LG Electronics Amplifies Sustainable Procurement Initiatives
As climate challenges mount and consumer expectations evolve, LG Electronics is aligning its innovation with meaningful impact, a crucial consideration for procurement leaders.
The company's 2024–2025 Sustainability Report underscores a concerted effort towards decarbonisation, resource circulation and inclusive growth, elements that procurement executives need to embed into their supply chain strategies.
As LG expands its influence globally, it is also driving initiatives that redefine responsible technology leadership, offering a blueprint for sustainable living, business and society.
A net zero vision for supply chains
Central to LG’s sustainability strategy is its commitment to achieving net zero operational emissions by 2030.
This goal is pivotal for procurement specialists aiming to align with global environmental objectives.
Since 2019, LG has reduced Scope 1 and 2 emissions by 40% (baseline: 2017) and is on track to eliminate them within the decade.
This emission reduction is underpinned by LG's commitment to RE100, transitioning to 100% renewable electricity across global production sites.
This reflects the proactive measures procurement leaders should consider in their own energy procurement strategies.
“To achieve carbon neutrality in the production stage by 2030, LG Electronics is expanding the use of high-efficiency equipment to improve energy efficiency and accelerating the transition to renewable energy across our production sites,” says William (Joowan) Cho, CEO of LG Electronics, in the report.
LG also employs AI-powered energy optimisation, smart grids and solar power installations across its manufacturing and logistics facilities.
In 2023, renewable energy use increased by 11% year-on-year, achieved through onsite generation and procurement via Power Purchase Agreements and renewable energy certificates.
Executing circular economy at scale
LG's sustainability approach exemplifies a circular economy, crucial for procurement professionals striving for sustainability.
The company focuses on carbon neutrality, circularity and clean technology.
“We have identified three key areas for the planet: Carbon Neutrality, Circularity and Clean Technology (the 3Cs) and three for people: Decent Workplace, Diversity & Inclusion and Design for All (the 3Ds) as our mid- to long-term strategic tasks,” says William.
LG actively scales its efforts to recover and reuse critical resources through global take-back schemes, repair-friendly design and recyclability enhancements, reducing dependency on raw material sourcing.
In 2023, LG recovered 527,000 tonnes of waste electronics across 52 countries. Through its Green Program Plus, LG annually assesses over 2,900 suppliers on environmental performance, ensuring the value chain aligns with circularity.
This is imperative for procurement specialists focused on sustainable vendor selection.
Recycled plastics constituted over 32,000 tonnes of material usage in 2023, with a goal to surpass 600,000 tonnes by 2030.
Advancing inclusive and responsible growth
Beyond environmental sustainability, LG focuses on DEI, human rights, supply chain ethics and governance, all key areas for procurement strategies focused on social responsibility.
The has increased female managers, expanded underrepresented talent programs and enforced human rights assessments on its operations.
The Sustainability Management Council, led by the CEO, integrates ESG performance into all decision processes.
This governance structure, supported by ESG-specific KPIs linked to board and executive remuneration, offers a template for procurement leaders incorporating ESG metrics into their supplier evaluation criteria.
