LG Chem Collaborates with Ministry of Environment and Korea Environmental Industry & Technology Institute to Establish Low-Carbon Supply Chain in Chemical Industry

Support for Small and Medium Enterprises and Mid-sized Companies in Responding to Environmental Trade Regulations

LG Chem announced on the 19th that it has signed a business agreement with the Ministry of Environment and the Korea Environmental Industry & Technology Institute to support the enhancement of ESG (Environmental, Social, and Governance) capabilities for small and medium-sized enterprises (SMEs) and mid-sized companies in the chemical industry.

Through this agreement, the Ministry of Environment and the Korea Environmental Industry & Technology Institute will support LG Chem’s domestic SME and mid-sized partners in strengthening their carbon competitiveness and improving their capacity to respond to related regulations.

The main support includes assistance in conducting Life Cycle Assessment (LCA), process diagnosis and identification of carbon reduction items, and support for process improvement activities aimed at carbon reduction. These efforts aim to elevate the environmental management level of SMEs and mid-sized companies and enhance their ability to comply with global regulations.

As a leading company in the chemical industry, LG Chem has participated in establishing the national Life Cycle Inventory (LCI) database project led by the Ministry of Environment and the Korea Environmental Industry & Technology Institute, laying the foundation to respond to regulations related to carbon emissions throughout the product lifecycle.

The LCI database quantifies environmental impact information such as greenhouse gas emissions from all processes including raw material usage, manufacturing, and transportation. A reliable LCI database is essential to respond to global customers’ carbon regulations such as the European Union’s Carbon Border Adjustment Mechanism (CBAM) and battery passports.

The Ministry of Environment and the Korea Environmental Industry & Technology Institute newly established this year the ‘Carbon Reduction Product Design and Production Consulting’ to enhance environmental management capabilities and product carbon reduction, enabling SMEs and mid-sized companies to promptly respond to environmental trade regulations. They plan to provide specialized consulting in the environmental (E) aspect of ESG, targeting the chemical industry where securing carbon competitiveness is urgent.

LG Chem will actively cooperate in building a win-win partnership system by providing guidelines and training for conducting LCA for partner companies and supporting facility improvements of supply chain SMEs and mid-sized partners using the shared growth fund.

Lee Jong-gu, Vice President of LG Chem, stated, "As carbon emissions become a new trade barrier, establishing a low-carbon supply chain is essential to manage product carbon footprints and secure competitiveness. LG Chem, as a global science company leading the industry, will spearhead the establishment of a low-carbon supply chain and lead efforts to strengthen the low-carbon competitiveness of SMEs and mid-sized companies, thereby building a supply chain that delivers differentiated value to customers."