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Response to Climate Change

Climate Change Response Strategies

The impact of climate change on industries such as global abnormal climate phenomena and resource depletion is gradually increasing. LG Display strives to respond quickly and proactively to risks and opportunities that may arise from climate change. In response to the government's 'Greenhouse Gas Emission Trading System', LG Display conducts third-party verification of greenhouse gas emissions and energy usage every year and reports it to the government, as well as forms a specialized division to establish and implement GHG reduction goals and action plans.

Company-wide GHG Reduction Goals(Compared to 2014)

2030

40%

Mid-Term strategy

Active participation in and response to government policies related to climate change
Reduction of the amount of process gas used in production facilities
Investment in reduction facilities that decompose and remove process gas
Development and application of low-power production facilities and utility technology
Strategic transition of thermal power generation to renewable energy

2050

90%

Long-Term strategy

Zero emission of greenhouse gas in the process
Transition to Renewable Energy

Development and application of high-efficiency emission reduction technology for process gases (reduction efficiency of more than 95%)
Development of low-carbon, eco-friendly alternative gas
Acceleration of the transition to new and renewable energy by joining RE100
Continuous development of low-power eco-friendly products

Response to climate change risks

Response to climate change risks
Risk Type		Perspective	Financial Implications	Countermeasures	Opportunities
Transitional risk	Policies/Regulations	Short-Term	Increase in emission permit purchasing cost Increase in the cost of debt for GHG emissions Increase in the cost of carbon tax	IReplacing process gas with low GWP gas and investing in gas reduction facilities ITransition to renewable energy through Green Premiums	Reducing GHG emissions by additional investment in reduction facilities by selling surplus emission permits
	Technology	Long-Term	Increase in R&D cost for low- carbon technology and conversion of facilities	Development of low-carbon power technology Development of eco-friendly materials and parts	Securing and diversifiying alternative resources
	Market	Mid-Term	Decrease in product demand and sales due to failure to meet customer needs	Development and expansion of eco-friendly products with low carbon technology applied	Increasing access to new markets (purchasing renewable energy)
	Reputation	Long-Term	Decrease in sales due to decline in reputation	Expansion and disclosure of internal and external eco-friendly information including activities and performance Implementation of green finance such as issuance of green bonds	Expanding capital raising opportunities by attracting investment
Physical risk	Short-Term	Short-Term	Decrease in production capacity due to typhoons, floods, droughts, etc.	Investment in wastewater recycling facilities Reducing water consumption by improving manufacturing facilities and processes	Reducing costs by increasing energy efficiency Improving consumer preferences by using low-carbon energy
	Long-Term	Long-Term	Damage and decrease in value of tangible assets such as buildings, factories, and machinery Increase in operating and capital costs	Enhancing energy efficiency by diagnosing manufacturing facilities and processes Supplying steam using heat from waste incineration

Greenhouse gas reduction
Facility investment

LG Display is making continuous efforts to reduce greenhouse gas emissions. LG Display is making extensive environmental investments, such as replacing SF6 gas, a major source of greenhouse gas emissions, with other gases with a lower GWP (Global Warming Potential), or installing reduction facilities in processes that use greenhouse gases such as SF6 and NF3. In addition, by conducting company-wide energy saving projects, LG Display is securing competitiveness not only in responding to the emission trading system but also in responding to climate change risks. As a result, LG Display has reduced greenhouse gas emissions by 1,708,567 tCO2 in 2021, and plans to develop and apply high-efficiency emission reduction technology for process gases to achieve zero greenhouse gas emission in the future process, strategically switch to renewable energy, and continue to develop low-power eco-friendly products.

Greenhouse gas reduction (Domestic)

(unit: tCO2eq)

20191,205,337
20201,436,426
20211,708,567

Advanced
Response
to Climate Change

LG Display has been participating in the Carbon Disclosure Project (CDP), which is recognized as a world-renowned authority in environmental information disclosure, and has been recognized for its carbon management leadership by winning the Carbon Management Honors Club for 4 consecutive years (2017-2020) and the IT sector Honors Club for 6 consecutive years (2016-2021). Also in the ‘water management’ sector, the Company has maintained its status as an excellent company for four consecutive years since 2018, thereby being recognized for its excellence in environmental impact management.

Participation in Environmental Conservation
Initiatives

LG Display launched the World LCD Industry Council (WDICC) in 2001 to improve the eco-friendliness of the display industry. LG Display conducts technology and information exchange activities to reduce greenhouse gas emissions, save energy and water, and reduce waste emissions with display companies and organizations in Korea, Japan, Taiwan and China. In addition, since 2007, LG Display has been communicating with stakeholders by participating in the CDP (Carbon Disclosure Product) and actively disclosing climate change response activities and greenhouse gas information. Since 2013, LG Display has also participated in DJSI (Dow Jones Sustainability Index) to objectively evaluate LG Display's sustainability level including environmental management.

Partners
Shard Green Growth Activities

LG Display operates Green SCM Consulting and Carbon Partnership to spread environmental conservation activities to partner companies and to support green growth projects. Through green SCM consulting, LG Display helps our partners to proactively respond to greenhouse gas regulations by building a greenhouse gas inventory and providing energy diagnosis. For partners who have successfully completed green SCM consulting, LG Display promotes shared green growth by providing regular follow-up inspections and additional incentives at the time of purchase through the carbon partnership certification system. Since 2013, LG Display has been inspecting the overall environment management and providing technical support to strengthen our partners' ability to comply with environmental laws and regulations.

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