ESG management is a major challenge we must overcome in order to grow in a sustainable manner as well as a force that drives systems through which mankind can achieve sustainable development.

LFC is practicing ESG management from a systematic and long-term perspective, establishing LOTTE Group’s first ESG committee of the BOD in 2021. The company ensures that the growth goals it pursues support ESG values at the BOD level, thereby setting the direction to follow. For 2022, LFC has established a mid- to long-term ESG vision and set “E.S.G.” as three pillars for its strategic direction. The sustainable growth LFC has been pursuing will be visible in sight as it continues to keep promises, cherishes values beneficial to society and the environment, makes decisions in a fair and transparent manner, and strives to internalize ESG values.

Kyung-Hyun Ahn Chairman, ESG Committee of LFC

ESG Management Governance In July 2021, LFC established an ESG Committee under its BOD for the first time among listed companies of LOTTE Group and began to conduct ESG management at the board level. The ESG Committee sets directions for ESG management and manages major ESG risks and opportunities in line with its goals of internalizing sustainable management values and enhancing corporate value. In addition, for its ESG management goals, the committee establishes strategies and action plans and monitors corporate performances related to major ESG tasks underway. The committee also seeks new business opportunities from an ESG point of view as well as ways to minimize risks. In 2021, for the committee to perform its roles to its full potential, we educated external directors on how to supervise ESG management as a BOD and created ESG Management Team tasked with assisting the committee.