LG Group announced on Thursday that it has published the "2023 ESG Report," detailing its sustainability management achievements in 2023 and its future plans.
The group explained that it proactively incorporated domestic and international standards into the report, ahead of the upcoming mandatory ESG disclosures, to strengthen communication with stakeholders.
The latest report was prepared by reflecting the international sustainability disclosure standards IFRS S1 (General Requirements) and S2 (Climate Change), as well as the draft ESG disclosure standards of the Korean Sustainability Standards Board (KSSB).
In addition to launching the IT platform "LG ESG Intelligence," which contains ESG-related information from 10 subsidiaries last year, LG plans to analyze the financial impacts of environmental and social issues on its business through the ESG report starting this year.
The report identifies and focuses on three key areas for sustainability: climate change, safety, and health and compliance management.
In particular, the climate change section focuses on four subsidiaries (LG Electronics Inc., LG Chem Ltd., LG Uplus Corp., LG CNS) that account for about 70% of the group’s carbon emissions.
LG analyzed the physical and transitional risk factors related to climate change over short-term (before 2025), mid-term (2025-2030) and long-term (by 2050) periods.
Based on this analysis, LG plans to enhance its risk management strategies and actively promote businesses that align with the government-designated green economic activities, such as secondary batteries and electric vehicles, HVAC (Heating, Ventilation and Air Conditioning) systems and high-efficiency heat pumps, and carbon capture and utilization technologies to respond to climate change.
Last year, LG Group established its "2050 Carbon Neutral" goal and has been systematically working toward it through the group-level "LG Net Zero Special Report."
In 2022, LG Electronics, LG Chem, LG Uplus and LG CNS collectively reduced their carbon emissions by approximately 580,000 tons of CO2 equivalents (CO2eq) compared to the previous year, while increasing their use of renewable energy by about 77%.