LG

■ At its recent strategy meeting, LG decided to explore new business opportunities in clean tech, such as bio materials, waste plastics and batteries recycling, and carbon reduction technologies with the goal of fostering greater sustainability in the company for future generations.
 □ As it undertakes its social responsibility for future generations, LG aims to proactively enhance competitiveness in rapidly expanding markets for eco-friendly technologies designed in response to increasingly stringent environmental regulations globally.
 
■ On June 28th, LG Chairman and CEO Kwang Mo Koo visited LG Chem’s R&D center in Magok for a briefing on recent technological developments in bio materials and waste plastic recycling.
 □ “It’s vital for us to be out front in these sectors and create new and innovative customer experiences,” said Koo. “We need to have a clear picture of what we want to achieve, and pin down the scale and pace of R&D investment that will help achieve competitiveness before we move forward.”
 
■ LG will make clean tech investments in excess of 2 trillion won over the next five years in Korea and around the world.
 □ Will construct a 75,000-ton biodegradable plastic plant in the US.
 □ Sealed a contract with “Li-Cycle” for recycling waste batteries to secure supply of key materials.
 □ On carbon reduction technology, will build a plant that can convert methanol into hydrogen fuel for reuse in Daesan, South Chungcheong Province.
 
■ Each LG Group affiliate is to set goals for green technologies such as carbon reduction and created clear action plans to match their business line.
 □ ESG report on strategic directions and performance will be issued in Q3.  
 
 
LG has focused clearly on clean technologies for future growth as part of its effort to become a sustainable and responsible corporate citizen that cares for the environment in concert with future generations.
 
The company has held series of strategic meetings since the end of May to assess its mid-to-long-term business strategy. At one such recent meeting covering petrochemicals, Chairman Koo and executives from various group affiliates resolved to expand investment and strengthen the company’s capacity in clean technologies, including bio materials, waste plastics and batteries recycling, and carbon reduction. The initiative also includes contributing the creation of a circular economy.
 
In this, LG is betting on three key areas: developing eco-friendly plastics using bio materials, securing recycling technologies for waste plastics and batteries, and strengthening renewable-energy-based carbon reduction technologies such as solar and hydrogen. Overall, the goal is to shift the paradigm from petrochemicals to high-value-added clean technologies.
 
This new push comes in response to the growing awareness of the importance of carbon neutrality around the world, and is part of the company’s endeavor as a responsible corporate citizen to deliver a safe and clean world, and a brighter future for generations to come.
 
LG expects that, with its world-class technological prowess in petrochemical and EV batteries, the additional green capacity investments will generate new business opportunities in the burgeoning market for clean technologies. This is aimed at developing outstanding new products and services that can meeting new demand from customers arising from regulatory changes, particularly in Europe, and to encompass emissions across the entire product life cycle, including from suppliers and the logistics process. 
 
Chairman Koo is leading the charge on this initiative, pushing executives to spearhead the development of clean technologies as a cornerstone of LG's future business portfolio. He is also working to foster a positive environment where employees are empowered to pursue new challenges. On the 28th, he visited LG Chem’s R&D Center in LG Sciencepark in Seoul for a briefing on the company’s strategic efforts to develop biodegradable plastics from biomaterials and waste plastic recycling technology. 
 
After carefully examining the biomaterials on display, he praised employees for their efforts while engaging them directly with questions. He also reviewed the clean tech investment plan and R&D personnel to identify areas where they need further support.
 
“It’s vital for us to be out front in these sectors and create new and innovative customer experiences,” said Chairman Koo. “We need to have a clear picture of what we want to achieve, and pin down the scale and pace of R&D investment that will help achieve competitiveness before we move forward. We also need identify ways to shift away from conventional practices and enhance our competitiveness in recruiting more talented individuals in the clean technologies sector,” he added.
 
LG plans to inject more than two trillion won in eco-friendly clean technologies over the next five years, both in Korea and overseas, focusing on biomaterials, waste batteries and plastics recycling, and carbon reduction technologies.
 
LG Chem plans to build a 75,000-ton plant to produce biodegradable polylactic acid (PLA) in the US by 2025 in a joint venture with American food processing company, ADM. It will also add capacity to its plant in Daesan, South Korea, to produce biomaterials and another biodegradable plastic Polybutylene adipate-co-terephthalate (PBAT).
 
Meanwhile, LG Energy Solution and LG Chem acquired a 2.6% stake in ‘Li-Cycle,’ the largest battery recycler in North America, for 60 billion won. They also signed a deal to receive nickel sulfate, a key component of lithium-ion batteries, over a period of 10 years. Additionally, LG Chem set up a joint venture with Korean nickel sulfate manufacturer ‘Kemco’ to produce precursor using metals from waste batteries, creating a circular battery ecosystem from production to recycling.
 
LG Chem is rapidly building capacity in recycled plastics. After developing and commercializing the world's first recycled “white plastics,” which is difficult to achieve, it is now working on the development of transparent recycled plastics, proactively responding to the growing demand for eco-friendly materials from customers. On June 20th, it announced its plan to use methanol produced at the naphtha cracking center (NCC) in Daesan to construct a hydrogen fuel plant with an annual capacity of 50,000 tons.
 
LG will continue to seek new business opportunities by working with global partners in a variety of collaborations, equity investments, and M&As, with the goal of providing customers groundbreaking and differentiated experiences. 
 
The group is also working to lower carbon emissions across all its affiliates by mandating each one to set and implement eco-friendly goals, such as conversion to 100% renewable electricity and carbon neutrality, to match their business lines.
 
At LG Corp.’s ESG Committee meeting on the 28th, the company decided to formulate and pursue a comprehensive ESG strategy that will map out mid-to-long-term approaches to carbon reduction and develop overseas carbon reduction projects in the second half of this year. LG’s report on ESG management direction, strategy, and performance will be published in Q3.