LG Group manages ESG information like financial data

LG Group has decided to manage environmental, social, and governance (ESG) management activities as if they were financial data.

The aim is to provide shareholders with transparent and consistent ESG performance and information to lead the overall sustainable growth of LG Group.

The group announced on Friday that it had released a "LG ESG reporting 2022-2023: Responsible Business, Sustainable Future." This is the second ESG report following the one published last year. The report includes the strategies and performance of key subsidiaries to provide an overview of the group's ESG management status.

LG Group has established an ESG information management system and processes to maintain the reliability of non-financial data and proactively respond to ESG disclosure requirements.

The group has been operating the ESG IT platform "LG ESG Intelligence" since June this year, which systematically manages integrated non-financial data for ten affiliates within the group.

"We will establish a foundation to enhance data reliability, proactively detect non-financial risks and support management decision-making," an LG Group source said.

LG's ESG management is yielding visible results. The usage of renewable energy by LG increased nearly 150 times in just two years, from 26 gigawatt hours (GWh) in 2020 to 3,894 GWh in 2022. Greenhouse gas emissions decreased by approximately 11%, with emissions in 2022 at 19,365,000 tCO2eq (converted to carbon dioxide emissions) compared to 21,754,000 tCO2eq in 2021.

Write to Jeong-Soo Hwang at hjs@hankyung.com