Our Action on Climate Change

LX Pantos is a total logistics company that fulfills its social responsibility through transparent and
systematic sustainability management activities.

LX Pantos is actively striving to minimize the climate and environmental impact throughout the entire logistics process for its customers.

LX Pantos is implementing and expanding activities to achieve its 2050 Net-Zero target in accordance with its carbon neutrality roadmap.

Greenhouse Gas
Reduction Roadmap
Mid- to Long-Term Reduction Targets

In accordance with the NDC1) target for 2050, LX Pantos has established its 2050 Net-Zero target, reflecting its estimated emissions and
mitigation measures. On our journey towards net-zero, the first step will be to achieve a 25% reduction compared to the levels of BAU2)
by 2030, thereby fulfilling our social responsibilities for carbon neutrality.

1) NDC (Nationally Determined Contribution) : It refers to the national greenhouse gas (GHG) reduction targets established by each country
participating in the Paris Climate Agreement, which form the basis for efforts to mitigate
carbon emissions by 2030.
2) BAU :It stands for ‘Business As Usual’, and refers to the GHGs that would be emitted in the absence of any mitigation efforts.
BAU(Business As Usual)
Emission Target
[Unit : tCO2-eq]
2022
34,631
2030
29,93639,91525%
2050
Emissions
target
100%
BAU2050
Net-Zero
* BAU (Business As Usual) has been recalculated in 2024 to reflect changes in the business environment.
Detailed Reduction Measures by Period

As part of the efforts to achieve its 2050 Net-Zero target, LX Pantos has carried out a range of activities in accordance with its well-established, time-
bound action plans1) for each decade. These plans guide us towards our goal by outlining measures to curtail our energy consumption, expand the
use of renewable energy sources, and reduce our indirect GHG (Scope 3) emissions.

1) Time-bound action plan: it outlines specific actions to be taken within each time horizon
2030 Target2040 Target2050 Target
Scope 1
Transitioning
to eco-friendly
vehicles
  • Introduce 1-ton and
    2.5-ton electricvehicles
    (EVs)
  • Establish and implement
    plans for EV charging
    infrastructure
  • Expand eco-friendly vehicle
    adoption to medium and
    large freight trucks
  • Operate EV charging
    stations at logistics
    centers and key hubs
  • Convert all freight vehicles
    to green alternatives
  • Ensure sustainable
    operation of charging
    ingfrasture
Making
improvements
to transport
efficiency
  • Introduce AI- and big
    data-base dispatch
    management system
  • Set optimized routes
    and improve operational
    efficiency
  • Upgrade Smart Logistics
    Center
  • Minimize carbon
    emissions through
    real-time data analysis
  • Fully prepare carbon-neutral
    transportation solutions
  • Fully replace with greener
    modes of transportation
Scope 2
Renewable
energy
transition
  • Expand solar power
    generation facilities at
    logistics centers (2.5MW
    installed)
  • Implement the PPA
    method1)
  • Procure RECs2)
  • Increase the percentage
    of renewable energy
    used at logisitics centers
  • Expand PPA and REC
    purchases
  • Achieve 100% renewable
    energy conversion at all
    logistics centers
  • Further expand PPA
    adoption and additional
    renewable energy
    procurement
Enhancing
facility energy
efficiency
  • Improve energy efficiency
    in buildings (using LED
    lighting and smart
    energy systems)
  • Pursue green building
    certifications(e.g., LEED)
    for logistics centers
  • Adopt AI- and big
    data-based smart
    buildings
  • Transition to AI- and big
    data-based smart
    structures
Scope 3
Scope 3
Supportingt
Reduction
  • Enhance transport
    efficiency in line with
    clients’ carbon reduction
    needs
  • Expand the percentage
    of eco-friendly
    transportation and apply
    carbon reduction solutions
  • Provide tailored reduction
    solutions for customers
  • Establish Net Zero-based
    transport services
1) PPA (Power Purchase Agreement) : A contract that outlines the terms for the purchase and sale of electricity at mutually agreed-upon prices and intervals 2) REC (Renewable Energy Certificate) : A certificate that electricity users can purchase to verify their use of renewable energy
Greenhouse Gas
Emissions Management
Response to the Greenhouse Gas Emissions Trading Scheme and Energy Consumption Management

In 2020, LX Pantos was designated as a company subject to the Greenhouse Gas Emissions Trading Scheme. The company calculates, trades
and manages its emissions in accordance with the guidelines for reporting and certifying greenhouse gas emissions (Ministry of Environment
Notification No. 2023-221) and the 2006 IPCC guidelines. Additionally, LX Pantos systematically manages energy consumption across all
domestic business sites, including logistics centers, and performs various activities to reduce energy consumption.

GHG Emissions Monitoring, Reporting, and Verification

To calculate, monitor, and manage GHG emissions, LX Pantos has established a dedicated team to build and operate an MRV (Monitoring,
Reporting, Verification) system for GHG calculation, reporting, and verification. Additionally, the company receives third-party verification of its
GHG emissions from a government-designated verification agency annually.

GHG Emissions Reduction Activities by Scope

LX Pantos is undertaking various activities to reduce greenhouse gas emissions generated during its business processes.

Scope 1
Activities
  • Transitioning to electric vehicles and electric forklifts1)
    - Converting all forklifts at domestic sites to green models and maintaining a 100% conversion rate
Scope 2
Activities
  • Procuring and generating renewable energy
    - Introducing solar power to supply logistics centers with renewable energy starting in 2025 (expected annual reduction of up to 500 tons)
  • Cutting back on energy use from lighting
    - Replacing lights at its logistics centers with LED lighting
    - Switching off all office lights during lunch breaks
Scope 3
Activities
  • Securing the supply chain for green transportation
    - Mitigating GHG emissions during transportation by switching to greener modes of transportation (modal shift)
    - Signing MOUs and operating programs for switching to eco-friendly fuels (SAF/SMF) with global carriers
1)Excluding some diesel folklifts for heavy cargo lifting
Green Management
  • Response to the Carbon Disclosure Project (CDP)

    In July 2022, LX Pantos voluntarily joined the CDP1), a global ESG rating agency. By establishing climate
    change response goals and actively pursuing detailed tasks, LX Pantos achieved a B- rating in the 2023 CDP’s
    first evaluation, receiving recognition for its efforts in addressing climate change.

    1)CDP (Carbon Disclosure Project): Requests companies to disclose their climate change response status and related
    information, and publishes an annual company evaluation report with ratings assigned.
  • Excellent Green Logistics Company Certification

    By assessing the practical management scope and management system of eco-friendly logistics activities relating to
    logistics facilities and transportation methods, we have attained certification as an excellent green logistics company that
    contributes to the spread of eco-friendly logistics activities in the country.

  • ISO14001 Certification

    We constantly improve our environmental goals and comply with the global standard requirements and
    procedures related to the ISO14001 (Environmental management systems).

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