LG Electronics is embedding circular economy principles across its production, distribution, and disposal operations as part of its “Better Life for All” ESG strategy. The company has outlined progress and ambitious 2030 targets, with a particular focus on sustainable logistics, packaging, and material innovation.
Plastic-free packaging and closed-loop recycling
Across distribution, LG is implementing plastic-free packaging for small appliances, replacing internal cushioning with pulp mold and corrugated cardboard to enhance recyclability. It is also expanding closed-loop recycling at logistics sites, collecting used stretch film and converting it into new logistics materials, reducing both virgin plastic use and operational waste.
“Circularity is not a single initiative; it’s a system-wide transformation,” said John I. Taylor, Senior Vice President, LG Electronics USA. “Through innovation, collaboration and transparent goals, LG is committed to the transition to a circular economy while delivering on our ESG commitments and our Better Life for All vision.”
Production: Scaling Recycled and Eco-Friendly Materials
LG is ramping up the use of recycled plastics in product components, building on 188,000 tons already used by 2024, with a goal of 600,000 tons by 2030. The company is also expanding pulp mold packaging, an industry-first technology capable of handling loads exceeding 44 pounds, now used for medium-sized products like air purifiers and soundbars, reducing plastic use while maintaining protection.
- Use: Extending product lifespan
Through subscription-based business models in South Korea and proactive maintenance, LG is extending product lifespans and reducing premature replacement. Its ThinQ UP appliances allow customers to add new features via software updates, recording over 20 million cumulative global upgrade actions, which maximizes product value and sustainability.
- Distribution: Sustainable packaging and closed-loop logistics
LG’s distribution initiatives focus on reducing virgin plastic and operational waste. Closed-loop recycling at logistics sites allows stretch film to be reprocessed into new materials, while packaging transitions—including plastic-free and pulp-based solutions—improve recyclability and reduce environmental impact.
- Disposal: Advancing global e-waste collection
LG continues to expand e-waste collection globally, gathering 532,630 tons in 2024 across 56 countries. Programs like Battery Turn recover valuable metals, including nickel and lithium, from used batteries, while partnerships with organizations such as E-Circulation Governance provide free home collection services.
Measurable Progress and Targets
Since 2006, LG has cumulatively collected over 5.01 million tons of waste, moving toward a target of 8 million tons by 2030. The company’s circularity framework spans Production, Use, Distribution, and Disposal, with clear milestones:
- Production: 36% year-over-year increase in recycled plastics used (74,079 tons in 2024)
- Distribution: Closed-loop logistics and packaging innovations reducing operational waste
- Use: Extended product lifecycles via subscriptions and software upgrades
- Disposal: Expanded global e-waste collection and responsible recycling initiatives
“The establishment of a circular economy is essential—and expected to become even more critical—for addressing resource depletion, protecting the planet and securing sustainable economic growth. Our Circularity Team is advancing high-strength pulp molds, high-content EPS alternatives, material-specific circular systems and component collection campaigns to support long-term impact,” adds Taylor.
This article was produced by the editorial team at Supply Chain Outlook and published as part of the Outlook Publishing global network of B2B industry magazines.
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