Environment and Safety Management

Environmental, Health and Safety Guidelines

Under the business philosophy of LG, the company establishes Environmental, Health and Safety Guidelines as the principle with a view to providing customers with differentiated products and services in the three criteria of ‘healthy, beautiful, and refreshing’.

• - The company creates an eco-friendly and safe working environment throughout all its business operations
    and contributes to the sustainable growth of the company through health promotion activities.
• - The company provides differentiated values to customers by operating a system that minimizes effects on environmental safety
    and public health.
• - The company complies with laws and regulations related to environmental safety and public health
    and by establishing advanced standards for improvement to global levels.
• - The company works to create a culture for Environmental, Health and Safety that complies with basics and principles.
• - The company fulfills its social responsibility by actively supporting programs for improving Environmental,
    Health and Safety for partner companies and local community.
• - The company regularly diagnoses and discloses information with full transparency by creating an Environmental,
    Health and Safety management system.

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- and Long-term Roadmap for Environment and Safety Management

Medium- and Long-term Roadmap for Environment and Safety Management

Category	KPI	2017	2018	2019	2020	Achievement Plan
Accident -free work environment	Normal use rate of safety covers	100% (8,945 cases)	100% (8,984 cases)	Operation stabilization	System upgrade	- Install safety equipment for abnormal covers - Establish and operate a monitoring system - Stabilize and upgrade the operation of the system
	Number of industrial accidents (including those at in-house suppliers)	22 cases	7 cases	1 case	0	- Strengthen the subcontractor monitoring system - Set a monitoring system - Stabilize and upgrade the operation of the system
	Improvement rate of near miss	100% (4,826 cases)	100% (7,395 cases)	100%	100%	- Monitor the current status of each business site - Reflect the improvement rate of near miss in the KPI for the head of each department - Ask a regular employee to identify and tackle five near miss
Green management	Green level application rate	98%	98%	100%	100%	- Build a monitoring IT system - Analyze existing products and identify the current status
	Sales of green products	KRW 343.9billion (163 commodities)	KRW 360billion (178commodities)	KRW 378billion	KRW 396.9billion	- Expand the application of ecofriendly marks and low-carbon product certifications
	GHG emissions intensity (tCO2e/product-ton)	0.075	0.070	0.060	0.055	- Conduct activities to reduce energy consumption at each business site
	Water intensity (ton/product-ton)	2.13	2.08	1.74	1.59	- Conduct activities to reduce water consumption at each business site
System	ESH system use rate	Preparation for establishment	Establishment of the system	Operation stabilization	System upgrade	- Identify the current status and establish the system - Stabilize and upgrade the system
	Rate of ISO certification maintained (14 business sites)	75%	89%	100%	100%	- Shift the standards of environment /safety certification - Obtain environment and safety certification for 14 business sites

Management System Certification

Management System Certification

환경안전인증 통합 시스템 구축 운영

Company	ISO 14001	OHSAS 18001	Green Company (Eco-friendly Company)	ISO 9001	HACCP	KS
LG H&H	Cheongju/Ulsan/ Onsan/ Beijing/Vietnam	Cheongju/Ulsan/ Beijing	Cheongju/Ulsan	Cheongju/Ulsan /Onsan/Naju/ Beijing/Vietnam	N/A	Cheongju/Ulsan
Coca Cola Beverage	Yeoju/Yangsan/ Gwangju	Yeoju/Yangsan/ Gwangju	Gwangju	Yeoju/Yangsan/ Gwangju	Yeoju/Yangsan/ Gwangju	N/A
HAITAI Beverage	Cheonan/ Pyeongchang/ Cheolwon	Cheonan/ Pyeongchang/ Cheolwon/Iksan	Cheonan	Cheonan/Pyeongchang/ Cheolwon/ Iksan	Cheonan/Iksan	N/A

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

Green Management Goal

The green management objective is to establish the reduction target by year (from the base year to 2020) for each establishment and achieve the detailed reduction plan through green management investment. When the base year is 2009, the GHG emission target is to reduce the emissions by 40% over BAU (business as usual) by 2020 and the water use target is a reduction of 30%. To attain such reduction targets, the company is planning to invest KRW 51 billion in green management by 2020. In addition, to develop new green products, the company is expanding carbon labeling products and renewable energy-related products.

KPI(Key Performance Indicators)

• GHG emissions

  
  

  (GHG emissions : ton CO₂e, Intensity : Intensity CO₂e/product-ton)

  

• Water usage

  
  

  (Water usage : m³, Intensity : m³/ product-ton)