이 기사는 2021년 07월 01일 08시11분 thebell에 표출된 기사입니다

Lotte Corporation, the holding company of South Korea’s Lotte Group, is expected to create a new board committee that oversees environmental, social and governance (ESG) issues in an effort to integrate ESG into the conglomerate’s business operations.

The move follows Lotte’s semi-annual leadership meeting in January where chairman Shin Dong-bin emphasized ESG management with a focus on changes “from an external perspective, not from a perspective within the organization”.

Shin made it clear that he wants effective results from ESG efforts beyond just carrying out social contribution activities. It was the first time that Shin officially mentioned the importance of ESG to his senior managers.

Lotte’s affiliates have stepped up efforts to establish their ESG strategy over the last six months. Lotte Chemical revamped its administrative division to put ESG at the center of its corporate strategy. Korea Seven, the operator of convenience store chain 7-Eleven, launched a task force and announced a detailed strategy.

Lotte’s focus on ESG aligns with trends across corporate Korea. Conglomerates including LG, Hanwha and Shinsegae established ESG committees at the board level to incorporate ESG principles into their corporate decision-making.

Lotte is expected to join them. “We are considering options including the launch of an ESG committee in the holding company's board of directors,” said a Lotte representative. The final decision is expected to be made as early as July.

Lotte Corporation currently has five board committees – audit, nominating, transparent management, executive and compensation committees. The transparent management committee assists the board in its oversight of matters related to intercompany transactions.

If Lotte Corporation forms an ESG committee, other affiliates are expected to follow suit. None of Lotte’s affiliates have an ESG committee at the moment. (Reporting by Eun-jin Choi)