All of LGE’s mobile phones are free of polyvinyl chloride plastic (PVC) and brominated frame retardants (BFRs), and free of phthalates, antimony trioxide and beryllium oxide. While TVs and notebooks have many PVC/BFR-free parts, LGE has not publicly disclosed information on its movement to phase these substances out from TV monitors and PCs by 2012, and household appliances by 2014. In other Products categories, LGE retains points for its strong statement in support of more stringent Energy Star verification standards, and gains a point for more detailed information about warranties and replacement parts.
LGE scores modest points on the Energy criteria. It sets a weak target of a 10% reduction in greenhouse gas (GHG) emissions from its operations by 2020 – the company should aim for a more ambitious target of at least 30% by 2015. LGE has achieved a yearly GHG reduction of approximately 20,000 tonnes through various energy efficiency measures. LGE’s low carbon strategy now includes renewable energy use, but it needs an ambitious target to dramatically increase renewable electricity use by 2020 and an implementation strategy of how to do this without over-reliance on renewable energy credits. It earns a point for its support for mandatory emissions cuts of at least 30% in industrialised countries by 2020. LGE also reports on its GHG emissions for its operations and business travel. Although LGE has verified its emissions from a third party in Korea, it is still awaiting third party verification for its global emissions.
LGE scores best in Sustainable Operations, but still has plenty of room for improvement. It provides a take-back programme in 52 countries for obsolete mobile phones, but needs to continue to expand its programme for all its products in non-OECD countries. LGE no longer reports its recycling rates as a percentage of past sales. Its chemicals policy is based on the precautionary principle, and its communication with its suppliers on chemicals management reflects its hazardous substance phase-out plans. LGE does not yet publish data on GHG emissions from its supply chain, but has begun to work with suppliers to gather this information. LGE is in the process of addressing conflict minerals, but has not publicly mapped smelters or suppliers, and does not yet have a policy. It improves its score for paper sourcing by pledging to no longer buy from Asia Pulp and Paper, until the company no longer practices illegal logging and deforestation in Indonesia. LGE should expand that stance into a more comprehensive paper policy that excludes purchasing from other companies practising deforestation.
LGE's performance in detail: Download the company’s Scorecard here