LG Electronics Provides Carbon Emission Reduction Consulting and ESG Management Support to Partners

Consulting on Carbon Emission Reduction for 15 Partner Companies
Development of Carbon Emission Management System

LG Electronics announced on the 6th that starting this year, it will support its partners with carbon emission reduction consulting and expand third-party verification (Audit) for ESG (Environmental, Social, and Governance) risk management.

An LG Electronics employee is visiting a partner company's factory located in Changwon to conduct an on-site inspection of ESG risk management together with the partner company's staff. Photo by LG Electronics

LG Electronics will conduct consulting for 15 partner companies by June to reduce carbon emissions, then derive and implement improvement plans. Through consulting covering all stages from preliminary investigation, measurement and diagnosis, deriving improvement plans, to establishing greenhouse gas reduction targets, it analyzes management systems for equipment with high energy consumption during production processes and helps optimize equipment efficiency and energy management. The scale of partner companies receiving consulting support will also be steadily expanded.

To support ESG risk management for its partners, LG Electronics will also increase third-party verification. While third-party verification was conducted for 50 partner companies in 2 countries last year, it will be sequentially provided to 72 companies in 8 countries starting this year. LG Electronics has been conducting third-party ESG risk verification for its partners since 2021.

LG Electronics has also developed a carbon emission management system to enhance the reliability of supply chain carbon emission data and strengthen management. The newly developed carbon emission management system manages the carbon emissions of partner companies and summarizes the results. LG Electronics plans to build and utilize this as a database (DB) to systematically manage supply chain carbon emissions.

LG Electronics plans to reduce greenhouse gas emissions during the production stage by 54.6% compared to 2017 by 2030 through process improvements, introduction of energy-saving technologies, and use of renewable energy, and achieve carbon neutrality through the United Nations (UN) carbon credits and other means. LG Electronics was the first in the home appliance industry to acquire carbon credits from the UN in 2015. Efforts to reduce greenhouse gas emissions across the entire value chain continue. It was also the first in the domestic home appliance industry to receive SBTi certification, a 'Science Based Targets initiative.'

Additionally, to support funding for greenhouse gas reduction activities such as carbon reduction, low-carbon related new technologies, renewable energy transition, and equipment investment necessary for energy reduction, LG Electronics established and is operating a new ESG fund worth 100 billion KRW last year.

Wang Cheol-min, Vice President and Head of LG Electronics Global Operations Center, said, "ESG management throughout the entire supply chain is important for coexistence with our partners," adding, "We will take responsibility and expand support for our partners’ carbon emission reduction and ESG management."