No.3 Brand Value Among Global Chemical Companies! LG Chem, a Science Company Leading Sustainability
2023. 06. 13
2023. 06. 13
In 2022, LG Chem recorded sales of $40 billion (KRW 51.9 trillion) and business profit of $2.3 billion (KRW 3 trillion), according to their year-end report. Also, the company revealed their ambition for sustainable growth centered on eco-friendly materials, battery materials, and global new drugs. Their priority lies on carrying out ESG management, to achieve Net-Zero by 2050 by converting to eco-friendly raw materials and expanding the use of renewable energy. Acknowledging these efforts, LG Chem was named No.3 global chemical company of 2023 by their brand value. With the honor in hand, what plans and activities has LG Chem set up?
Brand Finance, a Britain-based firm which offers evaluation and consulting of global brands, published <Chemicals 25, 2023> in which they estimated LG Chem’s brand value as $4.5 billion, 5% increase over the previous year. LG Chem’s brand value ranked 4th in 2019 ($3.3 billion), 4th in 2020 ($3.5 billion), 4th in 2021 ($3.6 billion), and 3rd in 2022 ($4.3 billion), showing consistent increase. Amid the unstable global economy, LG Chem has achieved steady growth and was selected as No.3 global chemical company by their brand value for two consecutive years in 2022 and 2023.
LG Chem has set a sales target of $30.8 billion (KRW 40 trillion) by 2030, with focus on their three new growth engines; Eco-friendly Materials, Battery Materials, and New Drugs. Through expansion of high-value-added new businesses based on ESG, the company is establishing a foothold to leap up as a global science company. Let’s take a look at LG Chem’s new growth engines!
As for Eco-friendly Materials, LG Chem plans to expand recycled materials that apply PCR plastics, compostable and bio-circular balanced materials extracted from plant-based bio raw materials, and new renewable energy materials. The company’s sales of eco-friendly sustainability business recorded $1.4 billion (KRW 1.9 trillion) in 2022, which they intend to raise up to $6.2 billion (KRW 8 trillion) by 2030. Adding to this, LG Chem holds world’s first and best technology for cathode materials based on NCM (NickelㆍCobaltㆍManganese) since beginning mass-production in 2006. Now, the company seeks to take aggressive measures to foster their proprietary technology of additional battery materials, such as Separator (Safety Reinforced Separator, SRS), Carbon Nanotube (CNT), Thermal Adhesives, Battery Assembly Solution (BAS), etc. This is expected to improve the sales of their battery materials business to $23.1 billion (KRW 30 trillion / six times that of 2022), paving their way to be the world’s best comprehensive battery materials company. Finally, LG Chem is devoted to the development of global new drugs focused on anticancer, diabetes, and metabolism, and has secured 19 pipelines of global innovative new drugs that have entered phase one or higher clinical trials. The company is accelerating their leap as a global innovative pharmaceutical company which holds at least five FDA-approved new drugs, through research and development including the application of artificial intelligence.
LG Chem’s dream reaches beyond sustainable development of the company, proven by their constant actions for the sustainability of the Earth and humanity. It has been declared that LG Chem will put the goal of 2050 carbon-neutral growth forward by 20 years, and achieve Net-Zero by 2050. Furthermore, the company will expand their use of eco-friendly raw materials and renewable energy, cutting down the carbon emissions. By 2023, all domestic and international LG Chem products are set to undergo LCA (Life Cycle Assessment), a strategy to evaluate the impact of each product on the environment across whole process, from raw material to manufacturing.
LG Chem will keep pushing their growth in Eco-friendly MaterialsㆍBattery MaterialsㆍGlobal New Drugs, and minimize the carbon emissions by expanding the use of renewable energy. Towards a global science company, LG Chem’s sustainable actions will continue on.