LG Innotek said Thursday that it has launched a system to evaluate whether its suppliers are using minerals from international conflict zones in their materials and parts manufacturing.
This is part of efforts to boost risk management following increased regulations against LG Innotek’s customers listed on the U.S. stock market, in which the Securities and Exchange Commission requires them to disclose whether they have used conflict minerals in their products.
The SEC imposes a penalty, including business suspension and delisting, against companies that failed to abide by the law.
|LG Innotek employees run a program that monitors its supply chain to check whether its partners are using minerals from conflict zones in materials and parts manufacturing. (LG Innotek)|
LG Group’s IT parts maker said it has checked with all of its 281 partners and found that none of them have used resources such as tin, tungsten and gold from conflict zones in Africa, including the Democratic Republic of Congo and Zambia.
The company has also been running a program to educate its suppliers about U.S. regulations, and how conflict zones with abundant resources sell minerals to finance guerilla warfare and rebellion. It noted to its partners that Canada, Europe and Australia are moving to adopt rules similar to those of the U.S. regarding the use and disclosure of conflict minerals.
LG Innotek said it had conducted evaluations since October last year, and would continue to run its education program on how to better manage risk for its suppliers.
“We will make sure our globally established customers in the U.S. and Europe’s mobile, display and automotive sectors stably and safely receive high-end materials and parts amid strengthened regulations against the use of conflict minerals,” said an LG Innotek official.
By Park Hyong-ki (email@example.com)