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08 Jun LG Innotek to Help Partners Improve ESG Practices
LG Innotek [011070:KS] has established an agreement with the Korea Commission for Corporate Partnership to assist the firms’ partners with their environmental, social, and corporate governance (ESG) performance, as reported by The Korea Herald on June 7. The South Korean electronic component manufacturer and the commission will collaborate to create ESG indices, as well as provide education, evaluations, and consultancy services to partner firms. These partners will be able to earn favorable interest rates for loans at Shinhan Bank [1558:KS] and the Industrial Bank of Korea [024110:KS] if they do well in ESG assessments.
South Korea approved the Framework Act on Carbon Neutrality and Green Growth on August 31, 2021, pledging to become carbon neutral by 2050. The legislation mandates that the country cut greenhouse gas emissions by at least 35% from 2018 levels by 2030, equivalent to a reduction of greenhouse gas emissions from 727.6m tons in 2018 to at least 472m tons. In response, LG Innotek announced its 2040 Carbon Neutrality Plan, which commits the company to converting all power consumed at its global business sites to renewable energy by 2030 and achieving zero carbon emissions by 2040. LG Innotek’s CEO, Cheoldong Jeong, stated that the company will lead the way in creating a sustainable ecosystem by increasing investments and adopting technologies to reduce negative environmental impact.