What: this is the first Korean duty free’s ESG (Environmental, Social and Governance) Value Management Commission.

Why is it important: Lotte Duty Free laid down an action plan for new eco-friendly initiatives, corporate social responsibility and increased corporate management transparency.

Eco-friendly initiatives

The plan includes replacement of plastic product packaging by biodegradable materials. Plastic bags are also to be replaced with eco-friendly paper shopping bags at all Lotte Duty Free branches.

The Lotte Duty Free logistics centre in Incheon will reduce its carbon emissions by decreasing electricity consumption through the introduction of photovoltaic power. In addition, all one-tonne delivery vehicles will be converted to electric vehicles by the end of this year.

The company will also encourage the listing of “eco brands”, with the opening of an eco-friendly brand zone at its World Tower store in Seoul this year.

In all Lotte stores, further digitisation will be encouraged, for example to replace paper receipts with electronic receipts, sent via SMS on mobile devices.

Local communities and small businesses

Lotte’s STARUPS project, which has been running since 2019, will continue. It focuses on fostering young businesses to create local jobs and revitalise tourism. Lotte Duty Free is also introducing its new CHEERUPS project to help small business owners. It will start with 30 restaurants to support them in reducing waste.

On the governance side, Lotte Duty Free has pledged to strengthen its fair trade compliance systems. It is doing this in order to ensure transparency in its transactions with product suppliers.

Putting the planet and society first: Lotte Duty Free establishes ESG Value Management Commission