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