LX International Corp.

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Scope 2 Emissions:454.3 tCO2eq (2020)

ESG Focus Areas

Environment
Social
Governance
Economy

Environmental Achievements

Embarking on carbon credit trading business utilizing palm effluent in 2021: breaking ground for a biogas plant within our plantations and signing three MOUs with external plantations as part of the efforts to set the stage for the expansion of new and eco-friendly businesses.
Greenhouse gas (GHG) emissions reduced through the hydroelectric power generation in Indonesia
Achieved ‘A’ in KCGS evaluation for 2 consecutive years
Secured 200,000 tons of certified emissions credits from Hasang Hydro Electric Power Plant
Accumulated carbon credits issued by the UN amounted to 216,000 tons/CO2 until 2021

Social Achievements

Rated ‘A+’ in the social sector for fulfilling its social responsibilities by KCGS
Obtained the 'family-friendly company' certification from the Ministry of Gender Equality and Family in December 2021.
Achieved 100% completion rate of human rights education in 2021
GAM helped Bumi Rapak village discover the source of clean water and install water pipes connecting this source to the village.

Governance Achievements

Achieved ‘A’ in KCGS evaluation for 2 consecutive years
Establishment of ESG Council in July 2021
Appointed first female outside director in March 2022

Climate Goals & Targets

Long-term Goals:

Minimize environmental footprint by expanding the measurement coverage of environmental data, including GHGs, energy, water and waste, and manage them on a regular basis.

Medium-term Goals:

Aiming at 6 million tons of ore production for 2026 in nickel business
Grow into a company that takes the lead in the biomass power generation business by 2026

Short-term Goals:

Complete and begin operation of eco-friendly complex logistics center in Busan in the first half of 2025

Environmental Challenges

Global supply chain instability is growing due to various factors such as the COVID-19 outbreak, changing international circumstances, and climate change.
Impact of the coal business on the global environment

Mitigation Strategies

Building and reviewing a supply chain to quickly respond to the supply-demand market imbalance and secure opportunities in the new material field.
Lowering economic dependence on coal industry and minimizing negative environmental impact
Pushing forward the business transition by putting the human and material resources and efforts into nickel mine development in the future.

Supply Chain Management

Responsible Procurement

Commitment to practicing Jeong-Do management from partners
Checking records of safety and environmental accidents and local law violations using a checklist during the partner selection process

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events

Transition Risks

Transition to a carbon-free society

Opportunities

Expansion of eco-friendly businesses, including rechargeable batteries and biodegradable plastics

Reporting Standards

Frameworks Used: GRI Standards Core Option

Certifications: ISO 9001, ISO 13485, ISO 14001, ISO 28000, ISO 45001, AEO, Green Logistics Company, CELC, CESS, ISMS-P, ISPO, CEIV-Pharma

Third-party Assurance: Korean Standards Association (KSA)

UN Sustainable Development Goals

SDG 6 (Clean Water and Sanitation)
Other SDGs (mentioned but not specified)

Initiatives contribute to SDGs through water treatment plant installation, community development projects, and GHG emission reduction.

Sustainable Products & Innovation

Biodegradable plastics (PBAT)

Awards & Recognition

Rated A in overall ESG evaluation (Korea Corporate Governance Service, 2021)
Red Dot Design Award for homepage renewal (2021)
Best ESG Company Award (Korea Corporate Governance Service, 2020)

Reporting Period: 2022