Transparent Disclosure of Group ESG Status Quantitatively and Qualitatively
First Step in ESG Strategy Implementation: 'Climate Change Response Report' to be Published Within the Year
Koo Kwang-mo: "Establishing LG's Unique ESG Direction and Social Contribution"
[Asia Economy Reporter Kim Pyeonghwa] On the 28th, LG published an 'ESG Report' outlining the group's environmental, social, and governance (ESG) direction. This is the first time LG has issued a group-level ESG report that consolidates the ESG activities of its affiliates.
This report includes the ESG strategies and achievements of major affiliates such as LG Corporation, LG Electronics, LG Display, LG Innotek, LG Chem, LG Energy Solution, LG Household & Health Care, LG Uplus, and LG CNS, allowing a comprehensive view of LG Group's ESG status. It also contains LG Group's ESG direction and implementation plan under the theme of "Responsible Business, Sustainable Future."
LG plans to publish an ESG report annually going forward. In the process of implementing ESG strategies, it will release reports containing carbon reduction roadmaps, presenting greenhouse gas reduction targets for 2030 and 2050 respectively, and establishing promotion plans.
Three Years of Group ESG Status Data at a Glance
LG's ESG direction consists of the goal of a "sustainable future" and the practice method of "responsible business." Responsible business is LG's approach to creating long-term sustainable customer value through corporate activities that use limited Earth's resources and energy to offer products and services. Through this, LG aims to achieve sustainable growth for both the company and society, which is the sustainable future LG seeks to create.
LG has connected its management philosophy of "creating customer value" and "management respecting human dignity" with ESG, establishing LG's ESG direction by integrating changes in internal and external environments and various stakeholder demands. LG has established three strategic frameworks: strengthening ESG foundations to create balanced financial and non-financial performance for enhancing corporate value; building an ESG ecosystem with internal and external stakeholders to jointly address global issues; and transforming business methods in response to the climate crisis and the transition to a decarbonized economy.
This report includes comprehensive ESG status data at the group level over the past three years (2019?2021) to provide an overview of the ESG activities and achievements of LG's major affiliates. It features transparency enhanced through standardized quantitative measurements. Definitions, data collection standards, and exclusion scopes for various data such as each company's greenhouse gas emissions, energy consumption, and total water recycling and reuse are also disclosed.
Environmental Achievements... 2.38 Million Tons of Additional Water Recycled Last Year
According to the report, LG affiliates achieved significant results in the environmental (E) sector last year in resource recycling. Compared to the previous year, an additional 2,384,000 tons of water was recycled and reused last year. The amount of general waste recycled increased by 17,073 tons, and designated waste recycled increased by 24,448 tons respectively.
In the social (S) sector, the scale of social contribution donations and investments continued to grow. The amount LG affiliates donated or invested in social contributions last year was approximately 150.9 billion KRW, an increase of about 57.6 billion KRW compared to the previous year. LG Electronics, LG Display, LG Chem, LG Energy Solution, LG Uplus, and LG CNS also operate a win-win growth fund worth 980.1 billion KRW for their partners.
In the governance (G) sector, following the establishment of ESG committees by 10 affiliates last year, 30.6% of outside directors were women, securing diversity in board composition. Additionally, each affiliate identified ESG tasks tailored to their business characteristics and focused on qualitative achievements, such as LG Chem's development of carbon dioxide catalytic conversion technology (carbon-neutral technology development), LG Energy Solution's establishment of a waste battery recycling process business (circular economy), and LG CNS's operation of eco-friendly data centers (greenhouse gas emission reduction).
Annual ESG Reports to be Released... Carbon Reduction Roadmap Report Also to be Published
LG plans to publish group-level ESG reports annually and enhance transparency in ESG information disclosure by establishing ESG disclosures on its website. Through this, LG aims to strengthen communication with internal and external stakeholders such as employees, consumers, and shareholders.
An LG representative explained, "The first ESG report of LG Group, produced in Korean and English, is available for anyone to view and download on the official LG website," adding, "Printed booklets will be published sequentially and used to communicate with various stakeholders."
As the first step in implementing its ESG strategy, LG will publish a 'Climate Change Response Report' within the year, containing LG Group's carbon reduction strategy and roadmap. This report will include LG affiliates' climate change responses and activities and roadmaps to reduce greenhouse gas emissions. The goal is to present greenhouse gas reduction targets for 2030 and 2050 and establish promotion plans so that affiliates can effectively reduce emissions. Through this, LG aims to lay the foundation for achieving carbon neutrality across the entire LG Group.
LG CEO Koo Kwang-mo said, "We are experiencing an unprecedented era of 'super uncertainty' with rapid changes in international affairs, supply chain instability, inflation, and worsening climate crises such as droughts, floods, and global warming every year," adding, "LG is establishing its own ESG direction to grow as a company that coexists with future generations and endures even in this era of super uncertainty, and is contemplating and executing various ways to contribute to society."
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