EN
Climate Change
Carbon Neutrality
To take part actively in the climate change response, LS ELECTRIC aims to achieve carbon neutrality in relation to Scope 1 and Scope 2 emissions by 2040. Recognizing that the risk caused by climate change is a material risk that affects not only the environment but also society and economy, we analyzed the financial impact of the risk and opportunity factors. In particular, according to our business's characteristic of having a higher rate of Scope 2 emissions, we plan to strengthen our renewable energy sourcing capacity and monitor the carbon neutrality promotion status continuously.
* BAU (Business As Usual): GHG emissions estimation, total amount of GHG emissions expected if the current trend is maintained without effort for reduction
** NDC (Nationally Determined Contribution): Korea's 2030 NDC is aimed at 40% reduction compared to 2018, and 14.5% reduction in the industries
*** IPCC, SBTI Recommendations: To keep the average temperature increase at less than 1.5°C to prevent global warming and abnormal climate (recommendation to reduce GHG emissions by 38% by 2030 compared to 2021)
Initiative
LS ELECTRIC has joined the global RE100 initiative with a commitment to transition all of its facilities, including overseas subsidiaries and affiliates, to 100% renewable energy by 2040. To achieve this, we will actively engage in energy-saving initiatives, expand the construction of solar power generation facilities, purchase Renewable Energy Certificates (RECs), and participate in Power Purchase Agreements (PPAs).
Also, LS ELECTRIC joined the K-EV100 initiative to change to eco-friendly vehicles by 2030 all fossil fuel-based vehicles it owns or leases for business use. In addition, we participate in the Carbon Disclosure Project (CDP), an initiative to disclose information on climate change, including greenhouse gases, to stakeholders about our climate change response activities.
Activities for GHG Reduction
LS ELECTRIC continues to invest and engage in activities to reduce GHG. It has reduced greenhouse gas emissions by replacing SF6 gas, which was used as an insulating medium for existing gas opening and closing devices, with substances with low global warming potential (GWP). In addition, in worksites, we actively promote activities to reduce unnecessary energy use and optimize the energy consumption system. Energy consumption was reduced by replacing old transformers with high-efficiency facilities and the halogen lamps with LED lighting. Through the energy-saving activities, our GHG emissions in 2022 decreased by 3.8% year on year.
Risk and Opportunity
LS ELECTRIC identifies climate change risks and opportunities and systematically responds to them. The transitional and physical risks associated with climate change are identified, and response plans for the related financial impact are developed and managed.