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LG Energy Solution’s Ohchang factory in North Chungcheong Province (LG Energy Solution) |
LG Energy Solution said Wednesday it will improve reporting on climate-related risks in accordance with the Task Force on Climate Related Financial Disclosures, or TCFD, the first of its kind among battery makers here.
TCFD is an international organization created by the Group of 20’s Financial Stability Board in 2015. It recommends companies to disclose information on governance, strategies, risk management and management objectives connected to climate change.
“We will manage and disclose every climate risk that can happen during a battery life cycle spanning from production to disposal. This and other voluntary movements to tackle climate change will strengthen our commitment to environmental, social, and corporate governance,” the company said in a statement.
Last year, LG Energy Solution became the first battery maker here to have joined the RE100 net-zero initiative. Following the global corporate initiative, it has expanded the use of renewable energy at its global production sites. The company also joined the Responsible Business Alliance and Responsible Labor Initiative to accelerate its ESG management pursuits.
As of 2022, approximately 4,200 companies and organizations worldwide such as leading asset manager BlackRock have committed to the TCFD guidelines. One hundred and six Korean companies have declared that they would join the TCFD.
In June last year, 55 Korean companies and financial institutions including SK Group, Hyundai Motor Group, Kakao Pay, Nonghyup Financial Group and Mirae Asset Securities set up a separate organization called Korea TCFD Alliance to accelerate the global initiative.
