Focusing on comprehensive carbon neutrality, LG New Energy releases ESG vision and strategy
The 8 key areas include:
▲C: Climate Action & Circular Economy, climate change response and virtuous resource cycle
▲H: Human Value Management, respect for human rights and personal value management
▲A: Advanced EH & S, product responsibility and environmental safety and health system
▲R: Responsible & Impactful Business, responsible supply chain management and the community influence that suppliers grow together
The 4 major elements include:
▲G: Good Governance, compliance and governance
▲E: ESG Disclosure & Communication, communication and ESG initiative
LG New Energy is committed to growing into an environmentally friendly company that focuses on environmental protection, fulfills its social responsibilities, and creates sustainable value in its operations. For this reason, LG New Energy`s ESG strategy has demonstrated a more specific course of action, with 7 core issues to gradually achieve "full carbon neutrality by 2050", "global use of green electricity by 2030", and "building a closed resource loop by 2025" Wait for the goal.
The seven core topics are: medium and long-term reduction and management of greenhouse gases, 100% use of renewable energy (RE100), construction of a global recycling business model, diversity management with a global perspective, and strengthening of eco-friendly product management systems , Improve the ESG risk management system of the supply chain and reduce the risk of safety and environmental accidents.
LG New Energy CEO Jin Zhong now said: "ESG operation is an important opportunity for LG New Energy to explore new businesses. It is a brand new milestone in creating sustainable social value through coexistence and win-win and building a virtuous and recyclable battery industry structure. This year is set as the first year of ESG management. It will accelerate the promotion of ESG management activities and contribute to the substantial improvement of human life."
Medium and long-term reduction and management of greenhouse gases: full carbon neutrality by 2050
In order to actively respond to the global issue of climate change, LG New Energy aims to actively play a leading role in the industry and promises to achieve full carbon neutrality by 2050. LG New Energy plans to gradually reduce carbon emissions in stages from 960,000 tons in 2019 to 2050 by actively promoting the conversion of renewable energy, improving energy efficiency through process improvements, and introducing high-performance equipment. Achieve a complete reduction of carbon emissions to zero and achieve true carbon neutrality.
100% use of renewable energy: full conversion of all factories in the world by 2030
LG New Energy will actively implement the RE100 initiative, and plans to convert the electricity used by all operating departments around the world into renewable energy green electricity by 2030.
RE100 is an acronym for "100% Renewable Energy" and is an international initiative whose goal is to replace the traditional electricity used by enterprises with renewable energy such as wind and photovoltaics by 2050. As a leading green energy company, LG New Energy promises to complete the target plan of the initiative 20 years ahead of the RE100 initiative, that is, before 2030. Through the use of green power pricing and the purchase of renewable energy certification (REC), LG New Energy has used 100% of green power in its factories in Poland and the United States, and plans to gradually expand the proportion of green power in its factories in China and South Korea.
Establish a global recycling and recycling business model: to create a closed loop of resources in 2025
With the rapid development of the electric vehicle market in recent years, the rapid increase in demand for power batteries has also brought about an increase in the number of waste batteries, which makes the treatment of waste batteries a focus. LG New Energy will begin to build a closed-loop resource system covering the entire supply chain of battery raw materials, production, consumption, and disposal to minimize environmental pollution. LG New Energy plans to complete closed-loop management of resources in all factories around the world by 2025.
In China, LG New Energy has established a localized battery resource life cycle closed-loop system, which sells used used batteries and waste products generated during battery production to recycling companies, and uses the nickel and cobalt extracted from the waste as a battery for making batteries. Cathode material.
At the same time, LG New Energy plans to strengthen strategic cooperation in building battery recycling business models in South Korea, Europe and the United States.
LG New Energy signed a used battery recycling cooperation with Li-Cycle, the largest battery recycling company in North America, through a joint venture with General Motors in the United States to recover nickel, cobalt, lithium, aluminum, graphite, copper, and manganese from used power batteries. And other raw materials.
Diversity management with a global perspective
As a global company, LG New Energy is constantly improving its personnel system and attaching importance to the cultivation of talents based on diversity. LG New Energy will continue to recruit talents in China, South Korea, the United States, Poland and other countries. As of the first half of the year, LG New Energy had nearly 25,000 employees worldwide, including 16,000 overseas employees.
LG New Energy plans to have an in-depth understanding of employees` understanding of different nationalities, races, genders, ages and other attributes during the year, and formulate relevant management indicators for tolerance and diversity. At the same time, in order to create a more open organizational culture, give overseas employees more responsibilities, so that all employees are not restricted by race and gender, and give full play to the potential of each employee.
Strengthen the eco-friendly product management system
LG New Energy is accelerating to provide customers with eco-friendly battery products. To this end, LG New Energy has built a chemical substance management system (CHARMS) to ensure the environmental protection of battery products. This system covers the entire life cycle of the product, and strictly manages the entire process from the purchase, warehousing, use, delivery, and disposal of raw materials, so as to achieve environmental safety accident prevention and compliance operations.
LG New Energy plans to achieve 100% environmental protection of battery materials and battery products globally in 2022 and 2023 through CHARMS.
Improve the ESG risk management system of the supply chain: The proportion of ESG low-risk suppliers reaches more than 90%
LG New Energy is actively strengthening supply chain management, which is regarded as a key element of the battery industry. With the rapid growth of the global battery market, issues related to the supply of raw materials have gradually become prominent, and the establishment of an ethical and transparent raw material supply chain management system has become a basic prerequisite for the development of the battery industry. LG New Energy began to verify the compliance of supply chain management from the new supplier selection stage, and through regular evaluation and inspection and risk improvement, it began to strictly manage supply chain risks from the early stage.
According to the code of conduct, LG New Energy`s partners must comply with standards related to human rights, labor rights, ethics, environmental sustainability, and responsible mineral procurement.
In addition, by strengthening the ESG status tracking and support of the supply chain, LG New Energy plans to increase the proportion of [ESG low-risk" suppliers to more than 90% by 2030.
Reduce the risk of safety and environmental accidents: zero major accidents
LG New Energy aims to "zero major accidents" and is committed to eliminating the risk of environmental safety accidents in production and operation. LG New Energy conducts centralized inspections of important processes and improves facilities that may have risk factors. At the same time, LG New Energy also plans to complete the development of digital technology that can prevent safety accidents by 2023, and is committed to building the safest factory.
With the rise of ESG business philosophy around the world, LG New Energy, as a global leader in the new energy field, takes the lead and adheres to the pace of ESG management. In the future, LG New Energy`s business activities will fully consider the three aspects of environment, society, and governance, and is committed to providing customers with sustainable energy solutions. In the future, it will better give back to society and the public, relying on leading ESG management. Create sustainable long-term value for the company and society.
