Well, reducevg cleans up the VGDA (volume group descriptor area) on the disk, but the data that was in the filesystems on the disk is still on it - albeit kind of difficult but not impossible to get to.
If you format the hard disk, or create a new VG with the disk and a new FS and fill that FS with dummy data, you make it harder for the next person/server to get at the data.
If it is a SAN LUN, you can drop the volume in the SAN box and recreate it there, that would also 'reformat' the storage for you.
HTH,
p5wizard