Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Environmental Offset
• Product Quality & Safety
• Sustainability in Product
• Customer Benefit
• Customer Engagement
• Work Efficiency
• Work & Life Balance
• Supplier Management
• Supplier Support
• Citizenship Input Management
• Citizenship Output Management

Environmental Achievements

• Reduced unit area CO2 emissions in Lotte Department Store by 6.4% and Lotte Mart by 4.1% compared to 2009.
• Achieved 68.8% waste recycling rate in Lotte Department Store and Lotte Mart.
• Installed solar power generation facilities in 39 Lotte Mart stores, producing approximately 4.75 million kWh of electricity annually.
• Replaced 45,000 halogen lamps with high-efficiency LED lamps in Lotte Department Store, improving energy efficiency by 10 times.

Social Achievements

• Established Lotte Department Store's eco-friendly daycare center.
• Launched various childbirth encouragement campaigns.
• Implemented a matching grant program for overseas children.
• Conducted community investment activities such as the Lotte Children's Environmental Art Competition.

Governance Achievements

• Established an ethics committee and implemented an ethics management system.
• Obtained CCMS certification.
• Introduced a new Grade system to replace the existing rank system.

Climate Goals & Targets

Environmental Challenges

• Increased greenhouse gas emissions due to new store openings.
• Increased energy and water consumption due to new store openings.

Mitigation Strategies

• Implemented energy-saving measures such as installing high-efficiency inverters and LED lighting.
• Introduced water recycling facilities.
• Developed and implemented an internal carbon inventory system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green purchasing initiatives, fair trade practices, supplier support programs.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001, ISO 27001

Third-party Assurance: SolAbility Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-friendly private brand (PB) products, organic products.

Awards & Recognition

• Various awards related to sustainability, social contribution, and corporate governance (see page 109).

Environmental Metrics

ESG Focus Areas

• Sustainable Culture
• Sustainable Value
• Sustainable Action

Environmental Achievements

• Reduced CO2 emissions by 15.4 billion won through greenhouse gas target management.
• Reduced energy consumption by 8.4 billion won through continuous campaigns.
• Installed 12,870 high-efficiency LED lights in department stores and 2,610 in marts for energy savings.

Social Achievements

• Launched 'Mom's Happy Room' for working mothers, providing rest areas and health checkups.
• Participated in the 'Mother's Day' campaign with the Ministry of Health and Welfare.
• Operated 53 cultural centers nationwide, providing education to 570,000 members.

Governance Achievements

• Established an integrated CSV management system.
• Implemented an ethics hotline and various reporting channels for ethical concerns.
• Achieved ISO27001 and ISMS certifications for information security.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Economic downturn
• Increased government regulations
• Changes in consumer trends
• Global economic slowdown
• Climate change
• Resource scarcity
• Competition
• Human rights issues
• Ethical violations

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented risk management strategies
• Strengthened internal controls
• Enhanced communication with stakeholders
• Implemented various CSR initiatives
• Improved supply chain sustainability
• Strengthened ethics and compliance programs
• Improved employee wellbeing initiatives

Supply Chain Management

Responsible Procurement

• Green purchasing policy
• Fair trade practices
• Supplier sustainability guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4.0

Certifications: ISO 14001, OHSAS 18001, ISO27001, ISMS

Third-party Assurance: Solability

Sustainable Products & Innovation

• Eco-friendly products
• Local products
• Recycled materials

Awards & Recognition

• DJSI World Index (6 years)
• DJSI Industry Group Leader (5 years)
• Forbes Global 2000 (Department Store Top 3)
• World Retail Awards (CSR Award)
• National Customer Satisfaction Index (NCSI) - Lotte Department Store (11 years), Lotte Mart (3 years)
• Great Place To Work (3 years)

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Sustainable Supply Chain
• Robust Governance
• Eco-friendly Products
• Employee Well-being

Environmental Achievements

• Reduced greenhouse gas emissions by 5,324 tCO2eq through solar energy and energy efficiency projects in 2022.
• Achieved 95.5% waste recycling ratio in 2022.
• Installed 5,907 refrigerated showcase doors across 59 branches to prevent energy loss.
• First retailer in Korea to commit to the Science Based Targets initiative (SBTi) in March 2023.

Social Achievements

• Established LOTTE Shopping’s Human Rights Policy.
• Conducted a human rights impact assessment at LOTTE Department Store.
• Launched RE:JOICE campaign, winning a top 10 spot in the IGDS World’s Best Sustainability/CSR Campaign Awards.
• Operated RE:JOICE Counseling Center, conducting 3,607 counseling sessions in 2022.
• Implemented an internal recruitment system, placing 32 employees into preferred roles.

Governance Achievements

• Established the ESG Committee in November 2021.
• Compensation Committee and Independent Director Nomination Committee composed entirely of independent directors.
• LOTTE Department Store obtained ISO 37301 certification for compliance management systems.
• Increased dividend to 3,300 KRW per share in 2022.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change risks (e.g., extreme weather)
• Stricter regulations on refrigerated food preservation (2024)
• Managing GHG emissions across the entire value chain.

Mitigation Strategies

• Developed alternative sourcing strategies
• Established a 2040 carbon neutrality roadmap and SBTi commitment.
• Implemented a three-phase plan to replace and install showcase doors.
• Amplified management of scope 3 emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG Code of Conduct and Self-Assessment Checklist for partners.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Strengthening environmental regulations

Opportunities

• Development of energy-efficient products and renewable energy sources.

Reporting Standards

Frameworks Used: GRI Standards 2021, ISO 26000, UN Global Compact

Certifications: ISO 37001 (anti-corruption), ISO 37301 (compliance), ISO 50001 (energy management)

Third-party Assurance: KPMG Samjong Accounting Corp.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-friendly uniforms, eco-friendly packaging, MSC and ASC certified products.

Awards & Recognition

• IF DESIGN AWARD, Red Dot Design Award, Monde Selection, Korean Labor-Management Cooperation Award, etc.