LG Energy Solution is rolling up its sleeves to become an eco-friendly company that prioritizes the environment, fulfils social responsibilities, and shapes a sustainable future with its ESG management strategy. Under the vision “We CHARGE toward a better future,” LG Energy Solution detailed its plans for ESG management by outlining critical areas and key enablers, critical in achieving its business strategy.
With it, LG Energy Solution will concentrate on seven core tasks, which includes achieving carbon neutrality by 2050, transitioning all business operations to 100% renewable energy by 2030, and establishing a virtual circular value chain for resources by 2025. “ESG management is a new opportunity for LG Energy Solution in seeking to expand its business reach,” said Jong Hyun Kim, president and CEO of LG Energy Solution. “LG Energy Solution will accelerate efforts to innovatively transform human lives with its ESG management.”
Seven Core Tasks In Achieving ESG
Mid- To Long-Term Reduction And Management Of Greenhouse Gas
Through various means, LG Energy Solution will reach net zero emissions by 2050, by eliminating some 960,000 tons of greenhouse gas emission in stages, tallied in 2019. To achieve that goal, LG Energy Solution will convert to renewable energy and improve energy efficiency by utilizing high-performance equipment at its operation sites.
Climate Action And Renewable Energy
LG Energy Solution will completely transition its use of electricity to renewable energy at all of its business operations by 2030.
RE100, short for Renewable Electricity 100%, is a global corporate initiative seeking to mobilize 100% of electric power with renewable energy sources such as wind and solar power by 2050.
Leading the green-energy initiative, LG Energy Solution will cut the target date by 20 years to complete RE100 by 2030.
Already, the battery manufacturer has completed the transition of all its electric power in its Polish and American operations by utilizing Green Pricing and Renewable Energy Certificate (REC). LG Energy Solution will extend such transformation at its operations in Korea and China.
LG Energy Solution plans on revitalizing circular economy in the supply network of the battery sector that includes sourcing of battery materials, battery production, battery consumption, and disposal of materials.
Such efforts to minimize environmental contamination by utilizing resources comes as the global demand for electric vehicle (EV) batteries have been on the rise, leading to the acceleration of the sales and production of electric vehicles. LG Energy Solution is confident it will be able to complete the establishment of a closed loop for EV battery life cycle by 2025 at all of its operations.
In China, LG Energy Solution has already established a localized closed-loop system of EV battery life cycle, where extracted battery materials like nickel and cobalt from disposed batteries are being used to reproduce anode materials. The battery manufacturer plans on extending the management of EV battery life cycle at its overseas operations in the United States, Europe, and Korea.
Ultium Cells LLC, a joint venture between LG Energy Solution and General Motors, teamed up with Canadian lithium-ion battery recycling firm Li-Cycle earlier this year to recycle raw materials from disposed EV battery cells such as nickel, cobalt, lithium and aluminum.
HR Policy Based On Diversity
LG Energy Solution thrives to reform and cultivate its human resource measures based on diversity.
As of the end of June, the total number of LG Energy Solution employees, globally, have tallied at 24,700, of which 8300 are located in Korea. The battery manufacturer continues to recruit talents from various countries including Korea, the United States, China, and Poland.
Priding itself as a global corporation, LG Energy Solution plans on implementing an active management policy that respects its employees’ nationality, race, and gender.
Development Of Eco-Friendly Innovative Technology
To upgrade customer value, LG Energy Solution is committed to providing environmentally friendly and competitive materials and solutions to customers.
LG Energy Solution has implemented the Chemical Assurance and Regulation Management System (CHARMS), a system that guarantees environmental friendliness of battery-related materials. Under the program, LG Energy Solution is able to manage the eco-friendliness of battery related chemical products’ purchase, usage, and disposal.
Through the CHARMS management system, LG Energy Solution aims to secure complete environmental friendliness of battery material and battery products by 2022 and 2023 respectively.
Responsible Supply Chain Management
LG Energy Solution plans on taking responsible supply chain management into its own hands.
Managing an ethical and a transparent supply chain is becoming a prerequisite for the battery industry, especially as the industry is expanding fast overgrowing global demand for EVs. To level with the elevated standards, LG Energy Solution goes through an advanced verification system of its potential suppliers and administers regular checkups to make sure the suppliers meet the criteria established.
Under a code of conduct, partners to LG Energy Solution must follow standards regarding human rights, labor rights, ethics, environmental sustainability, and responsible mineral procurement.
Safety And Environment-Oriented Management And Accident Prevention
LG Energy Solution continues its drive to completely remove environmental-related accidents that might occur at workplaces.
Operating an Environment, Health, and Safety management system based on the international standards, the battery manufacturer is taking sturdy initiatives to eliminate potential accidents and continuously enhance the system.
To prevent potential accidents, LG Energy Solution plans on developing digital transformation techniques by 2023 and then will implement them into its global operation sites.