Climate Change Data

LOTTE Shopping Co., Ltd.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:710,014 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:96,042 tCO2e/year
Scope 2 Emissions:614,167 tCO2e/year
Scope 3 Emissions:16,911,726 tCO2e/year
Carbon Intensity:11.63 tCO2e/KRW 100 million (Department Store), 4.76 tCO2e/KRW 100 million (Mart), 4.02 tCO2e/KRW 100 million (Super), 0.38 tCO2e/KRW 100 million (E-commerce)

ESG Focus Areas

  • Climate Change Response
  • Circular Economy and Sustainable Packaging
  • Expansion of Eco-Friendly Products and Services
  • Talent Retention and Empowerment
  • Governance Transparency, Integrity, and Diversity
  • Ensuring a Quality Labor Environment
  • Integrated Risk Management
  • Diversity and Anti-discrimination

Environmental Achievements

  • Reduced greenhouse gas emissions by approximately 912 tons through solar power facilities.
  • Reduced greenhouse gas emissions by another 7,210 tons through investment in high-efficiency refrigeration and boiler systems.
  • Became the first domestic retail company to join the SBTi.
  • Published a TCFD report.
  • Achieved a 97.0% waste recycling rate at Department Stores and 98.5% at Mart/Super.

Social Achievements

  • Achieved sales of KRW 2 trillion at Myeongdong Main Branch.
  • Selected as one of the Top 10 Most Innovative Department Stores in the World by the IGDS.
  • Opened LOTTE Mall Westlake Hanoi in Vietnam.
  • Received the Minister’s Commendation for Win-win Growth from the Ministry of SMEs and Startups.
  • Received the Best Family Friendly Management designation from the Ministry of Gender Equality and Family.

Governance Achievements

  • Achieved an “A” grade for six consecutive years in the domestic ESG evaluation (KCGS).
  • Won domestic and international awards for its sustainability report.
  • Held its first CEO IR Day since its listing.
  • Revised the Articles of Incorporation to increase shareholder value.
  • Reconstituted the Transparent Management Committee to be composed entirely of independent directors.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality across the entire value chain by 2050.
Medium-term Goals:
  • Achieve 100% energy conversion across all business sites by 2040.
  • Achieve 40% greenhouse gas emission reduction by 2030 compared to 2018 levels.
  • Achieve 66.9% female managers and 23.2% female employees by 2024.
Short-term Goals:
  • Reduce water consumption

Environmental Challenges

  • Dampening consumer sentiment due to high inflation.
  • Blurring of boundaries between retail formats.
  • Rise of retail technology.
  • Heightened interest in ESG management, including carbon neutrality implementation and mandatory ESG disclosures.
  • Climate-related risks (transition and physical).
Mitigation Strategies
  • Strengthening competitiveness and executing transformation strategies.
  • Implementing the 2040 Carbon Neutrality Roadmap.
  • Joining the SBTi to verify carbon neutrality goals.
  • Reviewing the introduction of PPAs and gradually expanding renewable energy.
  • Operating win-win growth programs to support partner growth.
  • Conducting various local win-win activities.
  • Innovating organizational culture and enhancing employee welfare programs.
  • Establishing sound and transparent governance structure.

Supply Chain Management

Responsible Procurement
  • Code of Ethical Conduct
  • Partners Code of Conduct
  • Sustainable product sourcing principles
  • ESG indicator development training for partners
  • Hygiene consulting for partners

Climate-Related Risks & Opportunities

Physical Risks
  • Coastal erosion
  • Drought
  • Water stress
  • Wildfire
  • Temperature extremes
  • Tropical cyclone
Transition Risks
  • Carbon pricing
  • Policy/Legal
  • Technology
  • Reputation
  • Market
Opportunities
  • Development of energy-efficient products
  • Expansion of revenue sources through the development of new products and market leadership
  • Growing demand for eco-friendly, resource-circulating products and low-carbon fuels

Reporting Standards

Frameworks Used: GRI Standards 2021, ISO 26000, UN Global Compact, TCFD recommendations, SASB standards, EU ESRS, IFRS ISSB S1 Framework

Certifications: ISO 50001, ISO 37001, ISO 37301, ISO 45001

Third-party Assurance: NICE Information Service

Sustainable Products & Innovation

  • RE:EARTH brand products
  • Low-carbon Hanwoo
  • MSC- and ASC-certified seafood products
  • GOOD TODAY private brand products

Awards & Recognition

  • KCGS A grade
  • 2023 Outstanding Disclosure Company
  • LACP 2022 Vision Awards Gold Award
  • LACP 2023 Vision Awards Platinum Award and Gold Award
  • 2023 Galaxy Awards Gold Award
  • 2023 Management Grand Awards Report of the Year
  • Korea Energy Awards Minister’s Award
  • Seoul Mayor’s Award
  • Presidential Commendation for collaborative Cooperation between Large and Small Businesses
  • Presidential Commendation for Creating Good Jobs
  • Presidential Commendation as an Excellent Company for Work-Family Balance
  • Fair Trade Commission Chairman’s Award for Excellent Win-Win Performance
  • IGDS WDSS Awards Top 10 Most Innovative Department Stores
  • Red dot design award
  • Korea Retail Awards
  • Korean Labor-Management Cooperation Award Grand Prize
  • Best HRD Award at the 2023 KOREA HRD Awards
  • Best Labor-Management Culture Enterprise