■ Sustainable Management Report Changed Title to ‘ESG Report’ This Year... Expanded Range of Disclosing ESG Information, Released ESG Policy Book Summarizing the ESG Risk Management System and Company Policies
■ Selected five major issues such as climate change response, establishing a green ecosystem, improving safety/health, resource circulation, reinforcing ethical/compliance management and disclosed performance of constructing and executing the governance system
■ “The latest ESG guidelines and requests of various stakeholders will be assertively reflected to expand the business field in the global market where ESG management is gaining importance”

LOTTE Chemical announced on the 14th that it published its sustainable management report titled ‘2022 ESG Report’ containing last year’s ESG (Environment, Social, Governance) management strategy and activity achievements.

LOTTE Chemical has been expanding and publishing its sustainable management report ever since 2007 in order to transparently disclose its performance in each ESG sector and communicate actively with various stakeholders. In particular, starting from this 16th report, it used the new title called ‘ESG Report’ to reinforce the indicators for investors, while stressing the significant changes in its ESG management system and execution performance.

In this report, the sustainable management report global standard guideline was applied, and together with this, the TCFD recommendations and SASB’s chemicals sector characteristics were also applied. Moreover, double materiality assessment was used in the process of drawing up major ESG issues that impact corporate value. Double materiality assessment is an ESG evaluation method that simultaneously analyzes the impact of corporate management activities on the environment and society, as well as the impact of environmental and social elements on corporate financial status.

In result, five major issues were selected such as climate change response, establishing a green ecosystem, improving safety/health, resource circulation, and reinforcing ethical/compliance management, and the contents were organized in a direction to construct an integrated governance for the execution of ESG strategies and to disclose execution performance per sector.

In climate change response, the ‘Scope 3’ calculation category and emissions that calculate greenhouse gas emissions including all indirect emissions that occur during the company’s value chain was listed for the first time, and the renewable energy implementation status for each of its business sites both domestically and internationally were revealed. LOTTE Chemical joined the RE100 (Renewable Energy 100) Initiative that replaces 100% of electric power used by companies by 2050 and currently plans to have all of its business sites bolster use of renewable energy to 60% by 2030.

From the aspect of resource circulation, the four major activities of LOTTE Chemical’s recycle project, ‘Project LOOP’ performance and eco-friendly product lines were introduced, and the carbon footprint per product was quantified through the life cycle assessment (LCA) that analyzes the environmental impact throughout the entire life cycle from collecting raw materials for products to manufacturing, distribution, usage and disposal. In addition, starting in ‘21, it operated the in-company venture program ‘LICORN’ to encourage the development and commercialization of various eco-friendly products. In particular, it unveiled its business performance related to hydrogen and battery materials since the establishment of the hydrogen energy/battery materials business unit last year for its new ESG businesses. LOTTE Chemical established LOTTE Battery Materials USA and began construction of its anode foil plant and established joint ventures for the hydrogen business with LOTTE-SK Eneroot and LOTTE-Air Liquide Ener’hy, while also launching the copper foil production corporation, LOTTE Energy Materials in March of this year.

For reinforcement of ethical/compliance management, it disclosed the activities of the ESG Committee made up of 4 outside directors and 1 inside director.

A spokesperson for LOTTE Chemical emphasized that “The latest ESG guidelines and requests of various stakeholders will be assertively reflected to expand the business field in the global market where ESG management is gaining importance.”