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Establishment of ESG System in Supply Chain

Partners are important stakeholders in LOTTE Shopping's sustainability management. In order to share our direction of ESG engagement and to manage supply chain risks and opportunities, the Company is carrying out various activities for enhancing the ESG capabilities of our partners.

Partners can voluntarily self-check their ESG level in all ESG areas, including ethics, human rights,
environment, and safety, through the self-assessment questionnaire (total 29 questions in 4 sections)
Domestic environmental law compliance/violation, Operation of programs to improve energy consumption statistics, Greenhouse gas emission reduction trend, etc.
Industrial Safety and Health Act compliance/violation, Industrial accident rate management, Industrial accident risk assessment/process operation, etc.
Human rights
Domestic labor law compliance/violation, Working hour management, 4 major labor-related insurance subscription rates, Occurrence of unethical acts such as sexual harassment, etc.
Compliance & Ethics
Domestic fair trade law compliance, Operation of personal information protection procedures, Operation of unethical behavior reporting procedures/programs, etc.

Support Project of ESG System in Supply Chain

LOTTE Shopping has opened an online training platform to strengthen ESG and job competencies of its partner companies' executives and employees, and provided training on ESG theory and practice, revised tax laws, and others to 83 partner companies. In addition, the Company’s Shared Growth Committee provided an ESG consulting service to the selected 15 partners in cooperation with specialized ESG consulting company, and supported them to improve the vulnerabilities discovered from on-site inspection based on the ESG guidelines.

ESG Consulting Process
  • Development and sharing of evaluation indicators
  • Partner training(online)
  • On-site diagnosis and improvemetnt guidance
  • Check for improvement

Shared Growth with Partners

  • Financial Support
    Maintaining business stability and smooth cash flow of partners through financial support
    ㆍ Mutual Growth Finance: Directly provides interest-free finance to partner companies in case of emergency (size: KRW 100 billion) ㆍ Mutual Growth Fund: Provides preferential interest rates for partner companies' bank loans (size: KRW 115 billion)
  • Go-to-Market
    (GTM) Support
    Support for partner companies to develop new markets and advance into overseas markets
    ㆍ Dream Plaza (SMEs Co-prosperity Center): LOTTE Shopping established the ‘SMEs Co-prosperity Center (since 2014)’ was established for the first time in the retail industry to support the sales channels of SMEs. Labor, promotional, and other expenses are supported for those who joined the center ㆍ Special Exhibition for SMEs (E-Commerce): LOTTE On holds promotional exhibition for small and medium business (since 2021). 18 exhibitions were held in cooperation with Korea Productivity Center, KBIZ, Small and Medium Business Distribution Center, and other public institutions (sales amount: KRW 7.68 billion) ㆍ Overseas Market Development Delegation: The Company runs a support program for SMEs in developing overseas markets using its overseas branches in Vietnam and Indonesia (since 2016). Export enterprise academy (customers consulting, local market lectures, etc.), local one-on-one business meetings, and local logistics trend research service are also provided
  • Management
    Performance sharing & welfare support
    ㆍ Performance sharing: The Company implements the “Performance Sharing Program” to share results earned from the cooperation between the large enterprise and SMEs. ㆍ Welfare benefits: Labor Day gift to partner companies, partial support for lunch expenses for store employees/service staff, etc.
  • Training Support
    Support of job-specific training programs to strengthen the hands-on competencies of partner companies’ executives and employees
    ㆍ Consulting service: The Company provides ESG competency diagnosis and improvement consulting, and big data consulting for marketing/product development of SME partners in cooperation with LOTTE Members ㆍ Customized training: Hygiene diagnosis and related training for partner food producers, latest trend/job-tailored expert training, ‘Healing Camp’, within each product group (2-3 times/year)