LG Energy Solution announced on June 30 that it has published its 'ESG Report,' which details its environmental, social, and governance (ESG) management activities and achievements from the previous year.
This report includes a variety of ESG management achievements by LG Energy Solution, such as its carbon negative strategy, the establishment of carbon footprint calculation guidelines for partner companies, and participation in safety and health cooperation projects between large and small-to-medium-sized enterprises.
Through the report, LG Energy Solution stated that it is strengthening its efforts to achieve carbon neutrality by expanding the supply of renewable energy and establishing carbon footprint calculation guidelines for partner companies, all based on its carbon negative strategy.
To achieve its goal of 'RE100 (100% renewable energy) at all business sites by 2030,' LG Energy Solution introduced a power purchase agreement (PPA) system to its domestic and overseas sites last year. A PPA is a long-term contract in which a company purchases electricity directly from a renewable energy generator. Through this, the company has made tangible contributions to the spread of renewable energy at its Ochang Energy Plant as well as in Poland, Indonesia, and other currently operating sites, and plans to further expand the application of PPAs to new sites in the future.
In February of last year, the company established and distributed 'carbon footprint calculation guidelines for partner companies.' These guidelines specify the purpose, methodology, and reporting format for carbon footprint calculations, enabling partner companies to comply with EU battery regulations.
An LG Energy Solution representative stated, "Recently, ESG-related regulations have been having both direct and indirect impacts on global business operations. We are building a system that allows us to proactively respond to the ESG regulatory environment by leveraging it as an opportunity rather than a risk."
The company also expanded its practical support in the area of mutual cooperation. Last year, LG Energy Solution participated in the 'Safety and Health Cooperation Project for Large and Small-to-Medium-Sized Enterprises,' organized by the Ministry of Employment and Labor, and carried out various activities to strengthen the safety and health capabilities of its partner companies. In addition, the company is working to foster a culture of co-prosperity between large and small-to-medium-sized enterprises by providing financial support for partners' participation in government support programs and operating a cooperative council.
Meanwhile, LG Energy Solution's efforts in sustainable management have also received high external recognition. The company was named an 'Industry Mover' in last year's corporate sustainability assessment conducted by the global credit rating agency S&P Global, and was also selected as one of the 'Global 100 Most Sustainable Corporations' by Corporate Knights, a Canadian business media group, thereby solidifying its ESG leadership in the global battery industry.
In the foreword to the report, LG Energy Solution CEO Kim Dongmyeong stated, "LG Energy Solution is preparing for greater leaps and growth based on differentiated technological competitiveness, and securing long-term competitiveness through ESG management is essential for this. We will do our utmost to achieve sustainable growth and realize customer value, based on the trust of global investors, customers, and local communities."
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