Consumer Durables



LG Twin Tower 128, Yeouido-dong, Yeongdeungpo District, Seoul, South Korea




  • #770 Global 2000 2020 
  • #309 World’s Best Employers 2019 
  • #33 Rop Regarded Companies 2019 
  • #42 America’s Best Midsize Employers 2019 
  • #401 America’s Best Employers 2016 
  • #65 World’s Most Powerful Brands 2012




Christine Ackerson


  • Awarded as “Excellence in Sustainability” by the Energy Star Award 2020
  • 2020 Best Washing Machine Award (for 3 models)
  • Red Dot Design Award (18 models, 1 models won Best of the Best) International
  • Main Prize at the IF Design Award
  • Performance Award (for 6 Air-conditioning Equipment)
  • Best Innovation Award and Innovation Award at 2020 (16 products including LG OLED TVs)
  • 2019 Good Design Award (for 19 models)
  • IDEA Design Award 2019 (2 gold award products, 1 silver award product, 10 bronze award products)
  • EISA Award 2019 (4 products including LG OLED TVs)
  • Green Products of the year 2019 in Korea (7 products including LG DIOS dishwasher)
  • 2019 Annual Energy Winner Award (8 products including LG DIOS dishwasher)
  • Acquired Carbon Footprint Certification (6 products including LG DIOS dishwasher)
  • No.1 Best Brand of Korea Index 2019 (3 products including LG Puricare water purifier)
  • Grand prize at 2019 Korea First Brand (LG Cinebeam-lazer 4K Projector)



Report created by Ajith Thangavelautham



SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

LG electronics is a device, appliance, and goods manufacturer that also develops software. The company operates through the following sectors: Home Entertainment, Mobile Communications, Home Appliance, Air-Conditioning, Energy Solution and Independent business area. 

The company was founded in 1958 by In-Hwoi Koo and is headquartered in South Korea. 

LG continues to be a leading manufacturer in the television industry, likewise with refrigerators and washing machines. LG also produces mobile devices such as phones, tablets, and smart watches. 

There have been many acquisitions made over the years under LG electronics. LG has several sponsorships with sports organizations such as the Korean Baseball Organization, the International Cricket Council, and Formula One. 

Company Sustainability Activity

LG Electronics is committed to providing a better experience for its customers, by contributing to environmental protection efforts and offering green values.

In 2006, the company overstated the energy efficiency of five air conditioner models and was required to make rebates for those products. In 2010, it was found that the LG fridge models had a higher energy consumption originally claimed by LG, and again was required to offer compensation to customers.  In 2020, there was a deadly gas leak in the LG chemical plant that killed 12 people due to poor maintenance of the facility. 


  • Reduce carbon emissions at the production stage by 50% compared to that of 2017 and become carbon-neutral by 2030
  • Created the LGE AI Experience Road Map
  • Nurtured 12 LG AI Specialists
  • Won the Ergonomic Design Award (Cord Zero wireless vacuum cleaner, etc.)
  • Increased the sales of healthcare products by 161% compared to 2016
  • Developed technologies for healthcare products (TrueSteam, UVnano)
  • Entered mass production of Solar Car Roof
  • Acquired the UL certification for bifacial solar modules for the first time in Korea
  • GHG emission: 1.5 million tons CO2e
  • Received an Excellent grade at the 2020 CDP Award
  • Secured 16.6 million tons of offset credits by reducing GHG emission as of February 
  • Acquired ISO 50001 certification for 7 domestic production sites and 5 research facilities
  • Green 3 Star product ratio: 41.1%
  • Acquired third party eco-friendly certification for 1,909 items (cumulative) 
  • Acquired US Energy Star certification for 542 items (cumulative) 
  • Organized training on measuring hazardous substance for 45 suppliers
  • Waste recycled: 109,435 tons
  • Waste recycling rate: 86%
  • Won the Gold Award for Sustainable Material Management in the Electronics category by the US Environmental Protection Agency
  • Amount of waste products collected: 2,306,374 tons
  • As of February 2020, 100% of tantalum was supplied by RMAP certified smelters (98% tungsten, 88% tin, 90% gold)
  • Rated ‘Good’ by the RSN Conflict Mineral Assessment
  • The ratio of suppliers with high CSR risk: 2.4% (Reduced by 3.6% YOY)
  • Supplier CSR risk improvement rate: 100% Safety Culture Index: 3.3 points (out of 5.0)
  • Rated as ‘Safe’ in CSR risk assessment for 38 worksites worldwide, Achieved 100% ‘Safe’ rating
  • Employee satisfaction rate: 74.7 points on average (increased by 0.4 points YOY)
  • Supported Caring program, flexible working hours, and Smart Vacations to promote a healthy work-life balance
  • Direct Employees of LGE Korea Service Center Suppliers: 3,984 service technicians
  • No. of participants for ‘Technology that Cares’: 71,032
  • No. of participants for ‘Trustworthy Partnership’: 2,792,666
  • No. of participants for ‘Sharing and Comfort’ campaign: 129,264
  • No. of employee volunteers: 692 (Korea)


  • Zero Carbon-Neutral by reducing greenhouse gas emissions at the production level and developing energy efficient products
  • LG Electronics aims to reduce 20% of (intensity) water use by 2020 compared to the base year 2007
  • Planning to raise the recycling rate of waste generated at their production sites by 95% until 2030.
  • Increase the ratio of Green 3 Star certified products up to 80% by 2030 aspart of internal eco-friendly product assessment (based on the number of development projects)
  • Ensure sustainable growth in the areas of renewable energy and EVs that reflects future-oriented, eco-friendly and human values
  • Establish intelligent connectivity to enhance empathetic value of products and services and improve quality of life
  • Integrate innovative technologies e.g. hardware, software, AI, 5G to ensure personalized solutions for healthy lifestyles
  • Collect and treat a total of 4.5 million tons of electronic waste by 2030 (from 2006)
  • Use 100% RMAP (Responsible Minerals Assurance Process) conforming smelters by 2021
  • Improve work efficiency and work-life balance to achieve the highest level of employee satisfaction
  • Achieve carbon neutrality by expanding the areas of CDM (Clean Development Mechanism)


  • LG Electronics receives regular consulting from professional agencies specializing in safety, fire prevention, environmental protection, energy, and production equipment to assess the safety and environment of production sites and R&D facilities.
  • Reduce carbon emissions in the production phase by 50% compared to 2017 (by 2030)


United Nations Sustainable Development Goals

United Nations SDGs Compliance


  • Provided mobile clinic service for improving hygiene and public health in Asia
  • Improved hygiene for underprivileged people in Nigeria by opening free laundry rooms
  • Provided Vaccination against Japanese Encephalitis in Indonesia


  • Opened a vocational school for electric repair jobs in Ethiopia and enhanced the students’ technical capabilities through special lectures by Master Repair Engineers and on-site training at the service center in UAE
  • Training for instructors at vocational schools 


  • Provide space for socio-economic business in the area of the environment at the LG Social Campus in Korea and provide financial support 
  • Establishment of vocational schools in Ethiopia and Vietnam 

SDG 9 

  • Solar Power supply to hospitals and libraries in Pakistan and Syria 
  • Limb operation in Kenya
  • Established the LG IT library within vocational school and offered scholarships to outstanding students in Vietnam 

SDG 11

  • Employees at 45 business sites volunteered to participate in local community services to protect World CUltural Heritage site
  • PLayed promotional films on World Heritage sites on the digital billboard in Piccadilly, London

LG Electronics is committed to sustainability by contributing to environmental protection efforts and offering green values.

LG has several certifications and awards and has complied with SDG goals. The company has broad targets and has documentation of the progress made in terms of sustainability.

LG has been given a “B” rating because they have made a conscious effort to become more sustainable, but there is still work to be done. 

Analyst Outlook: Positive 

LG is making strides towards incorporating sustainability throughout its business model. Their continuous efforts and initiatives make them a leader of sustainability in their industry.

Key Points

  • Several listings and certifications
  • Focused on broad topics, not as detail oriented 
  • Numerous highlights and targets
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