LG's 7 Affiliates Reduced 4.25 Million Tons of Carbon Last Year... "Achieving Net Zero by 2050"

Publication of the 'LG Net Zero Special Report'

LG is promoting carbon neutrality (Net Zero) to achieve zero net carbon emissions by 2050.

On the 17th, LG announced the publication of the group-level 'LG Net Zero Special Reporting,' which contains the achievements of carbon reduction efforts so far and future implementation plans. This is the second report released since February last year, when LG became the first in Korea to publish a group-level carbon neutrality plan rather than an individual company plan. The report targeted seven LG affiliates that account for most of the carbon emissions within the LG Group: LG Electronics, LG Display, LG Innotek, LG Chem, LG Energy Solution, LG Household & Health Care, and LG Uplus.

Last year, LG reduced approximately 4.25 million tons of carbon. Considering that typically 40 tons of carbon are reduced per 1 hectare of forest area, this is equivalent to creating a forest area about 106,000 soccer fields in size.

Exterior view of LG Electronics North America headquarters located in New Jersey, USA. Completed in 2020, this building is a green campus that integrates eco-friendly technologies and has been recognized for efforts such as maximizing energy efficiency, earning the highest Platinum rating in the LEED certification system for green buildings. LG

This achievement was the result of company-wide cooperation among LG affiliates. In particular, about 1.05 million tons of carbon were reduced through direct carbon reduction activities such as removing harmful gases generated in LG Display’s production processes and reducing fossil fuel use by utilizing hydrogen fuel at LG Chem. Additionally, efforts to actively switch the electricity used by each affiliate to renewable energy resulted in a reduction of about 3.2 million tons of carbon.

LG plans to reduce carbon emissions by 34% by 2030 and 52% by 2040 compared to 2018 levels, and achieve 100% reduction to reach Net Zero by 2050.

Each LG affiliate has also set clear carbon reduction targets. LG Electronics aims to achieve Net Zero by 2030, while LG Innotek and LG Energy Solution target 2040 for Net Zero. According to the '2050 Group Carbon Neutrality Roadmap' established in 2022, LG manages the carbon neutrality implementation performance of each affiliate monthly and continuously executes carbon emission reduction tasks. For monitoring, LG utilizes the 'LG ESG Intelligence,' an integrated ESG non-financial information management system launched last year, to continuously enhance data integration and management levels.

To realize carbon neutrality, LG is employing a combination of measures including ▲ process efficiency improvements and fuel switching (minimizing unnecessary fuel use by replacing outdated equipment with high-efficiency equipment, expanding the use of eco-friendly biofuels) ▲ future innovative technologies (advanced technologies such as CCUS (Carbon Capture, Utilization, and Storage) used in industries where 100% transition to eco-friendly energy is difficult) ▲ expansion of renewable energy use ▲ offsets (methods such as purchasing carbon credits to offset residual emissions that are technically difficult to reduce).

LG is also accelerating its transition to renewable energy. The group plans to actively increase the use of renewable energy at the group level, raising the proportion of renewable energy in total energy consumption to 76% by 2030, 89% by 2040, and 100% by 2050.

An LG official said, "Following last year, we have presented a group-level carbon neutrality roadmap targeting 2050 by providing a comprehensive view of the carbon neutrality status, goals, reduction achievements, and implementation plans of LG affiliates engaged in various businesses such as electronics, chemicals, and telecommunications services. LG will create tangible carbon neutrality results through continuous management and prepare a sustainable future for the next generation by proactively responding to the climate change crisis."