LG Energy Solution aims to achieve RE100 in all global manufacturing sites by 2025

  • The initiative was introduced in the 2021 ESG report released today
  • The company will focus on “Carbon Negative” after achieving carbon neutrality across the entire value chain by 2050

Seoul, South Korea, August 2, 2022 /PRNewswire/ — LG Energy Solution (LGES; 373220) has announced plans to achieve RE100 at all of its global manufacturing sites by 2025.

In its 2021 ESG Report, released today, the company said it will complete its RE100 conversion at all of its global battery manufacturing sites (in Korea, North America, Europe, Chinaetc.), which means that they will run entirely on renewable energy.

RE100 is the acronym for “Renewable Electricity 100%”, a global initiative allowing companies to convert 100% of their energy sources to renewable energies, such as wind and solar.

According to the RE100 2021 annual disclosure report published by the international non-profit organization Climate Group and the Carbon Disclosure Project (CDP), the conversion rate of global commercial LGES sites to renewable energy reached 33% in 2020, the highest percentage among the 14 national companies. companies committed to the RE100 approach. The company now aims to increase its conversion rate to over 60% by the end of this year.

LGES also announced a specific roadmap to carry out this initiative in the medium and long term and achieve carbon neutrality, which revolves around the previously mentioned objective for RE100.

The company first plans to achieve RE100 at every global manufacturing site by 2025, with its commercial non-manufacturing sites, such as R&D centers, to follow by 2030. By 2040, LGES has the intention to implement the enhanced version of carbon neutrality, which involves the conversion of all energy sources other than electricity, including fuels and gas, to renewable energy sources. By 2050, the company will have achieved carbon neutrality across the entire value chain, from mining resources to battery manufacturing, with its suppliers also achieving RE100 within their own businesses.

“We will achieve RE100 across the entire value chain by 2050 by monitoring our suppliers’ carbon emissions, approving their participation in the RE100 and encouraging their carbon reduction campaigns,” says LGES. “After that, we will actively pursue our goal of becoming ‘Carbon Negative’, by converting carbon emissions to negative values.”

In the recently released ESG report, LGES also presented its visions and achievements in four priority tasks for successful ESG management. These tasks are: 1) Beyond Carbon Neutral, 2) Perfect Closed Loop, 3) Supply Chain Sustainability, 4) Diversity, Equity, Inclusion.

As a first step, the company aims to establish a perfect closed loop achieving zero waste to landfill at all commercial sites by 2023. To achieve this, LGES is developing various technologies to properly dispose of waste, with the goal of obtaining Landfill Zero certification for each commercial site by the end of next year.

In this regard, China The Nanjing LGESNJ plant has already achieved the highest platinum rating from Underwriters Laboratories (UL), the global certification agency. Also, the company Michigan (LGESMI) has been certified Landfill Zero for five consecutive years (since 2018) by the National Sanitation Foundation (NSF), for its overall landfill rate of less than 1% (waste sent to landfill as a proportion of waste generated).

Then, LGES commits its efforts to ensure the supply chain sustainability by carrying out inspections and improvement activities at its domestic and foreign business sites, as well as at suppliers, in accordance with the Responsible Business Alliance (RBA) code of conduct. Through these efforts, the company specifically aims to prevent risks related to work, health and safety, the environment and business ethics. In November 2021LGES has become the first Korean battery manufacturer to join the RBA, a global coalition dedicated to sustainability in global supply chains.

Finally, LGES will pursue an organizational culture that takes into account diversity, equity and inclusion. The company strives to establish a culture in which 1) all members respect each other without engaging in discrimination based on race, nationality, gender, religion or disorder, 2) all members are subject to fair treatment and 3) mutual understanding and respect between all employees is present.

“LG Energy Solution has established a culture of sharing to create an environment where exceptional people from diverse backgrounds can come together to create the best outcome and focus on key tasks.” says LGES.

The six key activities of organizational culture include: 1) a reporting and meeting culture focused on key tasks, 2) a work-only culture focused on performance, 3) a horizontal culture without title, 4) a culture full of gratitude and praise, 5) a fun work culture that cares about physical and mental well-being, and 6) a sharing culture that spreads love to neighbors.

In addition, the 2021 ESG Report highlights ESG activities performed not only by LGES employees in Korea and overseas, but also by employees on the supplier side. The report also makes sense because it was printed on 100% recycled paper with soy ink.

“The battery, by nature, is closely related to the concept of environmental friendliness, and is a key driver for sustainable life and a basic industry of the future,” said Youngsoo Kwon, CEO of LG Energy Solution in his preface. “Going a step further than carbon neutrality, we will pursue ‘Carbon Negative’ as the ultimate goal in all aspects of management and will commit our best efforts to demonstrate our leadership in the fight against global climate change.”

About LG Energy Solution

LG Energy Solution (KRX: 373220), a spin-off from LG Chem, is one of the world’s leading manufacturers of lithium-ion batteries for electric vehicles, mobility, computing and energy storage systems. With 30 years of experience in breakthrough battery technology and extensive research and development (R&D), the company is the world’s largest battery-related patent holder with over 24,000 patents. Its strong global network, which spans North America, Europe, Asia and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis NV and Hyundai Motor Group. At the forefront of green business and sustainability, LG Energy Solution aims to achieve carbon neutral operations by 2050, while embodying the value of shared growth and promoting a diverse and inclusive corporate culture. To learn more about LG Energy Solution ideas and innovations, visit https://www.lgensol.com.

SOURCE LG Energy Solutions