- LG Energy Solution leads efforts to conserve biodiversity and foster a sustainable future.
- The company enhances stakeholder engagement through transparent reporting to drive sustainable growth.
Biodiversity is the variety of all life on Earth, and its natural ecosystems provide the very lifeblood of our existence. Yet, without urgent action, these vital systems and the services they provide face imminent collapse. From clean water and fertile soil to a stable climate, biodiversity is the founding principle of a healthy, happy planet. However, human interference often intensifies the impact of climate change, erasing vibrant species at an alarming rate and jeopardizing the natural systems that sustain our world.
As the loss of biodiversity rapidly emerges as one of the world’s major concerns, leading ESG rating agencies like S&P Global and the Korea Institute of Corporate Governance and Sustainability (KCGS) are integrating it into their key assessment criteria. Additionally, international standards like the Global Reporting Initiative (GRI), Corporate Sustainability Reporting Directive (CSRD), and Taskforce on Nature-related Financial Disclosures (TNFD) have designated biodiversity as a material disclosure topic. This global shift in attitudes is further underscored by the World Economic Forum (WEF), which now ranks biodiversity loss as the second most severe long-term global risk.
To combat these threats, LG Energy Solution has proactively integrated nature-positive principles into its core sustainability strategy. For example, “LG Energy Solution’s Biodiversity Protection and Deforestation Prevention Policy” was established in 2024, solidifying its commitment to nature-positive practices. This policy outlines principles such as No Net Loss (NNL) and No Net Deforestation (NND), aligning with global standards like the TNFD and Kunming-Montreal Global Biodiversity Framework.
Recently published, LG Energy Solution’s 2024 ESG Report presents a comprehensive nature-related risk assessment and management framework, based on TNFD‘s LEAP (Locate, Evaluate, Assess, Prepare). This innovative approach begins by identifying the interface between business activities and nature (Locate) before evaluating the company’s dependencies and impacts on natural capital (Evaluate). Next comes the assessment of ecological and financial risks and opportunities (Assess) and concludes with the establishment of site-specific strategies and goals to address them (Prepare).
To implement this framework, LG Energy Solution has refined a proprietary biodiversity assessment methodology, guided by global initiatives and external experts. Leveraging international datasets such as Key Biodiversity Areas (KBA) and International Union for Conservation of Nature (IUCN) Protected Areas, the company maps sensitive ecological zones near its facilities. To analyze local ecological risks even further, tools like the World Wide Fund for Nature (WWF)’s Biodiversity Risk Filter (BRF) enhance site-level accuracy.
This methodology effectively assesses each site’s dependencies and impacts on vital ecosystem services. The results led LG Energy Solution to prioritize nature-related management at Ochang Energy Plants 1 and 2, recognizing their role as mother factories in the global production network. This involves strengthening the facilities’ water management to ensure stable operations and environmental responsibility.
Building on these efforts, LG Energy Solution is working alongside regional environmental authorities, local governments, habitat conservation groups and civil society actors to enhance ecological resilience. Following the mitigation hierarchy of Avoid, Minimize, Restore and Offset, biodiversity considerations are fully integrated into site development and expansion plans to ensure responsible growth and reduce impact on vulnerable ecosystems.
Driven by a deep commitment to global agreements and conservation initiatives, LG Energy Solution is setting ambitious but achievable goals and clear indicators for sustainable development. These goals include contributing to a low-carbon economy, minimizing environmental impact, and managing the environmental footprint of its supply chains.
To this end, LG Energy Solution is pursuing carbon neutrality, enhancing resource efficiency, reducing waste, and strengthening traceability and risk-based due diligence across its value chain. At the same time, the company regularly assesses its dependencies and impacts on nature, while aligning disclosure practices with the TNFD framework through annual nature-related reporting and risk assessments.
For greater transparency, the company not only discloses its environmental impact with regular ESG reports but also actively engages in local conservation efforts as a member of the local communities it serves. These efforts largely involve collaborations with local governments, environmental agencies, conservation groups, and communities, all designed to shield the ecosystems that bring life to its regions.
At its Queen Creek plant in Arizona in 2023, LG Energy Solution joined forces with Environmental Resources Management (ERM), a global consulting firm specializing in sustainability and environmental issues, to safely relocate endangered burrowing owls and kit foxes to a safer habitat.
Recognizing biodiversity conservation as one of the world’s most pressing environmental challenges, LG Energy Solution is taking its corporate social responsibility to heart by integrating sustainability and ecological balance into its management approach, only pursuing business operations that harmonize with nature.
Ultimately, LG Energy Solution’s unwavering commitment to a thriving environment is highlighted by its active role as a responsible corporate member of society. Everything it does, from disclosing its environmental performance through annual ESG reports to participating in species-saving initiatives, is geared toward driving sustainable development alongside its like-minded stakeholders.
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