LG Energy Solution: A Beacon of Sustainability in the Battery Industry
Wednesday, Jan 22, 2025 12:11 am ET
LG Energy Solution (LGES) has made headlines by ranking 12th in the Global 100 Most Sustainable Corporations 2025 list, securing the top position among battery manufacturers. This remarkable achievement is a testament to the company's unwavering commitment to sustainability and responsible business practices. In this article, we will delve into the key factors that contributed to LGES's high ranking and explore the long-term implications of its sustainability initiatives.

LGES's strong performance in sustainable revenue and investment KPIs earned it recognition in the Global 100 assessment. The company's core business of providing sustainable and reliable energy solutions, coupled with significant investments in future growth engines, has positioned it as a leader in the battery industry. LGES's commitment to achieving carbon neutrality by 2050 and its participation in global initiatives like RE100 and EV100 further solidify its dedication to sustainability.
The company's energy productivity and GHG productivity were also highly rated by Corporate Knights. LGES's efforts to improve energy efficiency, expand renewable energy, and reduce greenhouse gas emissions have been instrumental in driving its sustainability performance. For instance, LGES aims to convert 100% of electric power used at all domestic and overseas business sites to renewable energy by 2030, demonstrating its commitment to long-term sustainability.
LGES's adoption of Life Cycle Assessment (LCA) in 2019 and its continuous expansion of products covered by LCA and EPD certifications showcase its dedication to transparency and accountability. By 2024, LCA covered battery cells with 83% of total capacity, and EPD certified battery cells with 60% of total capacity. This commitment to long-term sustainability and transparency sets LGES apart in the battery industry.

LGES's supply chain sustainability efforts have also been a significant factor in its high ranking. The company has developed an IT management system that connects Tier-N suppliers for improved traceability and transparency. Additionally, LGES published the 'Supply Chain Sustainability Report' to maintain transparency and provide information on its supply chain management system, strategies, and key achievements.
LGES's commitment to carbon neutrality and renewable energy transition not only enhances its competitive position in the global battery market but also drives innovation and technological leadership. The company's work on closed-loop resource systems and battery recycling demonstrates its commitment to pushing the boundaries of sustainability in the battery industry.
In conclusion, LG Energy Solution's ranking as the world's 12th most sustainable company and the top battery manufacturer is a testament to its unwavering commitment to sustainability and responsible business practices. The company's long-term investment potential is significantly enhanced by its strong performance in sustainable revenue and investment KPIs, energy productivity, and GHG productivity. LGES's commitment to carbon neutrality and renewable energy transition positions it well to meet growing demand for sustainable products, drive innovation, and maintain a competitive edge in the global battery market. As the world shifts towards a low-carbon economy, LGES's leadership in sustainability will continue to be a strategic advantage, creating value for investors and contributing to a more sustainable future.
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