Lotte Holdings' report on sustainable management / Courtesy of Lotte Holdings

Lotte Group has been putting much effort into establishing a solid environmental, social and corporate governance (ESG) management system through Lotte Holdings this year. It founded an ESG committee within the board of directors of its listed affiliates and operates an ESG-dedicated team while also publishing reports on sustainable management of the group.

Lotte Holdings summarized all these ESG activities in its management performance report to customers and stakeholders. Lotte Holdings' financial performance, overall business portfolio and ESG management goals can also be checked in the report.

Other affiliates such as Lotte Engineering & Construction, Lotte Hi-Mart and Lotte Chilsung Beverage are also publishing their reports on sustainable management.

Lotte Group's new slogan / Courtesy of Lotte Holdings

All of Lotte Group's listed companies plan to share their reports by June 2022. Lotte is the first group to set up an ESG committee under its board of directors of listed companies and mandate the publication of sustainable management reports. As a result, it received an "A" grade for all of its nine affiliates in an evaluation conducted by the Korea Corporate Governance Service in October.

Carbon neutrality drive

Lotte Chemical has completed a demonstration of its carbon capture and utilization (CCU) facility with a gas separation membrane for the first time in Korea, following the country's carbon neutrality policy, and started its commercialization process.

After reviewing the economic feasibility, the company plans to spend about 60 million won in facility investments within the second half of 2023. It will build a facility that sequestrates and liquefies 200,000 tons of CO2 at its Daesan plant in Seosan, South Chungcheong Province.

In March, Lotte Chemical installed a CCU pilot facility at its 1st plant in Yeosu for a nine-month demonstration operation. During the test run, the company was able to verify its functionality as well as collect and analyze data for use in commercialization.

Lotte Chemical's CCU pilot plant produces less environmental pollution and works through a simpler procedure than facilities using chemical absorption. It is also more cost-effective and occupies less space.

Lotte Chemical has joined hands with Airrane, a medium-sized local company, for the commercialization of CCU. Airrane has a unique technology for polymer gas separation membranes. (advertorial)