The Scope 1 and 2 emissions were verified according to "Greenhouse Gas and Energy Target Management Scheme Guideline" run by the Korean government and "LG Electronics Guidelines for Greenhouse gas inventory" which is based on the international ISO 14064-1 standard.
(K ton CO2e / KRW 100 billion)
The scope 1 and 2 emissions breakdown data in 2011 were as below. (Unit : 1,000 ton CO2e)
LG Electronics reduced 102,000 tons of GHG emissions associated with production and contributed to reducing 21 million tons of GHG emissions associated with product use (compared to the energy consumption level of 2007)
LGE was able to reduce about 20,000 tons GHG emissions in 2011 through activities such as cooling tower efficiency improvement (Plasma Display Panel production process), molding air compressor efficiency improvement (refrigerator parts production process), and air blowing pressure optimization.
LGE was able to reduce about 30,000 tons of GHG emissions in 2011 by investing in high efficiency equipment such as automatic building energy control systems, small capacity boilers, high efficiency turbo air compressors, etc.
LGE is proceeding with the Clean Development Mechanism (CDM), acquiring carbon credits through sales of highly energy efficient refrigerators. The company’s initiative was approved by the Indian government in April 2010 and is currently undergoing a registration process (2012). Through this project, LGE is expected to secure 400,000 tons of Certified Emissions Reductions (CERs) annually over the next ten years.
LGE has been managing GHG emissions from employee business travels and we are making ongoing efforts to reduce GHG emissions from business travel by utilizing video conferencing and encouraging employees to use greener transportation such as railway. The total amount of GHG emissions by business travel from 2009 to 2011 was given 3rd party verification by Det Norske Veritas (DNV).
GHG emissions from 1st vendors of LGE has been estimated about 13 million tones CO2e in 2011.
Our estimation is based on following logic.
1. Refer to GHG emission average intensity (in terms of GHG emissions per sales) for major industry fields according to CDP supply chain report.
2. Estimating GHG emissions of LGE's suppliers through multiplying the amount of purchase by intensity.
In 2010, we announced "low carbon supply chain management" strategy for suppliers to actively participate in the GHG reduction. We plan to purchase over KRW 50 trillion of components annually by the year 2020 from the companies conducting sustainable GHG reduction plans. We are supporting suppliers for reducing GHG emissions such as education, consulting etc. In 2011, LGE signed an MOU with Industrial Bank of Korea (IBK) to support suppliers’ low-carbon green growth management. Based on the agreement, LGE is providing support for SMEs’green management assessment and GHG inventory setup. LGE is also participating in the national policy initiative “Voluntary Low-Carbon Green Partnership between Large Corporations and SMEs” led by the Ministry of Knowledge Economy and expanding the number of suppliers receiving support. Additionally, we plan to facilitate suppliers’ voluntary reduction of GHG emissions by creating low carbon management guidelines specified for the electronics industry and making them available to all our suppliers.
Since 2008, LGE has been managing GHG emissions from our office buildings in Korea, including the leased office spaces with more than 100 fulltime employees (Twin Towers, Seoul Square in Korea). In 2011, a total of 7,987 tons of GHG was emitted from LGE’s office buildings. Our U.S. Subsidiary (LGEUS) also announced a plan to reduce GHG emissions from its office buildings in the U.S. (including warehouses) to 50% by 2020, compared to the emissions in 2007. LGEUS plans to meet the target mostly by expanding the use of power generated by green power. LGEUS will also reduce GHG emissions by employing a building energy management system, improving lighting and HVAC efficiency and optimizing office spaces.
LGE has set a target to reduce GHG emissions from logistics activities (Korea) by 1% on an annual basis compared to the distance traveled per unit weight carried from the previous year. The total GHG emissions from logistics activities in Korea was 95,282 tons in 2011. LGE plans to create a greener logistics system with transport system innovation, energy use optimization and a green logistics IT system.