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LG Energy Solution Going ‘Beyond Carbon Neutral’

Plus for Minus, Minus for Plus
(Source: 2022 LG Energy Solution ESG Report)

[Zero Emissions Day Special]

September 21st is Zero Emissions Day, a day dedicated to giving the world a break from fossil fuels. The goal is to raise awareness about the risks of carbon emissions and encourage people to make climate-friendly choices. LG Energy Solution celebrates this annual environmental movement by introducing efforts to reduce negative impacts and reinforce positive impacts, emphasizing the value of nature while reducing its carbon footprint. This is achieved through the establishment of a circular system: “Plus for Minus, Minus for Plus.”, all aimed at building a better future. The ESG concept “Plus for Minus, Minus for Plus.”, featured in LG Energy Solution’s 2022 ESG report, draws inspiration from the natural flow of electrodes moving between positive and negative poles.

While transportation is one of the biggest barriers to the world’s complete green energy transition, the electric vehicles (EV) revolution is now well underway. LG Energy Solution not only aims to promote the total adoption of EVs by providing global carmakers with the most innovative power solutions, but also endeavors to minimize the adverse environmental impacts of all business activities.

Source: 2022 LG Energy Solution ESG Report

Beyond Carbon Neutrality
Committed to spearheading the fight against climate change, LG Energy Solution has proposed three phases that will help it secure total carbon neutrality by 2050.

Phase 1) Complete Renewable Electricity 100% (RE100) transition by 2030.
In April 2021, LG Energy Solution became the first global battery manufacturer to join both RE100 and EV100, pledging to convert every business site to 100% renewable energy and every company-owned vehicles to electric vehicles by 2030. Ranked with the highest transition rate among Korean companies affiliated with RE100, LG Energy Solution seeks to continue expanding renewable energy across global operations.

Phase 2) Achieve carbon neutrality across all operations by 2040.
To accomplish this, alternative fuel sources besides electricity must be unearthed. For that reason, LG Energy Solution tries to secure green energy sources and transition fuels to renewable energy sources while optimizing energy use and transitioning fuel into electric boilers.

Phase 3) Realize carbon neutrality across entire value chain by 2050.
Recognizing the importance of reducing suppliers’ carbon emissions throughout the entire supply chain, LG Energy Solution intends to trace and monitor all of the emissions it can influence.

Battery Circular Ecosystem (Source: 2022 LG Energy Solution ESG Report)

Circular Economy
With the EV market now booming, how to deal with end-of-life (EoL) batteries has become a critical environmental issue. LG Energy Solution is developing various business models and technologies that will help it foster a closed loop of battery resources.

LG Energy Solution has established a 3-step process to effectively reusing EoL batteries. Firstly, the company gathers used batteries unfit for automotive use through a regional collection system, which are then assessed to determine their second-life potential. Secondly, reusable batteries are tested and tailored to meet all technical requirements and safety standards, and then distributed to their optimal market.

To recycle EoL batteries, LG Energy Solution collects non-reusable batteries and scraps generated during production, and recycles them so that they can be reinjected into the production stage.

You can learn more about LG Energy Solution’s battery reuse and recycling here.

Meanwhile, to establish a perfect closed-loop system for battery resources – a key priority task for LGES in realizing its ESG vision, LG Energy Solution has been strategically working with leading global recycling companies. In August, LG Energy Solution established its first battery recycling joint venture with Huayou Recycling to ensure a stable supply of waste batteries and battery scraps that are vital to the company’s closed-loop ESG initiative.

LGES aims to achieve its ESG vision “We CHARGE towards a better future” via ESG indicators, transparent information disclosure, and close collaborations with stakeholders.