LG Chem Ltd

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Direct Lobbying Transparency

Overall Assessment	Comment	Score
Comprehensive	LG Chem Ltd has demonstrated a comprehensive level of transparency regarding its climate lobbying activities. The company has clearly named specific climate policies it engaged with, including the 'National Strategy/1st National Basic Plan for Net-zero and Green Growth,' the 'Act on Allocation and Trading of Greenhouse Gas Emission Permits,' the 'New Energy and Renewable Energy Development, Use, and Distribution Promotion Act,' the 'Solar Separation Distance Regulation,' and the Korea Emissions Trading Scheme (K-ETS) Phase 3 plan. It provided detailed information about its lobbying efforts, such as its focus on offset credits and the proposed revision to decrease the limit from 10% to 5% of an entity's compliance obligation, explicitly stating its objection to this provision and its suggestion to maintain the initial 10% limit, which was subsequently accepted by the Ministry of Environment. LG Chem has disclosed specific lobbying mechanisms, including face-to-face meetings with officials from the Ministry of Environment, the Ministry of Industry, and research institutes, participation in public hearings organized by industrial associations, and indirect lobbying through submitting opinions to associations such as the Korea Chamber of Commerce and Industry (KCCI). The company has clearly identified its targets, including government officials and specific ministries, ensuring clarity in its engagement approach. Furthermore, LG Chem has been transparent about the specific policy outcomes it aimed to achieve, such as maintaining the initial 10% limit on offset credits in the K-ETS Phase 3 plan, advocating for the deregulation of solar power separation distances, and persuading government officials to recognize greenhouse gas reductions through the use of biofuels generated during bio-naphtha cracking. These desired outcomes are clearly linked to its climate action commitments and provide specific goals for its lobbying efforts, demonstrating alignment between LG Chem's lobbying activities and policy changes.	4

Lobbying Governance

Overall Assessment	Comment	Score
Strong	LG Chem demonstrates a strong governance process to ensure alignment of its climate lobbying activities with its climate commitments and overall climate change strategy. The company organizes all climate change strategy and policy-related activities under the Sustainability Department, which is overseen by the Chief Sustainability Officer (CSO), ensuring consistency and oversight. It describes that "major domestic and foreign policy and legislative information are reported monthly by the Corporate Affairs Department, and shared with the Sustainable Development Department," which helps align its lobbying efforts with climate goals. Additionally, LG Chem actively engages in indirect lobbying through industry associations, stating that "recommendations about Korean governance's policy related to climate change are periodically identified by the Sustainable Development" and "continuously recommended to the government through meetings with petrochemical associations." The company further highlights that "activities and major decisions are continuously reported to the CSO," and "important issues are listed on the agenda at the management meeting and reported to the CEO," demonstrating clear oversight by responsible parties. Furthermore, LG Chem ensures alignment by summarizing and sharing the results of executive meetings and public engagements related to climate change with relevant business units, as stated: "The results of this meeting and the matters that need to be followed up by public engagements related to climate change are summarized and shared with the relevant business headquarters/business units by the Sustainability Department." This indicates strong governance with monitoring mechanisms and accountability structures in place.	3