Why LG Display Did Not Include RE100 Membership in Its ESG Report

As major domestic companies join the RE100 initiative, which commits to using 100% renewable energy for the electricity needed in production activities in line with the global eco-friendly management trend, LG Display did not include its RE100 membership in this year's ESG report.

On the 31st, LG Display published the '2023 ESG Report,' an expanded and revised version of its existing sustainability management report. The report includes a roadmap to achieve carbon neutrality by 2050, aiming to reduce emissions by 53% by 2030 and 67% by 2040 compared to 2018 levels, with a phased approach.

To achieve these goals, the company stated that it is introducing reduction facilities capable of cutting greenhouse gas emissions by more than 90%, expanding the transition to renewable energy, and enhancing air efficiency. However, the report omitted any mention of joining RE100, a global initiative to achieve carbon neutrality. LG Display's position is that it is still carefully considering joining.

LG Display's cautious stance on joining RE100 contrasts with most domestic companies, including LG Group affiliates such as LG Electronics, which have already joined. Industry insiders believe that while companies declare joining RE100 in line with global trends, the targets do not currently fit the circumstances faced by Korean companies, making it difficult to meet them. Particularly, there is a growing perception that companies suffering losses due to worsening business conditions do not need to rush into RE100 membership, which incurs significant costs from the early stages.

Even when companies declare joining RE100, achieving the goals is challenging because Korea's energy policy does not provide sufficient renewable energy supply, limiting the ability to meet electricity demand with solar, wind, and other renewable sources. According to the latest statistics from 2021, the share of renewable energy generation in Korea is 7.5%, only a quarter of the OECD average of 30%.

With tight renewable energy supply, companies confirming mid- to long-term plans to convert 100% of electricity used at all domestic and overseas sites to renewable energy and joining the related organization, the RE100 initiative, competition for securing renewable energy has intensified. RE100 member companies must secure Renewable Energy Certificates (REC) as one of the implementation methods. The REC price has doubled in two and a half years, increasing the burden. Due to the shortage of renewable energy supply and cost burdens, many domestic companies still have single-digit percentages of renewable energy usage.

LG Display explains that even without immediate RE100 membership, it can sufficiently participate in the eco-friendly trend through the process of executing its 2050 carbon neutrality goal. As of last year, LG Display's electricity consumption was 8,436 GWh (excluding renewable energy conversion). In the ESG report, LG Display stated, "Domestic sites have started transitioning to renewable energy through the Green Premium system, and sites in China and Vietnam are transitioning to renewable energy by purchasing RECs," adding, "Last year, we converted 1,096 GWh, accounting for 13% of the company's total electricity consumption to renewable energy."

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