Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced emissions by 2,307 tCO2eq in 2021
• Improved data center power usage effectiveness (PUE) from 1.71 in 2020 to 1.60 in 2021
• Adopted EV-charging infrastructure at the 1st center in 2021
• Adopted free cooling thermo-hygrostats at the 2nd and 3rd centers, reducing GHG emissions by around 500 tCO2eq annually.

Social Achievements

• Launched health management platform “HI-U” for LOTTE Duty Free employees
• Maintained Family-friendly Company Certification since 2013
• Designated as the “Best Job Creation Company in Korea” for three consecutive years (2019-2021)
• Participated in SIAT, an IT education-recruitment program for the disabled, and implemented special recruitment for the disabled.
• Ran 540 training courses attended by 566 employees of partners in 2021.

Governance Achievements

• Established ESG Committee in July 2021
• Established ESG Office in July 2021
• Published its first sustainability report in 2021
• Adopted an e-voting system in March 2021
• Established Integrity Practice Rules in 2021 to comply with anti-corruption laws

Climate Goals & Targets

Environmental Challenges

• Expected increase in GHG emissions through 2030 due to data center business expansion
• Carbon credit price uncertainty and risks related to emission rights allocation
• Emerging requirements for renewable energy use and stricter environmental regulations
• Potential for IT failure, quality issues, safety incidents, and environmental problems.

Mitigation Strategies

• Established strategies to minimize climate change risks and discover eco-friendly business opportunities
• Set mid- to long-term goals to manage climate-related financial impact
• Carrying out energy-saving activities and transitioning to renewable energy through REC certificates and PPA contracts
• Implementing various activities to identify potential risks and avoid/manage them at an acceptable level (financial and non-financial risks)
• Operating a Total Situation Room and TFT to respond to non-financial risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Standard subcontract agreement in conformance with the Fair Trade Commission
• Ethical Management Declaration signed by partners
• Fair transaction pledge system for partners

Climate-Related Risks & Opportunities

Physical Risks

• Rise in average temperature, reduction of data center HVAC facility efficiency

Transition Risks

• Strengthened environment-related regulations, rise in regulation compliance costs
• Changes in data center consumer requirements (energy efficiency and RE100)

Opportunities

• Rise in data center operational efficiency, improvement of resource energy efficiency and reduction of energy consumption
• Replacement by low-carbon technologies and low-carbon facilities

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO 50001, ISO 27001 (Information Security Management System)

Third-party Assurance: Korea Management Registrar (KMR)

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 9
• SDG 12
• SDG 13
• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 16

Various activities aligned with the SDGs are described in the report.

Sustainable Products & Innovation

• Eco-friendly data center operation
• Eco-friendly EV-charging infrastructure
• Autonomous vehicles

Awards & Recognition

• Excellence Award at the 2021 Annual Evaluation of the Service Level Agreement (SLA)
• Meritorious service award from Airport Railroad
• Outstanding Chief Information Officer of the Year Award
• Excellence Award at the Algorithm Development Challenge for Safe Autonomous Driving