South Korea

LG H&H Co., Ltd.

APPROACH AND KEY ACHIEVEMENTS

Palm oil serves a vital role in cosmetics and household products, from direct raw materials like fatty acids to processed ingredients like glycerin. LG H&H acknowledges the grave issues of human rights violations and environmental harm linked to palm oil production. In response, we endorse and actively participate in the RSPO, a global initiative engaging NGOs and companies. Our Ulsan and Onsan facilities obtained RSPO Segregation certification in 2014, ensuring sustainability across the entire production process. We renewed this certification in 2019 and remain vigilant, instantly terminating any deals with supply chains associated with human rights violations in palm oil production. Our commitment to sustainable palm oil is embedded in our sustainable purchasing policies, reflecting our dedication to responsible sourcing and environmental stewardship.

Roadblocks and solutions

As the number of overseas operations that procure raw materials from around the world increases and are in charge of greater production and distribution in the market, the scope of human rights and environmental obligations and responsibilities for companies is expanding, and investors and stakeholders' demands for supply chain management are further expected to increase. We are expanding our certification of sustainable palm oil to prevent human rights violations and environmental destruction that may occur in procuring raw materials. In addition, we are developing a sustainable supply chain process by evaluating major suppliers in human rights and the environment sectors.

Action Plan for the next 5 years

LG H&H is trying to expand the ratio of our annual RSPO-certified sustainable palm oil purchases from 61.5% in 2022, to 70% in 2025.
Most of the current RSPO purchase is through book & claim method, but in the future, LG H&H plans to purchase MB/SG grade palm oil to increase impact.