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Article Date: 2nd June 2020

LG Air Conditioning Gets Plaudits In Independent Report On Readiness For Low Carbon Transition

LG Low Carbon Transmission

A recently released report from UK-based CDP – a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to help them manage their environmental impacts – puts LG second in a list of eighteen major global air conditioning manufacturers on the efficiency, emissions and low carbon innovation in their cooling businesses. The report highlights an overall failure to innovate or use up to date technology, with an average of just 2.2% of sales spent on research and development. This is a figure well below the capital goods average of 3.5%.

The only company above LG in the list is US giant Trane Technologies, but only marginally so. LG sits above Mitsubishi Electric, Samsung Electronics, Panasonic, Daikin Industries, Carrier and Hitachi in the list. “It is striking to see how many companies scored poorly on climate-related opportunity metrics, showing that as a group there is little or no meaningful innovation,” said Carole Ferguson, CDP’s head of investor research. “This is backed up by financial metrics such as their R&D spend, patent filings and capex/sales ratios.”

Hugo Lambourn heads up the air conditioning business for LG in the UK: “This is a fantastic report for LG and of course we are delighted to be listed above all our UK competitors and only slightly behind the top company in the list, which is a massive company in the States. Importantly we were ranked in the top five in all three sectors of the rankings – second in transition risks rank, fourth in transition opportunities rank and fifth in Climate governance and strategy rank.

“LG launched its Zero Carbon 2030 initiative in 2018 committing it to achieving net zero-carbon emissions from its global operations within twelve years. We have launched a number of new products featuring advanced air conditioning technology over the past two years here in the UK and this has seen us consolidate our position in the UK marketplace.”

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