Climate Change Data

LOTTE ENERGY MATERIALS Corporation

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:107,974 tCO2e/year
Scope 1 Emissions:566 tCO2e/year
Scope 2 Emissions:107,411 tCO2e/year
Renewable Energy Share:3.94% (Iksan Plant 1)
Total Energy Consumption:2,336 TJ/year
Water Consumption:1,988,306 tons/year (withdrawn), 286,270 tons/year (consumed)
Waste Generated:5,315 tons/year
Carbon Intensity:327.403 tCO2e/KRW billion (2023)

ESG Focus Areas

  • Climate Change
  • Environmental Management
  • Safety and Health
  • Human Rights
  • Diversity, Equality, and Inclusion
  • Compliance
  • Ethical Management
  • Stakeholder Engagement

Environmental Achievements

  • Increased use of recycled copper in Korea, exploring expansion to Malaysia and Spain.
  • Achieved a final disposal rate of 13.5% and a recycling rate of 81.9% in 2023, surpassing set objectives.
  • Invested approximately KRW 830 million in 2023 for air and water pollution control facilities; increased to KRW 3.76 billion for 2024.
  • Malaysia plant uses eco-friendly hydroelectric energy; Spain plant will use solar and wind power (aiming for at least 80%, up to 100% renewable energy).

Social Achievements

  • Established the Safety and Health Committee.
  • Implemented safety diagnostics to enhance facility safety.
  • Initiated the ‘Mom-Friendly Playground’ project.
  • Conducted value creation culture assessment to evaluate employee satisfaction.
  • Implemented various programs to actively enhance organizational culture improvement.

Governance Achievements

  • Established and operated the ESG Committee.
  • Appointed an ESG-specialized outside director.
  • Formulated global-level compliance policies.
  • Conducted compliance education for all employees.
  • Updated the compliance issue pool and built a risk monitoring system.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Substantially increase water-use efficiency and ensure sustainable withdrawals and supply of freshwater by 2030.
  • Substantially reduce waste generation through prevention, reduction, recycling and reuse by 2030.
  • Reduce GHG emissions by 14.5% compared to 2018 levels by 2030.
  • Cut water and wastewater volumes to 50% of 2019 levels by 2030.
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Global conflicts, accelerated trade barriers, and persistent inflation.
  • International instability and the impacts of protectionism leading to heightened demands for sustainable corporate activities.
  • Stringent ESG regulations in the secondary battery industry.
  • Climate change related risks (transition risks, physical risks).
Mitigation Strategies
  • Proactive measures to mitigate climate change impact, including integrating renewable energy sources.
  • Diversification into the secondary battery market (LFP cathode active materials, solid electrolytes).
  • Strengthening collaboration and support within local communities.
  • Developing a human capital-oriented management strategy.
  • Establishing a comprehensive system to respond to climate change, including a Carbon Neutrality Task Force.
  • Implementing a Green Procurement Policy, including purchasing recycled copper and renewable energy.
  • Developing a closed-loop recycling system.

Supply Chain Management

Responsible Procurement
  • Green Procurement Policy
  • MOU with POSCO International for recycled copper
  • MOU with ISU Specialty Chemical for lithium sulfide
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters
  • Water supply shortages
Transition Risks
  • Regulatory aspects (GHG emission regulations, carbon pricing)
  • Energy paradigm shift
Opportunities
  • Expansion of renewable energy use
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB, UN SDGs

Certifications: ISO 14001, ISO 9001, ISO 45001, ISO 14044 (LCA for I2S product)

Third-party Assurance: Korea Management Registrar (KMR)

UN Sustainable Development Goals

  • Goal 1
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Sulfide-based solid electrolytes
  • Highly mass-productive LFP cathode active materials
  • Third-generation silicon composite anode active materials