Environment and Safety Management

Safety Management Activities

Safety Culture Dissemination

We conduct activities to spread safety culture, including the risk diagnosis of machinery and other hardware as well as exercising extra caution in dangerous tasks. According to the research on 27 items in 4 categories, including safety awareness, participation, responsibility and roles, execution and communication, the level of our safety culture falls in the phase of “Introduction and Internalization of the Safety Management System”. Based on this result, we increased the safety awareness of employees,
set responsibilities and roles, conducted safety and health enhancement programs, and improved our communication system. We will continue this effort to encourage the voluntary and active participation of employees by 2018.

Safety Culture Dissemination Roadmap

Accident-free Environment
& Safety Management

LG H&H sets key challenges to achieve an accident-free level, and conduct monthly, quarterly, and half-yearly monitoring to accomplish these goals. Each year, we identify risk factors in six categories system, machinery, electricity, process, fire prevention and environment-in cooperation with internal and external experts, and improve what is lacking in each category. The number of improvement cases were 2,400 from 2014 to 2016, with KRW 12.7 billion of investment. The yearly internal/external expert diagnosis has helped the company to meet the tightened standards for facilities with possibility of fire and leakage, old machinery issue handling, and explosion of boilers, and enjoy positive effects including the improvement of responsive capacity in an emergency.

Accident-free Construction
Safety Management

In terms of construction by subcontractors, the possibility of accident may increase if relevant information, including the number of workforce, equipment and materials to be used, is not properly shared between the relevant departments. In response, LG H&H has an emergency communication network to enable the main gate security team, the purchase order team, and the environment and safety team to cooperate closely with each other. Based on this system, we comply with the construction safety management requirements by sharing construction plans, strengthening the access control of the security team for the main gate, and checking safety issues before and during construction. We also prevent severe accidents in advance, including fire, risky machinery, and falling equipment.

Near Miss Prevention

We operate the field-driven improvement system with participation of employees to prevent near misses. We manage the improvement rate for preventing near misses, targeting all subsidiaries and business sites. The result is then reflected in the individual and team performance evaluation to find out more about our risk behaviors and situations. We will take the initiative in establishing safety culture with the voluntary participation of employees, while strengthening safety culture to create synergy through the training program for better sensitivity to risk factors.

Suppliers’ Activities
for Industrial Safety & Health

The effort of safety and health management based on a consensus with suppliers for industrial accident prevention is an essential element for preventing accidents in business sites. For a safe work environment for suppliers, LG H&H supports the risk assessment and technologies, selects and offers safety shields suitable for each task, and provides human resources and material support required for addressing harmful risk factors. We also conduct the monthly win-win cooperation group meeting to provide timely and effective support to improve our suppliers’ autonomous safety and health management capacity.

Establishment of Process Safety Management System
(PSM)

LG H&H introduced the PSM system in 2008 and has minimized the handling of hazardous substances and installed fire partitions for storage rooms to prevent the spread of fire and explosion accidents, and established automatic extinguishing equipment, including water sprinklers, to put out a fire quickly. In addition, the company has an emergency manual so that employees can respond properly to any urgent situation, and checks this manual through regular emergency response drills.

Safe environment education

We operate communication channels, including our newsletter and bulletin board, to share the current status and prospects of realizing a safety environment, and provide education programs to employees at each level. Each department voluntarily promotes information sharing activities, analyzes potential accidents, and improves the environment. We hold two meetings of the Environmental Safety Committee each year and design medium and long-term plans for efficient decision making to create a safety environment across the company. We also carry out health and safety campaigns twice a year and increase the awareness of employees through various methods including the sharing of safety practices.

Cooperation for health and safety for coexistence

In order to fulfill our social responsibility for health and safety, LG H&H actively participates in the project of cooperation for health and safety for coexistence led by the Ministry of Employment and Labor and carries out exemplary activities. To strengthen enthusiasm in these efforts, we stipulated the support for business partners in its environmental, safety, and health policies in 2014.
As part of the support for business partners, we completed the risk factor assessment on all our work with business partners and supported the budget for installing and improving facilities to realize safer work processes. The employees of business partners can use our welfare facilities, including shower booths, gyms, cafeterias, and staff lounge, alongside LG H&H employees.

Emergency Response System

In 2016, we reinforced the emergency response manual to classify the gravity of accidents, including injury in the research, production and logistics sectors, fire and explosion, and leakage, and improve our time-based response capacity. We designed a manual that illustrates time-based key actions for each response team, such as the accident handling team and recovery assistance team, ensuring that no necessary tasks are neglected. We also strengthened our emergency handling capacity by establishing the external emergency communication system with public offices and specialized hospitals. Dividing our domestic business sites into seven regions, we have the head of each business site provide expert techniques and work support for each region, thereby enhancing our emergency response capacity. We will commit our full efforts for prevention, while responding to emergency situations in a systematic way to minimize damage and swiftly restore normalcy.

Joint drill for chemical substance leakage handling

<Joint drill for chemical substance leakage handling>

Rate of industrial accidents

Occupational Injury Rate
Classification Unit 2014 2015 2016
LG H&H Cases 1 7 4
% 0.025 0.16 0.09
Coca Cola Beverage Cases 8 7 14
% 0.33 0.29 0.59
HAITAI htb Cases 3 3 6
% 0.34 0.38 0.79
THEFACESHOP Cases 1 0 0
% 0.25 0 0

* In 2013, the average occupational injury rate in South Korea was 0.59%.
** Reason of increase: The increase in the volume of goods transported caused the rise in the occupational injury rate.

Health Improvement Activities

Health Improvement Activities

Health Improvement Activities
Classification Description
Development of musculoskeletal disease prevention program Signed MOU with Jaseng Hospital of Oriental Medicine and upgraded CCB customized gym
Operation of musculoskeletal disease treatment and rehabilitation program Developed customized treatment and rehab programs for Jaseng Hospital of Oriental Medicine and CCB
Intensive management of employees subject to health management by disease Established individual health management system through the cooperation of the part leaders of the employees subject to health management and the health managers
Reinforcement of employee health management program Executed no-smoking program and nutrition campaign
Reinforcement of in-house health education Increased health awareness by conducting collective monthly safety and health training
Continuous provision of health information Posting of health information on a monthly basis
Reduction of harmful work environments Reduced the number of items not meeting the standards by measuring work environments twice a year and conducting periodic inspections (the company’s own measurement - noise, CO, CO2 and intensity of illumination)

Establishing the infrastructure
for health diagnosis
and improvement

In order to protect, maintain, and improve the health of employees, the company supports annual comprehensive health checks for all employees over age 35 and general health checks for those under 35. Our company also supports the spouses of employees, giving them opportunities to receive these same health checks every other year.
In 2015, we established the infrastructure for health checks and improvement to increase accessibility to information. In this system, employees can see the changes in their health condition with graphs that visualize the major health indicators based on the result of health checks over the last three years. Even after the period of health checks, employees can receive high-quality health management services, including a consultation with a doctor about the results of the health check anytime throughout the year and an emergency request for treatment (at university hospitals).

건강증진 활동
Classification Before 2014 From 2015
Scheduling and
escheduling doctor
appointments
· Scheduling appointments was too inconvenient for sales and production department staff and their spouses (required to use intranet website)
· Rescheduling was only possible by phone
· Appointment scheduling can be done via PC, mobile phones, and call center outside the company and at home.
· Rescheduling is available in real-time via the website or phone (hospital’s call center).
Hospital selection and
health check items
· Difficult to compare health check items at each hospital due to use of complex terms and tables. · Health check items and hospitals can be compared (up to three hospitals).
· More hospital info is available, and staff and their spouses can now use multiple hospitals.
Result of health check · Employees needed to use the same hospital to implement health check history. · Health check results can be checked on the website.
· The accumulated history from different hospitals can now be accessed.
· Graphs are used to make it easier to compare and check the major health indicators.
Doctor consultation · Consultation was only possible at the same hospital.
· It was difficult to consult with a doctor about general health issues.
· Medical personnel can be consulted via the website or phone (call center).
· The call center provides reservation-based service in case of request for urgent treatment.
· Information about diseases can be always found on the website.
· The webzine is delivered by e-mail, providing information on major diseases according to the health check results.

Stress Prevention
Program

With growing social concerns over stress and employees’ demand, LG H&H runs stress prevention programs at the company level. For sales employees and managers who directly communicate with customers, we provide a job stress prevention class (2 hrs., 8 sessions) and a physical and mental healing program (2 days, 3 sessions) conducted by professional psychology counsellors, thereby preventing mental diseases. In 2017, we are planning to operate a mental care center at two of our business sites as a demonstration and open a regular class at the company’s training center to expand the stress prevention programs. Through these efforts, we will support our employees to have a positive mindset and lead healthy and happy lives.