LG Electronics "100% Zero-Emission Transition for Business Vehicles by 2030"

Publication of Sustainability Management Report on the 21st... Released on Website
Phase Transition to 90% Electric and Hydrogen Vehicles by 2025, Replacing All Internal Combustion Engine Vehicles
Replacing 100% of Electricity Used in Domestic and Overseas Sites with Renewable Energy by 2050

Image cut of the joint venture established by LG Electronics and Magna International, the world's third-largest automotive parts manufacturer, in the electric vehicle powertrain sector
[Photo by LG Electronics]

[Asia Economy Reporter Kim Heung-soon] LG Electronics is accelerating its ESG (Environmental, Social, and Governance) management by converting all company vehicles to zero-emission vehicles such as electric and hydrogen cars by 2030.

On the 21st, LG Electronics published the 2020-2021 Sustainability Management Report containing this plan and made it available on the company website. According to the report, company-owned or leased vehicles will be gradually replaced with zero-emission vehicles like electric and hydrogen cars. The goal is to convert 90% of existing internal combustion engine vehicles to zero-emission vehicles by 2025 and achieve 100% conversion by 2030.

Previously, LG Electronics set the direction for sustainable management in 2018 and established key goals to achieve it. This year, the company reviewed its achievements over the past three years and set new ESG-based aspirations: 'Positive Environmental Value+', 'Inclusive Social Value+', and 'Trusted Management+'.

Positive Environmental Value+

To strengthen eco-friendly management, LG Electronics announced a mid-to-long-term plan on the 18th to convert 100% of the electricity used at domestic and overseas business sites to renewable energy by 2050. To realize this, the company plans to increase renewable energy use with high-efficiency solar panels and purchase renewable energy to cover any shortfall.

To reduce greenhouse gas emissions, recycled plastics are used in product development stages for washing machines, refrigerators, air conditioners, TVs, and monitors. According to LG Electronics, the amount of recycled plastic used last year was 11,149 tons, about 20% more than the previous year.

The goal is also to reduce greenhouse gas emissions generated during product manufacturing to 50% of the 2017 level by 2030. To achieve this, energy-efficient equipment and carbon emission reduction devices are being introduced in production processes. Last year, greenhouse gas emissions from domestic and overseas business sites totaled 1.29 million tCO2eq (tons of CO2 equivalent), about a 33% reduction compared to 1.93 million tCO2eq in 2017.

LG Electronics is also reducing greenhouse gases during product usage by offering energy-efficient products. The reduction amount last year was approximately 73.8 million tons, a 22% increase from the previous year. Additionally, the amount of collected waste electronic products last year was 412,117 tons, about 16% more than in 2019. The company aims to accumulate 4.5 million tons of collection by the end of 2030.

Solar panels have been installed on the roof of LG Electronics' North America headquarters, completed in the first half of last year, to generate renewable energy.
[Photo by LG Electronics]

Inclusive Social Value+

LG Electronics stated that it is creating a safe work environment that balances work and life and is proactively identifying and improving risk factors in company workplaces and supply chains of partner companies.

Since 2011, LG Social Campus has supported eco-friendly social enterprises with about 10.6 billion KRW until the end of last year. The annual sales and employment of these enterprises increased by 101% and 62%, respectively, compared to the previous year. Furthermore, LG Electronics' products and services are used worldwide to address social issues such as accessibility for people with disabilities, environment, and hygiene.

Employees have contributed to local communities by operating volunteer groups since 2010. Despite the COVID-19 situation, 708 employees participated in 71 volunteer groups last year to practice sharing.

Trusted Management+

LG Electronics emphasizes ▲strengthening ESG compliance ▲establishing an ESG decision-making system that pursues diversity, rationality, and transparency ▲and fostering an ESG management culture. An ESG Committee was newly established within the board of directors to ensure more transparent operation. The ESG Committee is the highest deliberative body related to ESG management, establishing basic policies and strategies in ESG areas such as environment, safety, social responsibility, customer value, shareholder value, and governance, and reviewing mid-to-long-term goals.

The ESG Committee consists of five directors: four outside directors and President Kwon Bong-seok as an inside director. To enhance the committee's expertise, LG Electronics has departments under the ESG Committee supporting tasks in environmental, social, and governance fields.

President Kwon emphasized, "We have established new ESG-based aspirations for sustainable growth. We will do our best to fulfill the company's social responsibilities and reflect ESG throughout management."

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