Lotte Shopping Receives Approval for SBTi Greenhouse Gas Reduction Target

First in the Domestic Distribution Industry to Receive Reduction Target Approval
"Creating a Sustainable Distribution Ecosystem"

Lotte Shopping announced on the 27th that it has become the first company in the domestic distribution industry to receive approval for its greenhouse gas reduction targets from the Science Based Targets initiative (SBTi).

Photo of Lotte Department Store Sogong-dong Main Branch. Provided by Lotte Shopping.

SBTi is a global initiative that verifies companies' carbon emission reduction targets. In line with the Paris Agreement goals, it sets greenhouse gas reduction targets and leads campaigns to limit the global average temperature rise to within 1.5 degrees Celsius (℃). It is a coalition jointly established by the Carbon Disclosure Project (CDP), UN Global Compact (UNGC), World Resources Institute (WRI), and World Wide Fund for Nature (WWF), known for demanding the strictest standards among global climate change response initiatives.

Companies wishing to participate in SBTi must, within 24 months of joining, set and submit greenhouse gas reduction targets that meet SBTi’s criteria and receive approval. Lotte Shopping joined SBTi in March 2023, submitted its greenhouse gas reduction targets and implementation plan in October of the same year, and passed SBTi’s rigorous standards in March this year.

To reduce greenhouse gas emissions, Lotte Shopping will implement various strategies including expanding the adoption of eco-friendly energy, improving energy efficiency, and collaborating with partners on low-carbon initiatives. The reduction targets set by Lotte Shopping include direct greenhouse gas emissions (Scope 1), indirect emissions (Scope 2), and emissions generated throughout the entire distribution process (Scope 3).

Direct and indirect greenhouse gas emissions (Scope 1 and 2) will be reduced through measures such as using high-efficiency LED lighting, refrigerated and frozen showcases, and installing solar power generation facilities. Greenhouse gas emissions generated throughout the distribution process (Scope 3) will be reduced through systematic supply chain management involving partners, logistics, and customers.

Lee Young-no, Head of Compliance at Lotte Distribution HQ, stated, “In the face of severe climate change, we will actively work with companies, partners, and customers to reduce greenhouse gas emissions throughout the entire distribution process. We will do our best to lead ESG management by creating a sustainable distribution ecosystem through active investment and practice for greenhouse gas reduction in the future.”