LG Chem’s Sustainability Arithmetic: Add, Subtract, Multiply, and Divide
2025. 02. 21
To become a company that thrives in a sustainable world, LG Chem has adhered to four key formulas: Add, Subtract, Multiply, and Divide. LG Chem has actively pursued research and development to create positive impact (Add), worked relentlessly to eliminate anything harmful (Subtract), collaborated to amplify value rather than working alone (Multiply), and shared their resources to walk further and endure longer (Divide).
Today, let’s look into LG Chem’s Sustainability Formulas.
LG Chem’s compostable material solution COMPOSTFUL™
Research efforts to create new value for the world
A sustainable future begins with small ideas. However, turning these ideas into reality requires countless research efforts and trials. For years, LG Chem has taken the initiative to create new value for the world.
In 1996, LG Chem developed a pyrolysis process for waste plastics, opening the possibility of resource circulation. In 2009, the company began mass-production of mechanically recycled plastics, taking a step toward popularization of eco-friendly materials. Then, in 2019, LG Chem became the first in the world to embody and successfully commercialize ‘white’ recycled plastic, showcasing technology that surpasses the limitations of recycled plastics.
On the other hand, research and development of eco-friendly materials has also continued. In 2020, LG Chem successfully developed PLH*, a new compostable material with exceptional transparency and flexibility. In 2021, the company launched the eco-friendly material brand ‘LETZero,’ providing customers with sustainable material solutions. In 2023, LG Chem introduced ‘COMPOSTFUL™,’ their proprietary compostable material solution, gaining a competitive edge in the compostable plastic market. Furthermore, in 2024, the company developed and successfully mass-produced an eco-friendly plasticizer made from recycled PET bottles, unlocking new potential for plastic recycling.
In addition, LG Chem became the first Korean company to construct a supercritical pyrolysis plant capable of converting previously unrecyclable multi-material plastics into pyrolysis oil, presenting an innovative solution to the waste problem.
*PLH: Poly Lactate 3-Hydroxypropionate
LG Chem facilities receiving the Zero Waste to Landfill (ZWTL) Certification
Acquiring the world’s highest-level certification
LG Chem’s sustainability efforts have been globally acknowledged. In 2021, LG Chem developed and received ISCC Plus* Certificate for Korea’s first Bio-Circular Balanced SAP, earning credibility for the use of sustainable raw materials. In 2022, LG Chem’s Iksan, Naju, and Gimcheon sites in Korea, along with Quzhou site in China, acquired ‘Zero Waste to Landfill (ZWTL)’ certification from UL Solutions, demonstrating the company’s achievements in eco-friendly management. Furthermore, in 2023, LG Chem’s bio-based PLA** obtained North America’s biomass content certifications (TUV, USDA) and European food contact (LFGB) certification, further strengthening the company’s global competitiveness in eco-friendly materials.
*ISCC Plus: A certification by the European Union (EU) verifying that eco-friendly raw materials are used throughout the production process. As of 2024, LG Chem has obtained ISCC Plus certification for approximately 61 products.
**PLA: Poly Lactic Acid
Image of OLED substance to help understand the development of heavy metal-free OLED lighting panels
Efforts to eliminate hazardous substances
Eliminating hazardous substances is essential to make a safer world. In 1986, LG Chem laid the foundation for eco-friendly agriculture by developing three types of pollution-free pesticides (pyrethroid-based) that give less harm to the environment.
In 1994, LG Chem developed a flame-retardant polycarbonate material free of hazardous substances, enabling the use of safer materials in electronics and construction materials. In 1995, the company became the third in the world to develop Alkyl Polyglycoside (APG), a highly compostable and low-toxicity pollution-free surfactant, setting a new standard for eco-friendly chemical products.
LG Chem also continued to advance eco-friendly technology in the lighting sector. In 2014, the company developed an OLED lighting panel free of heavy metals such as lead or mercury, providing a cleaner and safer lighting solution. Building on these efforts, LG Chem became the first in Korea’s chemical industry to declare ‘2050 carbon neutral growth’ initiative in 2020, demonstrating their strong commitment to a sustainable future.
LG Chem Daesan plant in Chungnam, Korea, equipped with DRM carbon reduction facilities
Innovation to reduce energy use and carbon emissions
LG Chem is continuously striving to use energy more efficiently and cut down carbon emissions. In 1985, the company established a cogeneration plant within their Yeocheon plant in Korea, enabling the self-supply of electricity/steam and contributing to the energy efficiency.
In 1992, shampoo containers based on compostable starch were applied to ‘DeBon-Nourishing Shampoo.’ The following year, in 1993, refillable containers were introduced for the company’s detergent products (‘JaYeon Pong,’ ‘Saffron’), contributing to the reduction of plastic use.
In 2007, LG Chem explored ways to systematically manage and reduce energy consumption by establishing a web-based greenhouse gas management system. In 2022, the company collaborated with GS EPS to construct a biomass power plant using waste wood materials, reducing fossil fuel usage and creating opportunities to transition to eco-friendly energy.
Most recently, in 2023, LG Chem became the first in Korea to establish DRM (Dry Reforming of Methane) facility that captures carbon dioxide from the air to produce plastic raw materials, presenting an innovative solution for reducing carbon emissions.
Image of 3HP to help understand the joint development of eco-friendly raw material with GS Caltex
A joint venture to secure material diversity
In 1993, LG Chem collaborated with Allied Signal in the U.S. to develop and produce HCFC, an alternative to CFC (Freon gas), in an effort to protect the ozone layer. This marked a significant step toward environmental protection and paved the way for continued research and collaboration in sustainable solutions.
As interest in eco-friendly materials grew over time, LG Chem formed a strategic partnership with Neste, the Finland-based world’s largest biodiesel producer, to develop bio-based eco-friendly resins. In 2021, the company further expanded the possibilities of sustainable materials by signing a joint development agreement with GS Caltex to develop mass production technology for 3HP, a key raw material for compostable plastics.
In 2023, LG Chem announced the construction of a next-generation bio-oil (HVO, Hydrotreated Vegetable Oil) plant in collaboration with Italy’s largest energy supplier, ENI. HVO is an eco-friendly energy source produced using plant-based raw materials, such as waste cooking oil, that can replace traditional fossil fuels and help reduce carbon emissions.
LG Chem and Coupang sign MOU for plastic recycling and resource circulation
Consideration and practice of resource circulation and commercialization of eco-friendly materials
LG Chem is driving various collaborations to promote resource circulation and turn eco-friendly materials into reality. In 2021, the company partnered with Li-Cycle, North America’s largest battery recycling group, to establish a battery resource circulation system. In the same year, LG Chem also signed an agreement with Coupang for a delivery plastic waste recycling project. This was followed by the application of recycled plastics in Seoul City’s ‘Smart Shelter’ bus station screens, allowing customers to experience eco-friendly materials in their daily lives.
Furthermore, LG Chem is collaborating with Mura Technology, a company specializing in supercritical pyrolysis technology, to develop advanced waste plastic recycling technologies. In 2022, the company partnered with Hwaseong City, South Korea, to establish a resource circulation system for PVC waste wallpaper (silk wallpaper). Additionally, LG Chem worked with LG U+, a mobile network operator in Korea, and KT, a broadcasting and telecommunication network operator in Korea, to commercialize eco-friendly remote controls and set-top boxes made from recycled plastics.
In 2023, LG Chem partnered with NETSPA to establish a resource circulation system for the recycling of marine wastes, followed by a joint project with Amorepacific to develop and supply eco-friendly packaging containers. Most recently, in 2024, the company signed an MOU with Ansan City, Korea, for waste vinyl recycling, taking another step toward realizing resource circulation.
Seoul Hope Power Plant, located at the Jungnang Water Recycling Center in Seongdong-gu, Korea
Governance and transparency
In 1991, LG Chem launched a company-wide environmental management committee, which marked the beginning of their systematic environmental management. The company published their first sustainability report in 2007, enhancing transparency in corporate activities. In 2020, a new sustainability strategy team was established, placing environmental and social responsibility at the core of the company’s management strategy.
Campaigns to coexist with the nature
Building on these efforts, LG Chem continues to protect the environment and preserve ecosystems. Since 2017, the company has been conducting biodiversity conservation activities at Bamseom, a ‘Ramsar wetland’ in South Korea. Then, in 2023, they launched a seagrass habitat restoration project at LG Chem Yeosu plant in Korea to help restore the marine ecosystem.
Partnership and Cooperation for a Sustainable Society
Partnership and cooperation to create social value is also crucial. In 2018, LG Chem established the ‘Hope Green Power Plant,’ an initiative to support the education of low-income students using revenue from the sale of LG Chem’s eco-friendly energy (solar power). The following year, in 2019, LG Chem became the first chemical company in the world to issue a green bond* worth approximately $1.27 billion, leading the way in investing in a sustainable future.
*Green Bond: A type of bond issued to finance projects that contribute to environmental improvement, such as renewable energy, electric vehicles, and high-efficiency energy.
LG Chem is driving change by practicing the formula for a sustainable future – addition, subtraction, multiplication, and division. These are not just simple goals; it is LG Chem’s way of turning sustainability into reality through meaningful research, investment, collaboration, and execution.
Moving forward, LG Chem will not stop the innovation for the environment and society, developing even more solutions for a sustainable world. LG Chem’s journey continues today – to create a better tomorrow for all of us.
*This post is based on the content of ‘LG Chem’s Sustainability Arithmetic’ from ZEROBOOK, published by LG Chem (Writer: Heo Woong, LG Chem Brand Team).
There are no comments yet! Be the first to let us know your thoughts!