LOTTE Corporation

Stakeholder engagement
The company discloses an overview of the issues raised during its stakeholder engagement activities and the channels it uses to engage with its stakeholder groups.

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.

GHG emissions
The company has set time-bound targets to reduce its scope 1 and 2 greenhouse gas emissions as well as report progress against them.

Solid and air pollution
The company demonstrates commitment to plastic use reduction and transitioning towards sustainable packaging.

Water
The company demonstrates reducing water withdrawal in its own operations.

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

Act ethically
The company has a policy prohibiting bribery and corruption and includes anti-bribery and anti-corruption clauses in its contracts with direct business relationships. Furthermore, it has established a grievance mechanism for stakeholders to raise concerns and complaints regarding bribery and corruption.

Provide and promote decent work
The company has a publicly available policy statement in which it commits to respecting its operations and supply chain workers’ health and safety. Moreover, it publicly commits to gender equality and women’s empowerment.

Respect human rights
The company has a publicly available policy statement committing it to respect human rights, along with grievance mechanism accessible to all workers and all external stakeholders who may be adversely impacted by the company.

Lobbying
The company does not report on its lobbying and advocacy practices on nature-related issues, nor whether these activities align with its sustainability strategy.

Sustainability strategy and accountability
While the company discloses some sustainability objectives/targets including climate, it has an opportunity to establish group-wide targets for the most material parts of its value chain and report consistently against all its targets. Furthermore, it could link performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. Lastly, the company could improve its transparency by disclosing whether its highest governance body has expertise with respect to the company’s most material sustainability topics.

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.

GHG emissions
The company should set time-bound targets to reduce its scope 3 greenhouse gas emissions as well as report progress against them. Crucially, all of its scope 1, 2 and 3 targets need to align with a 1.5-degree trajectory.

Impact and dependencies assessment
The company has an opportunity to disclose assessments of its impacts on nature, including biodiversity, within its own operations and in its supply chain. It also has the opportunity to disclose its dependencies on nature within its own operations and upstream business relationships.

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

Key areas and species
The company has an opportunity to disclose locations within or adjacent to areas important for biodiversity, both in its own operations and its supplier locations. It could also disclose existing species populations existing in or adjacent to both its own and its suppliers’ locations, as well as the conservation status of species identified at its own sites according to national and international lists.

Resource exploitation and circularity performance
No evidence was found regarding the company’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Solid and air pollution
The company does not disclose relevant information related to pollution in its operations or supply chains.

Water
The company has an opportunity to further improve water withdrawal by setting a time-bound target, disclosing water withdrawals in water-stressed areas, and engaging with suppliers. The company does not disclose relevant information on water pollution or rights to water in its operations or supply chains.

Indigenous Peoples’ and land rights
The company does not show if it is committed to respecting Indigenous Peoples’ rights or land rights of local communities.

Safe, clean, healthy and sustainable environment
The company has an opportunity to commit to respecting local communities’ right to a safe, clean, healthy and sustainable environment, and to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders. Moreover, it should track its actual or potential negative impacts on the health of local communities.

Act ethically
The company can demonstrate ethical conduct by publishing a policy statement that outlines its approach to lobbying and political engagement, emphasizes its non-participation in political contributions or discloses criteria for exception, and transparently discloses lobbying expenditures.

Provide and promote decent work
The company has an opportunity to enhance its commitment to its operations and supply chain workers’ health and safety by providing evidence of monitoring suppliers’ compliance. Additionally, it could set a time-bound target for ensuring all workers receive a living wage, describes the living wage determination methodology, and discloses strategies to support suppliers in paying a living wage.

Furthermore, the company could strengthen its commitment to gender equality and women’s empowerment by disclosing a related time-bound target. It could also disclose that it has at least 30% women on the Board of Directors.

Respect human rights
The company has an opportunity to strengthen its commitment to the ILO’s fundamental rights at work by disclosing whether the commitment is applicable across all contexts and locations. While it expects suppliers to respect specific workers’ rights, the company could broaden its focus to encompass all the ILO fundamental rights at work. Additionally, the company could describe the process for identifying human rights risks and impacts across all its activities, including its suppliers, as well as the process for assessing and identifying its salient human right issues. Moreover, the company could establish a global system to address these salient human rights issues by implementing preventive, mitigative, or remedial measures.