Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain
• Health & Safety
• Human Resources
• Board of Directors
• Diversity & Inclusion
• Governance
• Water Resources
• Circular Economy
• ESG Management System

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1+2) from 21,754 thousand tCO2eq in 2021 to 19,365 thousand tCO2eq in 2022.
• Increased renewable energy consumption rate from 5.1% in 2021 to 15.37% in 2022.
• Improved waste recycling rate from 74% in 2021 to 77.1% in 2022.
• Reduced water consumption by 107 million tons, surpassing the 2022 goal of conserving 111 million tons.
• LG Display’s Yantai subsidiary achieved platinum ‘Zero Waste to Landfill (ZWTL)’ certification (with a recycling rate of 100%) in 2021. In 2022, all Korean production plants received the gold ZWTL certification (with a recycling rate of 95% and above), and the LG Display Nanjing plant also received the platinum certification.
• Reduced greenhouse gas emissions from process gases by 1.52 million tons in 2022 (LG Display).

Social Achievements

• Launched ‘Red Circle Weekly Event’ to help employees avoid developing cerebral and cardiovascular diseases.
• Established an in-house clinic to offer professional medical services to employees (LG Energy Solution).
• Opened the ‘Green Mind Psychological Counseling Room’ for employee mental health (LG Energy Solution).
• Reduced the number of unresolved customer complaint calls since 2020 (LG U+).
• Improved customer satisfaction from 75.1% in 2021 to 78.7% in 2022 (LG Display).

Governance Achievements

• Established an ESG Committee under its Board of Directors in May 2021.
• Maintained a 100% attendance rate at board meetings in 2022.
• Over half of the board members are independent directors, ensuring the board’s independence.

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (transition risks, physical risks, reputational risks)
• Supply chain disruptions
• ESG data management at overseas workplaces (leading to increased LTIFR in 2022)

Mitigation Strategies

• Established climate governance centered around the ESG Committee and the Group Climate Change Council.
• Developed an integrated roadmap for achieving net-zero by 2050.
• Implemented a safety and health management system with action plans.
• Implemented an ESG information control system and LG ESG Intelligence platform.
• Strengthened supply chain ESG risk evaluation system and conduct annual evaluations.

Supply Chain Management

Supplier Audits: Annual ESG self-assessments and on-site inspections.

Responsible Procurement

• Supplier Code of Conduct
• ESG risk evaluation system
• RMAP certification for conflict minerals
• RSPO-certified palm oil

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of natural disasters
• Rising sea levels
• Higher average temperatures

Transition Risks

• Rise in the price of greenhouse gas credits
• Increase in carbon credit debt
• Changes in customer preferences
• Increased demand for disclosure of information on net-zero achievement and renewable energy usage

Opportunities

• Development of energy-efficient products
• Development of low-carbon technologies
• Transition to renewable energy

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD, SASB

Certifications: ISO 22301

Third-party Assurance: Korea Management Registrar (KMR)

Sustainable Products & Innovation

• Recycled plastics
• Bio-based and biodegradable plastics
• High-efficiency products
• Waterless washing machine

Awards & Recognition

• Gold and silver awards at the New York Festival for Tilda (AI artist)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Compliance Management
• Health and Safety

Environmental Achievements

• Reduced GHG emissions by 5% from the previous year (11,362 thousand tons in 2023)
• Increased renewable energy use through solar power generation, PPAs, and REC purchases (LG Electronics)
• Reduced direct GHG emissions by switching to low-carbon fuels, including hydrogen and biomass boilers (LG Chem)
• Achieved 10.7% renewable electricity conversion rate in 2023

Social Achievements

• Maintained a 'zero' Lost Time Injury Frequency Rate (LTIFR) for LG Corp. and three subsidiaries for the past two years
• Reduced D&O's LTIFR by 10% compared to the previous period
• Increased self-assessment completion rate among suppliers to 90% in 2023

Governance Achievements

• Established a 'Board-Centric Compliance Governance' system across LG Group
• 100% participation rate in the annual compliance self-assessment in January 2024
• All employees completed at least one compliance training session

Climate Goals & Targets

Environmental Challenges

• Transition risks associated with carbon regulations, rising electricity prices, and the RE100 transition
• Physical risks from extreme heat/heat waves and coastal flooding
• Risks related to aging facilities and equipment, inadequate emergency response systems, and suppliers with insufficient health and safety management systems

Mitigation Strategies

• Investing in carbon credits, renewable energy transition, hydrogen fuel, energy-efficient facilities, and carbon reduction facilities (key affiliates)
• Phasing in mitigation measures in line with the Carbon Neutrality Roadmap
• Implementing strategies to eliminate facility and equipment risk factors, enhance health and safety management systems, and strengthen suppliers' health and safety capabilities

Supply Chain Management

Supplier Audits: 90% self-assessment completion rate

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat/heat waves
• Coastal flooding

Transition Risks

• Carbon regulations
• Rising electricity prices
• RE100 transition

Opportunities

• Production of key materials for rechargeable batteries
• Manufacture of materials, components, and equipment related to electric vehicles and renewable energy

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Standards, ESRS

Third-party Assurance: Deloitte Anjin