ESG | LG CNS

Biz Process Intelligence

ESG

ESG is a critical metric for gauging sustainability in corporate management, driving transformative shifts from strategic planning to fundamental business model changes. In recent years, regulatory frameworks across nations and industries have evolved significantly, prompting Korean businesses to conduct ESG assessments and ultimately to establish long-term ESG implementation strategies to secure their competitiveness.

To navigate this rapidly evolving ESG landscape, businesses must adopt a strategic approach that includes system-based ESG data management, enhanced board oversight, innovation in products and services that incorporate ESG factors, and company-wide ESG engagement. LG CNS provides a one-stop service, from developing roadmaps and deploying ESG implementation frameworks to introducing and providing operational support for IT solutions for monitoring, ensuring an impactful and practical approach to ESG adoption and integration.

Tailored ESG Consulting Services Amid Evolving Regulations and Market Conditions

Mandatory ESG Disclosure

ESG disclosure is rapidly transforming into a regulatory mandate Korean companies must prepare for increasingly detailed mandatory disclosure standards by defining and managing the indicators through which they will monitor and disclose their ESG performance, considering external ESG evaluations and internal project management KPIs.

The Gravity of Climate Change

Greenhouse gas emissions are now under scrutiny not only from government regulators but also from global clients who demand advanced carbon neutrality plans and implementation reporting. Major domestic companies have committed to achieving carbon neutrality by 2030, and many with 2040 or 2050 targets have set interim goals for 2030. With limited time remaining until 2030, Korean companies must either update their targets or implement realistic five-year carbon reduction investment plans to maintain stakeholder trust. Furthermore, in preparation for future mandatory disclosures, companies need to articulate the impacts and opportunities of climate change through concrete strategy development and data management based on the TCFD (Task Force on Climate-Related Financial Disclosures) framework.

Supply Chain ESG Risks

With the CSDDD (Corporate Sustainability Due Diligence Directive) guidelines coming into effect in 2024, EU companies, both within and beyond the region, that meet certain criteria must monitor human rights and environmental issues across their supply chains, mitigate risks, and disclose outcomes. Given that non-compliance can result in fines of up to 5% of global revenue, it is critical that not only large domestic enterprises but also SMEs within the supply chain prepare rigorously to secure their contractual positions. In terms of disclosing Scope 3 greenhouse gas emissions, supply chain management is becoming indispensable. The KSSB (Korea Sustainability Standards Board) states that companies must disclose Scope 3 emissions, and those that have already set SBTi targets must establish advanced reduction goals, including Scope 3, to achieve their objectives.

LG CNS ESG Consulting Services

ESG Strategy and Management Framework

For tailored ESG management, we analyze diagnostic ESG items based on global initiative requirements and benchmarking against industry leaders and competitors to identify key improvement areas.

To develop a company-wide ESG strategy framework, we set ESG objectives aligned with your corporate vision and review the entire schedule and roles and responsibilities (R&R), such as for an ESG Committee and evaluation and disclosure responses, to ensure integration with existing operations. In addition, we establish a department-level monitoring system for ESG indicators and tasks, allowing for continuous mid- to long-term review of the ESG roadmap and laying the foundation to become a leader in ESG.

ESG Disclosure and Evaluation Response

We facilitate ESG performance disclosure that complies with various standards, including GRI, ISSB, and ESRS, and by deploying customized indicator management systems for each client and industry, we provide a solid foundation to meet global market demands, from the EU to the US. Specifically, we analyze mandatory and voluntary disclosure requirements along with internal and external evaluation criteria, and define data elements, including definitions, formats, responsible departments, sources, and aggregation cycles, to deploy a systematic indicator management system that integrates previously Excel-managed data into a single platform.

Climate Change Response Strategy

In response to the increasingly sophisticated stakeholder demands regarding carbon neutrality, we offer comprehensive support from developing carbon neutrality strategies and preparing TCFD reports to measuring product carbon footprints. Specifically, we support the entire process, from current status assessments and BAU(Business As Usual) calculations to action planning and roadmap development, for the development and review of carbon neutrality strategies, while evaluating transition and physical risks in financial terms to determine their fiscal impact for TCFD disclosures. Moreover, by defining organizational boundaries and monitoring greenhouse gas reduction initiatives, we establish an advanced emissions management framework and develop a product carbon footprint calculation system to meet diverse requirements.

Supply Chain ESG Risk Management

To comply with EU supply chain due diligence regulations and manage Scope 3 greenhouse gas emissions, we establish ESG and human rights risk assessment and management frameworks—both general and industry-specific—and develop roadmaps based on the scale, industry distribution, and regional characteristics of all suppliers. Our service covers the entire deployment process, from defining evaluation criteria and operational policies to facilitating supplier self-assessment questionnaires (SAQ), setting improvement targets, and monitoring corrective actions, while enhancing the overall sustainability of the business value chain by introducing IT systems for efficient ESG risk management among suppliers.

Customer Success Stories

Hanwha TotalEnergies Petrochemical

Building a Net Xero management system

LG Chem

Rapid carbon footprint calculation system with automated emission estimation

LG Household & Health Care

Conducting TCFD-aligned financial impact analysis and disclosure

COSMAX

Carbon neutrality strategy/establishment of an LCA framework/financial impact analysis

HMM

Climate disclosure and financial impact assessment

Optimal Platform for Achieving Data-Driven ESG Management

Why ESG Management Platforms Are Gaining Attention

Companies are increasingly focusing on ESG management platforms due to tightening ESG disclosure regulations and the challenge of managing vast amounts of data. The move toward mandatory disclosure began in Europe and is now steadily influencing the domestic market. Europe and the United States have already instituted mandatory disclosures for large corporations, and it is anticipated that similar measures will be introduced locally within the next two to three years.

Moreover, as sustainability responsibilities become integral to corporate governance, the significance of data management frameworks and IT systems is growing. For example, it is impractical to manually record and manage data such as carbon emissions generated during manufacturing processes or other business activities, given the speed and volume of such data.

Consequently, companies are opting for ESG management platforms that streamline ESG data acquisition and facilitate the deployment of comprehensive response systems. In essence, deploying an ESG management platform to meet regulatory standards is less about the "why" and more about the "how."

Differences Among ESG Management Platforms

The trend among most businesses to consider adopting an ESG management platform is undoubtedly a positive sign toward realizing a sustainable future. However, before implementing such a platform, there is one critical point companies must understand. Not every ESG management platform comes with the same features and functions.

One example will illustrate this point. Consider a ship’s captain: to safely steer his vessel to its destination, the captain must take into account various elements such as wind direction, ocean currents, and weather conditions. Likewise, when a company selects an ESG management platform, it needs to consider several key factors. As illustrated by the navigation analogy mentioned earlier, an ESG management platform serves as a navigational map for a company’s journey toward sustainable growth. Through this map, companies can effectively manage environmental, social, and governance aspects, laying the foundation for strategic development. The crucial point here is that, just as not all navigational maps are identical, each platform possesses its own distinct characteristics and functionalities. Therefore, it is essential for companies to choose the most suitable platform among the many available. So, what factors should companies consider when selecting the appropriate platform?

Metric Extensibility and Data Reliability

When selecting an ESG management platform, the foremost criterion is “metric extensibility.” This term refers to the platform’s ability to offer a broad spectrum of data that adapts to evolving market trends and shifting investor interests. While it is critical to choose a platform that meets today’s disclosure standards, a system that cannot flexibly adjust to future changes will struggle against rapidly evolving global ESG disclosure regulations. Consequently, companies should opt for a platform with metric extensibility that underpins clear decision-making. Equally vital is ensuring “data reliability” when evaluating a platform. It is imperative that the system secures data accuracy through statistical verification methods to detect human errors during data input, along with integrating internal control mechanisms.

ESG management requires a platform that enables 'data-driven' strategy development and decision-making. To this end, bolstering data reliability is indispensable. Although many businesses continue to manage ESG data manually, this approach inherently limits the assurance of data reliability. Therefore, modernizing legacy systems and ensuring the reliability of output results are crucial steps in overcoming these limitations.ESG management requires a platform that enables 'data-driven' strategy development and decision-making. To this end, bolstering data reliability is indispensable. Although many businesses continue to manage ESG data manually, this approach inherently limits the assurance of data reliability. Therefore, modernizing legacy systems and ensuring the reliability of output results are crucial steps in overcoming these limitations.

LG CNS ESG Digital Transformation (DX) Management Platform

LG CNS delivers a comprehensive platform service for data-driven ESG management, covering everything from an ESG portal to performance monitoring and disclosure management. The platform integrates diverse ESG-related data within a single system effectively supporting risk management as well as evaluation and disclosure tasks. This integrated approach enables companies to achieve systematic and effective ESG performance evaluation and disclosure management.

ESG DX Journey with LG CNS

Establishing a Scalable and Flexible ESG DX Management Foundation

End-to-end integrated measurement and management of data, from KPI tracking to disclosure reporting
A design with high scalability and flexibility, to accommodate diverse internal and external data connections

Applying LG Group’s Expertise in Consulting, Deployment, and Operation

A reservoir of insights accumulated and internalized through years of operational excellence within the LG Group
A verified industry-specific system, optimized for a wide array of sectors

A Platform Capable of Continuous Evolution

A platform that easily expands its scope, including broader applications and indicator extensions
Realizing ESG Intelligence through enhanced functionality that supports strategic decision-making and ensures data reliability

A Digital Safety Environment for a Safer Tomorrow

Transition to a Global Digital Safety Environment

Global manufacturers are significantly increasing investments in Safety, Health, and Environment (SHE) initiatives. Leading enterprises are embedding Digital Transformation (DX) into their SHE strategies—leveraging advanced technologies to strengthen core competitiveness while maximizing the efficiency and effectiveness of SHE resource management.

Among industries, investment levels are notably higher in sectors such as oil & gas and chemicals, where the handling of volatile, flammable, or hazardous substances poses serious risks to both workers and surrounding communities. As a result, companies are placing greater emphasis on worker safety, process safety, sustainable operations, and industrial hygiene—driving value creation through digital innovation.

Domestic Policy Trends and the Need for Digital Safety Transformation

In Korea, SHE management has traditionally focused on regulatory compliance, limiting its role as a strategic tool for realizing core ESG values. However, recent shifts in industrial safety policy are expanding the scope beyond conventional manufacturing safety frameworks to include industrial health, integrated environmental management, and sustainable carbon neutrality.

To respond to these changes, enterprises are now facing the need to elevate their SHE strategies and build digitally enabled safety environments that support long-term sustainability and resilience.

Digital Safety Environment Offerings Provided by LG CNS

Digital Safety Environment Maturity Diagnostics

We provide comprehensive diagnostics of your organization's safety environment maturity across governance, technology, process, and people. By analyzing the current condition and comparing it against target benchmarks, we diagnose the level of digitalization in your safety management and present a prioritized, phased roadmap for future improvements.

Digital Safety Environment Consulting

LG CNS delivers tailored digital safety consulting by benchmarking your organization’s processes against the LG CNS Safety Environment Standard Process*, helping you define a digitalization strategy and direction, set implementation priorities, and identify improvement tasks and roadmaps aligned with your specific needs.

* LG CNS Safety Environment Standard Process
* A set of standardized processes developed with reference to safety and environment practices from LG Group and external domains, consisting of 5 Process Chains, 20 Process Groups, 64 Processes, and 189 Activities.

Digital Safety Environment System Implementation & Operation

LG CNS delivers end-to-end services that integrate DX technologies to enable informatization, automation, and intelligent control to encompass safety, health, environment, chemical substance management, and regulatory compliance.

Safety and environmental management can be integrated at headquarters, production sites, and partner companies, along with data generation, collection, and integration with relevant systems. All of these capabilities are provided through the LG CNS Safety Environment Portal solution.

Safety Environment DX Services

By applying advanced DX technologies, LG CNS helps reduce costs, drive innovation, and improve asset efficiency. Intelligent operations in safety, energy, and facilities, powered by AI and optimization algorithms, combined with cloud-based data collection using IoT sensors, real-time monitoring, and predictive analytics, enable the enhancement of proactive risk detection and preventive actions. We also support VR/AR-based training and automated compliance management to enhance efficiency and reduce operational costs.

LG CNS Solutions for a Complete Digital Safety Environment

SHE Portal Solution

The LG CNS SHE Portal is a leading safety and environment platform that was purpose-built for the SHE domain, designed based on verified success cases across the LG Group. The solution supports compliance with the Serious Accidents Punishment Act, enables proactive risk management to prevent safety and health incidents, and strengthens oversight in the safety and health practices for partner companies.
Built on LG Group’s proven know-how, the solution aims to foster a culture of safety that goes beyond operations with zero-incidents and takes root as a lasting part of the industrial workplace, ensuring a safer tomorrow.

Compliance Response

The platform offers essential features to support compliance efforts, including risk assessments and safety work permits

Seamless integration with internal and external systems

The platform integrates with systems such as facility management, procurement, chemical substance management, the SEMS and the Allbaro

Intuitive UI / UX

The calendar allows you to manage regulations, inspections, and to-do’s all in one place

FAQ

Traditional safety environments rely heavily on manual data collection, paper-based reporting and communications, and periodic inspections with reactive responses. In contrast, digital safety environments use IoT sensors and cloud-based systems to collect and analyze data in real time, enabling instant communication and automated reporting through digital platforms. Digital safety environments enhance early risk detection and prevention through real-time monitoring and predictive analytics, while VR/AR-based training and automated compliance management boost operational efficiency and reduce costs.
A structured approach is essential when considering the introduction of a digital safety environment, and LG CNS recommends a three-phase methodology. First, "Digital Safety Environment Maturity Diagnostics" are conducted to evaluate the current level of safety management within the organization and to identify which areas require digital transformation. This helps clearly define areas for improvement and establish priorities. Next, LG CNS develops a tailored digital safety environment implementation strategy through "consulting," which includes reviewing standard processes, setting goals, selecting technologies, and planning the budget. Finally, LG CNS builds a "digital safety environment system" by integrating DX technologies such as AI, optimization algorithms, IoT sensors, cloud-based systems, and data analytics tools , enabling real time decision-making based on data and supporting continuous operations and maintenance.
LG CNS offers not only implementation-based solutions, but also subscription-based services. The subscription model lowers the initial cost burden and allows organizations to quickly adopt the necessary features based on their specific needs and operational context. It also includes ongoing updates and maintenance, ensuring access to the latest technologies.

Building a Smart Factory with Integrated Risk Monitoring, Detection, and Response

Evolving Perceptions of Workplace Safety

The strengthening of safety-related regulations, including the Serious Accidents Punishment Act, is shifting how companies perceive workplace safety. With a heightened awareness at the executive level, the focus is moving beyond reactive measures to building proactive systems and processes that prevent incidents before they occur. To prevent serious accidents, companies are building systems to systematically identify, assess, and manage risks, leading to a growing culture of prevention-focused safety management. To prevent serious accidents, companies are building systems to systematically identify, assess, and manage risks, leading to a growing culture of prevention-focused safety management.

Key Considerations for Implementing an Integrated Control System

For the successful deployment and operation of an integrated control system, the first step is to clearly define your goals and specific requirements. These elements determine the system's scope and direction. As sensitive data is involved, it is critical to implement robust security measures such as data encryption, access controls, and intrusion detection systems.
Automation helps eliminate blind spots in risk management, while DX technologies and targeted training prepares employees to respond effectively to emergencies. Ongoing safety education and training for personnel are essential for ensuring appropriate responses during emergency situations. With systematic workflows and structured system operations, companies can maintain safety and performance while maximizing overall operational efficiency. By establishing an integrated system that covers risk detection, monitoring, and response, companies can prevent serious incidents in advance.

Creating a Safe and Sustainable Manufacturing Environment

Integrated Control Center

A physical integrated control center allows for immediate recognition and response by collecting and monitoring key data on safety, environment, energy, processes, and equipment while detecting unusual situations in real time.

Data collected from heterogeneous systems is unified via the control platform, allowing for real-time, end-to-end monitoring. When a risk is identified, the system automatically verifies field conditions and facilitates fast, informed decision-making to minimize damage.

Any Device - Easy to Connect

Integrating systems with various devices and protocols can be technically complex. Different protocols involve different data transmission formats, messaging schemes, and connection settings, making standardization and integration challenging. The "Smart Connect" adapter enables easy connection and monitoring without additional development simply by adding the specific adapter needed for each device.

DX-Based Operational Efficiency

Digital technologies centralize fragmented data to enhance operational efficiency and support real-time insights to speed up decision-making. The system provides realistic visualizations of monitoring data through an intuitive 3D dashboard and delivers immediate guided actions through electronic action manuals when alarms are triggered or certain events transpire.

LG CNS Solutions for a Safety Manufacturing Environment

Factova SEP
(Safety & Environment Platform)

"αOP" is an integrated operations platform optimized to support the design and operation of centralized control systems, providing a comprehensive set of capabilities, such as monitoring, control, alarm processing, event history management, trends and statistical analytics, user notifications, and operator response processing based on real-time data collected from a wide range of equipment (facility/utility), devices, gateways, and sensors. Using the platform’s built-in Smart Builder, control dashboards can be flexibly designed across various formats, including dashboard-style layouts, equipment network diagrams, tables, GIS-based maps, and architectural drawings.

The platform also provides comprehensive operational processing support that includes everything from event detection and handling to action guidance, facility status checks, and event history management. In the event of a critical incident, Standard Operating Procedures (SOPs) essential for a response can be quickly and intuitively generated and applied through simple event association settings.

To support efficient task processing by user type, LG CNS provides optimized viewers for each work role, including Smart Viewer Pro for professional control personnel, a web viewer for general users, and a mobile viewer for on-site patrol users. As integrated control requires uninterrupted operation 24 hours a day, 365 days a year, service continuity and stability are ensured through Active-Standby and Active-Active configurations. Come and build a safe manufacturing environment with Factova SEP, which provides integrated management of risk data and systematic response through monitoring.

Smart Connect

Supports various device adapters, allowing for seamless integration and use across heterogeneous systems

e-SOP implementation

Digitizes response protocols tailored to each type of abnormal situation, enabling systematic and structured incident responses

nDevice support for access anywhere

Supports multiple devices including web and mobile devices, depending on usage needs

FAQ

The most important factors are improving operational efficiency and establishing a real-time response system. An integrated monitoring setup should provide a consolidated view of key safety and environmental conditions across the entire site. The system must detect anomalies in real time using video feeds, monitoring sensors, disaster detection systems and administrator inputs, and automatically provide appropriate dashboards and response information based on the level of risk: normal, caution, high alert or critical. It is also essential to unify dispersed monitoring systems into a single integrated architecture that enables the immediate recognition of and response to on-site incidents.
Physically separated sites facilities typically require dedicated control centers at each site. However, the integrated control platform is cloud-based, allowing for unified monitoring across all sites. Even when control centers are physically independent, real-time monitoring and control is possible through standardized network configurations, and an integrated database structure enables comprehensive data collection and analytics across all sites. This allows a centralized integrated control system to be built even in physically separated environments.