LG Chem, South Korea’s leading petrochemical, high-tech material and biopharmaceutical company, has set out to innovate its business model as it shifts focus to sustainability.

Last year, the flagship LG affiliate announced its sustainability strategy that pivots on carbon neutrality to be achieved by 2050 as the first Korean chemical firm.

The company has recently committed to using 100 percent renewable energy by 2050 to join the global clean energy RE100 initiative led by the international nonprofit organization Climate Group to reduce carbon emissions.

According to the plan, LG will slash its carbon emissions to 10 million metric tons from an estimated emission of 40 million tons by that time based on growth prospects.

It has secured a total of 260 gigawatt-hours of renewable energy through the Power Purchase Agreement and Green Premium program at home and abroad.

The company recently won a deal to buy 120 GWh of clean energy from the state-run Korea Electric Power Corporation, which is enough to power 28,000 households a year.

It plans to use the renewable energy in its three local factories when manufacturing rechargeable battery materials, petrochemical products and chemical materials.

As the first Korean business in China, LG Chem obtained 140 GWh of clean energy in the country in December.

In Wuxi, the Korean chemical company will operate its cathode material plant with 100 percent renewable energy this year.

By preparing to use clean energy at its precursor factory in Zhejiang Province, LG Chem aims to reach over 90 percent in its carbon neutrality goal in China.

In addition, the Korean company will start producing eco-friendly synthetic resin products having signed a memorandum of understanding signed with Finnish biodiesel firm Neste.

Biodiesel enables chemical firms to cut greenhouse gas emissions by 50 percent compared to using fossil fuel.

(khnews@heraldcorp.com)