Green Battle: Achieving Environmental

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Green Battle Achieving Environmental Leadership
Presented by Sudhansu Pathak LG Electronics 12th
November 2009
Lifes Good when Its Green
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History
LGEIL Set up
1997 - 2000
2001-2004
2005-2008
Noida
Apr05 Started mfg. GSM Apr06 Started
mfg. ODD
Jul01 Started mfg. REF Jul03 Started
mfg. COMP Jan04 Started mfg. PC
Jan97 Established LGEIL May97 Launched
CTV, WM, REF (CBU) Jan98
Launched AC (CBU) Aug99 Started mfg. MWO
Established - Apr98
Pune
No1. in CTV
No1. in AC, WM REF
No1. in DD, DM HA
Established Oct04
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LGEIL
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Manufacturing Benchmarks
Fast Company , Fast Growth
Milestones

• Mar-07 Started Prdn. of LCD TVs at Pune
• Apr05 Started GSM Production
• Oct04 Inaugurated Pune Plant
• Jan04 Started PC Production
• Sep03 Started LCD Prod.
• Jul03 Started Comp Prod.
• Dec02 Started DC Ref Prod.
• Jul 01 Started FF Ref Prod.
• May01 Started Monitor Prod.
• Aug99 Started MWO
• Jul98 Started WM
• Apr98 Started CTV, AC
• Jan98 Launched AC (CBU)
• May97 Launched CTV , WM , REF ( CBU )
• Feb97 Established LGEIL

Noida
Pune
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Growth
Financial Performance
(Amt. in Cr. Rs.)
TURNOVER
YEARS
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Vision
We will achieve 3.4 Billion Turnover by
2010 !
Turnover (b U)
CAGR 19
3.4 b
1.9 b
1.8 b
0.76
DA
0.61
0.69
0.61
DD
0.14
0.22
DM
MC
0.46
0.28
08
07 A
06 A
10 T
Year
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LGEIL
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Sales Infrastructure
Company Reach

• Branch Office 37
• Total Area Offices 144

PAKISTAN
NEPAL
13 Branches
(2)
Sales Channel

• Direct Dealers 4000
• Sub Dealers 12000
• Sales Service Dealers 570

6 Branches
BANGLA DESH
11 Branches
SVC Channel
(2)

• Service Centers CE, HA 481
• Service Centers Mobiles
  650
• Engineers (ASC) 5050

Logistics

• Mother Warehouse 3
• Finished Goods Stock Points 50
• Spare Parts Stock Point 35

• Population (M)
• Area (MKm)
• States, U.T.
• Languages
• Temp (Winter)
• Temp (Summer)
  

9 Branches
1083 3.28 28, 7 22 -2 C 28C 15 C 50 C
SRI LANKA
ASC Authorized Service Centres
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Green Initiatives
Hazardous Substances
Resource Optimization

• Reduction of product weight/volume
• Use recycled material

• Eliminate Use of heavy metal
• Phase out hazardous material

• Use recyclable material
• Design for easy disassembly

Green Initiative
Recyclability Improvement
Living Environment

• Use natural clean function
• Decrease noise vibration

Energy Efficiency
Green House Gas Reduction

• Reduce power consumption
• Reduce standby power

• Use Renewable energy
• Reduce GHG emissions

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Career Opportunities

• In business practices and to move environmental
  and process issues squarely into the center of
  strategic planning and competitive advantage. The
  demand for people who can integrate these issues
  with the traditional functional areas of business
  is growing and will continue to be strong.
• The list below demonstrates career titles for
  the same
• Sustainability Consultant
• Compliance / Regulation Specialist
• Science / Field Manager
• Corporate Environmental manager
• Environmental Affairs Officer
• Environmental Health and safety analyst
• Journalist / Media specialist
• Public Relations
• Product Designer

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Achievements
World 1st Company to have BS EN 160012009
Energy Management System
National Energy Conservation Award 2008 From
Ministry of Power
Lead The Charge For Change
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LGEIL
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Thank You Have A Green Day
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Resource Use Optimization

• Reducing the overall weight and volume of a
  product
• Development of Bio Plastics using Recycled
  materials
• Developing integrated circuit components, that is
  fusing two core components with two different
  functions into one for resource optimization
• Leveraging the use of alternative resources
  such as bio-degradable plastic

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Resource Optimization Example
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Hazardous Substance Management

• Curtail use of parts containing hazardous
  substances
• LG Electronics approving development projects
  only after a careful examination to reduce the
  use of harmful materials from filtering into
  individual parts.

Schedule for reducing the Hazardous Substances
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Management of Waste Electronic Products

• LG Electronics runs voluntary take-back programs
  that are customized to meet the specific demands
  of each country.
• In 2008, we collected and treated a total of
  108,135 tons of waste electric/ electronic
  products in North America, Europe, and Asia.

• LGE is continuing with its research on Eco
  product design stage, ensuring that easy
  recycling is made possible when collecting and
  treating waste products.

Region-wise collection of waste
electric/electronic products
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Energy Efficiency Enhancement

• LG Electronics aims at curbing green house
  emissions
• Electronic products generally emit a greater
  amount of greenhouse gases while in use rather
  than during manufacturing
• More energy efficient products star rating
• LG Electronics has the goal of reducing 12
  million tons of CO2 emissions by 2012 and 30
  million tons by 2020
• To improve on-mode energy efficiency, LG
  Electronics created a five-year roadmap for each
  product group and has already achieved some
  concrete goals
• Certain product groups, including washing
  machines and monitors, have reached the highest
  level of energy efficiency in the industry
• LGE established its own internal energy
  management goals and a detailed strategy to
  further improve energy efficiency and standby
  power consumption levels

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Energy Efficiency Enhancement
Standby Power Reduction Most LG Electronics
products, including air conditioners,
refrigerators, washing machines, and TVs, meet
the rigid standards with washing machines and
cell phone chargers each consuming just 0.5 watts
(or less) of standby power.
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Green House Gas Reduction
LG Electronics recognizes the importance of
responding to climate change and is carrying out
a wide array of activities in order to reduce
greenhouse gases that are generated in the
companys value chain.
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EESH MANAGEMENT
EESH (Energy, Environment, Safety, Health)
Management System
In order to minimize the environmental impact
caused by business activities, LG Electronics
established what it calls an EESH management
system.
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Minimizing Environmental Impact

• LG Electronics is working hard to build and
  operate pollution prevention facilities, improve
  the manufacturing process for reducing
  resource consumption, and enhance the recycling
  rate.
• LG Electronics did not violate a single
  environmental regulation or have any hazardous
  substance leakages in 2008, as was the case in
  2007 as well.
• As its manufacturing process primarily assembly,
  LG Electronics has relatively less negative
  impact on the environment in its use of energy
  and water than companies in many other
  industries.

Emissions and Waste Materials Management Minim
ize pollutants into Air Minimum Discharge into
Water Minimizing Waste during production
Process Improvement Clean production
Green Product
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Recyclability Improvement

• This program offers an innovative and easy
  solution to recycling handheld electronic devices
  by placing receptacles in an easily accessible
  location that consumers frequent daily
• To provide an innovative method of phone
  collection that positions LG as a company that is
  passionate about the ecological issues at hand

Lifes Good when Its Green
LGEIL