- LG Energy Solution aims to achieve carbon neutral by 2050;
convert to 100% renewable energy in its global business operations
by 2030.
- Leading battery manufacturer boasts efforts to lead sustainable
future and declares ESG vision "We CHARGE toward a better
future."
- "ESG management is a new guide in creating sustainable
social value, and LG Energy Solution will accelerate its efforts to
innovatively transform human lives," said Jong Hyun Kim, President and CEO of LGES.
SEOUL, South Korea, July. 31,
2021 /PRNewswire/ -- LG Energy Solution is rolling up sleeves to
become an eco-friendly company that prioritizes environment,
fulfils social responsibilities and shapes sustainable future with
its ESG management strategy. The company on Sunday announced its
visions and business strategy
Under the vision "We CHARGE toward a better future," LG Energy
Solution detailed its plans for ESG management by outlining
critical areas and key enablers, critical in achieving its business
strategy.
Committed to achieving a greener future as a lead player of the
global battery industry, LG Energy Solution focuses on critical
areas symbolized as: C: Climate Action & Circular
Economy, H: Human Value Management, A: Advanced EH
& S, R: Responsible & Impactful Business and key
enablers as G: Good Governance, E: ESG Disclosure
& Communication.
With it, LG Energy Solution will concentrate on 7 core tasks,
which includes achieving carbon neutrality by 2050, transitioning
all business operations to RE100 by 2030 and establishing virtual
circular value chain for resources by 2025.
The 7 core tasks are as follows: Mid-to-long term reduction and
management of greenhouse gas, Climate Action & Renewable
Energy, Circular Economy, HR Policy Based on Diversity, Development
of Eco-Friendly Innovative Technology, Responsible Supply Chain
Management and Safety and Environment-Oriented Management and
Accident Prevention.
"ESG management is a new opportunity for LG Energy Solution in
seeking to expand its business reach. This will guide us to create
social values and establish a virtuous cycle of battery ecosystem,"
said Jong Hyun Kim, the President
and CEO of LG Energy Solution. "LG Energy Solution will accelerate
efforts to innovatively transform human lives with its ESG
management."
7 Core Tasks in Achieving ESG
Mid-to-long term reduction and management of greenhouse gas
To actively respond to the global climate related issues, LG
Energy Solution will move to achieve carbon neutrality by 2050.
Through various means, LG Energy Solution will reach net zero
emissions by 2050, by eliminating some 960,000 tons of greenhouse
gas emission in stages, tallied in 2019. To achieve that goal, LG
Energy Solution will convert to renewable energy and improve energy efficiency by
utilizing high-performance equipment at its operation
sites.
Climate Action & Renewable Energy
LG Energy Solution will completely transition its use of
electricity to renewable energy at
all of its business operations by 2030.
RE100, short for Renewable Electricity 100%, is a global
corporate initiative seeking to mobilize 100% of electric power
with renewable energy sources such as wind and solar power by
2050.
Leading the green-energy initiative, LG Energy Solution will cut
the target date by 20 years to complete RE100 by 2030.
Already, the battery manufacturer has completed transition of
all its electric power in its Polish and American operations by
utilizing Green Pricing and Renewable Energy Certificate (REC). LG
Energy Solution will extend such transformation at its operations
in Korea and China.
Circular Economy
LG Energy Solution plans on revitalizing circular economy in the
supply network of battery sector that ranges from sourcing of
battery materials, battery production and consumption to disposal
of material.
Such efforts to minimize environmental contamination by
utilizing resources comes as the global demand for EV batteries
have been on the rise, leading to acceleration of sales and
production of electric vehicles. LG Energy Solution is confident it
will be able to complete establishment of closed loop for EV
battery life cycle by 2025 at all its operations.
In China, LG Energy Solution
has already established a localized closed loop system of EV
battery life cycle, where extracted battery materials like nickel
and cobalt from disposed batteries are being used to reproduce
anode materials. The battery manufacturer plans on extending the
management of EV battery life cycle at its overseas operations in
the U.S., Europe and in Korea.
Ultium Cells LLC, a joint venture between LG Energy Solution and
General Motors, has teamed up with Canadian lithium-ion battery
recycling firm Li-Cycle early this year to recycle raw materials
from disposed EV battery cells such as nickel, cobalt, lithium and
aluminum.
HR Policy Based on Diversity
LG Energy Solution thrives to reform and cultivate its human
resource measures based on
diversity.
As of the end of June, a total number of LG Energy Solution
employees, globally, have tallied at 24,700, of which 8,300 are
located in Korea. The battery manufacturer continues to recruit
talents from various countries including Korea, U.S., China and Poland.
Priding as a global corporation, LG Energy Solution plans on
implementing an active management policy that respects its
employees' nationality, race and gender.
Development of Eco-Friendly Innovative Technology
To upgrade customer value, LG Energy Solution is committed to
providing environmentally friendly and competitive materials and
solutions to customers.
LG Energy Solution has implemented the Chemical Assurance and
Regulation Management System, otherwise known as the CHARMS, a
system that guarantees environment friendliness of battery related
materials. Under the program, LG Energy Solution is able to manage
the eco-friendliness of battery related chemical products'
purchase, usage and
disposal.
Through the CHARMS management system, LG Energy Solution aims to
secure complete environment friendliness of battery material and
battery products by 2022 and 2023 respectively.
Responsible Supply Chain Management
LG Energy Solution plans on taking responsible supply chain
management into its own hands.
Managing an ethical and a transparent supply chain is becoming a
prerequisite for battery industry, especially as the industry is
expanding fast over growing global demand for EVs. To level with
the elevated standards, LG Energy Solution goes through advanced
verification system of its potential suppliers and administer
regular checkups to make sure the suppliers meet the criteria
established by LGES.
Under a code of conduct, partners to LG Energy Solution must
follow standards regarding human rights, labor rights, ethics,
environmental sustainability and responsible mineral
procurement.
Safety and Environment-Oriented Management and Accident
Prevention
LG Energy Solution continues its drive to completely remove
environment-related accidents that might occur at workplaces.
Operating an EHS (Environment,
Health and Safety) management system based on the international
standards, the battery manufacturer is taking sturdy initiatives to
eliminate potential accidents and continuously enhance the
system.
To prevent potential accidents, LG Energy Solution plans on
developing Digital transformation (DX) techniques by 2023 and then
will implement them into its global operation sites.
About LG Energy Solution
LG Energy Solution is a global leader delivering advanced
lithium-ion batteries for Electric Vehicles (EV), Mobility & IT
applications, and Energy Storage Systems (ESS). With 30 years of
experience in advanced battery technology, it continues to grow
rapidly towards the realization of sustainable life. With over
24,000 employees working within its robust global network that
spans the US, Europe, Asia, and Australia, LG Energy Solution is more
committed than ever to developing innovative technologies that will
bring the future energy a step closer. For more information, please
visit https://www.lgensol.com.
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SOURCE LG Energy Solution