Ensuring Product Stewardship

With increasingly stringent product and environmental regulations at national level, it has become all the more important to identify and manage chemicals in products and ensure the required level of environmental friendliness. LG Energy Solution is a global company that leads the future of the energy industry through our battery business, which will be integral to the upcoming era of green energy. We have grave responsibility for the health, safety, environmental and social impacts of our products and are thus fully committed to minimizing adverse impacts.

We limit harmful substances below the regulatory level in the respective country to minimize their adverse impacts on the environment and public health and to provide our customers with green and competitive solutions. We are operating a product stewardship process to continuously monitor and manage in compliance with evolving product and environmental regulations; and providing a guideline for suppliers to manage supply chains in an environmentally friendly manner. As such, LG Energy Solution ensures eco-friendliness of all chemicals from the purchase of raw materials to production and sales and strictly manages the environmental hazards of materials and products.

Further, we strive to quantify environmental performances of products through Life Cycle Assessment (LCA) and transparently disclose reliable information through third-party verification

With a view to ensuring compliance with product and environmental regulations and strengthening product safety, LG Energy Solution operates CHARMs 2.0 (Chemical Assurance and Regulation Management System) to strictly manage environmental hazards throughout the entire process – from raw materials purchase and warehousing to use and disposal. Through CHARMs 2.0, we aim to manage any compliance risk in a preemptive manner by thoroughly reviewing chemical compositions and compliance assurance of each and every raw material as well as information on any environmental hazard and related legal response before making orders from suppliers.

LG Energy Solution constantly examines and monitors environmental laws, regulations, and relevant accident cases in the countries and regions we operate. Relevant regulations include the “Act on Registration and Evaluation of Chemical Substances,” the “Chemical Substances Control Act,” and the “Occupational Safety and Health Act” in Korea, REACH, SVHC, RoHS, and SCIP in the European Union and TSCA in the United States. LG Energy Solution preemptively responds to chemical regulations in the conduct of its global business to minimize any associated risks.

Life-Cycle Assessment, or LCA, is an integrated methodology for assessing environmental impacts by analyzing an inventory of the energy and materials required in all stages of the product life cycle (cradle-to-grave) from raw material extraction processing, manufacturing, assembly, transportation, use, to its disposal, and calculating the corresponding emissions to air, water, land, etc. LG Energy Solution has been conducting LCA since 2019. While we communicate with external stakeholders, including customers, the information on environmental impacts of our products, the results also serve as an important criterion and tool to measure the product carbon intensity, identify hotspots (i.e. the most relevant drivers of the assessed impacts), and establish mid- to long-term strategies to achieve carbon neutrality.

Environmental Product Declaration, or EPD, is a certification program through which the information on the environmental performance of the product – atmospheric emissions, resource uses, water emissions and land emissions, and other releases – is reported, verified by a third party, registered and displayed on the product based on the results of the LCA study. Through EPD certification, LG Energy Solution is committed to measuring and reducing the environmental impacts of its products and keen to communicate with customers the information in a transparent manner.