On the 20th of March, LG Innotek (CEO Moon Hyuksoo) announced that they have acquired ‘Leadership A’ in the global climate change response assessment from the 2023 CDP (Carbon Disclosure Project).
The CDP is a global project requesting major global corporations to disclose information related to their response to climate change issues, with entrustment by financial investment institutions from around the world.
The CDP assessment, conducted in 92 countries worldwide simultaneously, is one of the most trusted global sustainability indices, along with DJSI (Dow Jones Sustainability Indices) and FTSE4Good (Global Socially Responsible Investment Index).
This year’s CDP assessment for climate change response was conducted on 23,202 companies across the world. Out of these companies, only 1.5% of the total number of companies, which is 346 companies, received ‘Leadership A.’ In Korea, only 10 companies were listed.
LG Innotek has established an organization dedicated to carbon neutrality to set up systematic and strategic policies to achieve the goals of ‘2040 Carbon Neutrality and 2030 RE100,’ and was highly praised for swiftly executing these policies. In addition to this, the company actively engaged in green technology and product development, which also received high scores in the overall assessment.
In 2022, LG Innotek announced its commitment to becoming ‘2040 Carbon Neutral’ and ‘Achieve RE100 by 2030’. The goal of achieving RE100 by 2030 is particularly challenging, as it is 20 years ahead of the requirement to join RE100.
To this end, LG Innotek is exerting various efforts such as transitioning to renewable electricity, improving energy efficiency, improving processes, etc. The company is actively promoting the transition to renewable electricity in order to reduce a large percentage of greenhouse gas emissions generated by electric power.
As a part of this effort, LG Innotek and ‘BEP (Bright Energy Partners)’ signed a purchase agreement for ‘RECs (Renewable Energy Certificates)’ last year. This is an agreement for a solar power plant facility capacity of 84MW, in which LG Innotek will be recognized for using approximately 100GWh of renewable electricity every year for 20 years. Furthermore, the company and SK E&S have signed a PPA (Power Purchase Agreement), and will be supplied with a stable 10MW of renewable electricity per year for 20 years.
Besides this, LG Innotek is actively expanding the use of renewable electricity by installing solar power generation facilities with a capacity of 8MW in plants in Korea and abroad, including Gumi, Paju, Gwangju, and Vietnam.
CEO Moon Hyuksoo said, “Acquiring ‘Leadership A’ in CDP Climate Change means LG Innotek is officially recognized for its ESG management performance” and added, “we will continuously strengthen our global ESG leadership, which served as the cornerstone for creating differentiated customer values.”
[Terminology Explanation]
- Carbon Neutrality: Making actual emissions ‘0’ by setting up measures to remove as much carbon dioxide as a company emits.
- RE100: Renewable Electricity 100%. Transitioning all plants to 100% renewable electricity.
- PPA(Power Purchase Agreement): A renewable electricity generation company and a supplier directly entering into a power purchase agreement. It is classified into On-site PPA and Off-site PPA depending on whether the power generation facility is located inside or outside the site using electricity.
