LG Elec to shift to 100% renewable energy by 2050

LG Electronics Inc. on Sunday unveiled a plan to make a complete transition into renewable energy for its operations both at home and abroad by 2050, taking a step forward from its previous goal of achieving carbon neutrality by 2030.

Under the new medium to long-term plan, the South Korean home appliance giant will power all its plants and distribution centers in North America solely with renewables by year's end. For facilities in other locations overseas, the company will gradually switch to 100% renewables by 2025.

If it fulfills the new goals, renewable energy will account for over half the electricity used at its operations at home and abroad.

To do so, its action plans include generating renewables from high-efficiency solar panels; purchasing renewable credit cards (RECs); buying renewable energy directly from power generators in power purchase agreements; and paying the so-called green premium to buy clean energy from the state-run utility KEPCO Corp.

As part of the efforts, LG Electronics' plant in Noida, India, has recently set up a 3.2-megawatt solar power generator to power part of its operation. The company registered the plant as an emission-reduction project under the UN Clean Development Mechanism (CDM). Such a project can earn saleable certified emission reduction credits, which can be counted toward the requirements set out by the Kyoto Protocol.

For domestic operations, LG Electronics pledges to have renewable energy represent over 60% of its energy use by 2030 and increase the ratio to 90% by 2040 and 100% by 2050. The goals are based on domestic renewable energy supply conditions for industrial use. 

Back in 2019, the electronics company announced its zero carbon 2030 initiative, under which it will cut greenhouse gas emissions by half, and at the same time, balance emissions of carbon dioxide with its renewables by 2030.

The latest plan to make a complete switch into renewables demonstrates LG Electronics CEO Kwon Bong-seok's determination to take a preemptive step in an era where carbon emissions have become a new trade barrier. The company will keep markets updated with its progress in emission-reduction efforts through sustainability reports.

With the Sunday announcement, LG Electronics followed in the footsteps of its affiliate LG Chem Ltd., which became the first Korean chemical company in July 2020 to announce a plan to produce zero carbon by 2050. A half-year later, LG Chem said it would power its battery component plant in China with renewable energy. 

Other major business groups in South Korea have been joining global efforts to combat climate change. Last year,  SK Group declared that SK Hynix and other affiliates would completely switch over to renewable energy such as solar and wind power by 2050.

Write to Hyung-suk Song at click@hankyung.com
Yeonhee Kim edited this article.