Lotte Group focuses on giving back and going green
On Jan. 13, Lotte Group Chairman Shin Dong-bin emphasized the importance of ESG management.
“ESG should be taken into consideration regarding every business strategy and plan,” said Shin. “Social responsibility is a deciding factor for a company to survive and thrive.”
In its effort to go green, Lotte Group announced the “Resource Circulation Project” in February, 2020. The project consists of three main objectives: Constructing a virtuous plastic recycling system, increasing eco-friendly packaging and reducing food waste.
Lotte Group plans to further deploy its distinctive “5 Re (Reduce, Replace, Redesign, Reuse, Recycle) model” to promote resource circulation across all of its businesses.
On Feb. 2, Lotte Chemical business units announced the Green Promise 2030, an eco-friendly business strategy for the next 10 years. Lotte Chemical, Lotte Fine Chemical, Lotte Aluminum and Lotte BP Chemical are planning to invest some 5.2 trillion won ($4.7 billion) to fulfill the goals, which are to achieve carbon neutral growth and to increase revenue from eco-friendly businesses to 6 trillion won by 2030.
7-Eleven is also pushing forward with its ESG agenda, launching ecofriendly products such as straw-less coffee and donating some 73 million won to the Green Fund.
Lotte Super started using 11 electric vehicles for delivery services and is planning to increase the number to 100 by the end of this year. Lotte Food business units, including Lotte Chilsung Beverage and Lotte Confectionery, are redesigning their packaging to reduce plastic use and facilitate recycling.
Corporate social responsibility (CSR) is another pillar of ESG management. Lotte Group has been constantly contributing to society by caring and sharing with those in need. Lotte Group launched its CSR brand “Mom’s Happiness” in 2013, creating better and safer environments for mothers and children through programs such as “Mom’s Happiness Dream Attic” and “Mom’s Happiness Playground.”
Throughout the Covid-19 pandemic, Lotte affiliates continued to help others. Lotte Home Shopping delivered holiday food for the elderly living alone ahead of the Lunar New Year. Meanwhile, Lotte World handed out New Year’s presents to underprivileged children in Songpa District, southern Seoul.
Lotte Group is also actively supporting its suppliers to encourage winwin partnerships.
Lotte Group is operating the “Shared Growth Fund,” with 965 billion won to financially support itspartners in the spirit of mutual growth. In line with such efforts, 30 Lotte affiliates decided to provide advance payments to help business partners as companies are often in need of extra cash ahead of the holiday.
In terms of governance, Lotte Group is making continuous efforts to improve stockholder value and ensure transparency in management through various means such as reducing and preventing cross-shareholding, organizing a transparent management committee and establishing a healthy working environment for employees based on mutual trust.
By Shin Ha-nee [email@example.com]