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Response to Climate Change

Promoting Carbon Neutrality (Net-Zero) by 2050

In response to climate change, one of the greatest challenges facing humanity, LG Display held an ESG Committee meeting in April 2023 to deliberate and approve the declaration of the 2050 Carbon Neutral Initiative. We have also established a roadmap to achieve carbon neutrality by reducing Scope 1 (direct emissions) and Scope 2 (indirect emissions) emissions from its operating sites in Korea and around the world by 53% by 2030 and 67% by 2040 compared to 2018. To reduce greenhouse gas emissions, we are determined to develop high-efficiency scrubbers for gases generated during the manufacturing process, advance low-carbon fuel technology, reinforce company-wide power saving activities, and actively promote the transition to renewable energy. Along with thorough internal reduction activities, LG Display will achieve carbon neutrality by 2050 by externally offsetting remaining emissions that are difficult to reduce technically, and in the meantime, the ESG Governance (ESG Committee) will regularly check and report the progress of carbon neutral activities, strengthening the driving force to achieve carbon neutrality and continuously upgrading the roadmap.

Major Reduction Measures

Type
  • Internal Reduction
  • External Reduction
Direct
(process gas)
Indirect
(electricity)
  • Process Efficiency

    • Optimize gas usage
    • Optimize gas usage Install process gas reduction equipment SF6/CF4: 90% reduction efficiency
    • Optimize power usage and promote various energy-saving activities
    • Develop and adopt energy-efficient manufacturing and utility equipment with low power consumption
  • +
  • Future Innovation
    Technology

    • Develop high-efficiency reduction equipment SF6/CF4: Efficiency 90 → 95%
      N20: Develop reduction technology
    • Develop eco-friendly alternative fuels
    • Improve facility operation efficiency with IoT/AI technologies and achieve business innovation through DX
  • +
  • Carbon Free Energy

    • Switch to renewable energy
  • +
  • External Offsetting

    • Promote afforestation project
    • Purchase offset credits

Response to climate change risks

LG Display proactively manages risks by detecting internal and external risk factors and promptly responding to them. LG Display analyzes risks related to the business environment, such as uncertainty, loss of opportunity, human casualties, and business interruption, across the company, selects key risks based on their likelihood and impact of occurrence, and establishes a prevention and management system.

Response to climate change risks
Risk Type Impact Period Financial Impact Response Measures Opportunities
Short-Term Mid- to Long-Term
Transition Risks Policies and Regulations Strengthening GHG-related policies and regulations V V
  • Increased cost of purchasing emission permits
  • Increased greenhouse gas emission debt
  • Increased carbon tax
  • Invest in GHG reduction facilities and use eco-friendly gases
  • Generate revenue from the sale of surplus emission permits
Rising electricity bills V V
  • Increase in cost of goods manufactured due to increase in electricity rates
  • Reduce energy costs through power saving
  • Sign long-term fixed power purchase agreements for renewable energy
  • Reduce carbon footprints by signing PPAs for renewable energy
Technology Applying new eco-friendly technologies for GHG reduction - V
  • Increase in R&D costs for low-carbon technology and facility replacement
  • Develop low power consumption/low carbon technology
  • Develop eco-friendly materials and parts
  • Secure and diversify alternative resources
Market Increasing demand from customers to reduce GHG V V
  • Decline in sales due to decrease in product demand caused by unfulfillment of consumer demand
  • Develop a variety of eco-friendly products using low-carbon technology
  • Gain a competitive edge by strengthening business with customers
Reputation Increasing investors' interest in our efforts to climate change V V
  • Decrease in investment due to decline in ESG valuation
  • Fully disclose eco-friendly information activities and performance
  • Implement green finance, such as issuing green bonds
  • Increase capital raising opportunities by attracting investments
Physical Risks Acute Heatwave - V
  • Increase in operating costs due to increasing power consumption of facilities such as freezers
  • Reduce power consumption by improving the efficiency of freezers
  • Improve energy efficiency through diagnosis of facilities and processes
  • Reduce costs by increasing energy efficiency
  • Improve consumer preference for low-carbon energy use
Chronic Increase in average temperature

Greenhouse gas reduction
Facility investment

Investing in Process Gas Reduction Facilities and Developing High-Efficiency Carbon Reduction Technology As part of our efforts to reduce GHG emissions, we have invested about 51 billion won since 2018 to install plasma scrubbers, an equipment that can reduce emissions from F-Gas used in the dry etching process by more than 90%, at our several plants, and as a result, as of 2022, we were successfully able to reduce 1.52 million tons of GHG emissions caused by process gases. Furthermore, to maximize the reduction, we are developing high-efficiency technology using catalyst and heat in collaboration with equipment manufacturers, and our goal is to achieve reduction efficiency of over 95% by 2030, and over 99% by 2050. We will also develop reduction technologies to mitigate emissions from N2O used in the deposition process by 2030 and develop and install equipment with a reduction efficiency of 80% or higher by 2050. Promoting Ongoing Company-Wide Energy Saving Activities To better promote effective energy saving activities, LG Display has established a dedicated organization focused on energy conservation. Through various initiatives such as utilizing waste heat from Clean Dry Air (CDA) compressors to improve freezer efficiency and generating cold water, we were able to save 454 GWh of electricity in 2022 and reduce GHG emissions by 210,000 tons. As part of our efforts for energy saving activities, we will develop CDA Smart Control for the optimization of manufaturing and utility facilities, improve smart control functions for freezers, and replace high-power laser equipment and exposure meter of illumination systems with low-wattage and high-efficiency ones.

2022 Greenhouse Gas Emissions (tCO2eq)

  • 20202,181,278
  • 20212,091,506
  • 20221,158,706
  • 20204,563,615
  • 20214,944,477
  • 20224,536,176
  • 2020232,927
  • 2021223,797
  • 2022261,501

Expanding the Transition to Renewable Energy

LG Display is actively transitioning from fossil fuel-based electricity to renewable energy sources such as solar power, wind power, and hydropower. In line with the introduction of the Korean government's renewable energy application program in 2021, our domestic sites have been shifting to renewable energy through the green premium program, while plants in China and Vietnam have been adopting renewable energy through the purchase of Renewable Energy Certificates (RECs). In 2022, we converted 1,096 GWh of electricity to renewable energy, 19 times more than the previous year, resulting in 13% of the company’s electricity being sourced from renewable energy and reducing greenhouse gas emissions by 620,000 tons. Moving forward, we plan to gradually expand our use of renewable energy through various options, including Power Purchase Agreements (PPAs), with the goal of converting 100% of electricity consumption at our China and Vietnam sites to renewable energy by 2050.

ESG Shared Growth Management with Partners

LG Display promotes green SCM consulting and carbon partnerships for the purpose of disseminating carbon neutrality and climate change response activities to partner companies and reinforcing ESG shared growth management. Through green SCM consulting, LG Display helps our partners to proactively respond to greenhouse gas regulations by building a greenhouse gas inventory and providing energy diagnosis. For partners who have successfully completed green SCM consulting, LG Display promotes shared green growth by providing regular follow-up inspections and additional incentives at the time of purchase through the carbon partnership certification system. Since 2013, LG Display has been inspecting the overall environment management and providing technical support to strengthen our partners' ability to comply with environmental laws and regulations.

Getting Involoved In
Global Initiatives

LG Display launched the World LCD Industry Cooperation Committee WDICC(World Display Device Industry Cooperation Committee) in 2001 to promote sustainability and eco-friendliness in the display industry. LG Display has been conducting activities to exchange technologies and information to reduce greenhouse gas emissions, save energy and water, and lower waste emissions with display companies and organizations in Korea, Japan, Taiwan, and China. In addition, by participating in the Carbon Disclosure Project (CDP), which is recognized as a world-renowned authority in environmental information disclosure, LG Display actively discloses climate change response activities and greenhouse gas emissions and communicates with stakeholders.

CDP
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