• UPDATE : 2020.02.23 16:17 일
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LG Chem newly assess ‘Sustainability’ of raw material suppliers
20% of evaluation reflect human rights, ethical management and supply chain management
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 승인 2019-08-22 16:09:12
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[Mediapen=Na Gwang-ho] LG Chem recently conducted its regular evaluation of its battery’s raw material suppliers with a criterion newly reflecting sustainability.

The company included new standards necessary for ‘sustainability’ such as working conditions, human rights, ethical management, safety environment, raw material supply chain management and renewable energy policies. Sustainability will take up 20% of the total evaluation score.

LG Chem implemented this measure as the importance of responsible supply chain management is increasing worldwide. They now need to ensure that the supply chain for batteries are ethically sourced. Likewise, Volkswagen Group announced last month the introduction of a worldwide sustainability rating for its suppliers.

▲ Vice Chairman & CEO of LG Chem Shin Hak-cheol/Source=LG Chem

To infuse more transparency into global mineral supply chains, LG Chem formed a coalition with IBM, Ford, Huayou Cobalt and RCS Global earlier this year. They will use blockchain technology to trace and validate ethically sourced minerals. The coalition will not be using tin, tungsten and gold mined from areas where child labor is a serious issue.

“Creating an eco-friendly environment across the battery supply chain is important for sustainable innovation and profit growth.” said Shin Hak Cheol, Vice Chairman & CEO of LG Chem. He added “LG Chem will keep up its efforts for innovative solutions leading towards circular economy”.

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