LOTTE Shopping conducted materiality assessment to select key issues for ESG engagement.
Materiality assessment was conducted by analyzing common interest of various stakeholders and
issues with impact on the business of LOTTE Shopping based on GRI Standards,
a global guideline for preparing sustainability report, ISO 26000, a standard for
corporate social responsibility and UN sustainable development goals (SDGs) and issue pools and major issues were identified.
Materiality Assessment Process
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Step1Formation of an ESG Issue Pool· The establishment of a pool of potential issues based on an analysis of international initiatives and guidelines, ESG evaluation indicators, and an analysis of global leading companies in the same industry
· Attaining ESG issue pools through the analysis of issues from the previous year and internal opinion gathering -
Step2Analysis of Social and Environmental Impacts· Review of international initiatives and guidelines (GRI Standards, ISO 26000, KCGS, UN SDGs)
· Media analysis, Benchmarking analysis of leading domestic and foreign companies in the same industry
· Collection of external stakeholder opinions (customers, shareholders/investors, partners, communities, etc) -
Step3Analysis of Financial Impacts· Analysis of international financial standards and ESG evaluation (MSCI, DJSI, SASB, TCFD)
· ESG issue analysis and opinion gathering from internal employees -
Step4Selection of Eight Final Key Issues· Quantification of environmental and social impacts and financial impacts for each issue to conduct a comprehensive evaluation
· Selection of final key issues
Materiality Assessment Result
| Core issues | Issue Impact Assessment | |||
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| Cost | Revenue | Risk | ||
| 1 | Reduction of GHG Emissions and Improvement of Energy Consumption Efficiency |
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| 2 | Climate Change Risk Management and Response |
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| 3 | Integrated Risk Management | |
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| 4 | Promotion of Mutual Growth with Suppliers and ESG Compliance Support |
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| 5 | Human Rights Management and Human Rights Risk Management |
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| 6 | Work-life Balance | |
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| 7 | Waste Management and a Circular Economy | |
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| 8 | Reinforcement of Customized Customer Satisfaction Activities |
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