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EXPANDING GHG MANAGEMENT THROUGHOUT THE VALUE CHAIN

GHG EMISSIONS FOR BUSINESS TRAVEL

LG electronics also manages GHG emissions associated with employee business travels and submits the annual data for third-party validation. in 2013, the total GHG emissions associated with employee business travels amounted to 50,000 tons, reducing 22,000 tons from the previous year by promoting video conferencing and railway travels.

THIRD PARTY VERIFICATION

GHG emissions from employees business travel had verified from 2008 to 2012. The external verification of GHG emissions followed ISO 14064-1 and WBCSD/WRI GHG Protocols.

See details of Third Party Verification of Business Travel.

Office Building GHG Management

In order to reduce GHG emissions from major office buildings at our overseas locations, LG Electronics has set mid- to long-term reduction targets for office buildings in the United States and Europe and manages them accordingly. LG electronics USA has set an ambitious target to reduce its GHG emissions in its U.s. operations 50% by 2020. in support of this goal, LG joined the “Green power partnership,” a voluntary partnership program led by the U.s. Environmental Protection Agency (EPA) that encourages organizations to reduce their environmental impact by using renewable energy. LG is also reducing U.s. transportation-related emissions in its supply chain by using freight shippers that participate in the EPA’s Smartway program. in addition, the U.s. subsidiary is in the process of reducing energy consumption in its offices through a series of measures, including upgrading building lighting systems to LED, encouraging employees to conserve energy at work by turning off electronic equipment and lights when not in use, and promoting low carbon initiatives through its “Live Green at LG” newsletter. our European subsidiaries have set targets to reduce 15% of GHG emissions from office buildings by 2020 from the base year 2010, and are implementing diverse measures, such as installing solar panels and expanding the use of renewable energy.

Support for Suppliers’ GHG Management

in 2010, LG electronics established and announced a plan to expand its low-carbon procurement, making a commitment to expand our purchases from suppliers that implement sustainable GHG reduction plans up to KRw50 trillion by 2020. to this end, we provided GHG management training and assistance for building a GHG inventory to 173 suppliers in Korea, and participated in the national initiative “small, Medium and Large Green partnership” led by the Ministry of industry, trade & energy in 2012. For the following two years, we have helped 32 suppliers set up a GHG inventory and complete a third-party validation. we also conducted an energy audit on 22 suppliers and discovered 33 instances of energy saving opportunities for them.

Logistics & Business travels

LG electronics has set a target to reduce 1% of GHG emissions per unit weight, based on distance traveled, for logistics activities in Korea and is making diverse efforts to achieve the target. the total GHG emissions from logistics activities in Korea in 2013 amounted to 41,807 tons CO2e, down 537 tons from the previous year. LG electronics plans to reduce GHG emissions from its logistics activities through ongoing efforts toward logistics system improvement, use optimization, and IT system implementation. LG electronics also manages GHG emissions associated with employee business travels and submits the annual data for third-party validation. in 2013, the total GHG emissions associated with employee business travels amounted to 50,000 tons, reducing 22,000 tons from the previous year by promoting video conferencing and railway travels.

Employee Participation in Energy-Saving initiatives

LG electronics runs diverse campaigns that encourage employees to participate in its efforts to reduce GHG emissions and energy consumption in their daily activities at work. as part of our efforts, we ran a CEO message and public announcement messages on our company broadcasting system to encourage employees to save energy during summer/winter peak seasons. in July 2013, LG electronics and its major suppliers launched “save together,” a joint energy-saving campaign to include suppliers in our energy-saving initiatives. at the campaign’s launching ceremony, energy management staff from more than 20 suppliers promised to cooperate with our energy-saving efforts. As part of the campaign, suppliers designated “energy observers” at each business site to identify energy saving opportunities and promote energy-saving practices. suppliers voluntarily maintained the interior temperature at 26℃or higher, distributed hand-held fans to employees, and encouraged employees to dress “cool.” thanks to such efforts, we saved 14% of power during winter and 12% of power during summer compared to the same period from the previous year. in addition, the LGE Labor Union is engaging in an energy-saving campaign under the slogan “turn off and Unplug (meaning, let’s turn off switches/faucets and unplug power cables)” to support corporate-wide efforts toward GHG emissions reduction and to promote everyday low carbon practices by raising employee awareness on energy saving and promoting energy saving through everyday practices. inspired by the campaign, local union chapters are pursuing energy saving initiatives, such as turning off lights during lunch hour, managing radiators in restrooms, and turning half of the lights off during shift changes.

Clean development Mechanism (CDM)

In October 2013, LG electronics’ Clean Development Mechanism (CDM) project in India was finally approved by the UNFCCC (United nations Framework Convention on Climate Change). Through this project, we plan to acquire carbon credits in exchange for the sales of highly efficient refrigerators (18 models including GL-195oMe4) in India. we expect to reduce 5.8 million tons of GHG emissions annually over the next ten years, which is the largest in scale among CDM projects pursued by electronics makers. LG electronics also plans to donate a part of the profits from the project to local communities.

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