EV battery and grid-scale energy storage solutions company LG Energy Solution (LGES), announced the launch of “We CHARGE toward a better future”, its new ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. vision, with a broad series of sustainability goals encompassing carbon neutrality, management diversity, and circular economy.
LGES was spun out of chemical giant LG Chem late last year, aiming to enable the growing battery-focused company to focus on its specialized core business. The company’s new ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. vision is focused on 7 core areas, highlighted by the name, CHARGE: Climate action and circular economy, Human value management, Advanced economic history, Responsible and impactful business, Good governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights., and ESG Disclosure & Communication.
Specific goals under the new program include:
Mid-to-long term reduction and management of greenhouse gas. The company aims to reach net zero by 2050 by eliminating the estimated 960,000 tons of GHG emissions in stages, tallied in 2019. To achieve its goal, LGES aims to transition to renewable energy and improve energy efficiency by utilizing high-performance equipment at its business sites.Climate action and renewable energy. The company aims to transition to renewable energy across its operations by 2030. LGES recently joined RE100, a global initiative seeking to mobilize 100% of electric power with renewable energy sources by 2050.Circular economy. LGES plans to pursue circular economy practices the battery supply chain, from materials, production, and consumption to disposal, aiming to establish a closed loop system for the EV battery life cycle by 2025.Diversity-focused HR policy. The company plans on implementing an active management policy that respects employee nationality, race, and gender.Development of eco-friendly innovative technology. LGES has implemented the Chemical Assurance and Regulation Management System, aiming to provide complete eco-friendliness of chemical product purchase, usage and disposal for battery materials by 2022 and of products by 2023.Responsible supply chain management. LGES aims to manage an ethical and a transparent supply chain utilizing an advanced verification system for potential suppliers, and a code of conduct for partners.Safety and environment-oriented management and accident prevention. Through operating an Environment, Health and Safety management system based on international standards, the company plans on developing digital transformation techniques by 2023 and implementing them into its global operation sites.
Jong Hyun Kim, the President and CEO of LG Energy Solution, said:
“ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. management is a new opportunity for LG Energy Solution in seeking to expand its business reach. This will guide us to create socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. values and establish a virtuous cycle of battery ecosystem. LG Energy Solution will accelerate efforts to innovatively transform human lives with its ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. management.”
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