Climate Policy Engagement Overview: LG Chem appears to engage positively with a limited number of climate policy areas in South Korea and, to a lesser extent, the US. The company actively supports renewable energy policy in South Korea, and appears to support the Korea Emissions Trading Scheme (K-ETS) with exceptions.

Top-line Messaging on Climate Policy: LG Chem has positive top-line messaging on climate science and the need for climate action. A June 2021 joint letter from the Alliance of CEO Climate Leaders, signed by LG Chem CEO Hak Cheol Shin, advocated for limiting global warming to 1.5°C, involving halving greenhouse gas (GHG) emissions by 2030, and reaching net-zero by 2050. An October 2021 open letter by the same group, signed by LG Chem CEO, supported a broad range of climate policies including eliminating fossil fuel subsidies and developing carbon pricing mechanisms. In an editorial letter published in Maeil Business Newspaper in July 2022, CEO Hak Cheol Shin acknowledged the broad range of climate regulations being implemented across the EU and US, and said that “the transition to a low-carbon society is inevitable.”

Engagement with Climate-Related Policy: LG Chem has limited but broadly positive engagement with climate policy in South Korea. In the LG Chem 2021 Sustainability Report, published July 2022, the company disclosed that it was advocating to the government in South Korea and also abroad to expand renewable energy infrastructure and incentives. In its 2021 CDP Climate Change disclosure, LG Chem stated that it supports the revision of legislation to allow for more renewable energy production in South Korea, as well as enabling policies for ‘accessible and cost effective’ renewable energy. In the same CDP disclosure, LG Chem stated support with minor exceptions for the K-ETS, as the company opposed the proposed revision to reduce the allowance for using international offset credits to count towards domestic emissions reductions.

Positioning on Energy Transition: LG Chem appears to have limited engagement with the transition of the energy mix, but has signed several joint letters supporting the phase out of fossil fuel subsidies. In its 2021 Sustainability Report, published in July 2022, LG Chem acknowledged that ‘a rapid transition to low-carbon fuel is underway’, but it was unclear whether it supported this. As part of the Alliance of CEO Climate Leaders, LG Chem CEO has strongly supported the transition of the energy mix, including a June 2021 joint letter which advocated to policymakers to phase out coal, remove fossil fuel subsidies, and promote the electrification of transport. The CEO signed another open letter in October 2021 as part of the same alliance, which called on governments to “eliminate fossil fuel subsidies” and “cut tariffs on climate-friendly goods.”

Industry Association Governance: LG Chem listed a few of its industry association memberships through its disclosure of organizational contributions in its 2021 Sustainability Report. However, the company does not clearly outline the climate change policy positions of its associations, and it has not published a review of its alignment with these groups. LG Chem provided a detailed disclosure of its indirect climate policy influence through the Korea Petrochemical Industry Association and the World Business Council for Sustainable Development, in its 2021 CDP Climate Change disclosure. However, it did not provide details on its membership in organizations such as the Korea Enterprises Federation or the Korea Business Council for Sustainable Development.