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| LG Chem CEO Shin Hak-cheol announces the company's new corporate vision during an online ceremony, May 7. The company announced Monday it will pursue growth while reducing carbon emissions. / Courtesy of LG Chem |
By Baek Byung-yeul
LG Chem has initiated a carbon neutrality pledge to reduce annual carbon emissions to 10 million tons by 2050 as part of its efforts to become a responsible and eco-friendly corporation while pursuing growth, the chemical and battery-manufacturing arm of LG Group said Monday.
Under the strategy, the company will maintain its carbon emissions at 2019 levels, which was 10 million tons.
"Considering the growth rate of our businesses, LG Chem's net carbon emissions will be around 40 million in 2050. To achieve the carbon neutral growth goal, we have to reduce carbon emissions by more than 30 million tons," the company said in a statement.
To achieve the goal, the company plans to push itself to use more renewable energy, develop more eco-friendly chemical products and operate energy storage system (ESS) facilities that utilize recycled secondary battery cells to recharge electric vehicles (EVs).
LG Chem CEO Shin Hak-cheol said the company, which was established in 1947, outlined its 2050 carbon neutrality strategy with sustainability in mind.
"The year 2050 will become an important starting point for LG Chem, which is looking forward to the next century," Shin said in a statement.
"Taking sustainability as a core competitive advantage, we will provide innovative and sustainable products so that we can solve the pain point of not only our customers but also our environment and society," Shin was quoted as saying in the statement.
Cutting carbon emissions while pursuing corporate growth at the same time has become an industry trend even in the chemical business sector, which requires energy for the operation of the production lines of chemical products.
Dow, one of the world's top-tier chemical companies, also set its goal to achieve carbon neutrality by 2050. As its first step, the American company has pledged to reduce its net annual carbon emissions by 5 million tons, or 15 percent from its 2020 baseline.
In its first step toward carbon neutral growth, LG Chem has initiated a renewable energy 100 (RE100) program, aiming to produce products using only renewable energy at its plants located across the world.
"The RE100 plan means LG Chem will produce renewable energy by itself or purchase eco-friendly energy from other renewable energy producers," according to the statement.
The company will also concentrate on developing technologies that help to cut carbon emissions such as carbon capture utilization storage, which refers to a process that captures carbon emissions from plants and either reuses or stores it so it will not disperse in the atmosphere.
LG Chem will also try to build social value with the carbon neutral growth program by creating a circular economic system that recycles its products and waste.
"We will push forward to develop eco-friendly products such as post-consumer recycled (PCR) plastic products and biodegradable plastics to establish a virtuous cycle of plastic waste recycling," it said. The company will commercialize polybutylene adipate terephthalate (PBAT), a biodegradable random copolymer used in plastic bags and wrapping materials.
LG Chem, which has the world's largest market share in the EV battery cell market, plans to create new battery cell demand in various sectors by reusing or recycling batteries.
The company currently develops technologies to forecast the lifespan of used batteries and will soon open energy storage system (ESS) facilities that utilize recycled secondary battery cells for recharging electric vehicles (EVs).
Under the new eco-friendly scheme, every new LG Chem plant is required to win "Landfill Zero" certification, given by international product safety testing and certification organization Underwriters Laboratory. The certification is given to a facility that achieves at least a 90 percent diversion from landfills. LG Chem's battery cell manufacturing plant in Michigan has won the "Landfill Zero" certification.
