LG Electronics made public its commitment to transition completely to renewable energy by 2050 as a key component of its sustainability strategy. The announcement in the just released LG Electronics Sustainability Report comes on top of its earlier commitment to carbon neutrality through the Zero Carbon 2030 initiative in which LG has pledged to reduce carbon emissions in the production stage to 50 percent of 2017 standards by 2030.
The transformation will be implemented region by region starting in North America where every office and manufacturing site will be powered by renewable energy within the year. LG manufacturing facilities outside of Korea are on target to convert 50 percent of their electricity needs to renewable energy in the next four years.
Achieving this objective globally will require a diverse strategy, including installing high-efficiency LG solar panels on its buildings, utilizing power purchase agreements that allow companies to purchase electricity directly from suppliers, utilizing Renewable Energy Credit (REC) certificates and participating in the Green Premium program in Korea, LG’s home market to purchase clean energy directly from the Korea Electric Power Corporation (KEPCO).
Currently LG is installing solar modules with a capacity of 3.2 MW on a manufacturing site in Noida, India, generating electricity to power LG’s administrative office as well. This project will be expanded as a part of the Clean Development Mechanism (CDM), allowing LG to secure carbon reduction certificates from the United Nations Framework Convention on Climate Change (UNFCCC).
“Our commitment to creating a better life for all can best be actualized by LG transition to renewable energy and achieving carbon neutrality,” said Park Pyung-gu, senior vice president at LG Electronics Safety & Environment Division. “In today’s world, innovation doesn’t just happen in the lab, they must also happen in our factories and plants. Today’s manufacturers have a once-in-a-lifetime opportunity to give the next generation a world worth inheriting and at LG, we take this responsibility very seriously.”
Zero Carbon 2030 initiative
In line with its larger sustainable business strategy, LG will look to reduce carbon emissions from its global operations by 50 percent compared to a 2017 baseline by implementing various carbon reduction and renewable energy initiatives. This effort will help bring LG closer to reaching its ultimate goal of carbon neutrality, achieving a net-zero carbon emissions footprint by balancing carbon emissions with carbon removal.
Through a variety of strategic initiatives, the company will cut carbon emissions across its global production sites from nearly 2 million tons recorded in 2017 to 960,000 tons by the end of 2030. LG is looking to expand its high-efficiency facilities and technologies targeting greenhouse gas reduction, alleviating the creation of carbon emissions during the production process.
LG will expand renewable energy installations using solar energy products and actively utilize its own business-to-business technology solutions such as high-efficiency chillers and Energy Management Systems (EMS) to reduce carbon emissions.
Additionally, through the expansion of its Clean Development Mechanism (CDM) projects, LG plans to secure Certified Emission Reduction (CER) credits. Such forward-thinking CDM initiatives promote clean development in emerging nations by allowing businesses with carbon reduction commitments to implement emissions reduction projects in developing countries using their own capital and technologies. Such projects are critical to earning CER credits, which are issued by the United Nations Framework Convention on Climate Change (UNFCC) after a thorough evaluation process.
As the first household appliance manufacturer to acquire CER credits in 2015, LG paved the way by utilizing highly efficient home appliances and cementing its status as a pioneering environmentally-conscious company. By the end of 2018, LG had secured a total of 340,000 tons of CER through its CDM initiatives.
“Our commitment to combating global climate change is unwavering. LG’s progressive steps in reducing carbon emissions at workplaces the world over, with many more UN CDM projects in the works, exemplify the company’s unwavering commitment to environmental sustainability leadership,” said Lee Young-jae, vice president of environmental safety at LG Electronics.