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Climate Action

Driving Net Zero by 2050

To participate in global climate action efforts, LG Display has established a 2050 net zero target and developed a roadmap to achieve net zero through the reduction of GHG emissions by 53% by 2030, 67% by 2040, and 100% by 2050 compared to 2018 levels. To achieve the 2050 carbon neutrality goal, we will pursue the following mid-to long-term tasks: ▲actively participating in and responding to government policies related to climate change ▲reducing the use of process gases in production equipment and investing in additional reduction facilities ▲developing and applying high-efficiency emission reduction technologies and low-carbon gas replacement technologies ▲developing and applying low-power production equipment and utility technologies ▲external offsets (purchasing carbon credits) ▲continuously developing eco-friendly products.

Major Reduction Measures

Type

Internal Reduction
External Reduction

Direct
(process gas) Indirect
(electricity)

Process Efficiency
- Optimize gas usage
- Expand the installation of process gas reduction equipment
- Optimize power usage and promote various energy-saving activities
- Develop and adopt energy-efficient manufacturing and utility equipment with low power consumption
+
Future Innovation
Technology
- N₂O reduction equipment installation: 90% reduction efficiency
- Develop eco-friendly alternative fuels
- Improve facility operation efficiency with IoT/AI technologies and achieve business innovation through AX
+
Carbon Free Energy
- Switch to renewable energy
+
External Offsetting
- Promote afforestation project

Risk Management

LG Display assessed the impacts of key factors identified through its climate change risk and opportunity assessment by categorizing them into short / mid / long-term time horizons, and derived the financial impacts and response measures for each factor.

Risk Management
Category		Climate-related Factors	Time Horizon¹⁾			Impact Category (Value chain)					Financial Impact	Countermeasures
			Short-term	Mid-term	Long-term	Upstream	Operation (LG Display)		Downstream
			Short-term	Mid-term	Long-term	Raw Materials, Suppliers	Manufacturing Sites	Sales Sites	Use	Disposal
Transition Risks	Policy and Legal	Increased Carbon Compliance Costs Due to Tightening GHG Emission Regulations	O	O	O	O	O	O	O		Increased investment and operating costs for emissions reduction due to stricter carbon regulations Penalties and cost burdens in the event of non-compliance	Purchase of emission allowances at the most cost-effective timing Establishment and implementation of greenhouse gas reduction targets
	Market	Rising Renewable Energy Procurement Costs Due to Intensifying Competition for Renewable Energy	O	O	O	O	O	O			Rising production costs due to increased renewable energy procurement costs	Review of various renewable energy procurement methods, such as PPAs²⁾, to secure a stable supply of renewable energy
		Deterioration in Profitability Due to Increases in Industrial Electricity Rates	O	O	O	O	O				Rising production costs due to increased electricity usage costs	Pursuing energy efficiency and electricity consumption reduction
		Decline Due to Failure to Meet Low-Carbon Requirements	O	O	O	O	O				Decrease in product sales and revenue if low-carbon requirements are not met	Strengthening management of product carbon emissions through GHG reduction and energy efficiency improvements
	Technology	Increased Capital Expenditure (CAPEX³⁾) for Equipment Replacement and Technology investment to Transition to Low-Carbon Processes	O	O	O	O	O				Stricter delivery terms and additional compliance costs due to customers’ reduction requirements, leading to increased customer retention costs	Development of low-carbon process gas technologies
Physical Risks	Acute	Increased Cooling Costs and Decreased Production Efficiency at Business Sites Due to Extreme Heatwaves	O	O	O	O	O				During heatwaves, increased cooling demand at facilities leads to higher electricity consumption and energy costs; deteriorating working conditions result in reduced production efficiency and lost revenue due to decreased output Production disruptions due to insufficient reserve power and overheating of transmission facilities	Operation of uninterruptible power supply (UPS) systems to ensure backup power during power disruptions
	Chronic	Long-term Increase in Energy Costs Due to Rising Average Temperatures		O	O	O	O				If average temperatures continue to rise, increased cooling energy demand will lead to higher long-term operating costs and a worsening cost structure	Reduction in power consumption through improved chiller efficiency Energy efficiency improvements through diagnostics of facility equipment and process operations
	Chronic	Increased Water Procurement Costs Due to Intensifying Water Stress			O	O	O				Increased costs to secure alternative water resources if stable water supply becomes difficult due to worsening regional water stress In the long term, reduced business continuity and increased investment burden	Water conservation initiatives and expansion of water reuse
Opportunities	Resource Efficiency	Reduction of Energy Costs and Regulatory Compliance Costs Through Establishment of a Low-Carbon Production System	O	O	O	O	O				Reduction in costs associated with compliance with carbon regulations through the reduction of GHG emissions from manufacturing processes In the long term, manufacturing costs are expected to improve through reductions in energy and environmental costs	Introduction of high-efficiency equipment for reducing process gases and initiatives to reduce operating costs
		Reduction of Operating Costs and Improvement of Profitability Through Enhanced Energy Efficiency	O	O	O	O	O				Reducing operating costs and improving profitability by cutting electricity consumption through the introduction of high-efficiency equipment and process optimization	AI-based smart energy management and introduction of high-efficiency equipment Expansion of waste heat recovery
		Reduction of Water Procurement Costs and Enhancement of Operational Stability Through Increase in Water Use Efficiency	O	O	O	O	O				Reducing water procurement costs by increasing the water reuse rate for industrial water	Monitoring usage and improving process conditions
	Products and Services	Expansion of Premium Product Revenue Through the Development of Energy-Efficient Products		O	O	O	O	O	O		Expanding the premium product portfolio and securing opportunities to increase sales of high value-added products	Securing high-efficiency next-generation panel technology Strengthening marketing based on eco-friendly and low-carbon product certifications

1) Short-term (within 1 year), Mid-term (within 1–5 years), Long-term (beyond 5 years) 2) PPA (Power Purchase Agreement): A contract for the direct purchase of electricity between a renewable energy generator and an off-taker without going through a power exchange 3) CAPEX (Capital Expenditure): Capital expenditures for the acquisition of fixed assets such as facilities and equipment

Climate Change Mitigation Activities

Development of GHG Abatement System (Scrubber¹⁾) LG Display has been investing in and installing GHG abatement systems at its manufacturing sites since 2018 to reduce emissions from its manufacturing processes. We are expanding the deployment of plasma scrubbers, which reduce F-GHG²⁾ emissions by more than 90%, while continuously improving their abatement efficiency. In addition, we are gradually introducing scrubber systems capable of reducing N₂O (Nitrous Oxide) emissions generated in deposition processes by more than 90% across our manufacturing sites to contribute to achieving Net Zero by 2050.

1) Scrubber: Environmental equipment installed to reduce air pollutants and greenhouse gases emitted from industrial processes 2) F-GHG (Fluorinated Greenhouse Gases): A group of man-made gases containing fluorine that trap heat in the atmosphere far more effectively than carbon dioxide, making them significant contributors to climate change. Examples include PFCs (Perfluorocarbons), SF6(Sulfur Hexafluoride), and NF₃ (Nitrogen Trifluoride)

Company-wide Energy Saving Activities LG Display is improving the efficiency of utility supply facilities and reducing energy consumption in production equipment, led by a dedicated company-wide energy conservation organization. We are also promoting energy saving activities focused on minimizing consumption, such as optimizing equipment operations based on AX (AI Transformation), including smart controls for chillers, reducing losses by establishing a system to monitor power consumption by equipment, and identifying energy-saving technologies through collaboration with expert groups.

2025 GHG Emission (Unit : tCO2eq)

Scope1

20231,056,041
20241,270,716
20251,155,292

Scope2

20233,903,951
20243,803,415
20253,136,779

Location-based

20233,246,687
20242,342,237
20251,580,201

Market-based

Scope3

2023913,012
20242,846,784
20253,603,256

Expansion of Renewable Energy Transitioning

LG Display began its renewable energy transition in 2021 and has continuously expanded the scope of renewable energy adoption by utilizing the Green Premium at its domestic operations and RECs at its operations in China and Vietnam. As a result of these efforts, the renewable energy transition rate increased significantly from 13% in 2022 to 15% in 2023, 39% in 2024, and 48% of our total electricity consumption in 2025, equivalent to 3,137 GWh. Going forward, we plan to further expand our use of renewable energy by identifying the most appropriate solutions based on country-specific energy infrastructure and supply conditions.

Supply Chain ESG Win-Win Management

LG Display is strengthening its ESG win-win management with its suppliers by operating Green SCM consulting and carbon partnerships, and promoting carbon neutrality climate change response activities. Through Green SCM (Supply Chain Management) consulting, we provide our partners with greenhouse gas inventory establishment and energy diagnosis, supporting them in proactively responding to greenhouse gas regulations. Additionally, we operate a carbon partnership certification program for suppliers who have successfully completed Green SCM consulting, providing incentives through regular post-management and supplier assessments to promote green growth. Furthermore, since 2013, we have been conducting comprehensive environmental management inspections and providing technical support to help suppliers strongly respond to environmental regulations.

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