LG Chem adds sustainability to supplier evaluation list

By Jun Ji-hye

LG Chem has newly added sustainability to its evaluation items for raw materials suppliers amid a growing need for stable management of the supply chain, the company said Thursday.

LG Chem CEO and Vice Chairman Shin Hak-cheol

Application of the new criteria is in line with heightened global market interest in responsible suppliers of raw materials for battery production, the company said, noting that global automaker Volkswagen has already begun implementing the sustainability rating system targeting its partners in July.

The nation's leading electric vehicle battery and chemicals producer said it recently conducted the first evaluation of its partner companies around the world with the new criteria for sustainability.

With the new criteria, the firm evaluates partners based on working environment, ethical management, safety, supply chain management and renewable energy policy, which are all necessary to ensure sustainable growth.

LG Chem said it gives the same weight to sustainability as other core criteria such as quality.

The company will request partners failing to meet the requirements to improve their shortcomings, and operate various support programs such as education.

“Sustainable growth, which seeks for growth in sales through eco-friendly business, is more important than ever,” LG Chem CEO and Vice Chairman Shin Hak-cheol said. “We will continue to contribute to establishing a circular economy through our distinguished, innovative systems.”