Press Release

As global environmental regulations tighten across the EU and beyond, industries worldwide are under growing pressure to eliminate harmful substances and adopt more sustainable practices. The automotive sector, in particular, is at the forefront of this shift, with automakers expected to lead the charge in meeting rising sustainability and compliance demands.

To stay ahead of these evolving challenges, LG Electronics (LG) is enhancing its end-to-end support system by working closely with customers and suppliers to foster a more resilient, eco-conscious automotive supply chain.

At the core of these efforts is LG’s Vehicle Solution Material Data System (VSMDS), launched in 2022. This in-house platform was developed to help automakers efficiently meet global environmental standards by providing an advanced, intelligent solution for managing material data used in automotive component development and production.

While the International Material Data System (IMDS) remains the industry’s mandated tool for tracking material content, LG’s VSMDS complements it by providing a more intuitive and insight-driven interface. The platform simplifies regulatory complexity, clarifies exemptions and delivers actionable insights – enabling deeper material analysis beyond what IMDS alone can offer.

A recent and compelling example of VSMDS in action is LG’s proactive preparation for the EU’s proposed ban on PFAS (per- and polyfluoroalkyl substances), expected to take effect in 2030. Leveraging VSMDS, LG and its suppliers can precisely assess PFAS content in materials, identify affected components and take early corrective measures. This capability not only supports timely regulatory compliance but also helps prevent potential environmental and safety incidents.

Beyond internal tools, the LG Vehicle Solution (VS) Company is actively empowering its supplier network to adapt to changing regulatory landscapes. Since 2022, LG’s dedicated VS Environment Analysis team has provided regular training sessions, expert consulting and updated guidance on country-specific regulations and global automaker policies. To date, more than 300 supplier employees have participated in these programs, equipping them with the knowledge needed to stay compliant and competitive.

LG is also contributing as a demand-side partner in a government-led R&D project, led by the Korea Institute of Industrial Technology (KITECH). This initiative aims to develop a carbon management platform that helps suppliers accurately track emissions and formulate reduction plans, in line with both government mandates and OEM requirements.

These wide-ranging efforts have earned LG industry recognition. The company was nominated as “2025 Leading Company in Global Environmental Compliance” and received the Minister of Trade, Industry and Energy Award for its proactive leadership in environmental stewardship.

Pictured at the opening ceremony of the '2025 Korea Circular Economy Festival', South Korea on July 2nd, is Baek Chan, Head of LG Electronics VS Operations Group (center), taking a commemorative photo with the award.

By leading through collaboration with customers and partners, LG is not only meeting strict regulations but also designing the blueprint for a stronger, more sustainable automotive supply chain and a cleaner, more resilient mobility ecosystem.

# # #