Climate Change & Energy

Greenhouse gases that are emitted during business activities

Starting with the inventory established for the Cheongju Business Unit at the end of 2007, LG had set up the Greenhouse Gas (GHG) inventory at the company's 13 domestic sites, including the office buildings and R&D centers by the 4th quarter of 2008 (Fig 1&2). To see how reliable it was, emission data were gathered from the GHG inventory and sent to DNV, a company specializing in independent third party services, to acquire certification for the 2005, 2006, and 2007 emissions. LG Electronics is currently deploying an enterprise-wide web-based IT system to manage and monitor the GHG emissions and energy consumption. Through this system, the company is planning to perform real-time monitoring at its sites and regularly report the results to the senior executives so that the data can be used as LG Electronics' Environmental Management key performance indicator. In addition to setting up the GHG inventory at domestic sites in 2008, LG Electronics maintained an accurate evaluation of the GHG emissions for each domestic transportation step, and is also planning to establish the inventory at all overseas subsidiaries by the end of 2009. It will determine its global CO2 footprint through a comprehensive life cycle assessment (LCA) of raw materials, R&D, manufacturing, transportation, product utilization, and disposal by 2011.

Mid and long term reduction target for global greenhouse gases emissions

"Life's Good When it's Green 2020" for global green manufacturing

LG Electronics is one of the fastest growing companies in the global industry; however, the company has been minimizing its energy consumption by using low-energy manufacturing technology and optimized utility equipment management. The analysis based on the company's 2007 domestic GHG emissions (Fig 1) shows that indirect GHG from electricity and steam (Scope 2) occupies 67% of the overall GHG emissions. Therefore, minimizing electricity and steam consumption is the most efficient way to reduce GHG emissions. In addition, the company has developed a manufacturing technology to minimize refrigerant loss on major products in the direct GHG emissions category (Scope 1), such as air conditioners and refrigerators, and is currently reviewing its implementation. LG Electronics has set the year 2008 as the company's baseline, and is aiming to gradually minimize GHG emissions. On January 2009, the company announced its "Life's Good When it's Green 2020" initiative during the Las Vegas CES conference. According to the announcement, LG Electronics is aiming to reduce GHG emissions by 5% below the 2008 level by 2012 (75,000 tons), and by 10% by 2020 (150,000 tons) (Fig 2).

Fig 1. The Company's GHG Emission Ratio.

Fig 2. 150 kilo Tons of greenhouse gases emission reduction by 2020

- Energy saving & greenhouse gases reduction activities

2007 Chang-Won Site Case: Achieved 5000 tons of GHG reduction in 2007 through activities for reducing energy consumption and GHG emissions.

• Take vactions when the demand for power consumption is at its lowest to save energy.
• Commute to and from work by bicycle (participants increased by 20~30%)
• Maintain an indoor temperature at 26°C and above.
• Turn off the lights and peripheral devices when not in use.
• Run shuttle buses for moving around within factories (previously left to individuals to drive their own cars).
• Run the 'Energy Cash Back' program (giving back 3% of the energy cost saving to the staff).

"Life's Good, when it's green 2020" for global green products

The level of indirect GHG emissions caused by electricity consumption from products used at home is much higher than GHG emissions caused by manufacturing (approximately 95% more). LG Electronics is therefore dedicated to the production of energy efficient electronic appliances. The company plans to establish an energy-saving technology development roadmap every 5 years, and apply the technology to its products to reduce energy consumption to 85% of the 2007 level by 2012. LG Electronics aims to achieve the target reduction in indirect GHG emissions relating to the BAU Scenario*1 of 12 million tons by 2012, and 30 million tons by 2020. GHG emissions of 30 million tons is equivalent to the amount a 6 million acre pine wood can absorb during one year, and is also equal to the GHG emissions of six thermal power plants.*2

*1: BAU Scenario Emission: Business as Usual scenario emission, which is a product's emission whose energy efficiency is equal to the 2007 level.

*2: Ref. US Environmental Protection Agency (US EPA) Carbon Calculator

- Pilot Certification for Carbon Labeling

Carbon labeling is an initiative led by the Ministry of Environment whereby greenhouse gas emissions generated throughout a product's life cycle are revealed to consumers in a bid to encourage the purchase of low carbon products and reduce greenhouse gases. The ministry carried out pilot certification from July to December of 2008 ahead of the system's implementation in 2009. As an active supporter of efforts to cut greenhouse gas emissions, LG Electronics was participated in the pilot process.

At April 2009, LG electronics was awarded the real certification of Carbon labeling from the Ministry of Environment.
LG Electronics has selected its front loading washing machine for the pilot certification program. We transparently revealed the amount of greenhouse gases generated throughout the washer's life cycle and received certification from the authorized agency. In doing so, we will help to spread the practice of buying low carbon products among consumers. The emission information will be used as reference material for our ongoing drive to supply low carbon products. We plan to expand our supply of low carbon products to give consumers the opportunity to play their part in addressing climate change. We also plan to assess and reveal the amount of greenhouse gas emissions for other electronic appliances we produce. LG Electronics will step up development of low carbon products by sharing information on greenhouse gases with consumers. We will also do our best to provide consumers with the opportunity to participate in efforts for energy conservation.

- CO2 emissions throughout product life cycle

Development of renewable energy-related technology

The digital appliance business sector has, for the last 7 years, been the bestseller globally in sales of residential air-conditioners. In April 2007, using its 40-year expertise, it launched a newly conceptualized air-conditioning and heating system, the "Hybrid Gio". This environmentally-friendly system consumes less energy than conventional cooling or heating systems that use electricity or gases, and emits no direct greenhouse gases. Moreover, the sector launched the Solar cell business group, led by LG Corporation, building the solar-light system that is capable of generating tens of megawatts. As the solar-light generation system emits no greenhouse gases, it is expected that LG Electronics will be able to effectively reduce greenhouse gas emissions by generating electricity.

Electricity production by means of a new renewable energy is being actively concerned in order to reduce the amount of greenhouse gases that are generated.
Currently the Changwon # 2 and the Digital Appliance Research Laboratory (Gasan-dong, Seoul) are operating 1 kw/h and 7.5 kw/h sunlight panels for trial purposes. These panels are capable of producing 0.00072% of the electricity used by all LG Electronics factories in 2007. LGE uses 1.6% of total electricity as renewable energy by purchasing in Korea. (based on 2008)

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LG Electronics uses renewable energy and is going to engage in business related to renewable energy.

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Energy Efficiency

Energy Star is the US Government's international program that encourages use of energy-saving consumer products. It was formed by the US Environmental Protection Agency (EPA) in 1992 as part of energy-saving and greenhouse gas reduction efforts. The majority of LG Electronics' products meet the standard of Energy Star. Especially, the battery charger for handsets produced for the US market fulfills Energy Star requirements 100%.
Click the link below to view LG products that meet Energy Star specifications.

Battery Charger

Monitor

TV

PC