Sustainability management is now at the heart of every company’s growth strategy. Amid environmental challenges such as the climate crisis, resource depletion, and the burdens brought by the expansion of renewable energy, sustainability has become a core competitive agenda for businesses. In line with this trend, LG Chem continues to pursue an action-oriented sustainability management strategy. The company has moved beyond simply reducing carbon emissions, developing technologies to convert carbon into valuable resources. They also quantify the environmental impact of their products and systematically manage carbon emissions across their partner network, putting sustainability into more practical and measurable practice. The 2024 LG Chem Sustainability Management Report presents the tangible results of these strategies. It highlights how their ESG initiatives were put into practice across the business, covering carbon reduction, expanded use of renewable energy, transition to a circular economy, and material innovation driven by eco-friendly technologies, all supported by data and actual cases. Today, we will explore the outcomes of LG Chem’s sustainability efforts, with a focus on the key changes and achievements they have delivered.

Beyond Recycling, Making the Circular Economy a Reality

LG Chem is committed to expanding recycled materials and advancing process innovation to make the circular economy a reality. In particular, they are delivering meaningful results in plastic recycling. In 2024, LG Chem used 6,593 tons of PCR (Post-Consumer Recycled) raw materials, marking a more than 360-fold increase compared to 2020. Furthermore, they have made notable progress not only in volume but also in ensuring quality and establishing a stable supply system.

Their chemical recycling technology is also being commercialized. LG Chem has completed construction of a supercritical pyrolysis oil plant with an annual capacity of 20,000 tons, launching a circular system that turns waste plastics back into raw materials. This addresses the limitations of traditional mechanical recycling and provides a foundation for applying recycled feedstocks to a wider range of products.

In addition, the company obtained ISCC Plus* certification for a total of 62 biomass-based products, including ABS and SAP. They also established a joint venture with the Italian energy supplier ENI to produce HVO from waste cooking oil. Finally, LG Chem’s biaxially oriented polyethylene, developed to enable easily recyclable mono-material packaging, received the Presidential Award, the highest honor, at the 2024 Korea Industrial Technology R&D Exhibition.

LG Chem is driving a practical transition to sustainability, taking resource circulation and environmental impact into account across the entire lifecycle of their products, from production and use to end-of-life disposal.

*ISCC Plus: An international certification system aligned with the European Union’s Renewable Energy Directives (RED) and recognized as the world’s most stringent renewable energy standard.

Proving the Net-Zero Strategy Through Action

LG Chem is driving a company-wide transition of their energy portfolio with the goal of achieving Net Zero by 2050. As of 2024, their domestic sites utilized approximately 142 GWh of renewable energy, cutting greenhouse gas emissions by around 65,000 tons. Their overseas operations procured about 693 GWh of renewable energy, resulting in more than 400,000 tons of carbon reduction. These efforts highlight their accelerating shift toward clean energy across both domestic and global production bases. Along with these efforts, LG Chem is also enhancing their carbon emissions management system. They have measured not only Scope 1 and 2 emissions, but also Scope 3 emissions generated by partners and logistics activities, and have completed third-party verification. This is a rare case in the domestic chemical industry and is significant as it demonstrates their ability to reliably manage carbon data across the entire supply chain.

These efforts go beyond simply reducing emissions and serve as a foundation for realizing a company-wide transition of their energy structure.

*Scope: A concept that classifies a company’s greenhouse gas emissions into Scope 1, 2, and 3 according to international standards
-Scope 1: Greenhouse gases directly emitted from their factories, vehicles, etc.
-Scope 2: Greenhouse gases indirectly emitted through the use of electricity or heat purchased from external sources
-Scope 3: Other indirect emissions generated across their entire supply chain, including raw material production, facilities, and distribution

LG Chem’s Journey to Sustainability

The direction of LG Chem’s technology is also shifting. Beyond simply developing materials, technological innovation that prioritizes both environmental impact and safety has become essential. In line with this trend, the company continues to develop differentiated materials based on eco-friendly technologies. In 2024, LG Chem’s new material that suppresses battery thermal runaway, the primary cause of EV fires, was published in the globally renowned journal Nature Communications, earning recognition for their technological capabilities. The material is gaining attention as a fundamental solution to improving battery safety and serves as a clear example of the company’s differentiated competitiveness.

The development of next-generation battery materials is also becoming more tangible. LG Chem is the first in Korea to mass-produce cathodes using their new precursor process technology. This proprietary process, designed around their own raw materials, dramatically improves traditional precursor manufacturing methods. It not only enhances cathode performance but also reduces production time and cost, simplifies the overall process, and contributes to carbon reduction. By lowering environmental impact compared to conventional methods, they are driving a full-scale shift toward more efficient and sustainable production.

In addition, LG Chem is pursuing a CCU (Carbon Capture and Utilization) mega-project in collaboration with Posco Holdings and the Korea Research Institute of Chemical Technology to convert carbon dioxide into valuable resources. Using DRM (Dry Reforming of Methane) technology, they aim to repurpose carbon dioxide generated from steelmaking processes. This project is gaining attention as a significant step toward bridging petrochemical operations and carbon-neutral technologies.

Likewise, LG Chem is strengthening both their sustainability and business competitiveness through materials innovation grounded in eco-friendly technologies.

ESG Strategy Shaping the Global Market

Now, sustainability has become the key to market expansion and securing global competitiveness. LG Chem is pursuing both environmental performance and profitability, extending their sustainable growth onto the global stage. In 2024, LG Chem broke ground on a cathode plant in Tennessee, North America, with an annual capacity of 60,000 tons. This strategic move responds to the U.S. Inflation Reduction Act (IRA) while ensuring a stable local supply of cathodes, a critical material for the EV market. In the life sciences sector, they achieved annual sales of KRW 1.3 trillion following the acquisition of AVEO, further strengthening their global drug development capabilities. Along with these efforts, LG Chem’s eco-friendly product portfolio, including recycled plastics, bio-based materials, and HVO feedstocks derived from waste cooking oils, is expanding in overseas markets. By collaborating with global customers, the company is delivering industry-specific sustainable solutions and turning sustainability into a tangible source of competitiveness.

LG Chem is broadening their technology and business domains on the foundation of sustainability, taking the lead in shaping the future of ESG in the global market.

Sustainability is not achieved by declaration alone. It gains true meaning only when it is embedded into everyday life through technology, structure, and execution. LG Chem’s 2024 Sustainability Report is a record of how the company demonstrated this over the year, backed by data and real-world examples.

From plastic circularity and the broad expansion of their Net Zero strategy to technology innovations transforming the environment, systematic ESG management, and sustainable growth in global markets—LG Chem is turning ESG into not just a strategy, but a core source of their competitiveness. By turning declarations into action and plans into structure, LG Chem is moving toward even greater change—the reason we look forward to the next chapter of their sustainability journey.