LG Chem puts priority on sustainability
Last year, LG Chem declared to realize “carbon-neutral growth” through 2050 for the very first time in the Korean chemical industry. Since then the company has been actively pushing forward its agenda on sustainable growth such as climate change response, a transition to renewable energy and promoting resource recycling.
LG Chem is aiming to cut down its carbon emissions to the same level as that of 2019. Based on its current speed of growth, LG Chem should offset over 30 million tons of carbon emissions to meet the goal.
To this end, LG Chem is striving to ensure renewable energy supply through various means. For one, LG Chem decided to switch to renewable energy 100 percent (RE100) in all of its workplaces around the world and is accelerating its RE100 project by participating in the Green Premium Program. Tech Center in Osan and Yeosu Complex have reached RE100 so far. Also, LG Chem has become the first domestic firm to directly purchase renewable energy from China through the power purchase agreement, enabling Leyou New Energy Materials in Wuxi to operate solely on renewable energy from this year.
Moreover, LG Chem has signed a strategic partnership with Neste, one of the largest diesel companies in the world, to produce eco-friendly synthetic resins from bio-materials. Some 50 percent of greenhouse gas emissions are expected to be cut when fossil fuels are replaced with bio-materials.
LG Chem is also actively developing eco-friendly products such as postconsumer recycled (PCR) plastic and biodegradable materials, in a bid to create a virtuous cycle of resource circulation and to solve environmental pollution problems. LG Chem provides eco-friendly plastic comprised of 60 percent PCR polycarbonate to global information technology companies and plans to further expand its product line in the future.
Furthermore, LG Chem issued an environmental, social and governance (ESG) bond worth some 820 billion won on February 15. It is the largest amount of corporate ESG bond yet for a private firm in Korea. The funding raised by the ESG bond is going to be utilized for sustainable solutions for both the environment and society.
LG Chem plans to further strengthen its foothold as a leading company in ESG management and sustainable growth across all of its business sectors.
By Shin Ha-nee [email@example.com]