2022-2023 Sustainable Management Report Published
"Reducing Greenhouse Gases and Increasing Use of Recycled Materials"
Performance Announcement of 6 ESG Strategic Tasks Including Earth and People
LG Electronics reduced approximately 220,000 tons of greenhouse gases last year, representing about a 19% decrease compared to the previous year.
On the 28th, LG Electronics announced that it published the '2022-2023 Sustainability Management Report' on the 26th.
Last year, the Scope 1+2 greenhouse gas emissions from domestic and overseas business sites amounted to 927,000 tons, a reduction of about 220,000 tons compared to the previous year. The goal is to achieve net-zero carbon dioxide emissions by 2030. Scope 1 refers to the amount of greenhouse gases emitted during the product manufacturing process. Scope 2 refers to the amount of greenhouse gases indirectly emitted due to electricity used in the manufacturing process.
LG Electronics is accelerating efforts to reduce carbon emissions in Scope 3, which occur not only during product manufacturing but also in the consumption stage. The company plans to reduce carbon emissions during the product usage phase by expanding the application of high-efficiency and eco-friendly technologies. LG Electronics stated, "Carbon emissions during the product usage phase account for about 80% of LG Electronics' total emissions, including indirect emissions from business sites in Scope 3."
LG Electronics reported that it reduced the carbon emissions per functional unit of seven major products by 13.1% compared to 2020. Carbon emissions per functional unit refer to the amount of greenhouse gases emitted during the average usage period of a product divided by the product's functional unit. For refrigerators, this means emissions per 1 liter of capacity, and for washing machines, emissions per 1 kg of washing capacity.
The renewable energy conversion rate was 8.2%. The goal is to achieve a 100% conversion rate at all domestic and overseas business sites by 2050. LG Electronics has also joined the related organization, the RE100 initiative.
LG Electronics stated that it collected 472,876 tons of waste electronic products in 87 regions across 52 countries last year. The cumulative collection since 2006 is 3,992,768 tons. The amount of recycled plastic used in products last year was 32,987 tons, an increase of about 25% compared to 2021. The company is also pursuing 'Zero Waste To Landfill' (ZWTL) certification for all domestic business sites.
LG Electronics has consistently engaged in activities related to shared growth. It conducted ESG management support activities for partner companies. Last year, third-party verification of energy usage and carbon emissions status was performed for major first-tier partners. Starting this year, carbon neutrality response training for partners has been conducted, with 152 companies participating as of the first half of the year.
In accordance with international RBA (Responsible Business Alliance) standards, LG Electronics supports third-party ESG certification audits covering labor, occupational health and safety, environmental ethics, and more. This helps partner companies respond to ESG risks. From this year, the scope has been expanded to include not only domestic but also overseas partners.
LG Electronics stated that it is steadily implementing six major ESG (Environmental, Social, and Governance) management strategic tasks. The six strategies consist of '3C' for the planet (Carbon Neutrality, Circular Economy, Eco-friendly Technology) and '3D' for people (Product and Service Accessibility, Safe Workplaces, Diversity and Inclusion).
The role of the ESG Committee under the board of directors is also increasing. The LG Electronics ESG Committee consists of five members: four outside directors and one inside director (CEO). The ESG Committee Chairperson is Seo Seung-woo, an outside director newly appointed earlier this year. The ESG Committee led the establishment of guidelines for outside director independence, diversity, and expertise, as well as the drafting of the Corporate Governance Charter. These were created last year and disclosed through the company website.
LG Electronics has been publishing the Sustainability Management Report annually since 2006. Both a 'Factbook' and a 'Storybook' are published together. The report is available for anyone to view on the company website.
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