Environmental Impact｜LG Energy Solution

Environmental Impact

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

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

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

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

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

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’.

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.