- Unveiling of activities and achievements to enhance the value for key stakeholders.
- Increased R&D investments as well as the reduction of energy costs and greenhouse gas emissions.
- “We will become a beloved company by practicing social responsibility.” – CEO, Cheol-Dong Jeong
SEOUL,South Korea, , Aug. 5, 2020 /PRNewswire/ — LG Innotek (CEO, Cheol-Dong Jeong) announced on July 29th that it has published a “2019-20 Sustainability Report” containing corporate social responsibility (CSR) performance.
LG Innotek has published a sustainability report every year to share sustainable management performances and plans. LG Innotek also actively communicates with stakeholders to realize a better future. This Sustainability Report is the eleventh edition since its first publication in 2010.
In particular, LG Innotek is strengthening its social responsibility on its 50th anniversary to continue to be a sustainable company. To this end, a CSR team was established at the end of last year and promoted CSR activities to increase the value of stakeholders.
In the report, LG Innotek summarized and unveiled sustainable management activities and achievements for five key stakeholders, customers, employees, shareholders, suppliers, and local communities.
First of all, the company invested about 447 million dollars in R&D last year to continuously provide value to customers through innovative technologies. LG Innotek’s R&D investment continues to increase every year. According to the Korea Institute for Advancement of Technology (2019), LG Innotek ranked 12th in R&D investments among the top 100 Korean companies.
Through this, the company has continuously introduced innovative products such as 3D sensing modules for smartphones, the world’s first flexible 3D lighting modules for vehicles, 5G communication modules for vehicles, ultra-slim RF-SiP (System in Package) substrates for 5G devices, and ultra-small low-power Bluetooth for IoTs.
The company is also focusing on building environmentally friendly business worksites to respond to global climate change, as well as reducing energy costs and greenhouse gas emissions.
Last year, LG Innotek saved a total of about 4.5 million dollars in energy costs, up about 70 percent from 2.7 million dollars in the 2018 savings. The greenhouse gas intensity, which measures greenhouse gas emissions compared to sales, also fell 20 percent in a year from 0.41tCO2eq/million dollars of 2018 to 0.33tCO2eq/million dollars in 2019.
In recognition of these environmentally friendly management achievements, the company was selected as the best company (Leadership A) in the 2019 Carbon Disclosure Project (CDP) Climate Change Response Assessment and one of the best companies in the 2019 Korea-EU Carbon Emission Trading System Cooperation Project.
For employees, the company is establishing a “first-class culture” to achieve its vision of being the Global No.1 materials and components company. The term first-class culture means an organizational culture in which executives and employees create the best performances with a sense of unity in a dynamic workplace where they can feel proud of their accomplishments.
LG Innotek is creating a dynamic workplace by promoting a non-authoritative atmosphere, such as the introduction of RPA/AI, the improvement of culture for reporting and meetings, the expansion of smart work systems such as a flexible working hour system, and the omission of titles when addressing each other (using the equivalent of “Mr.” or “Ms.” instead). Executives levels are also trying to form a sense of unity among employees, for example, through “reverse mentoring”, in which they learn new viewpoints, ideas, and trends from younger employees.
To maximize shareholder value, the company has been generating sound profits through transparent management. The company has been continuing its financial growth while strengthening Jeong-Do management, fair trade, and information security. The company recorded annual sales of almost 7 billion dollars and an operating profit of 337 million dollars in 2019, which is a 4% increase in sales and a 53% increase in operating profit over 2018.
The company is also building a stronger structure of shared growth with its suppliers. The company has made various win-win efforts in the fields of finance, technology, management, and education, including a 53 million dollar-win-win growth fund, CSR consulting, and online and offline education support. LG Innotek has been awarded the highest grade for three consecutive years from 2017 – 2019 in the evaluation of the shared growth index announced by the National Commission for Corporate Partnership (NCCP).
LG Innotek has continued to conduct social contribution activities to contribute to the local communities. Last year, its employees supported about 140 volunteer organizations by voluntarily participating in various programs such as “Junior Pine Tree Class” to support youth education and welfare, and “Neighborhood Plus” to help the vulnerable stand on their own feet. Overseas subsidiaries in China, Indonesia, and Poland have also received positive responses with programs tailored to each country’s characteristics, such as donating home appliances and school facilities, building road and infrastructure, as well as providing scholarships.
Also, 93% of its employees are contributing to the “Hope Sharing Fund,” and the company is operating a matching grant system where the company donates 200% of the annual fundraising amount donated by the employees.
Cheol-Dong Jeong, LG Innotek’s CEO, said, “For LG Innotek to be sustainable, we must continuously create business results and fulfill social responsibilities that befit the size of our business. We will actively communicate with our stakeholders to become a beloved company.”
LG Innotek’s Sustainability Report was verified by the Korea Productivity Center, a third-party verification agency, to increase its credibility. It also complies with the “Global Reporting Initiative (GRI) standards”, the international reporting standards for sustainability management. The report can be found on LG Innotek’s website. (http://www.lginnotek.com/en/company/management/management_info/management_info_5/)
About LG Innotek Co., Ltd.
LG Innotek is a cutting-edge materials and components manufacturer and an affiliate of the LG group. The company’s business units include core components for mobiles, automotive, display, semiconductors, and IoT. Furthermore, the company has cooperated closely with the mobile devices, home appliances, and automotive companies, producing camera modules, automotive electronic components, wireless communication modules, and substrate materials.
LG Innotek is headquartered in Seoul, Korea and its sales subsidiaries are located in USA, Germany, China, Japan, and Taiwan with production subsidiaries in China, Vietnam, Indonesia, Mexico, and Poland. For more information, please refer to the website: www.lginnotek.com