LG Chem Declares Carbon-neutral Growth 2050
"Will Reduce 1-year Carbon Emissions from 12.5M Vehicles"
■ Announcing Sustainability Strategy for Customers and Society
First Korean Chemical Company to Carbon-neutral Growth by 2050
- Reducing 30 million tons compared to 2050 carbon emission projections and control at 2019 level
- The first Korean company to promote the 100% use of renewable energy (RE100) in all business sites worldwide
Leading the circular economy and environmental protection
- Establishing a circular economic system to reuse and recycle waste plastics and waste batteries
- Mandatory application of "Landfill Zero" certification at new business sites
Responsible Supply Chain
- Expanding due diligence by external institutions to supply chains of primary raw materials including cobalt
- 100% transparency and traceability in the supply chain of raw materials
■ Chief Executive Officer Shin Hak Cheol:
"Sustainability is the core competitive advantage and the basis of a new business model for LG Chem's next century beyond our 100th anniversary."
“We will solve not only customers' problems but also the pain points in the environment and society by providing innovative and differentiated solutions for sustainability.”
LG Chem has announced a sustainability strategy for customers and society centered on Carbon-neutral Growth 2050.
In order to offer innovative and distinguished sustainable solutions for the environment and society, LG Chem selected and will actively promote five core projects: ▲Climate Action ▲Renewable Energy ▲Circular Economy ▲Environment Protection ▲Responsible Supply Chain.
■ First Korean chemical company to declare Carbon-neutral Growth 2050
LG Chem declared "Carbon-neutral Growth 2050" to respond to climate change. This is the first time that a Korean chemical industry has announced the policy of carbon-neutral growth.
"Carbon-neutral growth" refers to cutting net emissions by zero by reducing the amount equivalent to the increase in carbon emissions caused by business growth.
Accordingly, LG Chem decided to suppress carbon emissions in 2050 to 10 million tons, which is the same as the level in 2019. Considering the current business growth potential, LG Chem's carbon emissions are projected to be about 40 million tons in 2050, which requires more than 30 million tons to be reduced for carbon-neutral growth.
Thirty million tons is the amount of carbon emitted by 12.5 million internal combustion engine vehicles for one year, which is a level that requires the planting of 220 million pine trees to offset.
To this end, LG Chem will promote RE100 (Renewable Energy 100) at all business sites worldwide. It is the first Korean chemical company to do so. RE100 (Renewable Energy 100) proposes to manufacture products using 100% renewable energy, which can be directly produced by the company or purchased from power generation companies.
Through the RE100, LG Chem plans to reduce more than 60% of the projected carbon emissions in 50 years and intends to actively establish and implement a mid- to long-term strategy that takes into account the supply and demand of renewable energy and country-specific systems.
Also, to reduce carbon emissions, we will actively promote energy efficiency in process/equipment and develop and introduce Carbon Capture Utilization Storage (CCUS) technology.
■ Leading the circular economy and environmental protection
LG Chem plans to build a circular economic system that recycles not only the products we have manufactured but also wastes discharged from business sites. Through this, we will protect the environment as well as create social and economic values.
First, we will actively develop products for the virtuous circulation of waste plastic resources such as eco-friendly PCR (Post-Consumer Recycled) plastics and biodegradable plastic materials.
Currently, LG Chem is developing and supplying high-quality/high-content eco-friendly plastics with 60% PCR PC (Post-Consumer Recycled Polycarbonate) content to global IT companies. We plan to increase the content up to 85% and expand our product line to include ABS (Acrylonitrile Butadiene Styrene) and polyolefin.
Also, we will develop biodegradable plastic materials to solve environmental pollution and microplastic problems. LG Chem plans to commercialize the biodegradable polymer PBAT (Polybutylene Adipate-co-Terephthalate) and corn-based PLA (Poly Lactic Acid) by 2024.
In addition, we have decided to reuse and recycle waste batteries proactively. To reuse waste batteries, we are researching and developing technologies to predict the remaining life by collecting the batteries supplied to customers. We are also planning to launch a demonstration facility for Energy Storage System (ESS) at electric vehicle charging stations made of reused batteries.
After reusing waste batteries, a closed loop of resources will be established for extracting raw materials such as lithium and cobalt at domestic and overseas production bases, which will increase the stability of material supplies and solve supply chain issues such as labor and environment.
LG Chem is pursuing the "Landfill Zero" project as well, which recycles even the wastes discharged from business sites, to protect the ecosystem. To this end, new construction sites to be built in the future are required to receive the "Landfill Zero" certification by UL (Underwriters Laboratories), a leading global safety science company .
LG Chem's electric vehicle battery manufacturing subsidiary located in Michigan, USA, has been certified as a “Landfill Zero” business by recycling more than 90% of the wastes discharged from the site.
■ Responsible Supply Chain
LG Chem is also aggressive in establishing sustainable supply chains that consider human rights and environmental issues.
Recently, global companies are demanding a high level of supply chain management. Volkswagen and Apple, for example, exclude suppliers that do not meet the requirements of human rights and environmental issues from the supply chain. China's Huayou Cobalt, which supplies cobalt, a key raw material for battery cathodes, has also announced a suspension of trade with a mine with child labor problems in the Democratic Republic of the Congo.
If you cannot build a sustainable supply chain, you may not even have the opportunity to participate in the business, no matter how excellent your products and technologies are.
As such, LG Chem is planning to build a clean metal supply chain that does not have human rights and environmental problems. We have required due diligence of supply chains by external institutions to suppliers, which has been expanding to other primary raw materials in addition to cobalt.
In 2019, LG Chem was the first Korean company in the battery industry to join the Responsible Minerals Initiative (RMI), a global consultative body for responsible mineral procurement and supply chain management. It has strengthened transparency and traceability by building a blockchain-based tracking system for the cobalt supply chain with automotive OEMs such as Ford and Volvo.
■ Chief Executive Officer Shin Hak Cheol, “Sustainability is the core competitive advantage and the basis of a new business model"
"In 2050, when we have achieved the entire Sustainability Strategy, it will be an opportune moment for LG Chem to leap forward beyond our 100th anniversary to the next century," remarked Chief Executive Officer Shin Hak Cheol.
"With sustainability as the core competitive edge to provide differentiated and sustainable solutions, we will create a business model that can survive by solving not only customers' problems but also the pain points in the environment and society," he added.
LG Chem's Top 5 Core Projects for Sustainable Strategy
Offering innovative and distinguished sustainable solutions for the environment and society
Response to climate change:
- First Korean chemical company to declare Carbon-neutral Growth 2050
- Energy efficiency in process/equipment, develop and introduce Carbon Capture Utilization Storage (CCUS) technology
- The first Korean company to promote the 100% use of renewable energy (RE100) in all business sites
- Research and develop PCR (Post-Consumer Recycled) plastics and biodegradable plastic materials
- Reuse and recycle batteries to establish a circular economy
- Mandatory application of "Landfill Zero" certification at new business sites
Responsible Supply Chain:
- Due diligence by external institutions to supply chains of primary raw materials including cobalt
- Enhance supply chain transparency and traceability