LG Energy Reaches Carbon Neutrality Milestone

LG Energy Solution (LGES) has unveiled its ESG report for 2022, outlining the company's strides in environmental, social, and governance (ESG) areas, with a particular focus on climate change mitigation achievements.

With a comprehensive 107-page report, LGES highlights its vision, efforts, and progress in promoting sustainability across its global operations.

As part of its ambitious plan to achieve carbon neutrality by 2040, LGES proudly announced that it sourced 61 per cent of its electricity from renewable sources in 2022 at its global production sites.

Additionally, 56 per cent of the company-wide electricity usage, encompassing non-manufacturing sites, was derived from renewable sources. LGES has shown substantial progress in transitioning to renewable energy, increasing its renewable electricity supply from 33 per cent in 2020 to 44 percent in 2021.

To realise its carbon neutrality goals, LGES has established a phased roadmap, aiming to procure all its electricity from renewable sources by 2030. Furthermore, the company is determined to convert all energy sources, including fuels and gas, to renewables at all business sites by 2040, extending this commitment across its entire value chain by 2050.

In addition to its renewable energy initiatives, LGES has prioritised the establishment of a closed-loop resource system, actively recycling and reusing end-of-life batteries and managing waste generated at business sites.

The company has partnered with Li-Cycle, the largest battery recycling company in North America, to recycle battery scrap and receive recycled nickel for battery cathode materials. In China, LGES has completed a recycling system and improved NMP solvent waste recycling significantly.

Participating in global ESG initiatives, LGES joined the Fair Cobalt Alliance (FCA) in May 2022, becoming the first Korean company to do so. By engaging in efforts to eliminate forced labour and child labour issues in Congolese cobalt mines, LGES aims to secure fair minerals and promote positive community improvements, including educational support and solar power supply to local schools.

Committed to transparency, LGES has strengthened its information disclosure in line with international ESG standards, such as the International Sustainability Standard Board (ISSB) and the Task Force on Climate-related Financial Disclosure (TCFD).

The report's cover design, showcasing LGES as a battery company, symbolises the ESG slogan "Plus for Minus, Minus for Plus." This reflects the company's determination to create a better future by eliminating unnecessary elements and introducing necessary ones in each area of Environment, Society, and Governance.

Youngsoo Kwon, CEO of LG Energy Solution, expressed the company's unwavering dedication to global carbon neutrality and a better future for humanity. LGES aims to be recognised as the "global No. 1 company," trusted and beloved by its customers, as it continues to innovate and make a positive impact.

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Source: LG Energy Solution