LOTTE is ramping up its Environmental, Social, and Governance (ESG) management for a sustainable future. Based on its carbon neutral roadmap, the company is collaborating with its subsidiaries to expand eco-friendly businesses and is enhancing positive social impacts through communication with all stakeholders, including customers, shareholders, employees, partners, and local communities.
◇ Strengthening carbon neutrality practices and resource recycling activities
According to the industry on the 31st, LOTTE has set a goal to achieve carbon neutrality for each of its groups by 2050 in response to climate change. In 2022, it established the 'Carbon Neutral Roadmap 1.0,' and in 2023, it announced an advanced version called 'Carbon Neutral Roadmap 2.0.' The revised roadmap includes plans to reduce greenhouse gas emissions from its business sites by 22% by 2030 and by 61% by 2040 compared to 2018 levels.
To realize this, six reduction measures have been selected: ▲expanding renewable energy ▲developing hydrogen energy ▲developing carbon capture technology ▲transitioning to zero-emission vehicles ▲improving energy efficiency ▲switching to eco-friendly raw materials and fuels. A group-level eco-friendly promotion committee has been established to regularly check the implementation status.
Resource recycling activities are also ongoing. In January, 17 members of the LOTTE Corporation university student volunteer group 'Value for ESG Volunteer Group' visited the 'Tech and Future Hall,' a showroom at LOTTE Chemical's Uiwang business site, to learn about ESG cases and participate in toy upcycling activities. The toys disinfected and packaged by the volunteers were delivered to local children, and toys that are difficult to recycle will be processed for use as recycled plastic materials.
As part of its environmental protection activities, LOTTE continues to work on the restoration project for the water quality of Seokchon Lake. Through this project, which began in August 2021, Seokchon Lake, which was previously only visible to a depth of 0.6 meters, has now cleared to over 2 meters. Last year, it received a grade one assessment on most water quality criteria and continues to be managed through monthly water quality measurements and analyses. LOTTE Engineering & Construction has been hosting the 'LOTTE Aquathlon' at Seokchon Lake, which has seen improvements in water quality since 2022, with about 800 participants at the '2025 LOTTE Aquathlon' held last July.
◇ Strengthening mutual growth with partners and stakeholders
LOTTE operates various cooperation programs for mutual growth with its partners. As of last year, a total of 1,460 small and medium-sized enterprises (SMEs) have participated in the 'LOTTE - Republic of Korea Brand Expo,' which first debuted in Thailand in 2018, recording a total of 1 billion consultations resulting in a cumulative consultation performance of $1.09 billion (about 1.6 trillion won).
In May of this year, a brand expo was held in Paris, France, the business hub of Europe. About 50 domestic SMEs and over 120 buyers from 13 European countries participated, with 511 export consultations conducted, achieving a total consultation performance of $6.396 million (about 908 million won). LOTTE plans to continue actively supporting its partners' entry into the global market.
They have also supported welfare and benefits for their partners. In March, they invited over 1,300 employees from partner companies to the LOTTE Concert Hall in Jamsil for the 'LOTTE Happiness Sharing Concert.' This event, planned under the theme of 'Together We Shine,' provided a venue for interaction and harmony with partners through cultural performances.
Activities to improve awareness of disabilities are also ongoing. The '2024 Super Blue Marathon' held last October in the Peace Park area of Mapo, Seoul, is an event where both people with and without disabilities run together, now in its ninth year. Participants wore blue shoelaces while running, spreading positive awareness about disabilities. The Super Blue Campaign originated from the 'Beautiful Language Use will Echo' campaign and has established itself as a leading disability awareness improvement campaign in Korea. LOTTE plans to continue this event annually.
◇ Establishing a sound and transparent governance structure
LOTTE is also continuing its efforts to enhance governance transparency. LOTTE Corporation obtained the 'ISO 37301' certification from the Korea Management Certification Institute last September. This certification, established by the International Organization for Standardization (ISO), is a comprehensive evaluation of compliance management systems, determining compliance planning, execution, maintenance, and improvement. To date, 10 subsidiaries, including LOTTE Global Logistics and LOTTE Chemical, have received this certification, and LOTTE Corporation is supporting more of its subsidiaries to obtain certification.
Additionally, LOTTE holds an annual 'Compliance Forum' to discuss the development direction of the group's compliance and establishes and distributes compliance work guidelines to enhance execution. It has analyzed risks across all departments and set control objectives to build a compliance management system that meets ISO standards while strengthening education for all employees, monitoring transactions with suppliers, and conducting internal monitoring. By systematizing risk identification, assessment, control, monitoring, remediation, and improvement procedures for each department, it ensures effective compliance operations.