LOTTE Chemical

Sustainability strategy and accountability
The company has group-wide targets on key sustainability topics for the most material parts of its value chain.

Stakeholder engagement
The company discloses how often and through which channels it engages with various stakeholder groups. The company discloses an overview of the issues raised during its stakeholder engagement activities.

Water
The company has a time-bound target to reduce water withdrawal in its own operations and reports progress against the target.

Solid and air pollution
The company is reducing the production of hazardous substances. The company reports some activities to reduce plastic use and waste in its own operations. The company has time-bound targets to reduce air pollutants across the most material parts of its value chain. The company reports regularly against these targets.

No leading practices were identified in the social inclusion and community impact area.

Sustainability strategy and accountability
The company discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, in relation to its sustainability strategy. The company reports consistently against all its targets. No evidence was found that the company links performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. The company does not disclose whether its highest governance body has expertise regarding nature-related topics.

Lobbying
The company discloses a list of trade associations of which it is a member wherever it operates. The company does not disclose a clear and detailed framework for assessing alignment of its trade associations with nature-positive policies. The company does not report (potential) misalignment between the lobbying activities of its trade associations and nature-positive policies.

Impact and dependencies assessment
The company has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Key areas and species
The company does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.

Ecosystem conversion and restoration
No evidence was found regarding the company’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Resource exploitation and circularity
The company does not disclose its inputs, including its material footprint. The company does not report quantitatively on its group-wide circularity performance. The company does not disclose efforts to improve soil health.

Water
No evidence that the company reduces water withdrawal across the company’s own operations was found. The company does not report how much water is withdrawn for its own operations in water-stressed areas. The company does not engage with suppliers to reduce water withdrawal. The company reports a decrease in water pollution. Although the company mentions its internal standard on wastewater treatment is more strict than that of the government, it is unclear what specific management and monitoring measures have been taken. The company regularly reports on water pollution. The company has a target to reduce wastewater to 50% by 2030 compared to its baseline year 2019, but does not report against taret. The company does not disclose a commitment to respect the right to water. The company does not disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Solid and air pollution
Although the company discloses its collaboration with partners to comply with EU REACH SVHC, no evidence was found that the company has a commitment not to develop products with SVHC. No evidence that the company is reducing the production of hazardous waste was found. Although the company discloses its amount of recycled plastic waste in 2020, it is unclear whether there is a reduction in plastic use and waste compared with previous years. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal. The company reports regularly on air quality parameters of emissions of harmful air pollutants.

GHG emissions
No evidence that the company reduces its scope 1 and 2 greenhouse gas emissions was found. The company has a time-bound target to reduce its scope 1 and 2 emissions. The company’s scope 1 and 2 emissions in 2020 increased compared to its baseline year in 2019. No evidence that the company’s scope 1 and 2 emissions target is aligned with a 1.5-degree trajectory was found. Although the company discloses its scope 3 emissions are around 56,703 tons, it is unclear whether the amount reduced compared to the previous year. Despite mentions that the company expects to reduce scope 3 emissions, no evidence was found that the company has a time-bound target to reduce them. The company does not report progress against its scope 3 emissions target. No evidence that the company’s scope 3 emissions target is aligned with a 1.5-degree trajectory was found.

Invasive species
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Safe, clean, healthy and sustainable environment
The company does not disclose a commitment to respecting local communities’ right to a safe, clean, healthy and sustainable environment or to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous Peoples’ and land rights
The company does not disclose a commitment to respecting Indigenous Peoples’ rights or land rights of local communities.

While the company discloses that it conducts due diligence in general, it has an opportunity to specify that it conducts human rights due diligence that includes a process for identifying human rights risks and impacts through its business relationships. The company has an opportunity to describe a process for assessing the human rights risks it has identified and to disclose what it considers to be its salient human rights issues. A description of this process would include how relevant factors are considered, such as geographical, economic and social factors. No evidence was found that the company has a global system to act on its salient human rights issues. While the company discloses the categories of stakeholders it engages with generally on sustainability issues, it is not clear if these stakeholders are those whose human rights have been or may be affected by its activities. No evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities was found.

There is no evidence that the company has a publicly available policy statement committing it to respect the health and safety of workers. The company has an opportunity to disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. The company has an opportunity to describe how it determines a living wage for the regions where it operates.  The company discloses the proportion of its total direct operations workforce covered by collective bargaining agreements.   No evidence that the company describes how it works to support the practices of its suppliers in relation to freedom of association and collective bargaining was found.

No evidence that the company has a publicly available global tax strategy was found. The company discloses that it has introduced a compliance management system. It conducts self-inspection through a checklist, which includes items related to the reputation of the company in the industry, fair trade/anti-corruption, however, the company does not discloses the process to identify its bribery and corruption risks and impacts in specific locations or activities covering its own operations. No evidence that the company includes anti-bribery and anti-corruption clauses in its contracts with business relationships was found. The company discloses a publicly available policy statement setting out its political engagement approach. However, there is no evidence related to its lobbying approach. The company discloses that it does not involve itself in politics and shall not support or sponsor specific political parties or politicians. However, it does not provide a clear statement specifying that it does not make any political contributions.