LG Energy Solution Declares Support for TCFD, Vows Transparent ESG Management
2023.02.15■ The company announces open support for accurate and timely disclosure of climate-related financial information
■ LGES to strengthen its ESG activities by closely managing the factors related to climate change throughout the entire battery lifecycle
SEOUL, February 15, 2023 – LG Energy Solution (LGES; KRX: 373220) today officially declared support for the Task Force on Climate-related Financial Disclosures* (TCFD), joining a global movement toward transparent ESG initiatives.
The TCFD, one of the world’s major climate finance-related international organizations, was established by the Financial Stability Board (FSB) following the G20 Finance Ministers and Central Bank Governors meeting in 2015, to establish consistent climate-related financial risk disclosures for use by companies, banks and investors in providing reliable information to their stakeholders.
More companies are enhancing their corporate values through supporting the TCFD, as North American and European governments continue to enforce stringent environmental policies, and accordingly, clients and investors are increasingly demanding companies to substantiate their ESG performances and activities.
Major global asset management companies, including BlackRock, are requiring their investees to support the TCFD, and approximately 4,200 global companies have already declared their supports by the end of 2022. LGES is the first Korean battery manufacturer to declare support for the TCFD.
“We will closely manage and transparently disclose the information on the business factors related to climate change, which can take place throughout the entire battery lifecycle, from manufacturing and use to disposal, thereby further strengthening our ESG activities,” said LG Energy Solution.
LGES became the first Korean battery manufacturer to join RE100 (Renewable Electricity 100%) in April 2021, and has been expanding the use of renewable energy at its global production sites. The company also continues to enhance its ESG activities by joining the Responsible Business Alliance (RBA) and Responsible Labor Initiative (RLI).
* TCFD (Task Force on Climate-related Financial Disclosures): The Task Force consists of 31 members from across the G20, representing both preparers and users of financial disclosures. The TCFD is chaired by Michael R. Bloomberg, founder of Bloomberg L.P.
