Environment and Safety Management

Environment · Safety · Health Policy

To provide differentiated products and services to customers in three areas of Healthy, Beautiful, and Refreshingunder the management philosophy of LG, we shall establish environment safety health policy and practice the followings.

• ·Creation of Safe and Healthy Environment

  
  We construct eco-friendly and safe work environment in the whole process of business activities and contribute to continuous growth of our company through the activities for promoting employee’s health.



• · Continuous Improvement of Environment · Safety · Health

  
  In the whole process of production activities from purchase of raw materials to production, distribution, logistics and product use, we establish an Environment · Safety · Health management system, regularly inspect it, disclose information transparently, and reflect environment managementin major decision-making in all business activities including merger and acquisition.



• · Harmony with Environment

  
  We provide customers with differentiated value by operating the system that minimizes the influence on Environment·Safety ·Health.



• · Creation of Environment · Safety · Health Culture

  
  Complying with basics and principles, we create an Environment · Safety · 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.



• · Compliance with Regulations

  
  We comply with laws and regulations related to Environment · Safety · Health 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.



• · Social Responsibilities

  
  We fulfill CSR by actively supporting programs for improving Environment · Safety · Health in local communities with major business partners including suppliers.

Implementation and Management Structure

Our Environment and Safety organization is responsible for working-level ESH operations including the green company designation, ISO 14001 and OHSAS 18001 while reviewing pending issues through the Enterprise Environment and Safety Committee and identifying alternatives.

Medium & Long-term Roadmap (KPIs) for Environment and Safety Management

Certification

Medium & Long-term Roadmap (KPIs) for Environment and Safety Management

Category	KPI	2017	2018	2019	2020	2021	Achievement Plan
Accident-free work environment	Usage rate of safety covers	100% (8,945 cases)	100% (1/9,124 cases)	Stabilization (10,946 cases)	Upgrade	Upgrade	- Install additional safety covers at business sites currently without covers and monitor usage rate - Establish and operate a monitoring system for safety covers - Stabilize and upgrade the operation of the system
	Number of industrial accidents (including those occurring at business sites of subcontractors) [case]	22 cases	31 cases	7 cases	0 cases	0 cases	- Strengthen monitoring of subcontractors and establish system - Stabilize and upgrade the operation of the system
	Improvement rate of near misses [%]	100% (4,826 cases)	120% (7,268 cases)	100% (6,500 cases)	100%	100%	- Monitor detection of near-misses at each business site - Apply the improvement rate of near-misses in the KPI at the head of each division - Ask each regular employee to identify and tackle three near-miss cases
Green management	Green level application rate [%]	98%	100%	100%	100%	100%	- Build an IT system for green-level monitoring - Analyze existing products and identify the current application status of green level
	Sales of green products [KRW 100 million]	3,439 (163 items)	3,759 (195 cases)	3,980	4,099	4,222	- Expand the application of eco-friendly labels and low-carbon product certifications
	GHG emissions intensity [tCO2/product-ton]	0.075	0.081	0.069	0.067	0.065	- Conduct activities to reduce GHG emissions at each business site - Based on the GHG emissions intensity at production business sites
	Water intensity [tCO2/product-ton]	2.13	2.10	2.04	1.98	1.92	- Conduct activities to reduce water consumption at each business site
	Waste intensity [kg/product-ton]	12.379	12.524	12.148	11.784	11.430	- Continue to reduce the defect rate in the production process - Facilitate the recycling of waste
System	ESH system use rate	System establishment	System establishment	Stabilization	Upgrade	Upgrade	- Identify current status and establish system - Stabilize and upgrade the system
	Rate of ISO certification maintained (14 business sites) [%]	75%	82%	83%	84%	86%	- Shift the standards of environment/safety certification - Obtain the environment and safety certification for 14 business sites - Achieve certification for the second Iksan Plant
Chemical substances	Number of violations of environmental and safety regulations [case]	0	0	0	0	0	- Monitor the registration of imported raw materials and new substances - Upgrade the operation of the chemical substance management system - Review the amended regulations by staff in charge and provide support for business sites

Management System Certification

Management System Certification

환경안전인증 통합 시스템 구축 운영

Category	ISO 14001	ISO 9001	OHSAS 18001	KOSHA 18001	HACCP	KS	Green Company	FSSC 22000
LG H&H	Cheongju/Ulsan/ Onsan/ Beijing/Vietnam	Cheongju/Ulsan /Onsan/Naju/ Vietnam	Cheongju/ Naju/Beijing	Ulsan	-	Cheongju/Ulsan	Cheongju/ Ulsan	-
Coca-Cola Beverage	Yeoju/Yangsan/ Gwangju	Yeoju/Yangsan/ Gwangju	Yeoju/Yangsan/ Gwangju	-	Yeoju/Yangsan/ Gwangju	N/A	Gwangju*	Yeoju/Yangsan/ Gwangju
HAITAI htb	Cheonan/ Pyeongchang/ Cheolwon/Iksan	Cheonan/ Pyeongchang/ Cheolwon	Cheonan/ Pyeongchang/ Cheolwon/Iksan	-	Cheonan/Iksan	N/A	Cheonan	Cheonan/ Pyeongchang/ Cheorwon/Iksan

*2019. 11. 24. Designation period expired

Green Management

Green Management Three Management Objectives : LG H&H has adjusted the existing strategies for change according to the green management strategies of LG Group. To implement green management throughout the company, it investigated the status of all its subsidiaries and selected the corporations subject to administration. Through this, the company re-established its green management objectives, including the ones for HAITAI Beverage, which it acquired in 2010. In addition, to achieve the three green management objectives of “Green Establishment,””Green New Product” and “Green New Project” effectively, the company has selected the five implementation tasks and implemented them

Medium- and Long-term Roadmap for Green Management

LG H&H’s Environment and Safety Division identifies major risks across the company and implements medium- and long-term strategies and plans developed accordingly. The Environment and Safety Division contributes to the sustainable growth of the company by creating an eco-friendly and safe working environment and promoting activities for the improvement of our employees’ health throughout all business procedures. The division also provides distinctive values to customers by operating an optimal system for green management.

*Efficiency of energy use and GHG emissions reduction is expected to decrease due to the operation of a new TP plant