Response to Climate Change

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.

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.

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.