LG Group announced a plan to pursue carbon neutrality at the group level, the first time for a major conglomerate in Korea, revealing its commitment to reduce greenhouse gas emissions and develop eco-friendly technologies to reduce net carbon emissions to zero by 2050, Sunday.
LG Group published an "LG Net Zero Special Report" containing specific carbon reduction goals, making LG the first company to specifically disclose a group-level plan to promote carbon neutrality in the form of a report.
|LG Group Chairman Koo Kwang-mo|
"We have established a carbon-neutral roadmap at the group to allow people to see the current status and goals of carbon neutrality of LG affiliates in various types of businesses such as electronics, chemistry, and communication services at a glance," an LG official said.
According to the report, LG will invest about 3.4 trillion won ($2.71 billion) by 2030 in developing new technologies for reducing carbon, such as blue hydrogen and green hydrogen technologies, which are attracting attention as eco-friendly energy sources.
LG Electronics, LG Display, LG Innotek, LG Chem, LG Energy Solutions, LG Household & Health Care, and LG Uplus, which account for 99 percent of the group's greenhouse gas emissions, presented practical and step-by-step greenhouse gas reduction targets and action plans.
LG made climate change response a top priority in ESG management. Through the publication of the net zero report, the carbon neutral goals and action plans, previously different for each affiliate, were integrated into group-level goals.
LG plans to implement a system centered on climate governance highlighting multiple strategies to achieve carbon neutrality that includes converting 100 percent of the electricity required by major affiliates to renewable energy by 2050, directly reducing greenhouse gas emissions and discovering mid- to long-term offset projects, such as creating forests that can directly absorb and remove carbon.
By 2050, LG plans to convert 100 percent of its major affiliates' electricity for domestic and overseas business sites to renewable energy. The ratio of electricity use made from renewable energy such as solar and wind power will continue to increase to 54 percent in 2025, 83 percent in 2030, 94 percent in 2040, and 100 percent by 2050.
To directly reduce greenhouse gas emissions, LG plans to carry out reduction activities such as improving energy efficiency by replacing facilities with high-efficiency ones, reusing waste heat, substituting fossil fuels with biofuels, and installing reduction facilities to remove process gases.