“In fact, we have an ongoing plan to invest 20 trillion won ($17.5 billion) through 2020 to develop environmentally-friendly products as the company aims to cut its greenhouse gas emissions 40 percent against 2009 levels by the end of the decade,” Kohn told Arab News in an interview. Under the new plan, the company aims to cut 50 million tons of greenhouse gas emissions every year up to 2020, while expanding its production of energy-efficient products and renewable energy products to 10 percent of the group’s total revenue by 2020.
“We will also increase the energy efficiency of our traditional products such as refrigerators, televisions and air-conditioning units, and further expand our current investments in fuel cells electric car batteries and solar cells,” he added.
The new strategy is the latest in a series of moves designed to bolster the company’s environmental credentials. “We are at the forefront of international efforts by manufacturers to conserve energy by manufacturing products whose energy efficiency can be independently verified,” said Koh who has vast managerial experience in marketing, consulting and finance.
In LG’s home appliance company, this year’s R&D budget will go toward emerging business categories such as built-in appliances and health-conscious products, which it sees as future growth engines as well as flagship products. “In light of the global economic slowdown, the company believes that consistent investment in R&D will pay off by generating differentiated products and a competitive edge that are aligned with LG’s unique technologies. We also believe it will create additional value for our product users,” said Koh who was associated with some international companies in South Korea. The next generation of home appliances, some of which were displayed and demonstrated at the recent Funkausstellung Berlin (IFA) 2010 held in the German capital, will focus on providing consumers with something better based on LG’s advanced technologies. “LG incorporates its four core technologies — inverter direct drive, linear compressor, light wave technology and KOMPRESSOR technology — in its premium products to provide reliable and eco-friendly value to consumers, thereby helping them upgrade their lifestyles,” Koh added.
South Korea, Asia’s fourth largest economy heavily dependent on oil and gas imports, is the world’s ninth largest and Asia’s fourth largest polluter and last year reported that CO2 levels had doubled since 1990. But the government was among the first in Asia to announce a target pledging to cut emissions by 30 percent below business-as-usual levels by 2020.
It is against this background that LG has developed its home appliances to provide energy-saving technologies. “LG has also incorporated a series of innovative health-conscious features and technologies into all its different product types whether refrigerators, washing machines, vacuum cleaners or cooking appliances,” Koh said.
