Assurance for leading electronics brand
LG Electronics, a global consumer electronics, mobile communications and home appliance products company headquartered in Seoul, South Korea, has commissioned Two Tomorrows to assure its sustainability report for three consecutive years (2009 - 2011).
We started by evaluating its CR strategy, management systems and performance using our Tomorrow's Value Rating (formerly Accountability Rating) framework, which is based on internationally recognised sustainability standards such as the United Nations Global Compact, the Global Reporting Initiative and the AA1000 Standards series.
As well as mapping LG Electronics’ performance against the Rating and underlying standards, we undertook a systematic evaluation of relevant best practices demonstrated by global CR leaders. We also carried out work to identify and prioritise its material social and environmental issues, and to assess its approach on each of these.
Based on this assessment, we identified the company’s key strengths and weaknesses, put them into the context of the performance of its competitors and other globally leading companies, and made recommendations accordingly. These were designed to help LG Electronics manage its major social and environmental risks, make a tangible contribution to the achievement of its primary business objectives, and improve its approach to sustainability reporting.
In our 2010 report assurance, for example, we recommended:
- further improvement of governance though defining roles and procedures for the management of sustainability issues at board level
- establishment of official systems to link LG Electronics’ improved understanding of the needs and ideas of stakeholders to its innovation efforts such as new product development, operational innovation and enhancing social benefits of products
- documented implementation of the materiality process,covering methods, assumptions, materiality threshold criteria and reporting and review procedures at top management level.