Stricter Management of Hazardous Substances! LG Energy Solution’s Steadfast Environmental Management System

Globally, the movement for environmental protection is growing. Especially in Europe, the voices demanding environmental regulations and customers’ environmental management requirements for products and services produced by various countries are gradually increasing. Naturally, the importance of “environmental management” for global companies is also increasing. As a leading eco-friendly energy company, LG Energy Solution proactively responds to this global trend by strengthening the “management of hazardous substances in the supply chain”.

Practicing Through Hazardous Substance Management for the Health of Customers and Environmental Conservation!

LG Energy Solution continuously monitors changing environmental regulations to ensure thorough management of hazardous substances in products within the supply chain. While meeting environmental regulations, we strive to provide customers with green products. To achieve this, we apply “sustainable supply chain management guidelines” not only internally but also for suppliers, selecting materials that comply with regulations from the raw material stage.

LG Energy Solution’s Integrated Chemical Management System, “CHARMs 2.0”

LG Energy Solution manages hazardous substances more strictly through our integrated chemical management system, “CHARMs 2.0” (Chemical Assurance and Regulation Management System). Here, the term “chemical substances” refers to elements, compounds, and substances obtained through artificial reactions, and naturally occurring substances chemically transformed, extracted, or refined. Each country ensures the safe use of chemical products by confirming the chemical substances entering the domestic market and obtaining and sharing information necessary for safety, such as their hazardousness, to prevent toxicity accidents and protect public health and the environment. Particularly, regulatory authorities in the U.S., Europe, China, and other countries operate various laws and regulations for registering → evaluating → permitting → regulating hazardous substances.

(Source: Chemicals Control Act)

In line with this global trend, LG Energy Solution obtains and thoroughly verifies material information of raw and auxiliary materials used in product production through the “CHARMs 2.0” system.

In addition, we plan to introduce a new product hazardous substance management system called “HSMS (Hazardous Substance Management System)” by 2024. The plan is to integrate and manage material information from all production sites to achieve a more effective product environmental management system.

Key Functions and Application Process of the Integrated Chemical Management System, CHARMs 2.0

Upon obtaining material information on raw and auxiliary materials, LG Energy Solution proceeds with new material registration through the CHARMs 2.0 system. We classify the raw materials (chemical substances/minerals/components), sample materials (R&D), and MRO (Maintenance Repair and Operation procurement) materials (paint, etc.) according to standards. Subsequently, we conduct reviews of chemical composition, chemical volume by composition, supply chain inspections, and reviews of regulations by country. After completing these reviews and inspections, the process moves through the purchase and production stages, and finally, to the product standard assurance stage.

Application Areas of CHARMs 2.0 According to Product Life-Cycle

The integrated chemical management system CHARMs 2.0 meticulously distinguishes management items and corresponding tasks according to the product life-cycle stages of Research & Development, Purchase & Sourcing, Manufacture, Sales & Distribution, and Services. This allows for the application of a systematic integrated chemical management system.

LG Energy Solution’s hazardous substance management system that considers customers’ health and safety and an eco-friendly future! Our determination to be a role model as a global energy leader is evident. We will continue to strengthen our regulatory monitoring and management.

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