/ Asearg/August 03, 2022 Guangzhou -- LG New Energy released the 2021ESG Report today, in which it revealed its plan to achieve RE100 in all production bases worldwide by 2025: LG New Energy's global production bases in Korea, North America, Europe and China will be fully converted to the RE100, which means that LG New Energy's global production base will be run solely on renewable energy in the future. In the introduction to the report, CEO Kwon Young-soo said, "In essence, batteries are closely related to the concept of ecological friendliness, which is the core driving force for sustainable development and the core industry of the future." "Building on the achievement of the carbon neutral goal, we will further pursue 'negative carbon' in all aspects of management and, as an ultimate goal, commit to do our utmost to demonstrate leadership in addressing global climate change."
Practice RE100 to pursue "negative carbon" goal
This "2021ESG report" highlights that LG New Energy takes RE100 as the core, aims to develop medium and long-term plans, and clearly completes the task of comprehensively achieving carbon neutrality: By 2025, LG New Energy will achieve RE100 in all production bases worldwide, and by 2030 in non-manufacturing operations such as R&D centers. To upgrade carbon-neutral plans by 2040, including completing the conversion of all energy sources other than electricity, such as fuel and gas, to renewables; By 2050, it will be carbon neutral across the entire value chain, from resource extraction to battery manufacturing, and will also optimize its suppliers to implement RE100 in their own operations. "We will achieve RE100 across the value chain by 2050 by monitoring suppliers' carbon emissions, supporting their participation in RE100 and encouraging their carbon abatement activities. After that, we will actively pursue the 'negative carbon' goal of turning carbon emissions into negative." LG New Energy said.
According to The RE100 2021 Disclosure Report released by The Climate Group, a global non-profit organization and CDP: Carbon Disclosure Project, sponsors of the RE100 Initiative: In 2020, LG New Energy's global production base converted 33 percent of renewable energy, ranking first among 14 Korean companies that have joined the RE100 initiative. And LG New Energy is not stopping there, aiming to increase its conversion rate to more than 60 percent by the end of this year, nearly double its 2022 target.
Four core tasks to improve ESG management
In addition to leading the task of carbon neutrality, the 2021ESG Report also lists three other core tasks that need to be completed in order to achieve ESG target management, including the whole industrial chain closed-loop system, supply chain sustainability, Organizational diversity, equity and inclusion.
First, in the closed-loop system of the whole industrial chain, the company set the goal of realizing zero waste landfill in all commercial places by 2023 and establishing localized closed-loop system of battery resource life cycle. In order to achieve this goal, LG New Energy is developing various waste disposal technologies and aims to get all companies certified as "zero waste landfill" by the end of next year. In this regard, the Nanjing Factory in China (LGESNJ) has received the highest platinum rating from the global certification agency Underwriters Laboratories (UL); In addition, the Michigan Plant (LGESMI) has been certified as a zero landfill site by the National Foundation of Health (NSF) for five consecutive years (since 2018) due to its total landfill rate of less than 1%(the percentage of waste sent to the landfill as generated). Second, in terms of supply chain sustainability, in November 2021 LG New Energy became the first Korean battery manufacturer to join the RBA(a global alliance committed to global supply chain sustainability) to conduct inspection and improvement activities on its domestic and international business premises and suppliers in accordance with the Code of conduct of the Responsible Business Alliance (RBA). Through these efforts, risks related to labor, health & safety, environment and business ethics are prevented.
< /p>Finally, in terms of organizational culture, LG New Energy always pursues diversity, fairness and inclusiveness. The company actively establishes a culture where 1) all members treat each other with respect and there is no discrimination based on race, nationality, gender, or disorder, 2) all members are treated fairly, and 3) all employees understand and respect each other. "We have built a culture of sharing, creating an environment where talented people from all backgrounds come together to achieve the best results and focus on mission-critical tasks." LG New Energy said.
