LG Corp

Lobbying Transparency and Governance

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Direct Lobbying Transparency
Overall Assessment Comment Score
Comprehensive LG Corp provides a very detailed picture of its climate-policy lobbying. It identifies multiple concrete policies it works on, including Korea’s Greenhouse Gas Emissions Trading Scheme and the underlying “Act on the Allocation and Transaction of GHG Emission Permits,” the “mandatory reporting of GHG emissions,” the “GHG & energy target management system,” the methodology for CF4 gas calculations, and the national “K-RE100” programme that promotes renewable electricity uptake. The company also explains how it tries to influence these measures: it holds business briefing sessions and working-level councils with affiliates, meets directly with the Ministry of Environment, speaks at public hearings, participates in stakeholder forums and industry associations such as the Korea Electronics Association, and raises issues in high-level events like the “RE100 Business Meeting” with the Minister of Environment. Across these engagements LG Corp is clear about the policy changes it seeks, for example asking that “100 % additional allocation be recognised for pure new construction and extension facilities,” calling for “market-stabilisation measures to prevent any sudden spike or fall of the price of emission allowances,” requesting guidelines for CF4 gas treatment efficiency, and urging the easing of capacity rules to facilitate on-site power-purchase agreements and higher national renewable energy targets. By naming the specific legislation, the government bodies addressed, the channels used, and the precise outcomes it wants, the company demonstrates a high level of transparency on its climate-related lobbying. 4
Lobbying Governance
Overall Assessment Comment Score
Strong LG Corp appears to have established structured processes for aligning its climate-related policy engagement with its overall climate strategy, including both direct and indirect engagement pathways. The group has created an ESG Committee under the board of directors of our ten listed companies comprised of all independent directors within the Board of Directors and the CEOs of each affiliate, which deliberates on key ESG policies including climate change. At the affiliate level, LG Displays ESG Environment Team reports the results to CEO on a monthly or quarterly basis following participating in various engagement activities including public hearings and policy meetings, and it sets KPIs and action plans to lead engagement activities consistent with the company strategy. Similarly, LG Innotek maintains a dedicated climate change response team and an Emissions Trading Management Committee to evaluate external offset projects and ensure that all decisions related to climate change, including policy engagement activities, [are made] in line with the Paris Agreement, and it regularly integrates policy trends into strategy via monthly safety and environment meetings and industry alliance meetings. While these mechanisms indicate strong monitoring and executive oversight of both direct and indirect engagement, the company does not disclose a standalone climate-lobbying audit or review. 3