LOTTE Chemical Publishes the ‘2025 ESG Report’

■ Expanded the scope of IFRS S2 climate-related financial impact reporting and double materiality assessments to include consolidated subsidiaries, further enhancing the Company's ESG management framework.
■ Established a Carbon Task Council to strengthen integrated ESG governance, advanced biodiversity conservation initiatives, and developed and updated ESG strategies encompassing the LOTTE Chemical Group.
■ CEO Lee Young-jun stated, “We will strengthen our sustainable competitiveness by driving business portfolio innovation and accelerating the transition to a low-carbon business portfolio,” adding, “We will continue to place sustainability at the core of every management decision and further enhance our execution capabilities.”

LOTTE Chemical announced on the 26th that it has published its 2025 ESG Report, highlighting the Company's major environmental, social, and governance (ESG) initiatives and achievements.

The report outlines LOTTE Chemical's efforts to enhance its ESG management framework and implementation, including the expansion of climate-related financial impact analysis based on the International Financial Reporting Standards (IFRS) S2, the extension of double materiality assessments to include domestic consolidated subsidiaries, the establishment of a Carbon Task Council, and biodiversity conservation initiatives reflecting the results of biodiversity impact assessments.

Beginning in 2025, LOTTE Chemical expanded the scope of its IFRS S2-based climate-related financial impact analysis to include consolidated subsidiaries such as LOTTE Fine Chemical and LOTTE Energy Materials. By doing so, the Company provides a more comprehensive assessment and disclosure of the risks and opportunities that climate change presents to its business operations and financial performance.

The scope of the Company's double materiality assessment has also been expanded to cover consolidated subsidiaries. By integrating both impact materiality (the Company's impact on the environment and society) and financial materiality (the impact of ESG issues on the Company's financial performance), LOTTE Chemical identified key ESG issues throughout the group. Based on this assessment, the Company selected seven material ESG issues on a consolidated basis and established specific management objectives to ensure systematic oversight and execution.

Building on the biodiversity impact assessment conducted in 2024, LOTTE Chemical has advanced biodiversity conservation initiatives to strengthen its natural capital management. The Company continues to develop and implement site-specific conservation programs tailored to the characteristics of each business operation, supporting biodiversity preservation while promoting sustainable business practices.

Guided by its ESG strategy, LOTTE Chemical continues to advance initiatives focused on carbon neutrality, the circular economy, and enhanced product sustainability. The Company has also updated its 20 strategic ESG initiatives to further strengthen the execution of its ESG management and reinforce the foundation for sustainable growth.

Lee Young-jun, CEO of LOTTE Chemical, stated, "We will strengthen our sustainable competitiveness by driving business portfolio innovation and accelerating the transition to a low-carbon business portfolio.” “Going forward, we will continue to place sustainability at the core of every management decision and further enhance our execution capabilities," he added.