LG Electronics has accelerated its environmental sustainability strategy, achieving significant progress in greenhouse gas reduction, renewable energy adoption, circular economy initiatives, and responsible manufacturing, according to its Sustainability Report 2025.
The company continues to strengthen its global ESG strategy through measurable climate action, increased renewable electricity usage, resource-efficient manufacturing, sustainable product innovation, and transparent sustainability reporting while advancing toward its long-term carbon neutrality and RE100 commitments.
Climate action remained a key priority throughout 2025. LG Electronics reduced its global Scope 1 and Scope 2 greenhouse gas emissions to 841,528 tCO₂e, down from 906,576 tCO₂e in 2024 and 874,231 tCO₂e in 2023, representing approximately a 7 percent year-on-year reduction.
Scope 1 emissions totaled 75,462 tCO₂e in Korea and 131,613 tCO₂e overseas, while Scope 2 emissions reached 222,281 tCO₂e in Korea and 412,172 tCO₂e overseas. Greenhouse gas emissions intensity also improved to 0.94 tCO₂e per KRW 100 million of revenue, compared with 1.03 in 2024 and 1.06 in 2023. Total Scope 3 emissions declined to 71.62 million tCO₂e, from 72.76 million tCO₂e a year earlier, LG Eletronics Sustainability Report 2025 indicated.
Jeong Soo-jeong, Head of the ESG Strategy Planning Team, at LG Electronics, said the company continues pursuing ambitious long-term climate targets. LG Electronics aims to achieve carbon neutrality for Scope 1 and Scope 2 emissions by 2030 while sourcing 100 percent renewable electricity across all global operations by 2050 under its RE100 commitment. Its Science Based Targets initiative (SBTi)-validated roadmap includes reducing Scope 1 and Scope 2 emissions by 54.6 percent by 2030 compared with the 2017 baseline, alongside a 20 percent reduction in product-use carbon emissions per unit by 2030 versus 2020.
By focusing on measurable environmental improvements alongside business value creation, LG Electronics continues demonstrating that sustainability serves as both an environmental responsibility and a long-term competitive advantage, LG Electronics CEO Ryu Jae-cheol said.
Renewable electricity adoption continued to accelerate during 2025. Renewable electricity accounted for 17.7 percent of total electricity consumption, increasing from 14.1 percent in 2024 and 10.1 percent in 2023. Total renewable electricity consumption reached 231,380 MWh, compared with 186,233 MWh the previous year. This included 170,979 MWh supplied through Power Purchase Agreements (PPAs), 55,082 MWh through Energy Attribute Certificates (EACs), and 5,319 MWh generated from LG Electronics’ own solar installations.
The company has also established a long-term renewable electricity roadmap. Renewable electricity is projected to account for 24 percent of total electricity consumption in 2026, increasing to 62 percent, or approximately 826 GWh annually, by 2030. By 2050, LG Electronics expects to source 100 percent renewable electricity, requiring approximately 1,976 GWh of renewable power annually across its worldwide operations.
LG Electronics further strengthened renewable energy generation through major solar investments in India. During 2026, the company commissioned 20.80 MWp of rooftop solar capacity, including an 11.00 MWp installation at its Greater Noida manufacturing facility and a 9.80 MWp system at its Pune plant. These projects are expected to generate approximately 32.1 million units (3.21 crore units) of renewable electricity annually while offsetting around 0.61 million metric tonnes of CO₂e over their operational lifetime. The Greater Noida facility has already achieved approximately 50 percent renewable energy usage, demonstrating significant progress toward cleaner manufacturing.
Energy management also improved despite increased production activity. Total energy consumption reached 1,864,137 MWh in 2025, up slightly from 1,821,757 MWh in 2024. Electricity consumption totaled 1,306,076 MWh, fuel consumption reached 463,491 MWh, and steam consumption amounted to 94,570 MWh. Energy intensity remained stable at 7.5 TJ per KRW 100 billion of revenue, while the company’s non-renewable energy consumption target declined to 1.61 million MWh.
Circular economy initiatives continued delivering industry-leading results. LG Electronics achieved a 97.3 percent waste recycling rate, surpassing its 95 percent 2030 target several years ahead of schedule. Since 2006, the company has collected 5.65 million tonnes of electronic waste, while cumulative recycled plastic usage reached 277,000 tonnes since 2021. Product-use carbon emissions across seven major product categories have been reduced by 22.5 percent, exceeding the company’s original 20 percent reduction target.
To further lower emissions, LG Electronics recovers approximately 25 tonnes of waste refrigerant annually, preventing around 50,000 tonnes of CO₂ equivalent emissions each year. The company is also expanding high-efficiency heat pumps, low-global-warming-potential refrigerants, AI-enabled energy optimization technologies, and liquid and immersion cooling solutions for AI data centres to reduce customer energy consumption and operational carbon emissions.
Sustainability efforts extend beyond manufacturing into the broader value chain. LG Electronics strengthened ESG due diligence across its global supplier network while expanding its shared growth fund to help suppliers improve environmental performance and operational resilience. The company also continued investing in sustainable technologies, accessibility innovations such as AI-powered sign-language avatars and the LG Comfort Kit, and energy-efficient solutions that reduce customers’ environmental impact.
LG Electronics maintained strong global recognition for its sustainability leadership. In 2025, the company was ranked in the Top 1 percent of the S&P Global Corporate Sustainability Assessment (CSA) for the third consecutive year. It also remained a constituent of the Dow Jones Best-in-Class (DJBIC) World Index for the 14th consecutive year, reflecting consistent ESG performance and responsible corporate governance. Sustainability disclosures are prepared in accordance with GRI Standards 2021, IFRS S1, IFRS S2, SASB Standards, and the Task Force on Climate-related Financial Disclosures (TCFD) framework, ensuring transparent reporting for investors and stakeholders.
SHAFANA FAZAL
