Zürich, Switzerland: LG Technology Ventures, the venture-capital arm of LG Corporation, has joined Emerald’s industrial transformation fund as a limited partner (LP). The collaboration aims to help LG Chem, a global chemical company which provides sustainable products across petrochemicals, battery & IT materials and pharmaceuticals, meet its environmental targets, specifically around carbon reduction and circularity, via tie-ups with innovative startups.
LG Chem’s leading position in the petrochemical market is compelling it to look for cutting-edge ways to reduce the environmental and carbon footprint of its products. It has announced a goal of reaching net-zero emissions by 2050, with an interim target to reach “carbon-neutral growth” by 2030—meaning that each unit of growth will not add any CO2 to the atmosphere after that time. LG Technology Ventures aims to help LG Chem achieve its target via cooperation with ecosystem players, including a recently-announced partnership with US commodities giant ADM to manufacture eco-friendly plant-based materials for packaging and other uses.
LG Technology Ventures is also interested in leveraging the Emerald alliance to uncover advances in battery materials and hydrogen production as part of a broader business-model transformation strategy for LG Chem. This encompasses holistic climate-mitigation efforts, including converting biomass to energy, utilizing carbon capture and storage, and potentially setting an internal price on carbon.
Emerald has extensive experience in the broader materials industry and counts among its LPs global chemicals leaders SABIC, Mitsubishi Chemical and others. Last year it launched a dedicated fund to sustainable packaging innovation and has invested in numerous advanced materials startups.
LG Technology Ventures manages over $400 million worth of investments on behalf of the LG family of companies.