Climate Change Data

LX Hausys Co., Ltd.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:111,509 tCO2e/year (2023)
Scope 1 Emissions:37,626 tCO2e/year (2023)
Scope 2 Emissions:73,883 tCO2e/year (2023)
Scope 3 Emissions:91,357 tCO2e/year (2023)
Renewable Energy Share:0.0511% (2023)
Total Energy Consumption:2,247 TJ/year (2023)
Water Consumption:613,442 tons/year (2023)
Waste Generated:28,055 tons/year (2023)
Carbon Intensity:3.16 tCO2eq/KRW 100 million (2023)

ESG Focus Areas

  • Climate Change Response
  • Environmental Management
  • Resource Management
  • Safety and Health Management
  • Sustainable Products
  • ESG Supply Chain Management
  • Jeong-do Management and Compliance Management
  • Governance
  • Integrated ESG Risk Management

Environmental Achievements

  • Reduced Scope 1 & 2 emissions by 1,117 tCO2eq
  • Received the Green Product of the Year award from the Korea Green Purchasing Network for PF insulation materials, windows, and wall coverings
  • Formulated new biodiversity conservation regulations for local ecosystems
  • Achieved 96% waste recycling rate at Cheongju Plant and 90% at Ulsan Plant

Social Achievements

  • Provided flooring materials to childcare centers as part of the Childcare Space Green Transition Support Project
  • Donated decorative materials for flood victims in Chungcheong-do Province
  • Awarded for the Residential Building Materials category in KCSI (Korea Customer Satisfaction Index) for 3 consecutive years
  • Implemented Win-Win Fund, benefiting 42 companies

Governance Achievements

  • Established an ESG management strategic system and vision in 2023
  • Listed on DJSI Korea since 2015
  • Implemented a pilot program of GHG KPI to business units for achieving 2050 Net-Zero
  • Established ESG Committee in 2022

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero by 2050
Medium-term Goals:
  • Develop 100% eco-friendly industrial films by 2030
Short-term Goals:
  • Achieve Net Zero by 2050

Environmental Challenges

  • Sluggish domestic market for construction and decorative materials
  • Slowdown in downstream sectors such as domestic construction and the real estate market
  • Increased demand for investment in climate change response, mandatory disclosure of climate-related data, and enhanced GHG emission regulations
  • Potential physical damage to business sites due to extreme weather conditions
  • Changes in lifestyle and product demand due to changing climate patterns
  • Fluctuations in raw material prices in supply chain due to changing climate patterns
  • Non-compliance with environmental laws and regulations
Mitigation Strategies
  • Improving showroom operation efficiency and online-based customer response
  • Selling high-value-added products
  • Expanding global businesses
  • Establishing mid-to-long-term GHG emissions reduction goals and implementation strategies
  • Developing and implementing annual GHG emissions reduction projects
  • Monitoring global ESG and climate change policies/regulations
  • Developing eco-friendly foaming gas with less ozone-depleting substances
  • Replacing with high-efficiency facilities and switching to low-carbon fuel
  • Investing in supplier facilities and supporting energy efficiency improvement
  • Managing certified products’ carbon footprints
  • Developing a carbon-neutral strategy and action plan
  • Establishing self-generating facilities at business sites
  • Conducting regular disaster recovery drills
  • Meeting stakeholder needs by developing products that are made of eco-friendly/recycled materials and feature high-efficiency
  • Implementing measures to enhance waste recycling
  • Replacing facilities to enhance energy efficiency
  • Renewing eco-friendly products certificates and increasing the number of certificates
  • Conducting regular compliance assessments
  • Establishing company-wide environmental management goals

Supply Chain Management

Supplier Audits: 410 suppliers underwent ESG risk assessment (2023)

Responsible Procurement
  • LX Hausys Supplier Code of Conduct
  • ESG assessments
  • Green purchasing guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather conditions
  • Flooding
  • Wildfire
Transition Risks
  • Policies and Laws
  • Technology
  • Market
  • Reputation
Opportunities
  • Resource efficiency
  • Resilience
  • New products and services

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, SASB

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949

Third-party Assurance: BSI

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13

Various activities aligned with the SDGs

Sustainable Products & Innovation

  • View Frame window
  • LX Z:IN PF Board
  • Lightweight composite materials
  • Recycled Furniture Film
  • Semi-noncombustible insulation materials
  • Special Flame-retardant CFT

Awards & Recognition

  • Green Product of the Year
  • Consumers’ Choice Awards
  • KCSI top company in residential building materials for three consecutive years