Expansion of Low Carbon Management

PRODUCT CARBON FOOT PRINT MANAGEMENT

Regulated by the ISO 14040 series standard, the LCA is a technique to assess and quantify environmental impacts associated with all the stages of a product's life cycle (from production through distribution, use and disposal), as well as to identify areas for improvement and verify progress.
As the importance of climate change goes on, LGE concerns LCA with Carbon footprint. In 2011, LGE worked for full LCA with the 8 major models including refrigerator, air conditioner, cell phone etc. We have plan to set up LCA data system for major product categories on base of obtained product data by conducting full LCA and to expand models in 2012. The graph below shows the result of the Carbon footprint for LGE’s major products. We will apply the result of carbon footprint results through LCA into the product R&D process for low carbon products.

LGE try to provide the information of carbon footprint for consumer, so we started to certificate carbon footprint label with Korea Environmental Industry & Technology Institute(KEITI) from 2008. In 2011, total 14 products were certificated Korean Carbon footprint label. Also, LGE is expanding voluntary carbon foot print and reduction labels in global. In June 2011, two product models of LGEs’ 3D TV became the first TV products released and sold in the European market to acquire the “Carbon Reduction Label” from the U.K.’s Carbon Trust. And 16 products were certificated U.S Carbon neutral label by Carbon fund

Renewable energy

LGE understands renewable energy is the one of the most important sources to reduce GHG emissions in our global sites and plans to increase its voluntary use. Also, as a global leader company in responding to climate change , we are participating in initiatives who advocate the use of renewable energy and support their policies.

LGE is expanding its use of renewable energy, adopting solar power generating systems, converting energy sources (purchasing steam from Changwon municipal waste incineration facility), etc. As of 2011, solar power generating systems with a total capacity of 126KW are in operation at the production sites at Gumi, Changwon in Korea and also in Thailand.

LGEUS announced its voluntary GHG emissions reduction target (office buildings and warehouses) to cut down 50% GHG emissions by 2020, compared to 2007 and started to purchase 100% greenpower for its HQ building from October 2011. We plan to purchase total 2,490 MWh electricity from 50% wind and 50% biomass until 2013 in US and it would be 8% of the annual electricity consumption in office and warehouses in US. Also we purchased 2,900 MWh green power in European office buildings in 2011 and it was 24% compared to total electricity usage in Europe. LGE plans to continuously expand its renewable energy purchase and solar panel installation at our production sites.

LGE supported international renewable energy policy and joined voluntary membership. In February 2012, LGE joined Greenpower Partnership, a voluntary certification program for renewable energy use from the U.S. Environmental Protection Agency, and plans to increase the use of renewable energy in its business operations. In November 2011, LGE officially supported the 2°C Challenge Communique proposed by the Corporate Leaders Network For Climate Action and clearly expressed its strong commitment towards GHG reductions and expanding renewable energy use. The communique urges governments and businesses around the world to participate in the effort to stabilize global warming to und2°C and was conveyed to international leaders at the 17th Conference of the Parties (COP 17).

WATER INVENTORY

In 2012, LG Electronics conducted water inventory assessment to enhance water-use management This assessment helps us to understand and gain further opportunities which can lead us to reducing water impacts

LGE’s water inventory follows the principles of Greenhouse Gas Protocol(WRI/SBCSD), and the inventory follows the “control” approach for its operational inventory.

Water Inventory is comprised of two criteria, Direct Water use (or Scope 1) and Indirect water use. Direct water use presents the total water use for all purpose including portable, process and sanitation purpose. Direct water use data includes water withdrawals by sources, reuse/recycling in the site . Indirect water use presents water usage by using purchased electricity. To estimate indirect water use , LGE evaluated water usage in 5 major Korean power supplies to determine water usage values.

LGE collects water data for those sites consuming more than a hundred thousand ton of water per a year.

Water inventory assessment in 2012 , we limited to collect water-use data for 7 manufacturing sites in Korea.

The result data is as follows

* Goal & achievement (Global, ton)

WATER USAGE DATA

Unit : ton

Classification			2009	2010	2011
Scope1	Withdrawal	Municipal	3,888,871	5,672,794	6,109,962
	Withdrawal	Ground water	535,450	456,090	394,700
	Recycling/reuse	Reuse	529,775	578,850	530,699
	Recycling/reuse	Recycling	24,798	12,841	25,382
	Sub total		4,978,894	6,720,575	7,060,743
Scope2	Electrocity		76,535	99,346	103,556
Tatal			5,055,429	6,819,921	7,164,299

Discharge (ton)


	2009	2010	2011
Treatment facilities	3,566,530	4,541,883	4,932,441
Ground water	84,582	76,632	88,685
Waste water & others	1,327,783	2,102,060	2,039,617
Total	4,978,894	6,720,575	7,060,743

Low carbon culture

· Campaign

LGE is engaging in a carbon offset campaign in cooperation with the U.S. based NGO Carbon Fund. In 2011, the entire GHG emissions from Carbon Free certified LGE products was offset by Carbon Fund’s various activities, including tree planting and investments in renewable energy. Additionally, total 16 tons of GHG emissions associated with LGE’s activities at the 2011 International Consumer Electronics Show (CES) was offset through Carbon Fund activities.

· Education

LGE is conducting climate change education to raise awareness of the issue among employees, encourage changes in their behavior and increase overall understanding of green management. Starting with Korean employees in 2009, online climate change train- ing was expanded to over 20,000 office employees at overseas subsidiaries (including North America, China, the EU regions, etc.) in the following year. In 2011, the program was further expanded to suppliers with over 500 employees from 120 partner companies receiving the training as well as to LG Group affiliates. Additionally, LGE included climate change in the curriculum for regular offline training provided to suppliers.

· Communication

LGE disclose GHG emissions of the company every year by CSR report, environmental report and annual report regularly. In these methods, we disclose the amount of GHG emissions, business and activities related to climate change and LGE's low carbon green strategy.