In order to achieve carbon neutrality by 2030, we invest in technology, in addition to actively engaging in external carbon reduction activities such as securing carbon offset credits.
At LGE, we continue to differentiate ourselves in terms of our goals and our approach to carbon neutrality by establishing our own challenging targets. In 2021, we intend to advance toward the ultimate goal of carbon neutrality at our global production sites by achieving 30% of carbon neutrality.
We are upgrading our energy management system by introducing the ‘Energy Management System (ISO 50001)’ international standard in order to efﬁciently use energy and reduce related costs. The energy management systems at all of our production sites in Korea have been certiﬁed. We are expanding our energy management systems to overseas business sites, and we manage and maintain the certiﬁcation of these systems through annual re-examination.
We apply an ‘internal carbon cost’ policy, which quantitatively determines the value of carbon for internal transactions by seizing business opportunities, related to energy saving and reducing greenhouse gas emissions and discovering risks. This approach allows for accurate measurement of the environmental burden placed on our company in terms of ﬁnancial value, thereby contributing to rational decision-making on future investments that seek to reduce greenhouse gas emissions.
In accordance with Chapter 33 of the Generally Accepted Accounting Principles (Greenhouse Gas Emission Permits and Emission Liabilities), we analyze greenhouse gas emission rights as allocated by the Korean government as well as our own emissions on a quarterly basis. Expenses (emission liabilities) due to excess emissions are reﬂected in the consolidated statement of ﬁnancial position.
We are a company subject to management under Article 42 (6) of the Framework Act on Low Carbon, Green Growth. In accordance with Article 44 of the aforementioned law, we submit emission statements to the government in a timely manner following third-party veriﬁcation of our greenhouse gas emissions and energy consumption at all of our domestic production sites, while also transparently disclosing information to various stakeholders. In addition, we have completed building a greenhouse gas inventory for our global production sites and disclose greenhouse gas emissions every year.
*Published a separate report on climate change response based on Task Force on Climate-related Financial Disclosures (TCFD) criteria
RE100 stands for Renewable Energy 100 and refers to a global initiative aimed at replacing 100% of corporate electricity with renewable energy. A number of global companies have already publicly declared their participation in RE100, and recently these companies are also inviting companies in their business network to participate. Here at LGE, we are expanding the direct generation and use of renewable energy by using high-efﬁciency solar panels, and applicable options such as the green rate system for renewable energy purchasing, Renewable Energy Credit (REC) purchasing, and third-party Power Purchase Agreement (PPA). In addition, we established a mid-to long-term plan with a view to achieving 100% renewable energy use by 2050. In accordance with this plan, we aim to continue our efforts to switch to renewable energy in consideration of the current laws and business conditions of the countries where our Korean and overseas production sites are located.
In April 2021, we participated in the 'K-EV100' campaign hosted by the Ministry of Environment and declared our commitment to transitioning all vehicles with zero-emission replacements that use electricity or hydrogen fuel cells by 2030. In line with the K-EV100 declaration, we plan to gradually increase the proportion of our vehicles that are eco-friendly. Going beyond simply converting our vehicles into eco-friendly vehicles, we will continue to explore and achieve potential changes aimed at establishing a carbon-neutral society throughout every facet of our corporate management.