Lotte Strengthens ESG Management... Launches Resource Circularity Project

Lotte World Tower.

[Asia Economy Reporter Yuri Kim] Lotte Group announced on the 30th that it will fully embark on eco-friendly management, including carbon neutrality and resource circulation.

In July, Lotte Group held a separate 'ESG (Environmental, Social, Governance) Management Declaration Ceremony' at the '2021 Second Half VCM (Value Creation Meeting)' and expressed its commitment to strengthening company-wide ESG management. The key points include ▲achieving carbon neutrality by 2040 ▲promoting the establishment of ESG committees under the boards of directors of listed affiliates ▲reflecting ESG management performance in CEO evaluations.

To achieve carbon neutrality by 2040, Lotte plans to set and implement carbon emission reduction and eco-friendly contribution targets in ten-year increments. In the short term, it will reduce greenhouse gas emissions through process efficiency improvements, and in the mid to long term, it will establish a phased strategy to realize complete carbon neutrality through the application of innovative technologies and eco-friendly businesses.

Last month, Lotte Chemical announced an eco-friendly hydrogen growth roadmap called 'Every Step for H2,' which includes achieving carbon-neutral growth by 2030 and supplying 30% of domestic hydrogen demand. Lotte Chemical plans to invest approximately KRW 4.4 trillion by 2030 to achieve about KRW 3 trillion in sales and an operating profit margin of around 10%.

In February last year, Lotte announced that it would actively promote a group-level 'Resource Circulation Project.' Lotte selected three key action tasks: establishing a plastic circulation system, expanding eco-friendly packaging, and reducing food waste. For each task, it has formed consultative bodies with related affiliates to set detailed goals and proceed accordingly. In the long term, Lotte plans to apply its unique resource circulation structure, the '5Re (Reduce, Replace, Redesign, Reuse, Recycle)' model, across all group sectors.

In June, Lotte Holdings, Lotte Chemical, Lotte Cultural Foundation's Lotte Museum, and artist Kim Jung-gi collaborated to launch eco-friendly pouches and card wallets. This month, Lotte Himart delivered 200 dismantled waste uniforms and 100 upcycled eco-bags to 'Touch for Good,' a social enterprise specializing in upcycling. Last spring, Lotte World conducted crowdfunding to sell 'Upcycling Mini Crossbags' made by recycling festival decorations instead of discarding them. The sales proceeds will be accumulated and used again as environmental protection funds. Lotte Food, Lotte Chilsung Beverage, and other Lotte food companies are introducing products and packaging that reduce plastic usage and facilitate easy recycling separation.

This content was produced with the assistance of AI translation services.