Aug 1, 2021
LG Energy Solution is rolling up sleeves to become an eco-friendly company that prioritizes environment, fulfils social responsibilities and shapes sustainable future with its ESG management strategy. The company on Sunday announced its visions and business strategy
Under the vision "We CHARGE toward a better future," LG Energy Solution detailed its plans for ESG management by outlining critical areas and key enablers, critical in achieving its business strategy.
Committed to achieving a greener future as a lead player of the global battery industry, LG Energy Solution focuses on critical areas symbolized as: C: Climate Action & Circular Economy, H: Human Value Management, A: Advanced EH & S, R: Responsible & Impactful Business and key enablers as G: Good Governance, E: ESG Disclosure & Communication.
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With it, LG Energy Solution will concentrate on 7 core tasks, which includes achieving carbon neutrality by 2050, transitioning all business operations to RE100 by 2030 and establishing virtual circular value chain for resources by 2025.
The 7 core tasks are as follows: Mid-to-long term reduction and management of greenhouse gas, Climate Action & Renewable Energy, Circular Economy, HR Policy Based on Diversity, Development of Eco-Friendly Innovative Technology, Responsible Supply Chain Management and Safety and Environment-Oriented Management and Accident Prevention.
"ESG management is a new opportunity for LG Energy Solution in seeking to expand its business reach. This will guide us to create social values and establish a virtuous cycle of battery ecosystem," said Jong Hyun Kim, the President and CEO of LG Energy Solution. "LG Energy Solution will accelerate efforts to innovatively transform human lives with its ESG management."
7 Core Tasks in Achieving ESG
Mid-to-long term reduction and management of greenhouse gas
To actively respond to the global climate related issues, LG Energy Solution will move to achieve carbon neutrality by 2050. Through various means, LG Energy Solution will reach net zero emissions by 2050, by eliminating some 960,000 tons of greenhouse gas emission in stages, tallied in 2019. To achieve that goal, LG Energy Solution will convert to renewable energy and improve energy efficiency by utilizing high-performance equipment at its operation sites.
Climate Action & Renewable Energy
LG Energy Solution will completely transition its use of electricity to renewable energy at all of its business operations by 2030.
RE100, short for Renewable Electricity 100%, is a global corporate initiative seeking to mobilize 100% of electric power with renewable energy sources such as wind and solar power by 2050.
Leading the green-energy initiative, LG Energy Solution will cut the target date by 20 years to complete RE100 by 2030.
Already, the battery manufacturer has completed transition of all its electric power in its Polish and American operations by utilizing Green Pricing and Renewable Energy Certificate (REC). LG Energy Solution will extend such transformation at its operations in Korea and China.
LG Energy Solution plans on revitalizing circular economy in the supply network of battery sector that ranges from sourcing of battery materials, battery production and consumption to disposal of material.
Such efforts to minimize environmental contamination by utilizing resources comes as the global demand for EV batteries have been on the rise, leading to acceleration of sales and production of electric vehicles. LG Energy Solution is confident it will be able to complete establishment of closed loop for EV battery life cycle by 2025 at all its operations.
In China, LG Energy Solution has already established a localized closed loop system of EV battery life cycle, where extracted battery materials like nickel and cobalt from disposed batteries are being used to reproduce anode materials. The battery manufacturer plans on extending the management of EV battery life cycle at its overseas operations in the U.S., Europe and in Korea.
Ultium Cells LLC, a joint venture between LG Energy Solution and General Motors, has teamed up with Canadian lithium-ion battery recycling firm Li-Cycle early this year to recycle raw materials from disposed EV battery cells such as nickel, cobalt, lithium and aluminum.
HR Policy Based on Diversity
LG Energy Solution thrives to reform and cultivate its human resource measures based on diversity.
As of the end of June, a total number of LG Energy Solution employees, globally, have tallied at 24,700, of which 8,300 are located in Korea. The battery manufacturer continues to recruit talents from various countries including Korea, U.S., China and Poland.
Priding as a global corporation, LG Energy Solution plans on implementing an active management policy that respects its employees' nationality, race and gender.
Development of Eco-Friendly Innovative Technology
To upgrade customer value, LG Energy Solution is committed to providing environmentally friendly and competitive materials and solutions to customers.
LG Energy Solution has implemented the Chemical Assurance and Regulation Management System, otherwise known as the CHARMS, a system that guarantees environment friendliness of battery related materials. Under the program, LG Energy Solution is able to manage the eco-friendliness of battery related chemical products' purchase, usage and disposal.
Through the CHARMS management system, LG Energy Solution aims to secure complete environment friendliness of battery material and battery products by 2022 and 2023 respectively.
Responsible Supply Chain Management
LG Energy Solution plans on taking responsible supply chain management into its own hands.
Managing an ethical and a transparent supply chain is becoming a prerequisite for battery industry, especially as the industry is expanding fast over growing global demand for EVs. To level with the elevated standards, LG Energy Solution goes through advanced verification system of its potential suppliers and administer regular checkups to make sure the suppliers meet the criteria established by LGES.
Under a code of conduct, partners to LG Energy Solution must follow standards regarding human rights, labor rights, ethics, environmental sustainability and responsible mineral procurement.
Safety and Environment-Oriented Management and Accident Prevention
LG Energy Solution continues its drive to completely remove environment-related accidents that might occur at workplaces.
Operating an EHS (Environment, Health and Safety) management system based on the international standards, the battery manufacturer is taking sturdy initiatives to eliminate potential accidents and continuously enhance the system.
To prevent potential accidents, LG Energy Solution plans on developing Digital transformation (DX) techniques by 2023 and then will implement them into its global operation sites.