics environment for each business division and business site.

Sustainable
Purchasing Policy

  • Enacted in May, 2021

    With the goal of becoming a global FMCG company, LG H&H is creating values shared with society and contributing to the international community in areas that require public awareness. LG H&H sticks to fairness, legal compliance, and ethics in carrying out purchases, and puts natural resources, environmental conservation, safety, and human rights in perspective to fulfill its corporate social responsibilities.

    LG H&H's approach to sustainable procurement of raw materials is as follows.

    LG H&H selects core raw materials by assessing their potential impact on the environment and society. This policy describes the current procurement practices and approach including the reasons for promoting sustainable procurement for different raw materials.

    LG H&H introduced a sustainable raw material procurement policy for the first time in 2021, thus establishing a comprehensive policy covering sustainability-related topics. Our goal is to apply LG H&H's sustainable purchasing policy to our suppliers, as well.
  • Palm Oil

    Palm oil, a major raw material used in the cosmetics, household goods, and beverages produced by LG H&H, is specifically used in the manufacture of fatty acids, glycerol, and surfactants. Reckless procurement of palm oil can have a negative social and environmental impact, with consequences such as global deforestation, climate change, biodiversity loss, and labor exploitation. Accordingly, LG H&H is doing its utmost in regard to the sustainable production of palm oil.

    1. Declaration
    (1)

    LG H&H has maintained its RSPO membership since joining in 2014 through its sustainable approach to palm oil procurement. For sustainable palm oil production, the company obtained RSPO certification for its Ulsan and Onsan plants in 2015. LG H&H plans to continuously increase the purchase of RSPO-certified palm oil. By doing so, we actively seek to comply with the following:

    • · Restriction on reckless deforestation
    • · Protection of workers' rights and labor rights
    • · Transparency and traceability of palm oil
    • · Biodiversity and conservation
    • · Monitoring of environmental and social issues related to each supply sector
    2. Our Current Practices
    (1)

    At present, LG H&H's palm oil is mainly used to manufacture fatty acids, glycerol, and surfactants. In the future, we plan to gradually increase the RSPO certification rate for the applicable quantity.

  • Mica

    Mica is a raw material used in color cosmetics produced by LG H&H, and is mainly used for the color development of lipsticks, foundations, and cushion foundations. More than 60% of the world's mica is extracted in India, where child labor and unethical labor practices are known to be commonplace. Accordingly, LG H&H procures mica as extracted by skilled workers from mines in the United States, Japan, and China. When using Indian mica, we check whether the mine has been declared one with non-child labor or if the supplier is certified as a member of the Responsible Mica Initiative (RMI).

    1. Declaration
    (1)

    LG H&H avoids the use of natural mica and applies synthetic mica to its new products in order to promote sustainable mica procurement. Through a fade-out that replaces existing natural mica-containing products with synthetic mica ingredients, we plan to eradicate child labor in the long term and contribute to reducing the dependence of local communities on illegal mining. To this end, LG H&H intends to actively comply with the following.

    • · Traceability of routes for the collection, transportation, processing, and supply of Indian mica
    • · Confirmation of the child labor prohibition policy with supply chain participants
    2. Our Current Practices
    (1)

    LG H&H frequently uses mica to manufacture color cosmetics containing pearl pigments. Upon examining the mica purchase history for three years from 2018 to 2020, we learned that ten of a total of fifty-four ingredients came from India. When purchasing mica from India, LG H&H checks whether the mine has been declared as one with non-child labor or whether the supplier is certified as a member of the Responsible Mica Initiative (RMI).

    (2)

    LG H&H will procure mica collected in an ethical environment. In addition, we plan to switch to 100% synthetic mica to eradicate the potential of illegal child labor.

Supplier Code of Conduct

Supllier Code of Conduct

Human Rights Policy

  • Purpose and Application
    LG H&H implements our own human rights policy to respect all stakeholders including employees, customers, suppliers, joint ventures and partners, and guarantees their rights and human dignity in pursuit of LG’s management philosophy, “Respecting Human Dignity”. LG H&H complies with labor-relation-related regulations in all countries and regions, strives to secure employment stability and adequate wage level for employees in the social and economic aspects. As a corporate citizen, we support the principles of human rights specified in the Universal Declaration of Human Rights and the Guiding Principles on Business and Human Rights presented by the United Nations Commission on Human Rights.
  • Human Rights Policy
    1. Prohibition of Discrimination
    In the operation of our human resource system including employment, promotion, compensation, and training opportunities, and the provision of products and services, all stakeholders shall not be discriminated against on the grounds of nationality, race, age, gender, sexual orientation, disability, pregnancy, religion, membership of political organization and/or labor union, and marital status. In particular, the principle of “zero tolerance” applies to serious discriminatory acts.
    2. Humanitarian Treatment
    All employees shall be respected as humans, and they shall not be treated in any severe and inhumane way including sexual harassment and abuse, corporal punishment, mental and physical coercion, verbal abuse, or irrational restriction at work.
    3. Prohibition of Forced Labor
    All employees shall not be forced to work against their free will with their mental and/or physical freedom restricted by means of assault, threat, or confinement. Forced labor and related practices, including slavery and human trafficking, are also prohibited. All labor shall be based on free will, and no employees shall be required to hand over their identification card, passport, and/or work permission card issued by the government on condition of employment.
    4. Women and Labor of Children
    Children shall not be employed for any kind of job position. “Children” signifies those aged under a certain minimum age standard, and the minimum age for work is determined by the regulations of each country and region. Underage and/or pregnant employees are excluded from dangerous tasks. In accordance with ILO agreements ratified by each country, working conditions including age regulations shall be observed.
    5. Working Hours
    Working hours and days shall be determined in accordance with the regulations of each country and region concerning regular and overtime working hours and holidays.
    6. Wage and Welfare
    All employees shall be paid in accordance with the labor-related regulations of each country and region concerning minimum wage, overtime working hours, and legal welfare. We treat all workers fairly and reasonably inaccordance with their capabilities and performance.
    7. Freedom of Association
    In accordance with the labor-related regulations of each country and region, the freedom of association and the right to bargain collectively shall be secured. All employees should be guaranteed an environment where they can communicate with the management with no fear of discrimination, retaliation, threat, or harassment.
    8. Protection of Personal information
    The personal information of all stakeholders shall be strictly protected, and it shall not be leaked or utilized for any other use without prior approval of the relevant stakeholder. The company shall deliver only true information, avoid any false information, and shall fulfill this promise.
  • Human Rights Management
    1. Human Rights Management System
    LG H&H may conduct a human rights impact assessment to identify human rights risks in its overall business, including domestic and overseas business sites, suppliers, and joint ventures, and to check issues related to human rights vulnerabilities on a regular basis. The identified issues are intensively managed by a dedicated department to establish a mitigation plan, and to continuously monitor improvement and implementation. LG H&H reports the identified issues and mitigation plans to the CSR Committee, and may report important human rights issues to the ESG Committee.
    2. Impact and Risk Management Process for Human Rights
    • Identification & Assessment

      - Conduct research to identify human rights-related risks and impacts

      - Encourage stakeholders to participate in the assessment of human rights-related risks and impacts

      - Perform a preliminary assessment of human rights-related risks and impacts

      - Carry out inspections of major business sites

    • Mitigation Actions

      - Analyze the results of impact assessments

      - Set proper actions for business sites with potential risks

      - Recommend major suppliers to implement proper actions to mitigate such risks

    • Implementation & Results

      - Check implementation progress and the results of risk mitigation actions

      - Apply the results of implementing risk mitigation actions

    • Communication

      - Report results

      - Review and improveassessment procedures

    3. Communication with internal and external stakeholders
    LG H&H discloses its policies for human rights management to the public, actively communicates with internal and external stakeholders, and monitors potential human rights issues. In addition, we implement human rights-related training for employees to achieve respect for human rights and raise awareness of human rights management.
    4. Human Rights Grievance Procedure
    LG H&H’s employees, suppliers, and partners can report human rights grievances related to the company at any time through the dedicated grievance-handling channel. We do not disclose any information that reveals or alludes to the identity of the informant without his/her consent.
  • Human Rights Grievance-Handling Channels
    1. Organizational Culture Division
    · Tel : 02-6924-6824
    · E-mail : culture@lghnh.com
    2. Jeong-Do Management Division
    · Tel : 02-6924-6780
    · E-mail : justice@lghnh.com


    Human Rights Report            다운로드

Sexual Harassment Prohibition Policy

  • LG H&H prohibits sexual harassment. This refers to an employer, superior, or worker improperly using their authority at work to humiliate or offend other workers in a sexual manner, or demonstrating sexual behavior, including suggestive language, at work. We also prohibit employees from disadvantaging anyone, with respect to working conditions or employment, who is not responsive to sexual language or behavior.

    In accordance our the zero-tolerance policy, sexual harassment is dealt with immediately once reported. We thoroughly guarantee the confidentiality of victims and reporters, so they will not be subjected to negative repercussions. In addition, for improper acts verified through a fact-checking process, we take appropriate measures such as disciplinary action, corrective actions, and/or legal action.
  • Sexual Harassment Prevention Training
    1.
    We conduct sexual harassment prevention education for all employees once a year.
  • Reporting and Consultation Process
    1.
    Grievance: Victims or witnesses can report workplace harassment to the ‘Sexual Harassment/Workplace Harassment Counseling Center’ in Plus-I, and grievances can be filed by email, over the phone, or through an interview.
    2.
    Official Handling Procedure: A Sexual Harassment Review Committee (an organization handling accusations of sexual harassment) is formed to investigate the relevant facts.
    3.
    Informal Procedure*: After organizing and reviewing a complainant’s request, we communicate the request to the respondent. If the respondent accepts the request, we monitor whether the request is fulfilled, and if the request is declined, we listen to the opinions of both parties through a mediation process, draw up an agreement, and check whether the agreement has been implemented.
    * If the complainant prefers an informal procedure, we proceed with an informal procedure in accordance with their wishes.
  • Disciplinary and Corrective Action
    1.
    A dedicated body for handling cases of sexual harassment investigates the facts before taking appropriate HR and disciplinary measures against perpetrators in accordance with internal regulations.
    2.
    To prevent recurrence after a case is closed, we conduct sexual harassment prevention training and assess all of our employees on sexual harassment awareness. We also implement measures to restore victims' rights and constantly take action to manage both perpetrators and victims of sexual harassment.
    3.
    In order to prevent collateral damage, LG H&H implements measures to temporarily separate victims and perpetrators, such as paid leave for victims and provisionally relieving perpetrators of company duties. In addition, we actively support victims’ psychological recovery through internal psychological recovery programs and state-supported psychotherapy.

Workplace Harassment Prohibition Policy

  • LG H&H prohibits 'workplace harassment', which refers to an employer or worker's use of his or her position or relationship at work to subject other workers to physical or mental distress, or to otherwise create an environment unfit for work.

    Whether an act constitutes workplace harassment or not is judged comprehensively with consideration for specific circumstances, such as the relationship with the person concerned, the place and corresponding situation where the alleged act was committed, details of the victim's explicit or presumed reaction to the act, and the content and extent of the act. In order for an act to be recognized as workplace harassment, the following conditions must be met; if the behavior in question 1) takes advantage of workplace power differentials (relating to job positions or relationships), 2) falls outside a reasonable scope for the work, and 3) causes physical or mental distress, or worsens the working environment. In addition, the place where the act is claimed to occur does not necessarily have to be within the workplace. Harassment that occurs online, including via in-house messenger programs and social media, can also constitute harassment in the workplace.

    Regarding workplace harassment, the identity of victims and complainants is kept strictly confidential, and reporting is not subject to any disadvantages. In addition, if acts of harassment are confirmed through a fact-checking process, we will take appropriate measures ? including disciplinary action, corrective action, or legal action.
  • Workplace Harassment Prevention Training
    1.
    We conduct sexual harassment prevention education for all employees on an annual basis.
  • Reporting and Consultation Process
    1.
    Filing a Grievance: Victims or witnesses can report workplace harassment to the ‘Sexual Harassment/Workplace Harassment Counseling Center’ in Plus-I. Grievances can be filed by email, over the phone, or through an interview.
    2.
    Counseling/Investigation: Based on each report, we 1) provide counseling and conduct an investigation to ascertain the circumstances of each incident, 2) identify whether the harassment is repeated or persistent, 3) assess the extent of damages to the victim, and 4) gather direct or circumstantial evidence.
    3.
    Disciplinary actions through fact-checking: After conducting an investigation to confirm the facts within each case, we decide on the appropriate disciplinary action in cases where disciplinary action is required in accordance with the relevant company regulations.
    4.
    Notification of results: We notify the complainants or victims of any developments, such as whether disciplinary action have been taken, or whether a transfer to another department has been implemented.
  • Disciplinary and Corrective Actions
    1.
    If allegations are confirmed and disciplinary actions are required according to company regulations, we will ensure that disciplinary action is taken.
    2.
    We regularly conduct related training and are preventing recurrence through continuous monitoring.

Hazardous Substances Commitment

  • Enacted in June, 2019
    Revised in July, 2020
    Revised in May, 2021

    As a means of providing products that are both safe and reliable, LG H&H established the Consumer Reassurance Center in 2017 to strictly control our use of hazardous substances. Both the Safety Research Lab and the Hazardous Substances Analysis Lab enable prompt and precise diagnoses of hazardous substances, as well as safety verification. We strictly adhere to procedures and guidelines when handling hazardous chemicals, including during product planning and in the selection, production, transportation, and disposal of raw materials. LG H&H complies with the following principles with the aim of producing safer products for our customers:
  • 1. Recognition and Communication of Hazardous Substances
    LG H&H understands the purpose of all chemicals used in its production processes, and proactively identifies the concentration of chemicals contained within finished and semifinished products. Moreover, we strive to minimize harmful chemicals in our products and remove them completely wherever possible.
  • 2. Enhancement of the Risk Assessment and Verification System for Hazardous Substances
    For all ingredients used, LG H&H conducts regulatory reviews on levels designated or restricted by the regulations of each country (LG H&H conducts regulatory reviews on whether ingredients used for each product group are in compliance with levels designated or restricted by regulations); carries out human health risk assessments; and verifies whether the ingredients are hazardous. Only ingredients that comply with LG H&H’s internal management criteria can be used for products.
    In particular, for infant products, inhalable products, and products that pose risks to humans, we verify whether the materials used fall within the safe range prescribed by regulations. Semi-finished products are also tested for harmful chemicals. Furthermore, all new factory-produced products are required to meet internal management standards on an annual basis, which represents a stricter standard than any current domestic or foreign regulation. LG H&H has also introduced the Risk Management Monitoring System (RPA) to collect information, on a weekly basis, for the purpose of identifying the latest regulations and social issues concerning the safety of our products. Targets of monitoring include our entire product line and components of our product packaging, as well as materials available for use in products that we may potentially develop in the future. We also comprehensively monitor the nature of our products, including their shape, texture and containers. Newly updated information on hazardous substances is continuously reviewed and applied to our products.
  • 3. Support for International Standards and Initiatives
    Based on the international standards of Substances restricted under the REACH Annex XVII and substance on the candidate list of Substances of Very High Concern (SVHC), LG H&H investigated the usage and content of products produced, and will make efforts to reduce the identified hazardous substances in stages. Especially with intensive management, Decamethylcyclopentasiloxane(D5) and Dodecamethylcyclohexasiloxane(D6), which were identified to be the majority, will be reduced to less than 50% of the current level by the end of 2025. And LG H&H will achieve this level by increasing the number of new products that do not use the said substances, using different ingredients; or discontinuing the products that contain the said substances.
  • 4.Efforts for Sustainable Development

    LG H&H regularly checks and evaluates raw materials, subsidiary materials and our end products, as well as hazardous substances that may be leached during the production process. For products and processes requiring improvement, we will invest resources into developing products that consumers can rely on and safely use, exploring alternative materials and modified production recipes to eliminate the use of hazardous chemicals. LG H&H designated 20 hazardous substances based on the hazardous substance regulations and acceptance criteria of major countries and made continued efforts to reduce their use. As a result, amounts of these substances used by LG H&H do not exceed the levels defined by major countries. LG H&H will also add Butylphenyl Methylpropional, which can be toxic to reproduction, and parabens (methylparaben, ethylparaben, propylparaben, butylparaben, isopropyl paraben and isobutyl paraben), which are on the list of endocrine disruptors, to the hazardous substances list. LG H&H will continue reducing their use as well.

    (1)
    Butylphenyl methylpropional (BPMP), also known as Lilial, is a synthetic fragrance ingredient. It was classified as an R.1B substance (a substance on which animal testing was done and reproductive toxicity against the human body is concerned) according to EU’s CLP Regulation, which was revised in May 2020. In this regard, LG H&H aims to stop using this substance for its entire products, including fragrances.
    (2)
    Parabens, as preservatives, are widely used for cosmetics and personal care products. But they were placed on some endocrine disruptor lists, including the Substitute It Now! (SIN) list or UN’s list of Endocrine Disrupting Chemicals (EDC), as substances that should be avoided. LG H&H will try to continuously reduce the use of even methylparaben, ethylparaben, propylparaben, butylparaben, isopropyl paraben, and isobutyl paraben, which can be restrictively used in Korea.

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