Climate Change Data

LOTTE rental Co., Ltd.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:4,220 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:330 tCO2e/year
Scope 2 Emissions:3,890 tCO2e/year
Scope 3 Emissions:781,000 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:86,096 GJ/year
Water Consumption:57,369 tons/year
Waste Generated:563.9 tons/year
Carbon Intensity:1.68 tCO2e/KRW 1 billion sales (Scope 1 & 2)

ESG Focus Areas

  • Climate Change
  • Human Rights
  • Corporate Governance
  • Customer Satisfaction
  • Shared Growth with Partners

Environmental Achievements

  • Reduced carbon emissions by 157 tons through the use of refillable motor oil containers.
  • Produced 176,000 kWh of solar energy.
  • Saved 290,771 tons of water (three-year sum) through eco-friendly car wash services.
  • Increased the use of recycled car parts (KRW 1.2 billion worth of purchase).

Social Achievements

  • Achieved a 96.7% overall accomplishment rate in the first-ever human rights impact assessment.
  • Increased the extension and renewal rates of B2C long-term rental contracts to 40% in early 2024 from 10% in early 2023.
  • Operated internal systems that promote work-life balance, such as shorter work hours on birthdays and the “Happy Friday” system.
  • Donated KRW 260 million (2018 to 2023) via eco-friendly driving campaigns.
  • Created goods to donate to vulnerable groups (700 beneficiaries).

Governance Achievements

  • Implemented an electronic voting system.
  • Obtained ISO 37001 certification (international standard for anti-corruption management systems).
  • Completed safety inspections of all business sites (111 inspections total).

Climate Goals & Targets

Long-term Goals:
  • Achieve 100% ZEV transition by 2030.
Medium-term Goals:
  • Achieve 70% ZEV transition by 2028.
  • Achieve carbon neutrality by 2040.
Short-term Goals:
  • Achieve 30% ZEV transition by 2025.

Environmental Challenges

  • Shrinking demand for EVs due to rising prices, reduced EV subsidies, and fire risk issues.
  • Falling tourism demand affecting short-term rental business.
  • Difficulty in collecting fuel usage data from all customer-driven cars for precise GHG emission calculation.
Mitigation Strategies
  • Implementing the shift to ZEVs gradually, starting from commercial cars.
  • Implementing consumer promotions with ZEV-tailored services and incentives.
  • Estimating fuel consumption based on average driving distance, fuel type, and fuel efficiency of each car model.
  • Developing services that provide public chargers free of charge in partnership with companies designated by the Ministry of the Environment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Partner selection management guidelines; fair trade compliance program.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events affecting operations and tourism demand.
Transition Risks
  • Decreased demand for ICEVs; increased regulations on emissions.
Opportunities
  • Expansion of eco-friendly vehicle fleet; development of EV-related services.

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, SASB

Certifications: ISO 37001, ISMS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Various initiatives contribute to these goals through eco-friendly vehicle transition, sustainable business practices, community engagement, and employee well-being programs.

Sustainable Products & Innovation

  • My Car Save (long-term used car rental service); Economical Maintenance and Economical Maintenance Plus; Membership Plus; Connect-Pro; Chabangjeong (on-site car maintenance service); Green Pass (car-sharing subscription service).

Awards & Recognition

  • Minister of Environment Award (LOTTE auto lease); Minister of Environment Award (LOTTE rental); 1st place in KS-SQI, NCSI, and KCSI customer satisfaction ratings; Best Jeju Airport Commercial Facility.