What was discussed at LG Chem’s ESG Committee?
On August 7, 2025, LG Chem held its first ESG Committee meeting, demonstrating its commitment to strengthening ESG management. Key agendas included a report on the development status of carbon reduction technologies (DRM, e-SAF) and a report on the Compliance Risk management system. In particular, eco-friendly raw material/fuel manufacturing technologies such as DRM and e-SAF are attracting attention as future growth engines.
How will strengthened ESG management affect investment?
LG Chem’s strengthened ESG management is expected to have positive effects in the long term, such as enhancing corporate image, attracting investment, and strengthening regulatory responsiveness. Especially if the development of carbon reduction technology is successful, it will greatly contribute to the creation of new revenue sources and the establishment of a sustainable growth foundation. However, the direct impact on short-term financial performance is limited.
What should investors do?
Investors should make investment decisions based on a comprehensive consideration of LG Chem’s business portfolio, 2024 financial performance (especially the profitability of petrochemicals and LG Energy Solution), changes in the macroeconomic environment (exchange rates, oil prices, etc.), and the actual performance of ESG management strategies, rather than short-term stock price fluctuations. It is important to continuously monitor specific performance indicators related to ESG management, the progress of eco-friendly technology development, and the operating results of the Compliance Risk management system.