(株)LG, '2024 ESG Report' Published…Strengthening 'Compliance Management'

[Financial News] (株)LG announced on the 17th that it has disclosed the achievements of governance enhancement and sustainable strategies through the 2024 Environmental, Social, and Governance (ESG) report. 
This report comprehensively includes the efforts of major LG affiliates to strengthen compliance management in the governance sector. The companies subject to the report are (株)LG and its subsidiaries LG CNS, D&O, as well as major affiliates such as LG Electronics, LG Chem, and LG Uplus, totaling 6 companies.
The holding company (株)LG has enhanced the compliance risk and management status across the company by checking the compliance with the compliance control standards and the effectiveness of the system through the board of directors last year. All employees of (株)LG completed separate compliance training on major compliance management risks such as the use of undisclosed important information. The participation rate in the 'Autonomous Compliance Inspection Program', which checks legal risks and management status by department, also achieved 100%. These efforts led to the acquisition of the compliance management system certification 'ISO 37301' from the International Organization for Standardization (ISO) this year. 
Major LG affiliates are operating a compliance governance system centered on the board of directors and the ESG committee. In addition, they are strengthening execution through an internal compliance council composed of related departments managing major risks and compliance officers.
In the environmental field, LG has achieved significant results in cleantech, one of the areas marked as future growth engines in the 'ABC (AI, Bio, Cleantech)' sector.
Major LG affiliates have carried out various projects that meet the 'K-Taxonomy' standards for green economic activities designated by the government in response to physical climate risks such as heatwaves and floods and transitional risks such as rising energy costs. Last year, major LG affiliates achieved sales of 8.4541 trillion won in battery materials such as cathode materials, electric vehicle parts, HVAC, heat pumps, smart factory, data center (IDC) construction and operation, PCR products, and blue hydrogen manufacturing, excluding the battery business of LG Energy Solution. LG plans to continue its cleantech strategy to respond to climate change by analyzing the impact of climate-related risks on business and promoting the transition to low-carbon fuels and raw materials, process efficiency, renewable energy utilization, and disaster response activities.
In terms of greenhouse gas reduction, LG is achieving long-term results. LG has established and is implementing a carbon neutrality roadmap targeting 7 affiliates, including LG Electronics, LG Display, LG Innotek, LG Chem, LG Energy Solution, LG Household & Health Care, and LG Uplus, which account for 99% of greenhouse gas emissions, with the goal of achieving carbon neutrality by 2050. Last year, the total greenhouse gas emissions of the 7 companies were 17.03 million tons (CO₂eq), a 19% reduction from the base year 2018's 21.12 million tons.
LG plans to reduce greenhouse gas emissions by 34% by 2030 and by 52% by 2040 compared to 2018. The target for renewable energy usage is set at 76% by 2030, 89% by 2040, and 100% by 2050.
In the social field, LG is continuously improving the overall safety level of its workplaces through △removal of facility and equipment risk factors △advancement of management systems △enhancement of safety and health capabilities of partners △operation and education of dedicated safety and health organizations.
An official from (株)LG said, "We plan to continue to publish ESG reports in accordance with global disclosure standards and enhance communication with internal and external stakeholders such as customers, shareholders, and employees through disclosures on the group homepage, thereby increasing the transparency of ESG information disclosure." 

soup@fnnews.com Lim Soo-bin Reporter