LG Energy Solution joins global climate disclosure initiative

South Korean battery maker LG Energy Solution Ltd. said on Wednesday that it has become the first domestic battery maker to endorse the Task Force on Climate-related Financial Disclosures (TCFD), a global initiative to improve transparency and accountability on climate risks and opportunities.

The TCFD, established by the Financial Stability Board of the G20 in 2015, provides a framework for companies to disclose how they assess and manage the impacts of climate change on their business, and how they align their strategies with the goals of the Paris Agreement.

The TCFD has gained support from more than 4,200 organizations worldwide, including governments, financial institutions and corporations, as investors and customers increasingly demand more environmental, social and governance (ESG) information.

LG Energy Solution has been expanding its use of renewable energy at its global production facilities since Apr. 2021, when it joined RE100, a global initiative dedicated to substituting 100% of electricity consumption with renewable energy.

“We plan to further strengthen our ESG management activities by actively responding to global climate change, such as thoroughly managing and transparently disclosing climate change factors that can occur throughout the life cycle from battery production to manufacturing, use and disposal,” an official from LG Energy Solution said.

Write to Ik-Hwan Kim at lovepen@hankyung.com