Focus Areas of Environmental Management
LG Energy Solution focuses on five environmental management areas, including water, air, chemicals, land, and waste, whereby we strive to minimize negative environmental impacts that may arise in the life cycle of batteries and maximize the positive impacts of our clean technology. At all of LG Energy Solution’s business sites, we carefully manage the environmental impacts of our operations per focus area, in accordance with our comprehensive environmental policy and internal regulations for each focus area. We set targets and apply standards that are stricter than legal requirements of each country we are operating in, and continue to expand investments in environmental facilities to improve environmental performance. Further, by linking environmental performance indicators with the evaluation and remuneration of senior management including Safety and Environment Officer in charge of the company-wide environmental, health and safety management, we intend to promote environmental sustainability.
Company-wide Toxic Emissions and Waste Reduction Target
LG Energy Solution sets targets and tracks the progress in implementing them to effectively reduce toxic emissions and waste and enhance resource circulation. We aim at, by 2026, acquiring Zero Waste to Landfill certification at all production sites, and, by 2028, achieving 100% recycling of waste and thereby securing Platinum grade.
As an interim goal, we set the target for the year 2024 to achieve a 90% recycling rate and has strengthened waste sorting and classification system, while partnering with companies specialized in recycling technology. As a result, we outperformed the target, achieving a recycling rate of 91.5% as of 2024.
LG Energy Solution remains dedicated to advancing technological innovation and proactively rolling out programs to minimize toxic emissions and waste and maximize recycling.
Company-wide Toxic Emissions and Waste Reduction Programs
LG Energy Solution implements various programs aimed at reducing toxic emissions and waste across all its business sites, and operates emissions control system and equipment. Further, we provide employees in relevant departments with education and training programs to enhance the level of individual and organizational competence.
Water Resources
LG Energy Solution's Efforts to Preserve Clean Water Resources
- Operation of independent wastewater treatment plants and joint treatment facilities
- Continuous reduction of pollutants and emissions through thorough monitoring of water quality
- Constant improvement of wastewater treatment systems at wastewater discharge facilities (storage battery manufacturing facilities and industrial cleaning and condensation facilities for waste gas and dust)
- Reduction of water consumption through process improvement including reuse of RO wastewater from cooling
Air
LG Energy Solution's Efforts to Keep the Air Clean
- Operating an optimal management system throughout the process of investment, operation, and maintenance of environmental facilities for air pollution
- Reducing nitrogen oxides emissions through investment in the improvement of utility facilities(boilers) at business sites, such as replacing them with low NOx burners
- Establishing an internal verification system to improve reliability of air pollutants measurement data, including a process for evaluation of accuracy of third-party analysis
- [Emission facilities] Storage and mixing facilities, drying and heating facilities, and boilers
- [Prevention facilities] Facilities for filtration, adsorption, cleaning, condensation, low NOx, and RTO (regenerative thermal oxidizers)
Land
LG Energy Solution's Efforts to Conserve the Clean Land
- Establishing internal standards for the operation of soil contamination management facilities and conducting soil contamination prevention programs
- Establishing and managing the compliance with the internal procedures related to soil contamination monitoring and fulfilling legal requirements such as regular inspection of soil contamination levels
Chemicals
LG Energy Solution's Efforts for Safe Chemical Management
- Operation of an integrated chemical management system called Hazardous Substance Management System (HSMS, formerly known as CHARMs 2.0) for all operations to manage compliance with relevant laws and regulations and enhance product stewardship
- Strict management of environmental hazards from the stage of raw materials purchase, requiring chemical composition information and regulatory assurance before placing orders
- Monitoring of latest information on hazardous substances and evolving laws and regulations and taking measures to prevent environmental health and safety incidents
- Management of hazardous chemicals handling facilities (installing trenches, dikes, CCTVs, etc.)
- Establishment of standards / protocols for managing accident-prone areas, encompassing the entire process including warehousing, loading, unloading, storage, handling, use, and disposal of chemical substances, to reinforce preventive activities
Waste
LG Energy Solution's Efforts to Minimize Waste
- Operation of waste batteries information management and inventory system, collection facilities, and development of innovative technologies for thorough management of waste batteries
- Improving the recycling rate of waste disposed from all business sites
Hazardous Waste Reduction Programs
LG Energy Solution continues to develop and implement innovative technologies to minimize hazardous waste at all production sites. As part of these efforts, we have introduced a new technology in our production facilities in Korea, China, and Poland to recycle waste electrode materials (NMP, N-Methyl-2-pyrrolidone), which account for approximately 85% of the waste generated by weight. This has increased the NMP recycling rate from 80% to 97%, significantly reducing hazardous waste at these sites. Additionally, by adopting NMP recycling technology, we are reducing solvent use, resulting in decreased use of hazardous substances as well as less hazardous waste generated. Through these efforts, LG Energy Solution is maximizing resource circulation and focusing on establishing a production process that minimizes environmental impact.
Landfill Waste Reduction (Zero Waste to Landfill Certification)
Zero Waste to Landfill certification is designed to validate and certify companies that minimize landfill and maximize recycling of resources. LG Energy Solution actively promotes the recycling of waste generated at its facilities to achieve ‘Zero Waste to Landfill’.
Status of Certification Acquired
- All three manufacturing sites in Nanjing, China certified by Underwriters Laboratories (UL) with the highest designation, Platinum, proving a landfill diversion rate of 100%;
- Mother Factories in Ochang, Korea certified by UL with the designation of Gold, proving a landfill diversion rate of 95% to 99% or greater;
- Manufacturing site in Michigan, U.S. certified by National Sanitation Foundation (NSF) assuring that less than 1% of waste is going to the landfill.
*A regular process to renew certifications and apply for new ones to cover all global operations is in place.
Biodiversity
LG Energy Solution's Efforts to Conserve Biodiversity
- LG Energy Solution’s Biodiversity Protection and Deforestation Prevention Policy established in April, 2024
- Establishing a company-wide biodiversity management framework as part of key tasks under ESG strategic framework
- Identifying and implementing various biodiversity conservation activities at each business site
Activities to Protect Endangered Species in Cheongju
The Ochang Energy Plant of LG Energy Solution is taking part in Endangered Species Conservation Project organized by the Geum River Basin Environmental Office to protect class II endangered wildlife, giant water bug, and preserve local biodiversity in Cheongju area. We have signed an MOU with the Geum River Basin Environmental Office and Cheongju municipal government to provide financial support and aid in the releasing of endangered species and improving their habitat. LG Energy Solution will continue to contribute to the conservation of ecosystems and biodiversity.
Efforts to Minimize Toxic Emissions and Waste Across Supply Chains
At LG Energy Solution, we are committed to minimizing toxic emission and waste not only from direct operations but also from environmental footprint in our supply chains. In accordance with its ‘Global Environmental Policy’ and ‘Code of Conduct for Suppliers,’ each of LG Energy Solution’s suppliers, contractors and partners shall proactively identify, assess and minimize adverse impacts of its business on the environment, climate and human health. Their adherence to international sustainability standards and compliance with LG Energy Solution’s policies and requirements are monitored and assessed through our regular Supplier ESG evaluation in conjunction with Procurement Evaluation. With a view to raising awareness of common goal to managing environmental footprint and encouraging our partners’ voluntary efforts, an incentive / penalty program is put in place depending on their respective environmental performance.
Environmental Impact Assessment
LG Energy Solution conducts environmental impact assessments regularly to evaluate and systematically manage the actual and potential impact of our business activities on the environment.
01
Target Areas and Frequency of Assessment
- Manufacturing areas: Every Year
- Non-manufacturing areas: Every 3 Years
- Initial assessment for each new project and occasional assessment for any change made in the production line, equipment, or process
02
Scoping of Relevant Environmental Impacts
- Identify environmental impact factors (direct or indirect) relevant to business activities (manufacturing or non-manufacturing activities)
03
Identification of Environmental Impact Factors
- Creation of a material balance sheet at each stage of the process, from raw material warehousing to product shipment
- Identification of environmental impact factors at each stage based on the material balance sheet
04
Environmental Impact Assessment
- Assessment of environmental impacts of identified factors
- Quantification based on severity and the probability of occurrence
- Identification of measures for improvement
05
Review of the Assessment Results
- Evaluation of the adequacy and validity of the assessment results and measures for improvement (reevaluation when necessary)
06
Target Setting an Implementation Monitoring
- Planning of improvement measures with targets and monitoring of the implementation
- Transparent communication on the proceedings and results of the assessment with relevant members and awareness raising
Investment Status by Management Area
LG Energy Solution invests on minimizing adverse impacts on the environment and enhancing environmental performance. In 2022, the investment amounted to KRW 3.5 billion and in 2023, we plan to increase the investment up to KRW 22.7 billion.
Environmental Equipment Enhancement
Installation of waste NMP self-recovery facilities, application of upgraded water draining method from cooling facilities, improvement of air pollution monitoring and treatment facilities, etc.
Establishment of Smart Factory
Installation of air pollution prevention facility, wastewater treatment facility, and monitoring systems of rainwater and odor
Management System Construction
Distribution and advancement of waste management system (Disposal Product Management System, DPMS) and chemical management system (CHARMs 2.0)
Others
Installation of hazardous chemical disposal booths and smart recycling boxes, maintenance of environmental facilities, etc.