Sustainability Management Strategy

Vision

A planet borrowed for all of us
Through our ESG activities, to hand over a healthy and beautiful planet to our future generation, we will fulfill all our responsibilities
as a true successor.

ESG

ESG
Management
Direction

  • For Healthy Products
    Development of
    sustainable and
    user friendly products
    • Safety-assured products
    • Biodegradable materials
    • Clean beauty raw materials
  • For the Beautiful Planet
    Reduce environmental
    impact through
    eco-friendly products and recycling
    • Reduce greenhouse gas
    • Preserve water resources
    • Reduce waste
  • For Refreshing Society
    Strengthen social
    responsibility throughout
    company’s value chain
    • Protect labor rights
    • Prohibit discrimination
    • Strengthen work-life balance

Our Goals

  • Manage product safety & risk
    Enhance quality
    assurance system,
    manage emerging risks
  • Promote material recycling
    Introduce environment
    friendly packaging,
    More recycling thru collection
  • Increased CSR activities
    Strengthen programs for
    women and children

  • Portfolio diversification
    Expand new and
    overseas businesses

  • Lead climate change initiatives
    RE100 & carbon neutrality,
    increased energy efficiency,
    minimize carbon footprint across supply chain.
  • Build sustainable value chain
    Strengthen ESG capabilities of
    partner companies,
    expand RSPO
  • Increase products with social
    and environmental benefits
    Boost open innovation,
    engage in long-term projects for
    reducing environmental impact
  • More eco-friendly products
    More green products, more water
    saving products, more replacement
    of harmful chemicals
  • Improve working conditions
    Greater employee commitment,
    worker rights assessment

ESG Governance System

To enhance ESG management and achieve long-term sustainable growth, LG H&H established an ESG Committee under the board of directors in 2021. The ESG Committee, composed of the CEO and all independent directors, meets biannually. As the highest decisionmaking body for sustainable management, the committee acts as the control tower for ESG governance by reviewing and approving basic ESG policies and strategies, mid-to-long-term ESG goals, ESG management activity plans, implementation status, and responses to significant ESG-related risks.

  • LG H&H BOD

  • ESG Committee
    (Biannually,Hold an extraordinary meeting if necessary)

    • Establish underlying policies and strategy for
      ESG management
    • Establish long-tern ESG goals
    • Monitor and review ESG activities

  • Secretariat : ESG Team

  • ESG Working Group
    (Quarterly)

    • Coordinate inter-departmental ESG issues and
      action plans
    • Regular reporting on major ESG issues
    • Identify and execute ESG projects.
    • External
      Cooperation Division
    • Environmental
      Safety Division
    • Packaging
      Development Division
    • Customer
      Value Division
    • Ethical(Jeong-Do)
      Management Division
    • Purchasing/Partner
      Support Division

Promise of LGH&H

  • Transparent information sharing and exemplary
    operation of BOD
  • Pursue happiness of all people and be a responsible
    corporate citizen
  • Assemble resources to achieve carbon neutrality
    by 2050
  • Develop, produce and market only safe and eco-
    friendly products
  • Operate sites under the principle of zero defect
    and zero hazard
  • Assist and seek joint growth with partner companies

Mid-term Roadmap

id-term Roadmap
Category Tasks Key Performance Indicators(KPIs) 2023 Achievement Linked SDGs
Economy and
Governance		 Creation of Social
Environmental Benefits

Selection and annual implementation of long-term tasks to reduce environmental impact and enhance customer safety and health (-2025)

 [Representative Products]

belif Farm to Skin: Efficacy quality/scientific reliability

Beyond Angel Aqua Line: Contains extracts from farm-to-skin farming methods/eco-friendly packaging/vegan formula

TFS The Therapy Vegan Line: Eco-friendly packaging/vegan/24-free formula

First in the Korean cosmetics industry to apply eco-friendly recycled plastic containers made from 100% pure waste plastic and waste vinyl pyrolysis oil, promoting circular resource utilization and reducing greenhouse gas emissions

 sdg02
Establishment of ESG Governance

Organization and operation of the ESG Committee

Performance of the ESG Council operations

Enhancement of diversity and expertise of internal and independent directors

Operation of the ESG Committee (twice per year)

Operation of the ESG Council (conducted quarterly)

 sdg01
Social Strengthening of Community Engagement Activities

Continual expansion of social beneficiaries, such as job creation for women (-2025, cumulative selection of 280 individuals)

Selection of 35 individuals for the 6th Natural Beauty Live Creators (cumulative participation of 206 individuals)1)

 sdg09

Continuous Value-Up through post-management of existing personnel

Addition of live commerce education, professional mentor training, and practical opportunities

Diversification of education channels and achievement of a cumulative total of 100,400 beneficiaries for the youth-targeted habit improvement blended education program Borrowed Earth School2) (-2025)

2023: Conducted classes for metaverse 'Borrowed Planet World' targeting national schools (16 schools nationwide / 612 students participated in metaverse classes)

2023 cumulative participants: 79,614 (2023 'Borrowed Earth World' standalone performance: 5,656 individuals / 41 schools)

Expansion of the children-targeted health musical Twinkle Twinkle Perioe to more regions and achievement of a cumulative total of 242,290 beneficiaries3) (-2025)

2023 cumulative total: 239,452 (2023 standalone 4,005 individuals)
Building of a Sustainable
Supply Chain

Improvement in reassurance diagnostic scores for suppliers, targeting a cumulative 400 companies (-2025)

2023 cumulative score improvement performance: 329 cases (29 cases in 2023 alone)

Issuance of Reassurance Practice Grade certificates to 4 domestic suppliers

 sdg05

Cumulative technical support for suppliers: 1,811 cases (-2025)

2023 alone: 214 cases

2017-2023 cumulative: 1,380 cases

Cumulative financial support for suppliers: 310.2 billion KRW (-2025)

2023 alone: 35.4 billion KRW

2017-2023 cumulative: 233.61 billion KRW

Minimization of risks through enhancement of ESG capabilities in suppliers

Conducting audit surveys and pre-monitoring (targeting 'significant suppliers' among all suppliers)

Consulting provided to 30 suppliers (using external consulting firms)
Human Rights Management

Human rights survey for all employees

Conduct human rights impact assessments at major business sites

Human Rights Impact Assessment and remedial measures for all employees

Conducted human rights audits at three overseas sites (Beijing, Guangzhou, Dong Nai), conducted self assessments at 18 business sites

 sdg12
Safety and Health

Implementation of safety and health operational assessments at key business sites

Expansion of the Behavior-Based Safety (BBS) program

Enhancement of DX (Digital Transformation) initiatives

Pilot safety and health operational assessments conducted for production and logistics (42 teams)

Expansion of the Behavior-Based Safety (BBS) program across production sites (7 in 2021-2022, 5 in 2023)

Development and enhancement of the Environmental, Safety and Health Portal System (DFM) completed

 sdg13
Creation of a Favorable Work Environment

Enhancement of employee engagement (target of 80 points by 2025)

Employee Engagement Score: Average of 81 points

 sdg06

Establishment of a global education system (cumulative completion of 750 participants by 2025)

English coaching classes: 63 participants in native 1:1 sessions

Expatriate development program: 7 participants

Global MBA participants: none

Language courses: 614 participants in Japanese/Chinese basic business conversation

Development of global leadership (by 2025)

LG H&H Global Internship Program: 5 participants in 2023 / Duration: June to August 2023 (2 months)
Environmental Promotion of Resource Recycling

Achievement of 500 billion KRW in sales from green products through eco-labeling (by 2025)

Green product revenue: 461.1 billion KRW

204 Eco-Labels, 8 Environmental Product Declaration, 6 Low Carbon certifications

 sdg10

Usage of 700 tons of recycled plastic (by 2025)

Recycled plastics: 452tons of PCR PET/PCR LLDPE

Proportion of clean beauty products (50% of new products under clean beauty-focused brands by 2025)

Achievement of an average Clean Beauty Inside score of 13 for new clean beauty products (by 2030)

Operation of 'Clean Beauty Inside' guide for new products in 2023

Proportion of clean beauty products: 35% among new products from clean beauty-focused brands

Clean Beauty Inside index: Conducted for products launched in 2023

Average Clean Beauty Inside index for 2023: 9.28 points, surpassing the target of 8.5 points
Leadership in Climate Change Response

Reduction of water usage intensity to 1.79 tons per product-ton (by 2025)

2.44 tons per product-ton

Reduction of greenhouse gas emissions (cumulative reduction of 25,870 tons CO₂eq by 2025)

Reduction of carbon emissions by 45% (by 2030)

Achievement of Net Zero (by 2050)

Cumulative CO₂eq reduction: 20,193 tons
1) Natural Beauty Creator: Beauty creator training program for women with career interruptions
2) Borrowed Earth School: Cumulative data since 2014
3) Twinkle Twinkle Perioe: Cumulative data since 2004
THE WHOO LIKE A STAR