ESG Management Policy of Supply Chain
LX International has formulated an ESG management policy for the supply chain to build a sustainable supply chain. Based on this policy, we will identify and manage risks that may arise in the supply chain and we will remain entirely dedicated towards creating greater value with our partners.
Article 1: Partner Selection Criteria
LX International will prioritize partners who absolutely meet the ethical, legal, and ESG management criteria throughout the supply chain. Additionally, we will ensure that all purchased items are produced and procured in line with the ethical and legal criteria.
Article 2: Partner Responsibilities and Management Areas
LX International's partners are required to unconditionally comply with LX International's Code of Conduct for Partners and ESG management policy for the supply chain in all aspects of their management and business operations. LX International reserves the right to audit and inspect the partner's compliance, within the bounds of the law, with the Code of Conduct and ESG management policy.
Article 3: ESG Management Areas of Partner Companies
The ESG management areas of LX International partner companies are as follows:
①Ethics : Anti-corruption, conflict of interest prevention, unfair trade prevention, export control compliance, and information protection.
②Environment : Environmental management system construction, energy use and greenhouse gas emissions management, water resources management, air pollution control, waste management, and chemical management.
③Labor and human rights : No discrimination, working hours management, no child labor, and no forced labor.
④Safety and health : Occupational health and safety management system construction, machinery and equipment safety management, emergency response, accident management, and health management.
Article 4: ESG Evaluation System for Partner Companies
1. LX International reserves the right to conduct the ESG assessments of its partners to manage the ESG risks and facilitate their sustainable management. Given the increasing importance of the ESG evaluations in domestic and international transactions, LX International has plans to expand the ESG evaluations for its partners.
2. LX International may conduct any written evaluations via email. Evaluations are conducted on the premise that the responses submitted by our partners are completely factual, and we reserve the right to request supporting documentation as necessary. The results of the written evaluation serve as a criterion for a due diligence designed to evaluate the ESG risks, creating the basis upon which any remedial actions may be developed.
3. LX International analyzes and supports the improvement of the partner's ESG management based on the evaluations and due diligence. The level of improvement in ESG management may be incorporated into future transactions between LX International and its partners.
Article 5: Communication with Stakeholders
LX International is unreservedly engaged in ongoing communication with both our internal and external stakeholders for the ESG risk management of the supply chain. Various channels for the benefit of communication, including a reporting system for partners on our website, have been set up to address any concerns from our partners and to facilitate mutual growth. Going forward, our plan is to disclose our status and plans concerning our partner companies' ESG management through our sustainability reports.