Lotte Chemical Creates 50 Billion KRW ESG-Dedicated Fund... First Domestic Chemical Company

Lotte Chemical Yeosu Plant

[Asia Economy Reporter Choi Dae-yeol] Lotte Chemical announced on the 24th that it will establish a dedicated ESG (Environmental, Social, and Governance) fund worth 50 billion KRW. As part of its company-wide mid- to long-term eco-friendly management strategy, this is the first time in the domestic chemical industry that such a dedicated fund has been created.

The company previously established an ESG Committee in mid-month. The committee held its first meeting yesterday and discussed the establishment of this fund as its first agenda item. Lotte Chemical will provide the capital, and Lotte Ventures will manage the fund.

This ESG fund will focus investments on carbon neutrality sectors such as clean hydrogen production, carbon capture, utilization, and storage (CCUS), plastic recycling, and energy efficiency. The company expects to secure core technologies essential for realizing its eco-friendly strategy in advance. Lotte Chemical and Lotte Ventures have been proactively investing in promising future technologies such as chemical new materials, next-generation energy, and bio-healthcare through the operation of Innovation Fund 1 and 2.

Kim Gyo-hyun, CEO of Lotte Chemical, stated, "We will leverage the specialized fund function to find meaningful business models linked to our eco-friendly strategy and realize cooperation with partner companies."

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