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LG sustainability score report

Last edited: 18 June 2012 by Mario
Last reviewed: 28 February 2012 by Imke

Questions about Climate Change/ Carbon Emissions

3 out of 5
1. Does the brand (company) clearly support global mandatory cuts of carbon emissions of at least 50% by 2050 or 30% by industrialized countries by 2020? LG Electronics states it is "fully committed to the proposal set by the UN and other accountable organizations to 'reduce CO2 emissions by at least 50 percent below 1990 levels by 2050 in order to relieve global warming'." Source
2. Has the brand (company) disclosed the annual carbon footprint of its 'own operations' and of the supply / production chain? LGE provides the greenhouse gas emissions of scopes 1, 2 & 3 and this seems to include the complete production chain. Source
3. Has the brand (company) set a target to reduce its ‘own operations’ carbon footprint by at least 20% within the next 5 years? LG Electronics has set a reduction target of 150.000 tons for greenhouse gas emissions based on 2008 levels. However, it is unclear what percentage reduction this figure represents. Source
4. Has the brand (company) already reduced or compensated its 'own operations' carbon footprint by at least 10% in the last 5 years? LGE reduced their greenhouse gas emissions (scope 1&2) by 17,8% from 2007 to 2009. Source
5. Do all new products of the brand meet the latest Energy Star requirements (where applicable)? Information on whether all of LG electronics new products meet with the new Energy Star requirements was not available on its website. Source

Questions about Environmental Policy

2 out of 7
1. Has the brand (company) eliminated PVC and BFRs in all new products? If not, does the brand give a timeline for achieving this by 2012? "PVC is currently being phased out from use in product components developed since January 2008. PVC and BFR will be banned from use in all newly developed mobile phones from 2010. For all new TVs, monitors and PCs, they will be banned by 2012 and will be phased out from use in all new household appliances by 2014." Source
2. Has the brand (company) already eliminated PVC and BFRs in all new products? "PVC is currently being phased out from use in product components developed since January 2008. PVC and BFR will be banned from use in all newly developed mobile phones from 2010. For all new TVs, monitors and PCs, they will be banned by 2012 and will be phased out from use in all new household appliances by 2014." Source
3. Has the brand (company) already eliminated at least 2 of the 3 groups of suspect chemicals (beryllium, antimony and phthalates) in all of its new products? If not, does it give a timeline for achieving this by 2012? Phthalates and antinomy will only be completely eliminated by 2014. Beryllium compounds will only be eliminated by 2012 when suitable alternatives are found. No timeline for elimination of all chemicals in all products. Source
4. Has the brand (company) already eliminated at least 2 of the 3 groups of suspect chemicals (beryllium, antimony and phthalates)in all of its new products? Phthalates and antinomy will only be completely eliminated by 2014. Beryllium compounds will only be eliminated by 2012 when suitable alternatives are found. No timeline for elimination of all chemicals in all products. Source
5. Does the brand (company) support the principle of Individual Producer Responsibility (IPR), meaning that brands are responsibility for the entire lifecycle of their own products, including take back and recycling? LGE supports Individual Producer Responsibility (IPR). Source
6. Does the brand (company) provide free and easy take back and recycling services for its discarded products in many of the countries where its products are sold? LG Electronics clearly supports various take back initiatives and legislations across Europe and North America. However, these services extend primarily to phones and large gaps still exist, particularly in Africa, the Middle East and Latin America. Source
7. Does the brand (company) source at least 5% of its plastics from recycled plastic streams and does it give a clear timeline to increase this percentage to at least 25% by 2025? LGE uses 11% recycled plastics in its products and plans to increase this to 25% in 2025. Source

Questions about Labour Conditions/ Fair Trade

1 out of 7
1. Does the brand (company) have a policy that excludes smelters of conflict minerals by only sourcing minerals from conflict free areas or by only sourcing minerals from conflict areas when human rights are respected and where contributing to conflict is avoided? LG Electronics does not communicate a policy that excludes suppliers of conflict minerals. Source
2. Does the brand (company) have a Code of Conduct (CoC) for both its own factories and those of its suppliers, which includes the following standards: No forced or slave labor, no child labor, no discrimination of any kind and a safe and hygienic workplace? In LG Electronics' “Supplier Code of Conduct” all standards are mentioned (click “Download” next to “LG Electronics' Supplier Code of Conduct”). Source
3. Does the brand’s (company’s) CoC include at least 3 of the following workers rights: 1. a formally registered employment relationship 2. a maximum working week of 48 hours with voluntary paid overtime of 12 hours maximum 3. a sufficient living wage 4. form and join labor unions and bargain collectively; and in those situations where these rights are restricted under law, to develop parallel means? 1. Not mentioned; 2. No, maximum work week is as established by local law; 3. No, wages paid are established by local law; 4. The right to form and join labor unions and bargain collectively is mentioned, but no parallel means is given where these rights are restricted under law (click “Download” next to “LG Electronics' Supplier Code of Conduct”). Source
4. Does the brand (company) have a published list of direct suppliers that have collectively contributed to more than 90% of the purchase volume? LG Electronics does not publish a list of direct suppliers on its website. Source
5. Is the brand (company) a member of a multi stakeholder initiative (MSI), wherein independent NGO’s or labor unions are represented, that collectively aims to improve labor conditions and that carries out independent audits? Or does the brand (company) significantly purchase its supplies from factories certified by such MSI’s? LG Electronics is a member of EICC, but civil society organizations do not have a decisive voice in this initiative. Source
6. Does the brand (company) annually report on the results of its labor conditions policy? LG Electronics does not publicly report outcomes or results of its policies to improve labor conditions at its suppliers. Source
7. Has the brand’s labor conditions policy resulted in a ‘compliance level’ of at least 30% of the purchase volume, or a ‘monitored level' of at least 80%? See remark for Labor Conditions question 6. Source