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How sustainable is LG ?

LG & sustainability


LG
First milestones, should be better Click here for score rapport: 6 out of 39

Sustainability summary

LG has achieved the D-label. LG has started to take sustainability into account. Still, a lot more can be done.

Brand owner: LG Group
Head office: Seoul, South Korea
Sector: Electronics
Categories : Smartphone, Tablet
Free Tags: Computer, Monitor, HiFi & Audio, TV & Home cinema, Accessories & Services

What's your sustainability news about LG?

LG sustainability score report

Last edited: 17 May 2016 by Erwin
Last reviewed: 17 May 2016 by Mario

Questions about Climate Change/ Carbon Emissions

1 out of 6
1. Is there a policy for the brand (company) to minimize, reduce or compensate carbon emissions? LG implements several measures to reduce climate emissions, such as increasing energy efficiency of its products and the use of renewable energy (see link, page 47 & 48). Source
2. Has the brand (company) disclosed the annual absolute carbon footprint of its 'own operations' (Scope 1 & 2) and has the brand already reduced or compensated 10% of these emissions in the last 5 years? LG reduced its climate footprint (Scope 1&2) of own operations from 1.351 million tons of CO2e in 2012 to 1.279 million tons of CO2e in 2014. This represents a decrease of around 5,4% (see link, page 80). Source
3. Has the brand (company) set a target to reduce its absolute ‘own operations’ carbon emissions by at least 20% within the next 5 years? LG has set a target to reduce 10% of its of GHG emissions associated with production by 2020, compared to base year 2008 (see link, page 40 & 47). Source
4. Does the brand (company) publish the annual carbon footprint that also covers the major suppliers, and does the brand have an effective policy in place to reduce these carbon emissions? LG mentions the target to reduce greenhouse gas emissions in the production chain that is beyond own operations, but does not provide concrete information on measures implemented, and results achieved (see link, page 52-59). Source
5. Is at least 35% of the electricity used by the brand (company) generated from renewable resources, such as wind or solar energy? For 2014, LG reports having used 11.095 MWh renewable energy on total electricity consumption, but is not clear enough about the types, sources and additionality of supply. It remains uncertain what percentage this value of renewable energy represents (see link, page 37 & 48). Source
6. Do all new products of the brand meet energy efficiency requirements such as Energy Star (where applicable)? LG reports that in 2014 the majority, but not all products met the 'Energy Star' requirements. Results concerning other energy efficiency standards isn' specified (see link, page 39). Source

Questions about Environmental Policy

2 out of 19
1. Has the brand (company) eliminated PVC in all new products? LG reports to be in the process to phase out PVC and BFR's. However, so far both chemicals are only eliminated at all its mobile phones since 2010 (see link, page 39). Source
2. Has the brand (company) eliminated BFR's in all new products? See remark for environmental policy question 1. Source
3. Has the brand (company) eliminated at least 2 of the 3 groups of suspect chemicals (beryllium, antimony and phthalates) in all its new products already? Beryllium and Phthalates are replaced in all mobile phones since 2011. But, LG does not specify, whether these chemicals, as well as antimony, are entirely eliminated from its production (see link, page 39). Source
4. Has the brand (company) banned the use of benzene and n-hexane in the final assembly of products? LG does not mention whether benzene and n-hexane is banned in the final assembly of products. Source
5. Has the brand (company) banned the use of benzene and n-hexane in the full production chains? LG does not mention whether benzene and n-hexane is banned in the full production chain. Source
6. Does the brand (company) publish its annual material footprint, or alternatively material footprints for each sold product, and does the brand have an effective policy in place to reduce the overall environmental impact of material use? LG implements several measures to improve its annual material footprint, but does not publish its annual material footprint, or alternatively material footprints for each sold product. Source
7. Does the brand offer the charger as optional to the product? LG does not mention anything about offering the charger as optional to the products. Source
8. Does the brand (company) source at least 10% of its plastics from recycled plastic streams and does the give a timeline to increase this percentage to at least 25% by 2025 ? LG used a total of 7,885 tonnes of Post-Consumer Recycled (PCR) plastic in 2014. But, it is not clear what percentage this is of total plastic use (see link, page 40). Source
9. Does the brand (company) source at least 20% of its plastics from recycled plastic streams? See remark for environmental policy question 8. Source
10. Does the brand have clear objectives to minimize the environmental impact of packaging, by reducing, re-using and recycling, and does the brand annually report on these results? LG implements several measures related to more sustainable packaging, but does not publish the annual packaging volumes/weights per material type (see link, page 42). Source
11. Has the brand (company) a take back program and is the take back recyling rate higher than 5% of the weight of the annually products sold? LG mentions recycling weights for various product categories and regions. But, LG is not fully clear about the absolute recycling percentage of annual products sold. Source
12. Is the take back recyling rate higher than 10% of the weight of the annually products sold? See remark for environmental policy question 11. Source
13. Has the brand (company) an active policy in place to increase the product life-span of products, such as longer warranty periods or easy repair with easy ordering of spare parts? LG implements measures to manage its products life-cycle, but no clear best practice examples concerning prolonging its products lifespan are specified (see link, page 46-48). Source
14. Does the brand (company) use replaceable batteries in all portable devices? LG offers at least some products which contain a non-replaceable battery. Source
15. Does the brand (company) provide online repair manuals for all products? Online repair manuals for LG products are provided via iFixit. Source
16. Does the brand (company) guarantee supply of spare parts and software updates for all products, for at least 3 years after end of production? LG does not mention how long its spare parts or software updates keep being available after end of production. Source
17. Does the brand (company) give at least a 3 years warranty on all products? LG does not mention anything about an extended warranty period for its products. Source
18. Does the brand (company) publish a water and/or land use footprint and is there a policy to minimize, reduce or compensate this footprint? LG published the water footprint of the last 3 years (FY14: 11.29 million tons), shows a reduction and a target to reduce water use with 20% by 2020 (see link, page 48 & 49). Source
19. Does the brand (company) publish a water and/or land use footprint that also covers its most important suppliers? LG publishes the water footprint of its own operations, but not of its most important suppliers. Source

Questions about Labour Conditions/ Fair Trade

3 out of 14
1. Does the brand (company) regularly publish an updated list of smelters that are identified in the own supply chain? LG has not yet published the list of smelters. Source
2. Does the brand (company) have a clear policy to only source from smelters that have passed the conflict-free audits, and has the brand already achieved this for at least one metal/mineral? LG is in the process to responsibly source metals and minerals through the CFS program. LG does not report to have at least one metal or mineral sourced as conflict free (see link, page 59). Source
3. Is the brand (company) significantly involved in at least 1 initiative that addresses the urgent appeal to improve the social and environmental conditions of mining metals and minerals; for example tin from endangered tropical islands Bangka and Belitung, conflict minerals from Congo, etc? LG is a partner 'IDH Bangka Tin Working Group'. Source
4. Is the brand (company) significantly involved in at least 2 initiatives that addresses the urgent appeal to improve the social and environmental conditions of mining metals and minerals; for example tin from endangered tropical islands Bangka and Belitung, conflict minerals from Congo, etc? LG also participates in the 'Conflict Free Smelters Program' (CFSP) (see link, page 59). Source
5. Is the brand (company) significantly involved in at least 3 initiatives that addresses the urgent appeal to improve the social and environmental conditions of mining metals and minerals; for example tin from endangered tropical islands Bangka and Belitung, conflict minerals from Congo, etc? LG does not mention membership at any other endorsed initiatives. Source
6. Is the brand (company) significantly involved in at least 4 initiatives that addresses the urgent appeal to improve the social and environmental conditions of mining metals and minerals; for example tin from endangered tropical islands Bangka and Belitung, conflict minerals from Congo, etc? See remark for labor conditions policy question 5. Source
7. 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's 'Supplier Code of Conduct', all standards are mentioned (see link). Also in its own operations CoC all these standards are covered (see link, next question). Source
8. 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? In the 'Supplier CoC': 1. Not mentioned; 2. No, maximum working week is 60 hours, 'except in emergency cases and unusual situations', which can mean anything; 3. No mentioning of living wage, 4. No, Freedom of association is mentioned, but it is unclear if this right is restricted by law. The standards in its own operations CoC are even weaker (formulated). Source
9. Does the brand (company) have a published list of direct suppliers that have collectively contributed to more than 90% of the purchase volume? LG does not publish a list of direct suppliers. Source
10. 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 is a member of EICC and GeSI, but civil society organizations do not have a decisive voice in this initiative (see link, page 59). Source
11. Does the brand (company) annually report on the results of its labor conditions policy? Are more than 95% of final manufacturing stage production facilities monitored for labour conditions? LG publishes the results of its audits, but does not publish the percentages of monitored or compliant final manufacturing stage production facilities, and comprehensive enough audit results (see link, page 56-57, 75-77). Source
12. Are at least 25% of final manufacturing stage production facilities in high risk countries compliant to the Code of Conduct? See remark for labor conditions policy question 11. Source
13. Are at least 50% of final manufacturing stage production facilities in high risk countries compliant to the Code of Conduct? See remark for labor conditions policy question 11. Source
14. Are at least 50% of final manufacturing stage production facilities in high risk countries compliant to the Code of Conduct - including a living wage? See remark for labor conditions policy question 11. Source