Under the board of directors of LG Group affiliates, the ESG (Environmental, Social and Governance) Committee and the Internal Transaction Committee will be established.
LG Corp., a holding company of the LG Group, heard the opinions of the board of directors on measures to improve corporate governance, including such contents, and announced on the 19th that it will go through the agenda report and approval process soon. 13 listed companies affiliated with LG Group, including LG Electronics and LG Chem, also set up the ESG Committee and the Internal Transaction Committee after consultation with the board of directors.
The ESG Committee is in charge of deliberating and reporting major corporate-wide policies such as environment and safety, corporate social responsibility (CSR), customer value, shareholder value, and governance structure to the board of directors. The committee consists of all outside directors, and each company’s representative director participates as a member of the committee to enhance its executive power. In addition, in order to secure the expertise of the committee, it plans to establish a’consulting group’ made up of external ESG experts under the committee.
The Internal Transaction Committee consists of 3 outside directors and 1 inside director. Deliberation is made on whether transactions subject to private interest infringement regulation under the Fair Trade Act, large-scale internal transactions, self-dealing under commercial law, misappropriation of company business opportunities, and transactions with specially related persons have been transparent.
LG Group also decided to strengthen independence and authority by expanding the Audit Committee, which currently consists of 3 outside directors, to 4 outside directors at the regular shareholders’ meeting next year. An independent internal audit department will also be established to assist the audit committee. The Outside Director Candidate Recommendation Committee reinforces its functions, such as an outside director serving as the chairman and conducting regular inspections on candidates for outside directors.
Samsung C&T also declared that it would strengthen ESG management. Samsung C&T held a general shareholders’ meeting and the board of directors on the same day, and expanded and reorganized the existing governance committee into the’ESG committee’. In addition, outside director Jeong Byeong-seok (emeritus professor at Korea University of Technology) was elected as the chairman of the board of directors. This is the first case in which an outside director took over as the chairman of the board of directors. An official of the company explained, “Measures to increase the independence and management transparency of the board of directors”.
Reporter Song Hyung-seok [email protected]
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