Here are two heroic scientists, who were doing their best in areas of CCU

• The two of you are engaged in developing technologies to utilize captured carbon dioxide (CO2). Could you please briefly explain your roles?

  Won-hee: I’m in charge of developing inorganic catalysts for CO2 conversion at the Carbon Neutralization Research TFT.

  Tae-geun: I focus on researching technologies that convert CO2 into platform chemicals, such as carbon monoxide, synthesis gases, and ethylene through electrochemical conversion.

• Could you please elaborate on inorganic catalysts and electrochemical conversion?

  Won-hee: To convert the stable structure of CO2 to something else, we need to break the molecular binding first. Organic catalysts, which are required in this process, convert CO2 into higher value-added products, such as acrylic acid. Inorganic catalysts, on the other hand, convert CO2 into naphtha, the most basic ingredient, and contribute to reducing carbon emissions in the petrochemical industry.

  Tae-geun: Although most of the chemical reaction occurs under high pressure and high temperatures, our research approach is to break down the CO2 structure at room pressure and temperature using electricity. I am also working on developing technologies for electrode catalysts and membrane separation required for electrochemical conversion, as well as high-efficiency cell-stack production systems.

• The carbon capture and utilization (CCU), which is in the early stages of research, is a very challenging technology, but it does not yield results right away. That’s why we need an innovative spirit and a sense of mission.

• Do you, by any chance, think of each other as well-intentioned rivals? (Chuckles)

  Won-hee: Technologies vary depending on the scale of production and the range and purpose of application. It is hard to say which one is better or not. We are just seeking more suitable ways to move forward.

  Tae-geun: He’s right. For instance, we need inorganic catalysts for large-scale CO2 conversion. We use electrochemical conversion approaches, which require a large amount of energy to break the stabilized CO2 structure, for substances with simple molecular structures, like substances with one or two carbon elements.

• It is clear that your relationship is mutually complementary. I heard the two of you joined the TFT in 2021 to study CCU in earnest. As you’ve been working at LG Chem for more than 15 years, what does this team mean to you?

  Won-hee: The team, among other teams, requires a long-term plan to attain a sustainable future. It’s quite challenging, which means that it is hard expect immediate results. CCU catalysts are in their early stage, and that’s why we need innovation more than ever. Still, I have a sense of duty as one of the pioneers. It’s true that I sometimes feel anxious, worrying about failures, but I also anticipate that our team can build competitiveness by facing new challenges. I’m sure that all of our team members would agree on this.

  Tae-geun: We do have goals, but they’re too far off, and this sometimes makes me anxious. Yet, I try to focus on our interim progress with achievements which makes me excited, rather than feel uneasy thinking about failures. There are people who recognize the importance of our roles and support us.

• How do you keep yourself motivated when you are working on something vague and cannot see the results right away?

  Won-hee: I segregate mid- to long-term goals to set short-term objectives. It’s like making a step forward one by one. I try to find accomplishments and rewards at each phase.

• I heard that CCU technologies require exchanges with external parties as well as internal efforts.

  Tae-geun: That’s right. We don’t work alone here. We need connections to receive various information. And this how we get quicker outcomes. We signed an MOU with the Korea Institute of Science and Technology (KIST) in April 2021 and two technology transfer contracts for candidate technologies for commercialization, and have been operating a joint research center since April 2022. We are receiving enough supports and interests. In May 2022, we joined a government project of “developing an ethylene production system using CO2 electrochemical conversion,” in which we aim at creating a small-scale ethylene production system using CO2 conversion. We are still far from the commercialization phase, but we intend to develop a pilot system first, and if it shows satisfying results, we may be able to experience CCU from A to Z. We are hoping to make a small-pilot system next to our plant and produce different chemicals through CO2 conversion.

• It sounds like that the project will also contribute to reducing the development time.

  Tae-geun: This kind of partnership is essential at the early stage of development. We exchange information not only within our company, but also with other companies and research institutes. It is because we need to make a consensus in the same level playing field that sustainability is an important. This is how we get an answer and move on to the next step.

  Won-hee: Our research on catalyst has begun a little bit later than electrochemical conversion, so our infrastructure is not fully-organized compared to other research institutes or universities. We, of course, conduct joint research projects using our existing infrastructure but we also engage in external projects to secure technologies and accelerate developments. We reduce errors and risks as much as possible by utilizing our strategic partners’ experiences such as Ulsan National Institute of Science and Technology and KIST, the institutions excel at catalyst technology.

• How far did LG Chem’s CCU technologies go from a global perspective?

  Won-hee: Some global companies are at the forefront of the catalyst industry. Academic circles in Korea are conducting relevant research, and we also have our own goal of reaching a world-class level. Ultimately it is important to make a product reach a commercialization level. LG Chem has outstanding core technologies required to develop CO2 conversion catalysts. CO2 conversion technology is new, but we have a strong track record in core technologies, such as catalysts, surface treatment, and separation and purification. Integrating our strengths and creating synergy is a shortcut to accomplishing our goal.

• Why are CCU technologies critical in ESG management? I’d like to hear out your opinion before we end this interview.

  Won-hee: Restrictions on CO2 emissions may become more stringent in the future, leaving no choices to many companies. If we develop and secure technologies like CCU ahead of time, they will be our powerful tool in terms of business competitiveness. They will serve as core technologies for sustainability management.

  Tae-geun: Whenever I hear about CCU on the news, I get the impression that it is a mega trend in the industry. The industry’s interest should not end here, but rather become a vital field that we should lead with a strong will.

Here are two LCA experts who deeply understand the importance of reducing environmental impacts generated throughout the entire production cycle.

• Please tell us about your responsibilities. Also, what is LCA in brief context?

  Jae-mee: LCA (Life Cycle Assessment) is a tool that we use to quantify the environmental impact of a product. For example, say that if you produce plastics, LCA allows you to look at every single stage that is necessary to go through to produce the plastics, including extraction and production of raw materials, transportation, manufacturing, and disposal. Then, in every stage, you measure and evaluate the environmental impact that is caused by the production and related activities. Then it can be represented as a number in different impact categories such as climate change, acidification, and resource depletion.

• You work for different divisions and offices, but team up each other once a week. Could you please tell me your roles?

  Yong-hee: To perform LCA, we need to develop an LCA methodology. Sustainability Strategy Team is in charge of developing it as LCA experts are there to give us a guide. I, as a Carbon Neutralization TFT, am in charge of verifying whether the input and output data collected is right as Domain knowledge is needed to understand processes. We are indispensable to each other.

• I understand that the concept of LCA is not new, but I think the perception of people thinking about sustainability has changed a lot recently in its concept, needs and application.

  Yong-hee: LG Chem has been conducting LCA to participate in creating national database and customer request based LCA since 1998. It used to be conducted in a passive manner at the request of customers, but nowadays, we perform LCA proactively.

• As sustainability issue is a mega trend these days. I guess the need for LCA also increased. How do you feel about it?

  Jae-mee: Previously, we performed LCA on a customer request manually and on a product-by-product basis, but recently we have been conducting LCA on every product we produce preemptively and strategically. We seek to reduce a variety of environmental impacts of all of our products from the “baseline.”

  Yong-hee: The baseline you mentioned is the most important thing. We need a reference value so we can develop a strategy or technology to reduce the carbon compared to it. And that is what we are doing right now, setting up the LCA reference value for all products that we produce.

• Performing an LCA is also a commitment to producing products responsibly. We need to be clear from the baseline so that we can reduce our environmental impact.

• Why do you think LCA is important?

  Jae-mee: There are so numerous reasons why LCA possesses its significance, but I think the most important aspect is ‘customers’. Our global customers are asking for the LCA results because there is a consensus that we all need to care about the environmental impact in the entire supply chain, not only for the individual production site. Therefore, by providing and sharing our LCA result, we can show how LG Chem is striving for sustainability in our value chain.

  Yong-hee: In the past, “price” was the crucial factor when purchasing products. But now, the customer’s perception has changed, and now they are willing to pay more to source sustainable products.

• I don’t think it’ll be easy to do LCA as it needs to track the entire life cycle of the product.

  Yong-hee: LCA is deficiently data-intensive work. Although the result looks pretty simple as it gives us a single number as a final result, we have to go through a lot of stages to get to this value. We have to verify whether the data is correct or not for each unit process, model it using LCA software, calculate the value… and the process re-iterates.

  Jae-mee: After defining the goal and scope of LCA, we need to collect a lot of data that is related to produce target product. To do so, communication with various teams is essential, but it was very difficult at first. We had to liaise with diverse team such as production, utility, procurement, and environmental safety team to collect data and sales, marketing and public relation team to deliver the LCA result so that they can communicate with customers. It can be said that almost every member had to understand LCA to some extent; therefore we have been holding internal LCA training enhance the LCA knowledge.

• Do you have any know-how in communication?

  Jae-mee: I believe one of our biggest motivation is the company’s declaration for Net Zero. As the engagement of top-management towards sustainability and LCA was very strong, every co-working team was very collaborative and supportive.

• LCA seems to be all about ‘changing the perception of trading for a sustainable future’.

  Yong-hee: In the field of R&D, sustainability has become an important pillar of development, so there are a lot of project emerging related to sustainability. I am proud that I play a role in there by diagnosing and providing the direction using LCA.

  Jae-mee: It is obvious that LCA has been in the limelight recently. To keep up with this trend, other companies are also conducting LCA. However, there is no unified methodology or regulation, so for the time being, it is impossible to compare LCA results with each other. To overcome this issue, it is necessary to actively participate in international initiatives and contribute to derive a common methodology. We are proud that we are ready to quickly absorb the results discussed in such initiatives into our methodology.

• What are the goals of LCA that LG Chem is trying to achieve after all?

  Jae-mee: First of all, we plan to conduct LCA for all domestic products by the third quarter of this year, and we plan to expand it to all overseas products by the second quarter of 2023. If we achieve results in line with preemptive goals, there will be a time when the advantages of sustainable management that only our company can have will be highlighted. Anyone can declare carbon neutrality goals, but it’s a big deal if there’s no activity or evidence to support it. I’m confident we’ll be able to demonstrate the outcomes to public.

Meet Jung-hyuk Lim, who presents the direction and scenario of the business based on market insights.

• Please tell us about what your team is in charge of.

  The MI Strategy Team.Battery Materials team contributes to setting future business strategies by finding useful insight for the business through market intelligence activities (a process of collecting and analyzing information about the market, trends, competitors, and so on). Here I’m responsible for analyzing the market and ESG issues and developing insights.

• The cathode materials market trends and customer demands seem to evolve quickly. Are there any values that your team considers the most important?

  Cathode materials are one of the most crucial elements in battery production. The green vehicle market continues to expand and is coming to prominence as more people get involved. The market is quite promising, with a five-year forecast of four to five times market expansion. Battery makers and, in a broader sense, EV manufacturers are the primary buyers of cathode materials. They demand more stable supply-chains and cost-effective products as they increase their physical production. In efforts to meet their demands, the Cathode Materials Business Division aims at supplying outstanding cathode materials in a stable manner. In addition, we do not overlook greenness, which is one of the most significant customer demands.

• How do you produce cathode materials that are free from issues in terms of ESG?

  What we need to do first is to cut down carbon emissions through the use of renewable energy as much as possible at the production stage. Cathode materials are produced at high temperatures, which means they require a lot of energy. You could say that this is where the majority of the power is consumed. In other words, we can minimize carbon emissions in an innovative way by switching to green energy. Last year, LG Chem’s plant in Wuxi, China signed Power Purchase Agreement with a local power generator which supplies a 100% renewable energy. In addition, Cheongju Plant procures 30% of its power through the Green Premium (voluntary funding for investing in renewable energy expansion).

• With the growing importance of ESG both domestically and internationally, have there been any changes in your work?

  I joined the Cathode Materials Business Division two years ago, and performance was prioritized in product development at the time. EVs, for instance, had unsatisfactory driving ranges, which is why performance was spotlighted in the market. Now that performance has progressed to the point that it is currently in its stage of maturity, we have “cost-effectiveness” and “greenness” remaining among the trends I have mentioned earlier. The Europe shows its commitment to the environment by measuring carbon emissions by newly introducing its “new Battery Regulation,” more rigorous standard than it was before, mandating the content of recycling, and specifying a guideline for disposal of waste batteries. The era of considering only product performance is now over. It’s now time to build a sustainable economy.

• The era of considering only product performance is now over. It’s now time to build a sustainable economy.

• It seems to me that your team has made great changes even during the pandemic. What are the biggest changes your team has made during the pandemic?

  The global community has realized the importance of the environment after the COVID-19 outbreak. People needed momentum to go toward the post-COVID-19 era, which explains the reason for the rising trend of EVs having a close relationship with the environment. More automobile manufacturers will put an emphasis on eco-friendliness and seek to work with companies promoting sustainability management. Automobile makers keep emphasizing to consumers the necessity of such values. You can visit the websites of global car makers to witness the changes. Social paradigms appear to evolve even faster as industrial momentum shifts.

• Your work involves a series of unpredictable things, as well as numerous variables, and it seems like you can’t find the answer in a short period of time.

  It may sound strange, but I find it most tough when I have no clue what I’m doing right now. (Laughs) There isn’t any common physical laws in this field, and no one clearly give you the right answer. It is hard to be constantly confronted with unclear things. It is like I am taking the next steps in thick mist even though I am witnessing market and customer changes. I just hope that the steps I took today lead me to the right direction.

• You might find it more difficult while attempting new challenges ahead of time. But I’m sure you feel rewarded now and then.

  It may seem too secular, but I feel rewarded whenever my predictions are logical and right. (Laughs) Everything, including changes and customer needs, necessitates foresight. We feel relieved when vague things become clear and go in the direction we had expected as time passes. I guess these elements come together to form insight. Our team suggests the most plausible direction, devises business strategies based on this, and such strategies contribute to the company’s businesses. This is when I get a sense of accomplishment.

• Do you have your own way to build insight?

  It’s crucial to think, ‘what if.’ We should keep thinking about ‘What if it goes this way?’ and come up with numerous strategies. Some tend to stop thinking when their expectations are not met, and this is when you have no idea what will happen in five or ten years. ‘What if’ should branch out in several different directions. That’s how you get the most plausible direction from numerous scenarios. You will gain clearer insight by repeating this process.

• Before we end, tell us about your plans and aspirations.

  Personally, I would like to do something that would benefit myself in the future, rather than a career just that will benefit me in the short term. Our team’s goal is specific:to play the role of a GPS navigator, ensuring that every business moves in the right path based on market insight. Navigations recommend the best routes for drivers by analyzing road conditions and traffic data. They show the fastest route at times and the cheapest route at other times. We are committed to acting as a GPS navigator for LG Chem’s operations.

Here is an interview with two strategists who contribute to reaching an agreement on different business divisions for setting carbon reduction targets and devising and implementing relevant strategies.

• Please tell me about your roles in the Carbon Neutral Growth TF.

  Dae-soo: The first task given to Carbon Neutral Growth TF is to forecast carbon emissions dependent on business growth and specify ways to accomplish the announced reduction goal in an efficient manner.

  Hee-seung: The second task is to agonize over renewable energy supply-and-demand strategies, set a direction, and purchase renewable energy. I can say that we support the expanding the use of renewable energy to accomplish our goal, which is net-zero.

  Dae-soo: Once net-zero implementation plans are outlined and implemented, many companies will experience the financial difficulties due to carbon emissions. There is an external regulatory system called the “emissions trading system (ETS).” Carbon prices in the ETS fluctuates a lot, so every time we simulate a carbon reduction plan with the prices, the results are volatile, which had cost our team much trouble. At the moment, we are conducting the project with the purpose of reviewing carbon prices and periods in which we can achieve our net-zero target and efficiently cut carbon emissions. Once this is finalized, it is our responsibility to provide a standardized guideline of an internal assessment process for new project investments.

• LG Chem’s carbon reduction goal has made upward adjustment compared to previous year. What made your team judge that more ambitious goal could be achieved?

  Dae-soo: Because a company must grow constantly and expand its businesses, there is no choice but to increase production; therefore it leads us to generate more carbon emissions. Our original goal was to restrain future carbon emissions to levels set currently through continuous efforts. We put in a lot of work, both internally and externally, through a range of carbon reduction activities to meet our objective. As a result, internal conditions have changed, in which we believed that we might be able to reduce more carbon emissions earlier than expected. External threats to our earlier goal emerged due to the increased pressure from global carbon regulations.

• One of the things we need to do to achieve our upward carbon-reduction goal of net-zero is to expand and support renewable energy. If you have the will, you can do it.

• Carbon neutralization strategies can be largely divided into direct reduction, indirect reduction, and offsets. All strategies are equally important, but what makes up the largest part?

  Hee-seung: The largest part in our goal is indirect reduction, especially renewable energy. Joining RE100 initiative, which is one of the hottest issues these days, is also associated with renewable energy.

  Dae-soo: Because LG Chem is a petrochemical company, it emits large amounts of carbon in many different forms such as the use and combustion of fuels. There are always limitations no matter how hard we try. That’s why we intend to reduce large amounts of carbon emissions in power generation to meet our goal. Renewable energy costs more than other common fuels. I believe the current goal well reflects the company’s will to achieve its carbon reduction objective by sourcing feasible renewable energy.

  Hee-seung: Although we didn’t pay much attention in the past, we have been doing various activities to reduce direct reduction. Because energy-saving leads to cost reduction, we have been reducing costs since our plant was built. Aside from the energy saving caused by cost reduction, the next thing we can do is using renewable energy. That is, managing indirect reduction. Indirect reduction can be successful if you have a will. So, for me, indirect reduction is more essential.

  Dae-soo: More customers are demanding the use of renewable energy, directly affecting our business. Several global giants notify their subcontractors that they will no longer work with them until they use 100% renewable energy.We have no alternative but to increase our use of renewable energy to meet customer needs and maintain our market competitiveness.

• The target period of renewable energy transition seems different between the business sites in Korea and abroad.

  Hee-seung: We do not have good conditions to source renewable energy in Korea due to geographical characteristics. As a result, renewable energy is far more expensive in Korea than it is in other countries. The company has moved the target period a little earlier to enable overseas business sites to achieve the goal more readily. The RE100 initiative also suggested interim targets to Korean companies. They made an exception for Korea, considering our financial burden.

• Then, how are your renewable energy transition policies going so far? Are they satisfactory?

  Hee-seung: The total transition rate was roughly 5% in 2021, when renewable energy policies were only in their initial phases. This year, the policies are expected to be more stable in Korea, and we have been regularly bidding for and purchasing the Green Premium since last year. As you may have read the news articles, we signed some long-term contracts for stable supply for the next 20 years through Renewable Energy Certificate (REC) purchases. We have agreements concluded in abroad as well. To summarize, we anticipate that the transition rate will increase by about 10% this year, or roughly compared to last year.

  Dae-soo: We signed a long-term REC purchase contract for the first time in the domestic industry. Manager Lee contributed a lot. (Smiles)

• I believe your perspectives have changed while handling renewable energy and ESG-related affairs.

  Hee-seung: With my children beside me, I have a greater responsibility for a clean environment. Also, it’s worth contributing to creating a sustainable environment for the future generation.

  Dae-soo: It is not easy for private companies to make money and social contributions at the same time. However, social trend and people’s awareness is gradually changing and I feel rewarded whenever I notice it. It makes me proud when I see that my role is making a significant social contribution while also generating revenue for the company.

• Do you have any last remarks?

  Dae-soo: ast year, power purchase options for businesses were first adopted in Korea. In the past, Korea Electric Power Corporation monopolized the domestic power industry, so it was impossible to select options when purchasing. But as soon as the new system was adopted, LG Chem actively made purchases. In addition, we participated the bidding for the Green Premium in its launch last year. We now account for a significant proportion of the market. We don’t have any power plant or business that generates electricity, but we are doing our best to purchase renewable energy from market. These are some of the things I would like to emphasize. (Laughs)

Meet So-hee Nam and ask what a responsible supply chain we can build together with our suppliers is.

• What are the roles of the Procurement Strategy Team? And what are your responsibilities?

  The Procurement Strategy Team is involved in devising procurement strategies and managing procurement performance. We also standardize the standards and regulations of different divisions. Furthermore, we focus on managing risks in the supply chain in line with climate change, war, increasing oil prices, and other variables. I am particularly responsible for sustainability in procurement. I evaluate the suppliers’ ESG levels and work to improve their capabilities according to the evaluation results.

• What types of suppliers are there?

  We can divide the suppliers into those involved in direct procurement and those involved in indirect procurement. Some of the suppliers in direct procurement include raw material suppliers, construction suppliers for installing new lines in plants, and equipment suppliers providing equipment or parts for plants. Among them, we give priority to direct procurement suppliers as part of our efforts to build a sustainable supply chain.

• Has your procurement strategy changed significantly in step with the ESG trend?

  We had focused on price, delivery, and quality of materials before. But now, we are facing growing demands for sustainability across the globe. LG Chem also partners with companies supplying Bio-SAP (Super Absorbent Polymer), PCR ABS (Post-consumer Recycled Acrylonitrile Butadiene Styrene), PCR PC (Post-consumer Recycled Polycarbonate), and other materials that are used for producing eco-friendly products. We also strive to build a win-win supply chain by enhancing suppliers’ ESG capacities. Our primary task is to form a good partnership with suppliers for sustainable growth.

• Please elaborate on the part of building and managing a sustainable supply chain.

  We commenced a project last year and put up an evaluation system. We will be conducting regular evaluations for the first time this year. The project aims to assess the current position of our suppliers through an ESG evaluation. Based on the self-evaluations conducted by suppliers, we will categorize suppliers with the potential to provide them with mutual growth programs or financial support to help them improve their capabilities.

• We are building a win-win supply chain by increasing the ESG capabilities of suppliers. For sustainable development!

• What you’re saying is that the suppliers will evaluate themselves. Could you please give us more details?

  The evaluation will be divided into three stages. First, the suppliers conduct self-evaluations. Second, our team holds on-site inspections based on the results. Finally, we offer types, scope, and methods of support and necessary improvement measures according to the findings.

• If things go as planned, it sure will paint a big picture of mutual growth. But I presume that there are also unexpected risks, given that each supplier has its own set of circumstances.

  During a pilot test before forming it into it a formal project, we found that the environment section received the lowest score. Suppliers were in full compliance with the laws, such as the Labor Standards Act or the Minimum Wage Act, but it appears that legislation requiring carbon reduction, or the use of eco-friendly materials are not as essential to them. Many small and medium-sized enterprises (SMEs) in our supply chain are under-equipped in this sense. Suppliers may find it burdensome to install additional equipment, get assessments, or receive certificates to improve their environment. However, it is also my team’s responsibility to find solutions to such issues.

• I believe you regularly communicate with the outside world. Would you like to share with us some tips?

  Sadly, there isn’t any. (Laughs) I just get a load of inquiry calls during performance appraisals. Some ask why evaluations are necessary, while some small companies are saying that they cannot afford to do it. The most critical part is to persuade them to cooperate so that we may all share our interests and accomplish better results; the only way to do so is to keep persuading them. Whenever I get calls, I explain the direction we should venture on together and the global trends. Whatever the situation is, I will stay committed to my job.

• You must be aware of the importance of ESG as an evaluator.

  I didn’t know much about it before I took this position. I simply thought of it more like volunteer or charity work. But as I continued my study in this field, I felt a sense of responsibility growing inside me. It inspired me to do better and make a greater contribution to society, which is the main reason why I keep gaining knowledge and putting into practice what I’ve learned.

• Which team do you most frequently collaborate with within your line of work? Is there any team that you desperately want to work together?

  Each division has a division-level procurement planning team and a working-level procurement team. I’d say I communicate the most with each division’s procurement teams. Other than them, I also talk a lot with the Sustainability Strategy Team or CSR Team. I wish to communicate more with those that do the same jobs in our affiliated companies. Each company has different strengths, so I believe they have their tactics and know-how. The more we hold communications with other departments, the more it would benefit us.

• Before we end, what are your plans?

  Our team’s goal for this year is to carry out ESG evaluations to cover 70% of the domestic suppliers’ procurement amount. We aim to cover 70% of the total procurement of both domestic and overseas suppliers by 2023 and 80% by 2024. Suppliers conduct ESG evaluations on their own, so the level of performance varies on their evaluation extent. It is essential to encourage their participation. Also, we are seeing a growing demand for expanding LCA or carbon emissions reduction plans to include the suppliers. This would be a quite challenging task as we will need to gather data from the suppliers. As primary steps, we will get suppliers’ data by key item and gradually expand the scope of actual data.

Meet In-seong Bae who strives to support more residents and protect beautiful nature in Yeosu.

• Please tell us about the CSR activity that you participated in this morning.

  I just got back from there. As you can see, the industrial complex is surrounded by villages and nature. The majority of residents are seniors. We run a wide range of programs for residents, and today, we ran a program to provide free reading glasses to seniors. Almost 150 residents were present at the event.

• It sounds like quite a satisfactory engagement rate.

  There are about 5,000 residents living in five villages in this area. This type of event is usually co-organized with a local welfare facility or community center. I suppose this is the reason why our programs are well-publicized. With the information and know-how shared with us by the partnering agencies, we provide customized programs related to levels of income.

• Yeosu Plant has a long-standing CSR history, and the first social volunteer group in the Yeosu National Industrial Complex was established in 1996.

  That’s right. The Yeosu Industrial Complex is a cluster of several companies, and every one of them is engaged in social welfare activities. Most of LG Chem’s welfare projects are associated with the word “hope.” We use names like Hope Box and Hope Smile, to express our intention to differentiate these from other programs. Based on the satisfaction rate of the beneficiaries, it appears that our activities are successful. This is how we have been engaging in decade-long projects.

• What is your most memorable project?

  It has been less than three years since I joined the company, but among the projects, I have been working on, “Hope Box with Dreams” was the most memorable project. We packed feminine hygiene products for around 500 underprivileged youths and wrote them messages of hope. The best part was when the children sent us messages through their welfare centers, saying how grateful they were to be benefited from the program. As it was a joint CSR program in which all LG Chem members aided in packing supplies, this project not only satisfied the underprivileged youths but also our company’s labor and management.

• We do various activities to support the residents of the industrial park. And now I’m thinking about what I can do with the environment as a “green connector.”

• It seems that coming up with brilliant ideas for each project is crucial for your team.

  All the members of the team get together and brainstorm new ideas to come up with a project concept. It is crucial to understand what the latest issues and trends are. Nowadays, we prioritize “eco-friendliness” on top of supporting seniors, youths, and low-income families in planning our projects.With the Yeosu Plant Social Volunteer Group declaring “Green Connector” as its new mission, we seek CSR activities that may lead to connecting to environmental values in diverse areas.

• Tell us about your contributions as a Green Connector.

  We have roughly 150 coffee machines in our Yeosu Plant alone, and we collect 10 tons of coffee grounds every year. This motivated us to launch a project to supply coffee grounds to nearby villages, which then will be used as fertilizer. The project significantly benefits seniors engaging in agriculture and in creating a virtuous cycle of resources. We also have this project called “Fly, Dirt Ball” to raise awareness about the environment of local youths. This involves children making small balls of dirt using EM bacteria, which are used to purify local streams. Kids throw the balls they have made into streams that are heavily infested with algae. Our aim is to continuously develop fascinating projects by interacting with relevant and cooperative organizations.

• Is there a reason why your team is particularly engaging in Green Connector activities?

  The main reason is that the company has emphasized ESG activities from the top-management level and that the message was delivered to various departments in an integrated manner.

• Do you have any plans for Green Connector activities?

  Although it is still in the planning stage, we are preparing to conduct beach cleanup activities together with the YMCA Youth organizations. It is something that we can do to contribute to society, with Yeosu being a coastal city. We are seeking ways to transform the distance walked along the coastal area to collect trash into money to make donations to the energy-marginalized groups. We are also preparing to provide environmental education opportunities to youth, as we believe it is important to raise their overall awareness of the value of the environment. There are about 40 support centers for children from low-income households in the city. We plan to encourage them to make YouTube videos, and we intend to host a YouTube environment contest at local children’s centers.

• Did you face any obstacles or hardships when participating in CSR activities?

  We try our best to provide support to as many people as possible, but there are still blind spots in our coverage that we cannot reach. In this framework, we hope to act as a liaison between welfare centers, senior welfare centers, children’s centers, YMCA, YWCA, local fire departments, and police stations by helping them achieve their objectives according to their plans.

• I heard that you are from Yeosu. Does that provide any advantages?

  Volunteering makes everyone feel honored, but for me, it motivates me even further to make my hometown a better place. I used to visit different facilities in the city to volunteer as a student, and now visiting the places once again as a project manager gives me more of a sense of burden and responsibility. This still makes my job fun at the same time. It brings back so many wonderful memories.

• Do you feel that engaging in such activities changes you in any way?

  It occurred to me that CSR activities could enhance our company’s productivity. They can also encourage employees to feel honored to be members of such an inspiring company. If we keep building these small changes, we can make big changes.

Meet Jun-yeop Kim, a dedicated EH&S Specialist who safeguards Hwachi Complex, Yeosu.

• When we say EH&S, we think of various areas of the natural environment. What are your responsibilities in the team?

  There are roughly five areas in the Environment Team: air, water quality, soil, wastes, and chemical substances. My work focuses on chemical substances. We can further divide the handling of chemical substances into works related to the Chemical Substances Control Act and works related to the Act on Registration and Evaluation of Chemical Substances. The first concerns installation standards and approval of facilities handling chemical substances, while the latter concerns the registration of the substances that the company handles, to the Ministry of Environment.

• It appears the classifications are based on environmental areas rather than specific tasks.

  Yes, and this is because the person in charge must have an accurate idea of his/her work under relevant laws. We assign managers for each law, such as the Clean Air Conservation Act, the Water Environment Conservation Act, the Wastes Control Act, and the Soil Environment Conservation Act.

• Management of chemical substances would be of particular importance.

  Preventive actions are of vital importance considering that we are a petrochemicals company, and that the leakage or explosion of chemical substances could result in grave damage. We need to pay extra attention to Yeosu, which is a cluster of industrial complexes, to ensure that we don’t harm the environment or residents’ lives. Because we know that even the tiniest hint of odor can make the residents anxious.

• There must be a need for joint response with other companies when issues arise in terms of environmental and safety measures.

  Yes, and that’s the reason why we have the Committee for Yeosu Industrial Complex Environment. It is sometimes difficult to identify straight away which industrial complex caused certain environmental issues. In this case, managers contact each other to find the cause. Even when a solution is available, we must still cooperate with the nearby complexes to ensure that no harm occurred to them.

• As the importance of environment, health and safety are increasing, the Safety & Environment team should review and consult with various departments. We consider not only the equipment but also the experience of the personnel handling the equipment.

• Your team sure requires communication with lots of other teams. How do you deal with difficulties at work?

  EH&S teams basically need to communicate with almost all the teams, going through numerous meetings and reviews throughout the process. The Production Team equipped with the production facilities is one of our main candidates for negotiations. Every team or department is a candidate for cooperation, from the Maintenance Team, which is involved in placing facilities in plants; to the Procurement Team for purchasing materials and distributing chemicals; and the R&D Team that handles chemical substances at the Petrochemical Research Center. I can say that all divisions must go through our team to lay the true foundation of safety. Oh, and the same goes for the Business Support Team. They must get our approval when managing a company building or constructing buildings. I almost forgot, there is the Corporate Affairs Team, too. We need to partner up to respond to the press in times of an accident or conducting emergency drills.

• It sounds like your team entails tremendous responsibility.

  That’s right. I always ponder if a manager must bear all the responsibilities. The burden has greatly increased since the enactment of the Severe Accident Punishment Act in January 2022. Nonetheless, I approach my work with a sense of responsibility now that I see that environment and safety is becoming more important. This is a major concern because if a company fails to comply with environmental and safety regulations, it is bound to encounter sanctions and may even be forced to close. Our team’s goal is to create safer and cleaner business sites.

• How is the Yeosu Industrial Complex prepared in terms of environment and safety?

  We conducted our very first regular inspection per the Chemical Substances Control Act in the summer of 2020, and the Yeosu Industrial Complex passed the safety assessment. We also received grade 1 with an average score of 91 points during an inspection of hazard control plan implementation in July 2020. Personally, I try to have a better understanding of chemical substance-related works at Yeosu Plant. I am doing my best to have a broad range of experience. My efforts were also acknowledged, in which I got an early promotion last year. (Smiles)

• The Yeosu Industrial Complex is divided into four complexes: Hwachi, Yongseong 1, Yongseong 2, and Jeongnyang. I can see that some are considerably older than others. Which complex is your team’s responsibility?

  We oversee the Hwachi Complex. It is the oldest one, established in 1974, so we do get extra works because of that. For example, it’s quite frequent here to lose documents like test certificates. On the other hand, a small advantage is that Hwachi Complex uses batch processes which tend to have shorter maintenance periods. Accordingly, there is no need for the entire complex to be shut down. Instead, we do get more maintenance-related paperwork.

• The Yongseong Complex 2 has a slogan that says, ‘Do not let your guard down with good facilities.’ Aren’t new facilities safer in terms of environment and safety?

  Not necessarily. Environment and safety is related to workforce as well as facilities. In other words, letting inexperienced individuals manage a new facility may raise environmental and safety concerns. We should give them some time to adapt to the facility, and to the response framework in the event of any issues.

• For you, what is the most critical capability of an environment and safety expert? Compliance with regulations? Rigor for prevention? Or crisis management capability?

  They are all essential, but what matters the most is his/her meticulousness. One must go out and do things paying attentions to smallest details, without assuming that someone else will do the job.

• Now that the interview is complete, your armband looks different from the beginning of this interview.

  I always wear this armband on business sites. No unauthorized personnel may access the area, whereas EH&S may waltz right in showing this armband. (Laughs)

Take a glance at the efforts of the Corporate Culture Transformation Team that promotes communication between the Employees and the Management.

• What are the roles of the Corporate Culture Transformation Team?

  The Corporate Culture Transformation Team is in charge of nurturing a workplace where employees find it pleasant to work in, and developing a corporate culture that supports business activities. In the team, I am responsible for communications activities, such as the Speak-up Table with the CEO and Town Hall meetings, as part of the company’s “The Better Company” project for improving employee growth, welfare, and training. In terms of diversity and inclusion, we are working to ensure that no one is discriminated against based on his/her race, gender, or religion.

• Are there trends in organizational culture?

  Yes, certainly. Business-oriented organizational culture and play-oriented culture, which emphasized fun at work, are some of the past trends. The current trend is making a “good company to work for.” I believe the boundaries between trends are now vague.

• Your organization must have gone through a lot of changes since the COVID-19 pandemic.

  The pandemic was a tragedy, but it was also a period during which we could make different attempts in terms of organizational culture. We adopted the telecommuting and flextime policies, as well as online meetings. With the disappearance of spatial and temporal restrictions, employees were granted more opportunities to voice out their opinions. We got staggering 2,300 comments during our recent Town Hall meeting. Can you imagine that? This would have been impossible if the event was held offline. I believe this online meeting encouraged employees to express their opinions. The company switched the Speak-up Table program to online as soon as the COVID-19 pandemic broke out. The event has now become even more active, thanks to the relaxed atmosphere it suggests. In fact, we are getting more candid and practical comments compared to when the program was held offline.

• Were there any memorable feedback?

  I remember someone saying that the company seems to be changing. It made me feel as if our team’s efforts to bring about changes were acknowledged. Due to the nature of corporate culture, it is quite challenging to observe immediate results or instant improvements and feedback. I, too, sometimes wonder if we’re on the right track. But positive feedback makes me overjoyed.

• I want to create a non-discriminatory environment that respects diversity. For this, it is the most important for the organization to give its members a sense of trust that they are "listening, can be changed.

• Please give us brief introduction about a project that was well-received and meaningful.

  Our “Female Talent Development Program” matches female employees with leaders so that they do not miss out on career opportunities. Every year, we place three to five female employees per coach, and they talk about their career concerns and engage in different communities. It is a meaningful project as it is well-received, and employees find it satisfying. There is also the Purse Survey that is conducted more casually and regularly. The survey asks questions like, “When do you think you are appreciated at work?” and we get around 25% response rate. This is quite a remarkable figure, considering that this is a survey conducted every two weeks.

• The majority of the present projects are focused on the environment (E), but the importance of social (S) and governance (G) is growing as well.

  Our team is strongly associated with the “social” part. I believe that laying the foundation where employees of different races, genders, and languages can work as one suggests a positive direction for corporate development. To that aim, we are attempting diverse strategies, such as increasing foreigner recruiting and expanding core value-related platforms or organizational culture development programs that were previously limited to domestic sites to overseas subsidiaries. Global companies nowadays respect diversity in all aspects, including religion and gender identity. Our role here is to build an organizational culture where individuals can work freely without any hindrance to their identities. And to make this happen, I believe it is crucial to gradually eliminate hurdles standing in our way.

• What would be essential to achieve your goal?

  In my opinion, the overall awareness, like the direction that the organizational culture suggests or catchphrases, is showing some improvements, but we still have a long way to go in terms of maturity. Maturity here may refer to employee’s “attitude” in communication and engagement, or the company’s “attitude” in quickly responding to the voices of employees to ensure smooth communications. Our next goal would be to create a chain of feedback so that we can encourage more mature engagement and communication. Also, it is crucial to carry out ESG management and take specific actions, focusing particularly on the social part. I believe we should take the role of informing the public of how we are influencing the society, rather than merely telling them about the changes we have made. I am planning to broaden my studies in this field.

• The most fundamental and essential factor would be one’s attitude, which cannot be easily changed.

  It’s true that employees should also put forth the effort, but the company should be at the forefront. One of such efforts is giving confidence. The biggest barrier in communication is the assumption that ‘nothing will change even if I raise my voice.’ It is the company’s responsibility to gain trust from its employees and encourage them to voice out their views, whereas employees should be aware that positive thinking will return them with quicker feedback rather than negative thinking.

• Has your personal character changed after taking this role? Or did you get any work-related habit?

  My position involves talking in front of many people in several events. I used to be a very introverted person, so approaching people first was never something I enjoyed doing. But now, I just love talking with anyone. Am I talking too much? Should I stop here? My friends keep telling me that I’m too talkative. (Laughs)

• Before we end, what is a good company to you?

  Our Department Leader always reminds us of this: “A company that no longer needs a Corporate Culture Transformation Team makes it a good organization.” I’m not sure if this day will ever come, though. (Laughs) I believe a good company is one that doesn’t require any extra activities or inspections. In that sense, whatever it would be, our team will try our best until the right time comes.