Climate Change & Energy

LG Electronics is a global company, set on becoming the third-largest company in global digital electronics sales, by 2010. Partly because of this goal—and the company's already achieved top-tier rank, worldwide—we feel an equal urgency toward social responsibility and taking an active role in the push to reduce greenhouse emissions and tackle the environmental damage already incurred. Toward this end, LG Electronics is implementing various strategies to and technologies to reduce greenhouse gas emissions at our factories. We're also working to minimize the indirect greenhouse gases emitted from LG products by continuing to increase the energy-efficiency of our products.

Greenhouse Gases Discharged During Business Activities

Beginning with the already-complete survey of our Cheongju factory, LG is conducting a full inventory of operations to discern the amount and sources of discharged greenhouse gases. The inventory will be completed by June 2009, and will encompass all domestic and overseas factories, though we are already gradually reducing the amount of greenhouse gases discharged in these locations.

Once complete, we will move swiftly to establish a complete management system for greenhouse gases, including office, research, and transportation, as well as manufacturing factories. We will also put in place objective authentication and IT management systems to establish full-time monitoring and evaluation.

Figure 1. The Amount of Greenhouse Gases Discharged from Domestic Factories

Scope (as defined within ISO 14064-1) Year
  2005 2006 2007
Direct Emissions 117,419 131,991 133,207
Energy Indirect Emissions 456,125 568,826 541,826
Other Indirect Emissions 9,297 11,022 11,435
Optional 135,772 134,365 129,402
Total 718,613 846,204 815,870

Greenhouse Gas Emission During Product Use

In order to further reduce greenhouse gas emissions, LG Electronics is increasing its proportion of high-efficiency products, in part by continuing to aggressively develop new technologies. We're also acting to educate our customers by offering them simple energy-saving tips—highlighting ways that they can join the effort reduce these emissions, and underscoring the importance of a cleaner world.

By 2012, LG plans to further demonstrate its determination to counter climate change by establishing a low-carbon business environment.

Energy Efficiency

The Energy Saving Trust is an independent, non-profit making organisation set up to address the damaging effects of climate change.

LG is proud to note that its Air Conditioning products meet Energy Saving Trust standards for energy efficiency. LG's Steam Direct Drive—the world's first washing machine to use steam technology - is endorsed with an A++ energy efficiency rating by the Energy Saving Trust, meaning that it uses 35% less water and 21% less energy than traditional A rated machines.

Reduction Plan and Goals for the Disposal of Greenhouse Gases Produced by Factories

By 2007, LG Electronics operated a total of 36 manufacturing sites; nine in Korea, and 27 overseas. Greenhouse gases emitted from these facilities fall into both categories of gas emissions: direct and indirect. Direct emissions are generated from burning fossil fuels during the manufacturing processes, and from escaping coolant (inserted into products during production). Indirect emissions are generated through the use of external energy sources, such as electricity.

Because the majority of our emissions are indirect, and each facility is actively promoting efficiency improvements At the Changwon Factory, greenhouse gases were reduced by approximately 5,000 tons in 2007, as a result of such measures. Currently, a plan to expand the use of recycled energy is also being reviewed. And, when inventories are complete, emission reduction in domestic factories will begin with the implementation of an integrated greenhouse gases management system.

Development of Renewable, Energy-Related Technology

The home appliance business sector has, for the last seven years, been number one in global sales of residential air-conditioners. In April 2007, and thanks to some 40 years' expertise, we launched a newly conceptualized air-conditioning and heating system, called the "Hybrid Gio." This environmentally friendly system consumes less energy than conventional cooling or heating systems that use electricity or gas, and emits no direct greenhouse gases. Moreover, the sector launched the solar cell business group, led by LG Corp., building a solar-light system capable of generating tens of megawatts. And, because the solar-light generation system emits no greenhouse gases, LG will be able to reduce greenhouse emissions by actually generating greener electricity.

Currently, the Changwon # 2, and the Digital Appliance Research Laboratory (Gasan-dong, Seoul), are operating 1 kw/h and 7.5 kw/h sunlight panels for trial purposes. These panels are capable of producing 0.00072% of the electricity used by all LG Electronics factories in 2007.

Status of Renewable Energy Use

Renewable energy, including solar power, hydro-power, bio-organism based, and geothermal heat is a desirable solution for fossil fuel depletion and taking care with the environment. Currently, LG's second Chang-Won factory is using four kinds of renewable energy: geothermal and solar heat, and the Cogen and solar-light systems.

Geothermal System Cooling water is the product of this system, in which hot water runs into the ground and is circulated back to be used as cooling water again. Generating capacity : 35 kw/h

Solar-Energy System This system generates electricity from infinite, pollution-free solar energy via the use of solar cells. Generating capacity : 1kw/h

Cogen System This system supplies warm water after generating electricity by using LNG. Generating capacity : 30kw/h

Solar Heat System This system supplies hot water using heat absorbed in a solar-heat condenser, which is then connected to a Cogen system warm water tank.