Lotte Shopping Joins Initiative... "Greenhouse Gas Reduction"

100% Transition to Renewable Energy by 2040

Lotte Shopping announced on the 2nd that it will join the international effort to limit the average global temperature rise to within 1.5 degrees Celsius.

On the 30th of last month, Lotte Shopping became the first retailer to join the Science Based Targets initiative (SBTi). SBTi is a global coalition jointly established by the Carbon Disclosure Project (CDP), the UN Global Compact (UNGC), the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF) to address climate change caused by greenhouse gas emissions. It scientifically verifies and monitors the appropriateness of carbon neutrality goals and plans set by each company.

Lotte Department Store Main Branch exterior view. [Photo by Lotte Department Store]

SBTi is known to require the strictest standards among major global climate change response initiatives. Companies wishing to participate in the initiative must set and submit greenhouse gas reduction targets that meet SBTi standards within 24 months of joining, and final membership is completed only after these targets are approved. Additionally, SBTi publicly discloses the carbon neutrality performance of member companies annually and reviews and publishes the targets every five years. Lotte Shopping plans to submit specific greenhouse gas reduction targets and implementation plans within the first half of this year.

Last year, Lotte Shopping declared carbon neutrality by 2040 along with the publication of its sustainability management report and has been managing carbon emissions by business division according to its carbon neutrality roadmap. Through joining SBTi, Lotte Shopping aims to reduce the greenhouse gases it consumes to 40% of the 2018 level by 2030. By 2040, it plans to convert all electricity used across its business sites to renewable energy, and by 2050, it intends to achieve zero carbon emissions throughout the entire supply chain. To this end, starting with the installation of solar power self-generation facilities at Lotte Outlet Gimhae last year, it will expand solar power self-generation facilities to other business sites in the future.

Lotte Shopping will also strengthen management of Scope 3 emissions emphasized by SBTi. Scope 1 and 2, as defined by SBTi, cover greenhouse gas emission sources directly manageable within business sites, such as city gas and electricity. Scope 3 includes greenhouse gases generated throughout the entire distribution process, including partners, logistics, and customers. Lotte Shopping plans to manage greenhouse gases generated throughout the retail value chain, from raw material extraction to product disposal, and prepare implementation measures for reduction.

Kim Sang-hyun, Vice Chairman and Head of Lotte Distribution Group, said, "With the joining of SBTi, we plan to build a sustainable carbon-neutral ecosystem together with all stakeholders, including employees and partners," adding, "As a retailer, we will strive to become a model case contributing to carbon neutrality and a company that has a positive social impact."