LG Chem Invests 1.1 Trillion KRW in R&D Last Year... Sustainability Report

R&D Investment of KRW 1.1323 Trillion Executed Last Year
Strengthening Eco-Friendly Projects Including Premium Electric Vehicle Battery Development

[Asia Economy Reporter Hwang Yoon-joo] LG Chem announced on the 30th that it has published its Sustainability Management Report, which contains its sustainability management achievements and strategies.

This is the 14th edition this year, and in this report, LG Chem disclosed innovative sustainability management achievements for customers, the environment, and society.

First, to continuously provide innovative technology to customers, LG Chem invested KRW 1.1323 trillion in R&D last year. The R&D investment scale relative to sales is over 4%, with active investment in mid- to long-term R&D projects including battery and bio sectors.

Through this, LG Chem recently succeeded in developing a premium electric vehicle battery that significantly improves the longest drawback of electric vehicles, long charging time. Electric vehicles equipped with this battery can travel over 400 km with only about 25 minutes of charging.

In addition, achievements include the development of third-generation cathode materials for electric vehicles, a rare obesity treatment drug (Phase 1 clinical trial), and ultra-thin (Ultrathin) high-absorbency resin for diapers.

Moreover, LG Chem is strengthening patent competitiveness by supporting intellectual property (IP) experts at each stage from the early R&D phase to commercialization. As of the end of 2019, it holds about 63,000 intellectual property rights, of which about 24,000 are in the battery sector.

As sustainability management achievements for the environment, LG Chem operates ESS facilities with a total capacity of 130 MWh at seven domestic business sites to expand the use of renewable energy and is conducting an energy companion project to support energy-saving activities of partner companies.

From 2012 to last year, LG Chem conducted energy diagnoses for a total of 57 companies, discovering items that reduced about 11,000 tons of greenhouse gases and saved energy costs worth KRW 4.8 billion.

As sustainability management achievements for society, last year LG Chem newly added the ‘Sustainability Management’ item with a 20% weight, equal to core evaluation items such as quality and development, during regular evaluations of global battery raw material partner companies to create a sustainable ecosystem.

In this report, LG Chem also detailed mid- to long-term strategic tasks such as ‘2050 Carbon Neutral Growth.’ LG Chem has set three strategic directions for sustainable growth: ▲ responding to climate change for the environment ▲ sustainable technological innovation for customers ▲ value management for society, selecting and actively implementing mid- to long-term tasks such as climate change response, resource circulation, and responsible supply chain management.

First, as a climate change response activity, LG Chem established a challenging goal of ‘2050 Carbon Neutral Growth,’ the first among domestic petrochemical companies.

LG Chem plans to implement measures such as expanding renewable energy and improving energy efficiency to reduce carbon emissions by more than 75% compared to the 2050 carbon emission forecast.

As part of resource circulation activities, LG Chem plans to continue sustainable technological innovation such as PCR (Post Consumer Recycled) resin that recycles waste plastics and battery recycling/reuse technology through waste battery collection.

Additionally, LG Chem considers responsible supply chain management that emphasizes human rights and the environment as an essential prerequisite for sustainable growth and applies it throughout its business.

In particular, in the battery sector, LG Chem is actively securing supply chain transparency by building a blockchain platform for raw material supply chain traceability, considering human rights issues within the supply chain.

LG Chem Vice Chairman Shin Hak-cheol emphasized, “Sustainability management is an essential survival condition for companies to become enduring enterprises in an unstable future,” adding, “We will create differentiated value unique to LG Chem in sustainability at all stages from raw materials, production, consumption, to disposal.”

Meanwhile, LG Chem recently established a new social contribution vision called “LG Chem Green Connector,” which signifies focusing on social contribution activities connected to ‘Green (environmental value).’ It plans to concentrate more on enhancing environmental value targeting youth, local communities, and the social economy.

This content was produced with the assistance of AI translation services.