LG Innotek (CEO Young-ho, Hur) has published its first sustainability report.
LG Innotek said it produced the report based on judgment that it needs to promote its achievements in sustainable management in the course of robust expansion of its overseas sales after declaring last year as the first year of its leap toward a global enterprise. It chose to produce the publication based on judgment that existing annual reports and brochures are not adequate to meet the needs.
LG Innotek’s sustainable report contains its achievements of sustainable management in conjunction with diverse stakeholders based on its characteristic as a parts and components maker, which belongs to B2B industry, and future plans.
Sustainable management is drawing attention as a new management paradigm, and refers to managerial activities that take into account not only economic achievements and financial performance as enterprise, but also non-financial areas, including eco-friendliness and corporate social responsibility activities.
The report conveys LG Innotek’s commitment to deliver on its promises with clients through constant technology innovation under the theme “Right Promise, Better Tomorrow,” which constitutes its vision for sustainable management, and thus to create a better tomorrow through honesty and just.
CEO Young-ho, Hur said in the report, “Judging that LG Innotek cannot assure sustainable growth only based on economic achievements as enterprise, we vividly realized the need for sustainable management, and constructed a system of sustainable management on our own in compliance with international standards.” He added, “We will ensure that the system will become the framework of our managerial activities, which is not swayed by changing environment, and that allows us to attain achievements that are distinctive and unique to us and sustainable.”
■ Report customized to stakeholders
When publishing the report, LG Innotek sought to contain detailed and transparent content, which is focused on areas that stakeholders wish to know, through importance analysis of key issues.
Importance analysis refers to a process, in which key issues are finally singled out by taking into account the level of influence on managerial activities from among matters of concern selected through interviews and polls of stakeholders.
LG Innotek has prepared the report on its achievements in the areas of economy, environment and society from the perspective of sustainable management; the report carries “performance indicators of sustainable management” to allow readers to get an overview of its major achievements and plans by managerial sector.
LG Innotek got the volume of its greenhouse emission from 2005 to 2009 validated by validated by Lloyd”s Register Quality Assurance (LRQA) of Britain, and thus increased the credibility of the current situation of its environmental management, and future plans on greenhouse gas reduction.
LG Innotek’s sustainability report has been published in compliance with Third Generation of the GRI’s Sustainability Reporting Guidelines as suggested by the Global Reporting Initiative (GRI), the international standard, and was validated by the Korea Productivity Center.
■ To consolidate sustainable management system through annual publication of reports in future
The new report, which has been prepared in English and Korean, focuses on reinforcing communications with all stakeholders in Korea and overseas, including clients, governments, shareholders, investors and non-governmental organizations.
Notably, global enterprises use sustainable management activities as one of key barometers in selecting suppliers and business partners. Hence, LG Innotek is expected to widely use its sustainability reports in marketing activities.
Also, because the report allows jobseekers to figure out LG Innotek’s growth pace, eco-friendly activities, and corporate social responsibility activities, the publication will also likely be highly useful in recruiting talented human resources.
LG Innotek plans to publish sustainability reports every year, and will thus seek to further consolidate its sustainable management system through the report.
Meanwhile, LG Innotek won international recognition for its sustainable management strategy and achievements in line with global standards, as it was newly incorporated into the Dow Jones Sustainability Index Korea,” which is a globally authoritative standard, last September.
‘DJSI Korea’ is an index, by which Down Jones, the world’s largest financial information provider, measures achievements in sustainable management among Korea’s top 200 companies jointly with the Swiss sustainable management assessment agency SAM, and the Korea Productivity Center. Incorporation of a company in the index means that the company has earned official recognition worldwide for its capacity in sustainable management.
