Group-Level Net Zero Report Outlining Carbon Reduction Action Plan
[Asia Economy Reporter Park Sun-mi] LG has unveiled a carbon neutrality plan at the group level, rather than individual companies, for the first time in Korea. The goal is to achieve net zero carbon emissions by 2050.
On the 5th, LG Group announced that it will join the global climate crisis response by pursuing carbon neutrality to achieve net zero carbon emissions by 2050. The group also published the “LG Net Zero Special Report,” which contains specific carbon reduction implementation targets at the group level. This is the first time in Korea that a group-level carbon neutrality plan has been released in the form of a report.
LG plans to reduce direct carbon emissions from product manufacturing and fuel use (Scope 1) and indirect carbon emissions from power consumption such as thermal power generation (Scope 2) by 27% by 2030 and 62% by 2040 compared to 2018. Ultimately, the goal is to achieve net zero by reducing 100% by 2050. Scope refers to the classification system of greenhouse gas emission sources that allows companies to comprehensively measure carbon emissions. LG plans to establish a consistent management system to integrate and manage carbon emissions from Scope 3, which occur outside business sites, in the future.
To this end, LG plans to convert 100% of the required electricity for major domestic and overseas affiliates’ business sites to renewable energy by 2050. The proportion of electricity generated from renewable energy such as solar and wind power will be steadily increased to 54% by 2025, 83% by 2030, 94% by 2040, and 100% by 2050. Overseas business sites will switch to 100% renewable energy by 2030, and domestic business sites by 2050.
Additionally, LG will promote reduction activities such as improving energy efficiency through replacement of high-efficiency equipment, using waste heat recovery, substituting fossil fuels with biofuels, and installing reduction facilities to remove process gases to directly reduce greenhouse gas emissions. LG will invest about 3.4 trillion KRW by 2030 in new technologies for carbon reduction, including blue hydrogen and green hydrogen technologies, which are gaining attention as eco-friendly energy sources that emit little or no carbon dioxide during hydrogen production.
LG plans to publish the Net Zero report annually to transparently disclose the status of LG Group’s carbon reduction to stakeholders.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
