Climate Change Data

LOTTE Chemical Corporation

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:6.21 million tCO2e/year
Scope 1 Emissions:4,187,489 tCO2e/year
Scope 2 Emissions:2,027,270 tCO2e/year
Scope 3 Emissions:18,005,017 tCO2e/year
Renewable Energy Share:0.01% or less
Water Consumption:12,880 thousand tons/year
Waste Generated:17,170 tons/year

ESG Focus Areas

  • Response to climate change
  • Creation of a Green Ecosystem
  • Resource circulation
  • Safety and health
  • Ethical management

Environmental Achievements

  • Reduced GHG emissions by 5% from the previous year, emitting 6.21 million tons
  • Obtained ISCC Plus certification for seven synthetic resin products
  • Reduced wastewater discharge to 12,880 thousand tons/year
  • Reduced air pollutant emissions to 7,579 tons/year
  • Reduced water pollutant emissions to 1,209 tons/year
  • Reduced waste (incineration/landfill) discharge to 17,170 tons/year

Social Achievements

  • Launched ‘Chemi Story’ cafe operated by baristas with disabilities
  • LTIR of 0.070
  • PSIR of 0.0
  • Zero serious accidents

Governance Achievements

  • Obtained ISO 37301 certification for compliance management system
  • Established ESG Committee and Sustainability Committee
  • Established Net-Zero Council

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050
  • 100% renewable energy by 2050
Medium-term Goals:
  • Achieve 60% renewable energy by 2030
  • Sell more than 1 million tons of recycled plastic by 2030
  • Reduce carbon emissions by 25% from 2019 peak by 2030
Short-term Goals:
  • Reduce wastewater discharge
  • Reduce hazardous substance emissions
  • Increase introduction of renewable energy (5% by 2023)

Environmental Challenges

  • Supply chain disruptions
  • Water scarcity
  • Flooding
  • ESG washing concerns
  • Increasingly strict global regulations on compliance management and ESG management
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Expanded wastewater recycling
  • Implemented emergency response system
  • Developed a comprehensive non-financial indicator specification document
  • Introduced a compliance management system

Supply Chain Management

Supplier Audits: ESG evaluations of approximately 2,500 partner companies

Responsible Procurement
  • Green purchasing guidelines
  • Code of Conduct for Partner Companies
  • Compliance with responsible minerals regulations

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Natural disasters
Transition Risks
  • Carbon pricing system adoption
  • Changing consumers’ and market’s preference for products
  • Expanded use of renewable energy
Opportunities
  • Development of energy-efficient products
  • Expansion of green products
  • Hydrogen energy business
  • Battery material business

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD recommendations, SASB recommendations

Certifications: ISO 14001, ISO 37001, ISO 37301, ISCC Plus

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

  • Goal 3
  • Goal 6
  • Goal 7
  • Goal 12
  • Goal 13

Various initiatives contribute to these goals as described in the report.

Sustainable Products & Innovation

  • Recycled products
  • Chemically recycled products
  • Bio-products
  • HDPE material for ships
  • Eco-friendly EPP sharing box

Awards & Recognition

  • Minister of Oceans and Fisheries Award
  • Grand prize in the category of ‘ESG business’ at Korea Mutual Growth Awards