• LG Energy Solution’s circular economy initiatives drive sustainable growth in the battery industry.
• Leading the transition to a low-carbon future with innovative solutions

Sustainability is no longer limited to mere corporate social responsibility – it’s a competitive advantage that helps drive long-term growth. In today’s landscape, the companies that lead in sustainability are best positioned to manage risks, enhance customer value, and unlock new growth opportunities.

Deeply committed to spearheading a sustainable battery ecosystem, LG Energy Solution leverages advanced technologies to create future possibilities, builds partnerships that prioritize customer success and growth, and fosters shared prosperity for a sustainable future. (More details about this mission can be found in the image below.)

LG Energy Solution’s short- and long-term objectives closely align with its ambitious sustainability goals. Its mission is to drive ESG trends within the global battery industry and surpass stakeholder expectations by excelling in its ESG management.

As part of this effort, LG Energy Solution is focused on delivering sustainable value to the planet, people, and communities. The company sets the highest standards for its partners in key areas such as climate action, circular economy, natural capital management, human value management, workplace health and safety, and business ethics. To build a sustainable battery ecosystem, LG Energy Solution actively engages with stakeholders throughout its supply chain.

LG Energy Solution has identified eight core values for fostering a responsible and sustainable battery ecosystem, based on commitment to people, planet, and community. This involves respecting fundamental rights, fostering diversity, equity, and inclusion (DEI), and keeping the highest health and safety standards across all facilities. Additional efforts include supporting local economies and creating solutions to regional challenges. Environmentally, the company is accelerating its climate actions, investing in the circular economy, and safeguarding natural ecosystems, taking a holistic approach throughout the entire value chain.

LG Energy Solution performs annual materiality assessments to proactively identify and address the ESG priorities relevant to its operations and stakeholders. This process considers global ESG standards, media monitoring, and input from both internal and external stakeholders. The company adopts a double materiality approach that evaluates the socio-environmental and financial impacts of ESG issues in three steps: identifying key ESG topics, assessing materiality, and determining the strategic implications of each issue.

In 2025, five core material issues were highlighted: reducing greenhouse gas emissions and addressing climate change risks, promoting a circular economy, ensuring product stewardship, fostering a sustainable value chain and managing environmental impacts. These issues have steered the company’s focus toward advancing its climate action, zero-waste initiatives and environmental management, while better managing ESG risks across its operations and supply chains. The goal is to build a more sustainable and resilient business.

Amongst all, let’s dive into these focus areas, exploring how LG Energy Solution is addressing each one and the strategic steps it is taking to ensure long-term sustainability.

Accelerating Climate Action
Recognizing the battery’s essential role in decarbonizing society, LG Energy Solution is working towards carbon neutrality across its entire value chain by 2050 and becoming carbon negative beyond that. Aligned with global efforts to address climate change, LG Energy Solution is making significant progress in meeting its carbon reduction targets, while also managing the environmental impact of its battery products and driving the development of low-carbon technologies.

Safeguarding Natural Systems
LG Energy Solution’s environmental management system, which is based on ISO 14001^[1] standards, identifies, assesses, and minimizes environmental risks and impacts. By defining key focus areas, the company can take focused actions and create measurable outcomes, while structured, policy-driven programs help reduce pollutants, optimize natural resource use, and minimize emissions and waste. These efforts highlight the company’s dedication to responsible environmental stewardship and a sustainable future.

Investing in the Circular Economy
To create a resilient battery ecosystem, LG Energy Solution is implementing a circular model promoting the reuse, reconditioning, refurbishment, and recycling of end-of-life batteries. Supported by innovative business models aimed at unlocking long-term value beyond battery production, the company is securing future growth engines while promoting sustainability and driving positive changes throughout the energy sector.

Building a Sustainable Value Chain
Fully committed to acting as a responsible business, LG Energy Solution proactively manages ESG risks throughout its value chain, including both direct operations and upstream supply chains. The company’s comprehensive risk management systems identify, prevent, and mitigate potential ESG risks, while its frameworks adapt to satisfy various compliance requirements and conduct regular supply chain due diligence. The company also promotes transparent, open communication and collective action together with suppliers, deepening its commitment to sustainability and long-term value creation.

To achieve long-term goals and core value missions, companies must consider the broader picture and foster communication and collaboration with various stakeholders. LG Energy Solution actively participates in global initiatives to raise global standards and collectively establish best practices, which generate sustainable value for the future. One of such examples is LG Energy Solution actively participating in the ESG rule-setting process as a Board member of the Global Battery Alliance and contributing to activities of Fair Cobalt Alliance aiming at eradicating forced labor and child labor in artisanal and small cobalt mines in the Democratic Republic of Congo.  

Forward-thinking initiatives solidify the company’s leading position in the battery ecosystem while reinforcing its commitment to sustainability beyond regulatory compliance and stakeholder engagement. The detailed results of these efforts along with LG Energy Solution’s key ESG momentums will be included in the 2024 ESG Report, to be released in late June.

[1] ISO 14001 is the internationally recognized standard for environmental management systems (EMS). It provides a framework for organizations to design and implement an EMS, and continually improve their environmental performance. 

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