Policy & Strategy

Net Zero Policy LS MnM has developed three net zero policies to attain carbon neutrality by 2050. We are striving meet our GHG reduction target by giving priority to net zero policies across all our business activities.

LS MnM Net Zero Policy

1) We will move toward carbon neutrality by clarifying ESG management strategies and goals. Based on our ESG management strategy, we have established the 2030 NDC goals and the 2050 Net Zero mid- to long-term roadmap. Based on this, we will establish and disclose specific goals every year to achieve 2050 carbon neutrality.

2) We formulate and implement a greenhouse gas reduction action plan. We have established an effective NDC 2030 reduction action plan that can be achieved, not a declarative goal, and we are reflecting it in our business plan and conducting reduction activities. To achieve successful Net Zero, we have established a real-time and daily monitoring system to manage reduction performance.

3) We aim to achieve sustainable business practices through eco-friendly investments. We invest in new businesses considering the environmental impact for sustainable management. We continue to make eco-friendly investments after a comprehensive review of the estimated carbon emissions and related social costs.

GHG Reduction Activities in 2023 In 2023, we plan to reduce more than 10,000 tons of GHG emissions by converting facility operation methods and improving energy efficiency, focusing on emission sources in which reduction activities were not carried out in 2022. So far, 24 tasks have been discovered to reduce greenhouse gases, and we expect to achieve our goal of reducing greenhouse gases by 37,000 tons in 2023 through the discovery of additional tasks in the future.

GHG Reduction Plan(2050 Roadmap) We plan to update our 2050 Net Zero Roadmap, join global initiatives such as Carbon Disclosure Project(CDP), and consider linking GHG reduction performance to KPIs.

Organization

Climate Change Response Promotion Organization and Working Consultative Body LS MnM has formed a net-zero working consultative body, which regularly monitors GHG emissions to identify and implement reduction strategies. Our net zero working consultative body comprises Sustainability Management Team, Production Department, Research Planning Team, Procurement & Logistics Department, Environment Team, Plant Engineering Team, and Net Zero TFT. They work together to discover new technologies and tasks to help us achieve our 2050 carbon neutrality goals, while operating with the highest level of professionalism. The net zero working consultative body meets monthly to review our GHG reduction activities and discuss major agendas related to achieving carbon neutrality.

Process

Promotion Process of GHG Reduction Activities In order to achieve carbon neutrality by 2050, TFT and working consultative body are implementing strategies, systems, and procedures for promoting greenhouse gas reduction activities. We disclose the emissions status of each plant and department on a quarterly basis, and conduct an analysis to identify any issues, selecting suitable technologies and tasks to address them. The selected reduction technologies and tasks are reported to the Carbon Neutrality Committee twice a year, and are incorporated into our business plan based on their decisions. In addition, we report the current status and monitoring results of our GHG reduction activities to the committee annually, and consistently identify new reduction tasks throughout the process. Finally, we track and manage the progress of our overall reduction targets at the company level, as well as the performance of each reduction task outlined in our 2050 roadmap. We closely manage these information in connection with executive KPI. These activities will be reported to the ESG Committee from 2023.

Performance

GHG Emission Reduction Performance in 2022 Since 2022, LS MnM has been actively reducing its GHG emissions through internal reduction activities, in preparation for full-scale implementation of ESG management practices. By taking measures such as improving facility operation methods and reducing fossil fuel and electricity consumption, we successfully decreased our Scope 1 emissions by 18,882 tons and Scope 2 emissions by 3,207 tons in 2022, resulting in a total reduction of 22,089 tons compared to business as usual(BAU) levels.

Collaboration with Stakeholders to Attain Carbon Neutrality LS MnM aims to collaborate with key stakeholders and work towards the shared global objective of achieving carbon neutrality.

2050 Carbon Neutrality Declaration In March 2021, the non-ferrous metal industry launched the Non-ferrous Metal Carbon Neutral Council and signed the 2050 Carbon Neutrality Challenge Joint Declaration to actively support the government's carbon-neutral policy. As a member company, LS MnM agreed to cooperate and participate in executing three major plans outlined in the declaration.

Initiatives by the International Copper Association The International Copper Association(ICA) has launched the Global Copper Decarbonization Roadmap(GCDR) in 2021 to achieve the carbon reduction target required by the international community. ICA plans to conduct research on the industry's objectives and major plans in carbon reduction, and to declare the industry's carbon reduction goals in 2023 based on the findings. As a member of ICA, LS MnM participated in the GCDR program to represent the views of smelters. The company shared its carbon reduction targets and implementation plans, highlighting the importance of seeking effective carbon reduction measures through joint research between mines and smelters.

Joint Reduction Efforts through Supply Chain Partnership Undertaking carbon reduction activities such as developing alternative technologies, introducing eco-friendly raw materials, improving portfolios, and reducing Scope 3 emissions is not only time-consuming but also costly for a single company to do alone. To address this challenge, LS MnM signed strategic MoUs with raw material suppliers and global smelters that operate in the same industry. We have been carrying out conducting joint research to develop new technologies and utilizing Blockchain Tracing technology for carbon-free electrolytic copper production.

System

Our Unique GHG Monitoring System LS MnM has developed its own unique Manufacturing Enterprise System(MES) that enables real-time monitoring of GHG emissions generated from energy and subsidiary materials used throughout the company based on data connectivity. Based on the initial model developed in 2022, we are preparing to build a GHG management system incorporated with DX technology in the near future.