Selecting important issues through internal/external experts to secure objectivity in ‘dual materiality assessment’… Supplementing global ESG initiative disclosure and evaluation criteria
■ Lotte Chemical CEO Lee Hoon-ki, “■ Establishing an advanced ESG management system and risk management by discovering new opportunity markets based on
the MSCI (Morgan Stanley Capital International) ESG evaluation results A grade... Environmental evaluation, which accounts for the largest proportion in chemical industry evaluation, is improved every year and the overall grade is raised.
Lotte Chemical has published the '2023 ESG Report' containing its ESG (Environment, Society, Governance) management activities and performance. It explained that following the opening of a new 'ESG Management System' last month to enhance reliability through the establishment of an indicator management system, the consistency of ESG data has been secured with the publication of this report.
This report integrates the calculation criteria of the Yeosu, Daesan, and Ulsan plants of the basic materials business and the Yeosu plant of the advanced materials business from 2021 to 2023, and secures objectivity for the 'dual materiality assessment' by selecting important issues through internal/external experts, thereby supplementing the disclosure and evaluation criteria of global ESG initiatives.
'Dual materiality assessment' is a method of analyzing ESG-related issues by comprehensively considering not only the impact of social and environmental factors on a company's financial status, but also the impact of corporate management activities on society and the environment.
Lotte Chemical has been publishing an annual sustainability management report since 2007, and in this report, the scope of disclosure of the ESG Report has been expanded by disclosing the greenhouse gas emissions and data of Lotte Chemical’s 23 consolidated companies and 2 non-consolidated consolidated companies.
In addition, new content on the sustainability of major products has been added, such as introducing 『ECOSEED』, a brand of physically and chemically recycled recycled materials (PCR, Post Consumer Recycled) and bioplastic materials (Bio-PET, biodegradable plastic), and disclosing actual application cases.
In the publication remarks, Lotte Chemical CEO Lee Hoon-ki said, “Based on this, we will do our best to secure growth momentum by discovering new opportunity markets, while at the same time establishing an advanced ESG management system and controlling risks so that companies and society can achieve sustainable growth together,” he said.
Meanwhile, in May of this year, Lotte Chemical achieved the result of obtaining an A grade, one level up from the existing BBB grade, with its environmental sector evaluation improving every year in the Morgan Stanley Capital International (MSCI) ESG evaluation results, an evaluation model that analyzes and grades core issues in the environment, society, and governance of listed companies around the world every year.