Conflict Minerals

LG Electronics has a policy that conflict minerals contained in our products shall not be derived from sources that finance or benefit armed groups
in the DRC or adjoining countries.

LG Electronics expects our suppliers to have in place policies and due-diligence measures to facilitate the sourcing of minerals that are “DRC conflict free”.

Conflict Minerals Overview

The Democratic Republic of the Congo (DRC) is a Central African country with vast mineral wealth, including reserves of cassiterite (tin), columbite-tantalite (tantalum), wolframite (tungsten) and gold. For many years, armed groups have fought to control mines within the DRC and have benefited financially from the proceeds of mineral trade; those armed groups have been cited for committing violent crimes against locals and perpetrating human rights abuses. As a result, these minerals are also known as “conflict minerals¹⁾”.

The metals tantalum, tin, tungsten and gold are used in manufactured goods across many industries, including the aerospace, appliances, automotive, electronics, jewelry, medical and tool & die industries. In an effort to address the humanitarian crisis associated with conflict minerals, the United States (U.S.) enacted legislation requiring that U.S. companies report to the Securities and Exchange Commission (SEC) on their use of conflict minerals sourced from the DRC and surrounding region²⁾. Several other governments are considering initiatives to address conflict minerals.

LG Electronics’ Policy for Conflict Minerals

Respect for human rights and the environment are core commitments of LG Electronics (LGE) as a responsible corporate citizen. We are particularly concerned about the human rights abuses that may be associated with extracting, trading, handling and exporting minerals from the Democratic Republic of Congo (“DRC”) and adjoining countries. It is LGE’s policy that tin, tantalum, tungsten and gold (3TG) contained in our products shall not be derived from sources that finance or benefit armed groups in the DRC or adjoining countries. In addition to conflict minerals management, LGE has established responsible mineral sourcing practices for cobalt in response to reports of child labor and other social issues.

LGE is committed to adopting, widely disseminating and incorporating principles in support of these goals in contracts, agreements and/or communications with suppliers. LGE expects our suppliers to have in place policies and due-diligence measures to facilitate the sourcing of minerals that are “DRC conflict free.³⁾” In addition, LGE requires our suppliers to comply with LGE’s Supplier Code of Conduct, based on the Responsible Business Alliance (RBA) Code of Conduct, which sets forth LGE’s broader standards for suppliers and includes provisions relating to human rights, ethical conduct, and environmental protection as well as additional provisions relating to conflict minerals.

LGE’s Supplier Code of Conduct

- English
- Korean

Pursuant to this policy, LG will also:

Carry out due diligence with relevant suppliers consistent with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and encourage our suppliers to conduct due diligence with their suppliers. For more details on LGE’s due diligence activity, please refer to the LG Electronics Conflict Minerals Due Diligence Report.

- LGE Conflict Minerals Due Diligence Report

Encourage suppliers to responsibly source tin, tantalum, tungsten and gold from third party conflict-free validated sources in the DRC and adjoining countries in order to prevent an embargo and associated worsening of economic and humanitarian conditions. In addition, all suppliers to LGE must document their efforts to determine the source and provide LGE with evidence as to the origin of any tantalum, tin, tungsten and gold in materials to be supplied to LGE. In other words, all suppliers must register conflict minerals (3TG) information on LGE’s IT system or they are prohibited from supplying their materials to LGE. LGE began tracing cobalt in its supply chain in 2019 and is supporting industry initiatives to advance due diligence for responsible cobalt supply chains.
Establish the expectation that our suppliers’ source 3TG and cobalt from smelters and refiners found conformant to the Responsible Minerals Assurance Process (RMAP), or an alternative facility assessment program, where available. LGE has set a target to source from only RMAP conformant smelters and refiners for conflict minerals (3TG) by 2021 [tantalum and tungsten achieved in 2019 ; tin by 2020; and gold by 2021].
Collaborate with our suppliers and others on industry-wide solutions (RBA, Responsible Minerals Initiative (RMI), etc.) to request smelters and refiners participate in the RMAP or an alternative facility assessment program.
Commit to transparency in the implementation of this policy by making available reports on our progress to relevant stakeholders and the public.

Collaborating to Address Conflict Minerals

In 2010, LG Electronics joined the Responsible Business Alliance (RBA, formerly the Electronic Industry Citizenship Coalition) to align its Corporate Social Responsibility framework to industry standards established by the RBA’s Code of Conduct and to continue to improve the company’s performance in key areas of social, environmental and ethical issues.

LG Electronics is also a corporate member of the Responsible Minerals Initiative (RMI), an initiative of the RBA to support the sourcing of conflict free minerals. The RMI provides its members with the most up to date information on conflict-free smelters and refiners, tools for conducting due diligence, and offers a forum for exchanging best practices to address conflict-mineral, as well as broader responsible mineral sourcing issues. LG is also actively participating in various RMI working groups (Due Diligence Practices Team, Smelter Engagement Team, Minerals Reporting Template Team)

The RMI also operates the Responsible Minerals Assurance Process (RMAP), a program that uses third party independent auditors to validate that participating smelters and refiners have adequate policies and due diligence processes in place to trace the origin of the minerals that they process and assess whether they were obtained from conflict free sources. This program enables downstream companies, like LG Electronics, to more confidently source conflict free minerals and promote cross industry efforts to drive a conflict free global supply chain in the DRC and adjoining countries
- RMI Website - http://www.responsiblemineralsinitiative.org
- RMAP list - http://www.responsiblemineralsinitiative.org/conformant-smelter-refiner-lists

Other Efforts to Support Responsible Mineral Sourcing

In addition to programs that focus on conflict affected regions, LGE is also engaged with initiatives to better understand emerging challenges in responsible minerals sourcing – such as cobalt, tin and mica – and the ways that the industry can have a positive impact on more sustainable forms of mining to respect human rights and mitigate environmental impacts. For example, LGE was an early collaborator to better understand challenges around cobalt mining and child labor, working with our major battery supplier to contribute sourcing information for the RMI’s initiative to establish the first traceability tool and RMAP audit protocol for cobalt refiners. We provided materials usage data as part of an effort to better understand the role that different industries play as a consumer of mica and its derivatives. And, LGE supported sustainable tin mining efforts in Banka-Belitung, Indonesia for seven years, working with a multi-stakeholder group co-funded by the European Partnership for Responsible Minerals (EPRM) to launch pilot projects aimed at land reclamation for alternative livelihoods and occupational safety training programs for mine workers.

Further expanding our outreach, LG Electronics joined the Public Private Alliance for Responsible Mineral Trade (PPA) in 2018 to further collaborate with key stakeholders in the U.S. government and non-profit community to support in-region sustainable solutions for conflict-free supply chains.

Contact Us

If you would like to learn more about LG Electronics’ conflict minerals management or if you have a request for information, please contact us at conflict-mineral@lge.com

¹⁾ The term “conflict mineral” is defined by U.S. law in Section 1502(e)(4) of the The Dodd-Frank Wall Street Reform and Consumer Protection Act ( i.e., the Act) as (A) columbite-tantalite, also known as coltan (the metal ore from which tantalum is extracted); cassiterite (the metal ore from which tin is extracted); gold; wolframite (the metal ore from which tungsten is extracted); or their derivatives; or (B) any other mineral or its derivatives determined by the Secretary of State to be financing conflict in the Democratic Republic of the Congo or an adjoining country.
²⁾ The Dodd Frank Wall Street Reform and Consumer Protection Act entered into effect in 2010, and the SEC’s conflict minerals rule implementing the Act was finalized in 2012. In addition to the DRC, the Act and SEC rule cover nine countries that share an internationally recognized border with the DRC. Each is referred to as an “adjoining country” and is defined in Section 1502(e)(1) of the Act , which presently includes Angola, Burundi, Central African Republic, the Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda, and Zambia. The DRC and adjoining countries together are also referred to as the “covered countries.”
³⁾ Defined under the U.S. Securities and Exchange Commission conflict minerals rule to mean products that do not contain conflict minerals (tin, tantalum, tungsten, and/or gold) that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo (DRC) or adjoining countries.