LG Manages ESG Data Like Financial Statements... "Renewable Energy Usage Increased 150 Times in 2 Years"

Establishment of ESG Information Management System
Last Year's Renewable Power 3894 GWh
Female Outside Directors Ratio 32.4%

LG announced on the 1st that it published a group-level ESG (Environmental, Social, Governance) report on the 31st of last month. This is the second report following last year. The report includes ESG strategies and achievements of major affiliates such as LG Corporation, LG Electronics, LG Display, LG Innotek, LG Chem, LG Energy Solution, LG Household & Health Care, LG Uplus, and LG CNS.

In the Environmental (E) sector, significant achievements were made in the transition to renewable energy. LG's renewable power usage last year was 3,894 GWh, approximately 150 times more than 26 GWh in 2020. In February, LG published Korea's first group-level net-zero (carbon neutrality) report. To achieve net-zero by 2050, LG plans to reduce greenhouse gas emissions from domestic and overseas business sites by 27% by 2030 and 62% by 2040 compared to 2018. The total greenhouse gas emissions last year, combining direct emissions (Scope 1) and indirect emissions (Scope 2), were 19.365 million tons, about an 11% reduction from 21.754 million tons in 2021.

In the Social Responsibility (S) sector, the scale of social contribution donations and investments increased. LG affiliates donated or invested approximately 166.3 billion KRW last year, an increase of about 22.7 billion KRW (15.8%) compared to the previous year. In the Governance (G) sector, as of June, 32.4% of outside directors were female, securing diversity in the board composition.

LG also recorded content related to its future growth engines in the ABC (AI, Bio, Cleantech) fields. It included affiliate achievements such as AI technology (A) for personalized cancer vaccines and neoantigens, investment in innovative new drug development research (B), development of bio and biodegradable plastics (B, C), and battery recycling process business (C). Additionally, it summarized comprehensive ESG management data at the group level for the three years from 2020 to 2022.

Koo Kwang-mo, CEO of LG Corporation, visited the Dana-Farber Cancer Institute in Boston, USA, on the 21st of last month (local time) and listened to an explanation about the process of selecting cells that enhance anticancer functions during the production of cell therapy products.
[Photo by Yonhap News]

Along with publishing the group-level ESG report and net-zero report, LG announced that it has advanced its ESG data measurement and information management system. This means it has established a system to record environmental, social, and governance management performance with precise figures, similar to financial statements.

LG created an ESG IT platform called 'LG ESG Intelligence' that integrates and accurately measures non-financial data and manages it systematically. In June, the ESG IT platform was officially launched for 10 LG companies. The platform allows users to view the current status and trends of LG Group's ESG data at a glance. A notable feature is the ability to monitor external information and risks using big data and AI solutions.

To consistently manage ESG performance, LG established 46 standard indicators across the environmental, social, and governance areas. It unified management standards that previously varied by affiliate. LG plans to deliver more transparent and consistent ESG performance and information to various stakeholders. ESG-related data will be collected not only from domestic and overseas business sites but also from research and development (R&D), sales, and logistics stages. The scope of data will be expanded to reflect global disclosure standards and evaluation indicators.

LG plans to build and operate a data verification system. The company aims to proactively detect non-financial risks and establish a foundation to support management decision-making, leading to sustainable growth. By establishing internal control processes, LG intends to prevent information omission and misentry throughout all stages of ESG information generation, input, aggregation, verification, and management.

LG will publish a group-level ESG report annually and disclose ESG information on its website. Through this, it plans to strengthen communication with internal and external stakeholders such as employees, customers, and shareholders, and enhance transparency in ESG information disclosure.

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