LG

■ Goal of zero major environmental safety accidents by ‘21 for business places all around the world
□ Full-fledged activation of the ‘M-Project’ comprised of in-company experts and external agencies
 
■ Completed emergency diagnosis for high-risk processes and equipment, precise diagnosis to be completed within the year
□ 81 billion KRW to be additionally invested this year in environmental safety for a total of 509 cases for improvements, totally invested 235 billion KRW in environmental safety this year
 
■ Establishment of high-intensity environmental safety standards at global top levels and greatly strengthened management system
□ Procure thorough safety and reestablish management regulations based on emergency/precise safety diagnosis results
□ Focus on preventing accidents by strengthening expert capacities, improving organizational system, and using advanced technologies such as DX
 
■ Chief Executive Officer Hak Cheol Shin,
“We will focus all of our energy on systemizing highly intensive environmental safety policies in our business places around the world believing that there will be no future for us if we fail to ensure environmental safety”
 
 
LG Chem will establish LG Chem’s own ‘global standard’ for environmental safety and expand it to business places around the world.
 
Regarding this, LG Chem announced that it would reestablish its environmental safety standards for all of its business places around the world and considerably strengthen its management system.
 
This is a powerful follow-up measure to the ‘environmental safety reinforcement plans’ announced in May. LG Chem is currently activating in earnest the ‘M-Project’ comprised of in-company environmental safety and process technology experts, as well as external agencies specializing in the related fields with the goal of zero major environmental safety accidents by 2021.
 
LG Chem plans to strengthen the environmental safety ‘global standards’ unique to LG Chem that will be applied to all of its business sites around the world to the world’s highest levels, while going beyond simply complying with local laws and regulations, but managing it at global standards.
 
■ Completed emergency diagnosis for high-risk processes and equipment, precise diagnosis to be completed within the year
 
First, LG Chem completed emergency diagnosis first on high-risk processes and equipment for its 37 business sites (15 in Korea, 22 abroad) around the world and came up with a total of 590 cases for improvement.
 
LG Chem is additionally investing a total of 81 billion KRW in environmental safety just this year to take immediate action for the necessary improvements found.
 
Furthermore, in the case of precise diagnoses that are also being carried out with outside agencies, diagnoses on 37 business places worldwide were completed, and plans are to complete the diagnoses by the end of the year.
 
Chief Executive Officer Hak Cheol Shin visited the domestic business sites in person and supervised overseas business places through video conferencing as he personally looked into the emergency diagnoses of both domestic and overseas business sites, thus leading with utmost priority being placed on the ‘M-Project’.
 
* The M of ’M-Project’ standards for ‘Magnolia’. Contains the will of the top executives to never forget the incident that occurred in the past spring during the season that magnolias bloom, to review all environmental safety measures from square one like the magnolia that has been in existence since the Cretaceous Age, and to completely establish standards and management systems befitting to a global company to its business sites around the world.
 
■ Reestablishing the safety diagnosis results-based environmental safety ‘global standard’
 
Through the M-Project, LG Chem plans to complete the major implementation assignments of △reestablishing the environmental safety regulation system △operating a Mother Factory △construction of an accident detection/prevention system by 2021.
 
First, it plans reestablish the company-wide environmental safety regulation system by the end of next year based on the emergency safety diagnostics conducted over a period of one month for its 37 business sites around the world and the precision safety diagnostic results scheduled for completion within the year.
 
In regards to this, the existing regulation system is being supplemented and technological guidelines are being enacted and revised currently, and a total of 25 areas of improvement are expected to be reflected in environmental safety sectors such as design, operational knowhow, maintenance, and laws this year through collaboration with expert outside companies.
 
Furthermore, the business place with the top technologies in products and processes will be selected as a ‘Mother Factory’ to construct a system for spreading BP (best practice) cases in each field to all business places. Currently, the target is being selected and operational regulations are being established, and plans are to begin full-fledged operation of the said systems by the first half of next year.
 
It will also focus on developing technologies to predict signs of accidents in advance using big data. Pilot facilities were constructed in the Yeosu and Daesan Complex(Petrochemical) to test DX (digital transformation) technologies, and plans are to expand application to business sites and plants for which such technologies can be applied next year.
 
LG Chem will also change the entity for managing the budget and investments for environmental safety from each company to a corporate environmental safety organization by the end of this year. There are also plans to reform the organizational system of the environmental safety sector company-wide to further strengthen prevention of accidents.
 
In addition, approximately 235 billion KRW per year is being invested in the environmental safety sector, and this year, plans are to focus on procuring expert personnel and restructuring domestic and foreign environmental safety-related organizations to place utmost priority on environmental safety for all business activities. Measures will be taken to ensure that such business policy will be clearly exercised by all organizations.
 
LG Chem Chief Executive Officer Hak Cheol Shin said, “I feel a great sense of responsibility for the recent accident and we have been focused on creating a fundamental countermeasure with the belief that there will be no future for us if we fail to ensure environmental safety.”
 
He added, “We will focus all our energies to systemizing highly intense environmental safety policies that we prepared with the mindset that we will not operate unless safe.”
 
 
■ LG Chem Global Environmental Safety Standards Construction Plans
 
1. Goal: Zero major environmental safety accidents by ‘21 for business places all around the world
 
2. Plans