LG ANNOUNCES THE RELEASE OF 2022-2023 SUSTAINABILITY REPORT

Company Outlines Its Six Strategic Tasks for ESG Management Focused on Achieving ‘3Cs’ for the Planet and ‘3Ds’ for People

SEOUL, August 1, 2023 — LG Electronics (LG) today announced the publication of its 2022-2023 Sustainability Report, officially disclosing its achievements and strategy for each area of the six strategic tasks, which have been carefully designed to realize its Better Life for All ESG vision, to customers and stakeholders around the world.

The company is focusing on two major areas: ‘3Cs’ for the planet, which are carbon neutrality, circularity and clean technology, and ‘3Ds’ for people, which are design for all, a decent workplace and diversity & inclusion.

3Cs for the Planet: Carbon Neutrality, Circularity and Clean Technology

This year, LG’s global sites recorded a total global emission of direct (scope 1) and indirect (scope 2) greenhouse gases (GHG) of 92.7 million tons¹, a 22-million-ton decrease from the previous year – a reduction that supports its pledge to achieve net-zero (direct and indirect) by 2030.

The company also recorded a renewable energy conversion rate of 8.2 percent. This comes after it committed to only using renewable energy at its global business sites by 2050 and successfully joined RE100 (Renewable Energy 100), an initiative advocating for businesses to convert to 100 percent renewable energy.

The company is also accelerating carbon reduction in the product use stage by expanding the application of highly efficient eco-friendly technologies. Approximately 80 percent of LG’s total carbon emissions come from the product use stage, and includes indirect emissions (scope 3) that are generated outside the company’s operational facilities.

Last year, the functional unit carbon emissions of seven major products, which accounts for about 80 percent of the carbon emissions generated during the product use stage, decreased by 13.1 percent compared to 2020. Functional unit carbon emission refers to the value obtained by dividing the amount of GHG emitted during the average period of product use by the functional unit of the product. For example, a refrigerator’s GHG emissions are expressed per liter while a washing machine’s GHG emissions are conveyed per kilogram. In addition, in 2021, LG became the first South Korean appliance manufacturer to have its GHG emissions reduction target at the product use stage (scope 3) validated by Science Based Targets initiative (SBTi).

To establish a circular ecosystem, the company recovered a total of 472,876 tons of electronic waste from 52 countries last year. Since 2006, LG has recovered a cumulative total of recovered electronic waste that amounts to 3,992,768 tons. As of 2022, the number of recycled plastics used in the company’s products reached 32,987 tons, 25 percent higher than 2021 figures. In addition, the company’s South Korean business sites recently received Zero Waste to Landfill (ZWTL) verification.

3Ds for People: Design for All, Decent Workplace and Diversity & Inclusion

LG has also been prioritizing accessibility by integrating voice recognition and voice guidance features into its major products and distributing braille stickers that attach to every LG home appliance. The company also plans to expand the universal design concept – products designed in a way that makes them easy to use by everyone – to all products going forward.

Last year, the company surveyed its major Tier 1 suppliers about their energy usage and carbon emissions, and then verified this data through a third party. Since this year, LG has been raising awareness among the executives and employees of its partners through a carbon neutrality education program. A total of 152 suppliers have participated in the program as of the first half of this year.

Additionally, in accordance with international Responsible Business Alliance (RBA) standards, the company is also providing support through third-party ESG certification reviews to pre-emptively respond to ESG risks of suppliers in areas such as labour, environment, ethics as well as health and safety. Beginning this year, the scope has been expanded to include partners based not only in Korea but around the world.

Expanding Role of ESG Committee

LG continues to expand the role of the ESG Committee which reports to its board of directors to internalize ESG management. The committee, made up of 4 independent directors and 1 executive CEO, is overseen by Chairman, Seo Seung-woo, an independent director who was appointed to the role earlier this year.

To ensure transparency in the management and governance of the board of directors and governance structure, the ESG Committee established guidelines for the independence, diversity and expertise of independent directors as well as the corporate governance charter last year.

Since 2006, the company has published its sustainability report every year. Starting last year, alongside the LG ESG Fact Book which outlines its ESG management goals, activities and performance, the company has published the ESG Story Book which helps customers and stakeholders understand LG’s ESG activities in a more engaging story format.

To download LG’s 2022-2023 Sustainability Report, visit www.lg.com/global/sustainability.

About LG Electronics, Inc.

LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 74,000. LG’s four companies – Home Appliance & Air Solution, Home Entertainment, Vehicle component Solutions and Business Solutions – combined for global revenue of over KRW 80 trillion in 2022. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors, service robots, automotive components and its premium LG SIGNATURE and intelligent LG ThinQ brands are familiar names world over. Visit www.LGnewsroom.com for the latest news.

About LG Electronics Singapore Pte Ltd

LG Electronics Singapore Pte Ltd (LG Electronics Singapore) is a fully-owned subsidiary of LG Electronics Inc., the pioneer and market leader of the Korean electronics industry. LG Electronics Singapore operates three business units – Home Entertainment, Mobile Communications and Home Appliance & Air Solution. In recognition of its vision to enrich people’s life with smart technologies and innovative design, LG Electronics Singapore has been recognized with prominent local and international accolades, such as the CNET Asia Editor’s and Readers' Choice Awards, HWM+HardwareZone.com Tech Awards, Red Dot Design, and GfK No. 1 Awards. For more information, please visit www.lg.com/sg.

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¹ Expressed in tons of C02 equivalent (tCO2eq).