UK The Climate Recommendation: 2030, Not 2050
"Declare 100% Renewable Energy for Power Supply"
Jung Cheol-dong, LG Innotek President: "Responding to Climate Crisis with Sincerity"
Jung Cheol-dong, CEO of LG Innotek. (Photo by LG Innotek)
[Asia Economy Reporter Moon Chaeseok]
"We will become an eco-friendly leading company that sincerely responds to the climate crisis through joining RE100."
Jung Cheol-dong, CEO of LG Innotek, emphasized this on the 5th, stating that the company has been approved to join the global RE100 initiative by The Climate Group, a UK-based non-profit organization. CEO Jung said, "We will also focus on solidifying ESG (Environmental, Social, and Governance) management and make company-wide efforts to create a sustainable future."
RE100 is an international campaign that aims to switch 100% of electricity consumption to renewable energy by 2050. It was launched in 2014 through cooperation between The Climate Group and the global carbon disclosure initiative, the Carbon Disclosure Project (CDP). Companies and institutions consuming more than 100 GWh (gigawatt-hours) of electricity annually are eligible to join. Member companies must convert 100% of their electricity use to renewable energy by 2050 and are monitored for compliance during implementation.
LG Innotek announced plans to convert 100% of electricity used at its domestic and overseas business sites to renewable energy by 2030, 20 years ahead of The Climate Group’s recommended deadline of 2050. To achieve this, the company is introducing high-efficiency equipment and promoting various energy-saving activities such as recycling waste heat generated during production. It also utilizes the "Green Premium" system, which involves paying additional fees to Korea Electric Power Corporation to receive electricity produced from renewable energy. This year, LG Innotek plans to supply 192 GWh, one-third of its annual electricity consumption at domestic sites, through the Green Premium. In the long term, the company plans to actively use Power Purchase Agreements (PPA) to directly purchase electricity from renewable energy producers such as solar power plants, ensuring a stable supply of eco-friendly energy.
Sam Kimmins, Global Head of RE100 at The Climate Group, welcomed LG Innotek’s 2030 goal of 100% renewable energy, saying, "It demonstrates true leadership in the manufacturing sector and will contribute to increasing demand for renewable energy in Korea, positively influencing other companies."
The pace of RE100 membership among Korean companies, including LG Innotek, is accelerating. This is because the European Union’s Carbon Border Adjustment Mechanism (CBAM) guidance period will officially begin next year. Ahead of the CBAM implementation, seven organizations including LG Innotek, Hyundai Motor Company, Kia Corporation, Hyundai Mobis, Hyundai Wia, KT, and Incheon International Airport were added to the membership list this year. Including existing members such as SK Hynix, SK Telecom, LG Energy Solution, and KB Financial Group, there are 20 companies and institutions in total. Samsung Electronics is also reportedly considering joining the global RE100. Globally, over 370 companies and institutions, including Google and Apple, have joined RE100.
Meanwhile, LG Innotek is actively participating in the 'Science Based Targets initiative (SBTi)' and the 'Business Ambition for 1.5°C' campaign to achieve carbon neutrality. SBTi is a global initiative that helps companies set and verify greenhouse gas reduction targets based on the Paris Agreement standards. The 'Business Ambition for 1.5°C' campaign is a proactive response to the Paris Agreement’s goal of limiting the average global temperature increase to within 1.5°C above pre-industrial levels.
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