LG headquarters in Seoul (Yonhap)
LG Group, the nation’s fourth-largest conglomerate, renewed its commitment to achieving net-zero goals by 2050 in a groupwide report on emissions reduction Sunday -- a first among major conglomerates in South Korea.
In the report, titled "LG Net Zero Special Reporting: Placing the First Stepping Stone," the group outlines the plans and strategies LG companies will adopt to achieve the net-zero goals.
Seven affiliates have signed on to the plan, including LG Electronics, LG Display, LG Innotek, LG Chem, LG Energy Solution, LG Household and Healthcare and LG Uplus.
A group integration road map was also presented, containing a comprehensive overview of the combined carbon neutrality goals and the implementation methods of all subsidiaries.
LG plans to reduce emissions in accordance with the GHG Protocol Corporate Standard, which outlines three scopes used internationally for classifying a company’s greenhouse gas emissions.
Scope 1 refers to direct emissions from sources controlled or owned by an organization; scope 2 includes indirect emissions from the generation of purchased energy. Lastly, scope 3 consists of all indirect emissions -- not included in scope 2 -- that arise in the value chain of a company.
LG is committed to reducing scope 1 and 2 emissions by 27 percent in 2030, 62 percent in 2040 and 100 percent by 2050, as compared to 2018 levels, according to the report.
Specifically, LG Electronics aims to achieve carbon neutrality for scope 1 and 2 emissions by 2030. Meanwhile, LG Energy Solution and LG Innotek set their timeline for 2040, while LG Display, LG Chem, LG Household and Healthcare and LG Uplus have aimed for 2050.
Plans are also in place for implementing a system for the management of scope 3 emissions.
The group intends to ramp up efforts through various strategies such as investing a total of 3.4 trillion won ($2.7 billion) in carbon reduction technology development by 2030. Such technology includes blue hydrogen and green hydrogen production, which are gaining momentum in the sustainable energy industry.
The report also mentions a transition to 100 percent renewable energy for domestic and foreign operations of major affiliates by 2050 as well as the replacement of high-efficiency facilities and the use of biofuels.
"We focused on creating a group carbon neutrality roadmap that offered a collective glance at the current status and goals of involved affiliates," the group said in a statement.
“Through continuous monitoring, we will achieve significant progress in carbon neutrality and help pave the way to a more sustainable future in the face of climate change."