LG Chem Publishes Sustainability Report on 'Discovering Growth Opportunities Through Collaboration'

LG Chem has published its 2023 Sustainability Management Report. Photo by LG Chem

LG Chem announced on the 2nd that it has published the '2023 Sustainability Management Report,' which contains efforts to achieve net-zero (carbon neutrality) through collaboration.

Shin Hak-cheol, Vice Chairman and CEO of LG Chem, stated in the report, "LG Chem is restructuring its business around three new growth engines: battery materials, sustainability, and bio. As the first domestic chemical company, we have set the goals of ‘2030 Carbon Neutral Growth’ and ‘2050 Net-Zero.’ We are prioritizing carbon emission reduction strategies?direct (Reduce), indirect (Avoid), and offset (Compensate)?based on feasibility and economic viability to make optimal investment decisions."

He continued, "By introducing Internal Carbon Pricing (ICP), we have established a proactive system that can shift LG Chem’s business portfolio toward low carbon. We have completed the measurement of the Product Carbon Footprint (PCF) for all products produced at domestic and overseas business sites and expanded the scope of Scope 3 management across all corporate activities."

LG Chem is particularly active in reducing carbon emissions through global collaboration. Last year, LG Chem promoted cross-industry cooperation including ▲establishing a joint venture plant for HVO (Hydro-treated Vegetable Oil, hydrotreated biodiesel) using waste cooking oil with ENI Group, Italy’s largest state-owned energy company ▲producing prototypes of 3HP (3-Hydroxypropionic Acid), a key raw material for eco-friendly materials such as biodegradable plastics, with GS Caltex ▲and signing a cathode material supply contract worth 25 trillion KRW with GM in the U.S. through 2035.

Additionally, LG Chem plans to lead the establishment of a sustainable industrial ecosystem by calculating not only the direct and indirect (Scope 1 and 2) carbon emissions from its business but also the emissions (Scope 3) generated throughout the entire value chain, including its partners, by 2026.

The Sustainability Management Report also includes LG Chem’s major ESG activities such as ▲stakeholder communication including Korea’s first 'ESG Public Conference Call' ▲advancement of materiality assessment considering environmental and social impact materiality and financial materiality ▲and securing and using renewable energy.

Shin Hak-cheol, CEO of LG Chem, said, "To respond to the global industry’s decarbonization trend, it is important to cooperate with various industries that have business competitiveness and unique technological capabilities and create synergy. LG Chem will pursue sustainability management more openly and innovatively as a global leading science company and lead a sustainable industrial ecosystem through joint efforts with diverse partners."