LG Chem pushes 'sustainability' as core business priority

A researcher tests the physical properties of newly developed biodegradable materials at LG Chem's Future Technology Research Center in Seoul, on Nov. 16. Courtesy of LG Chem

By Kim Jae-heun

LG Chem has chosen sustainability as its core competitiveness and top priority in overhauling its business areas.

Last year, LG Chem announced its “sustainability” plan to focus on its “2050 Carbon Neutral Growth” strategy ― a first for a domestic chemical firm. It aims to provide innovative and distinguished solutions for the environment and society by actively promoting climate change response, renewable energy conversion and resource virtuous cycle activities.

The chemicals firm plans to reduce its carbon emissions to 10 million tons in 2050 the same amount it produced in 2019. Considering the current potential of its business growth, LG Chem's carbon emissions are forecast to reach about 40 million tons annually in the next 30 years if it made no reduction efforts, and thus requires a reduction of more than 30 million tons annually by 2050 to not exceed the 2019 level.

Thirty million tons is the amount that 12.5 million internal combustion engine vehicles emit over the course of a year. This amount can be offset by planting 220 million pine trees.

To achieve its goal, LG Chem will adopt an RE100 (Renewable Energy 100) policy for all of its businesses in and outside of the country. RE100 refers to a campaign converting 100 percent of electricity a company uses into renewable source such as solar and wind power.

The chemicals firm has already secured 260 gigawatt hours (GWh) of renewable energy here and abroad through “Green Premium System” and “Power Purchase Agreement” plans. This is equivalent energy to that used by about 60,000 households in one year.

Earlier this year, LG Chem won a bid for 120 GWh of renewable energy to be used for a year through the Green Premium System, a Korean RE100 system.

As a result, the company's special resin producing plant in Yeosu, South Jeolla Province, and Osan Tech Center in Gyeonggi Province will undergo the RE100 conversion. The special resin plant produces nitrile butadiene rubber latex, the main ingredient for medical gloves, while the Osan Tech Center supports subcontractors making petrochemical products.