LG Group to invest $2.7 bn in decarbonization by 2030

South Korea's No. 4 conglomerate LG Corp. is set to accelerate its net zero by 2050 strategies.

LG will invest 3.4 trillion won ($2.7 billion) by 2030 in decarbonization, according to its report issued on Feb. 5. The fund will be used to develop technologies for the generation of clean energy, such as blue hydrogen and green hydrogen, as well as the creation of timberland for carbon offset.

The report stated concrete plans for carbon neutrality by LG's seven major affiliates, LG Electronics Inc., LG Display Co., LG Innotek Co., LG Chem Ltd., LG Energy Solution Ltd., LG Household & Health Care Ltd. and LG Uplus Corp. The seven companies generate 99% of the greenhouse gases that the conglomerate emits a year.

"LG prioritizes actions to fight climate change over other environmental, social and governance management agendas. The report presents a long-term roadmap, which includes group-wide solutions for net zero," said an LG official.

The group stated it will reduce 27% of the combined carbon emissions of scope I, direct emissions from company-owned and controlled sources, and scope II, indirect ones from the generation of purchased energy, by 2030 and 62% of those by 2040, compared with that generated in 2018.

It aims to achieve full decarbonization of LG Electronics by 2030. The target year for LG Energy Solution and LG Innotek is 2040; LG Display, LG Chem, LG Household & Health Care and LG Uplus will complete it by 2050.

The group will speed up the major affiliates' energy transition to 100% renewables, as well as establish carbon neutrality strategies and intensify monitoring of its relevant activities. 

Write to Ji-Eun Jeong at jeong@hankyung.com

Jihyun Kim edited this article.