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Powerbroker for

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  • Overall approach
    4/16
    • Overarching commitment on deforestation
      0/6
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      Which initiatives?: Consumer Goods Forum; UN Global Compact
      Company is a signatory to the Consumer Goods Forum & the UN Global Compact
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "We are promoting the procurement of environmentally friendly paper in order to make effective use of forest resources and contribute to the prevention of global warming."
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: Operational
      "On the other hand, there are serious issues facing today’s society, not limited to climate change, resource depletion, child labor, and overwork. Our business relies on agricultural raw materials such as cacao beans, palm oil, and paper, so changes in ecosystems are a direct risk to the survival of our business. Furthermore, it will become difficult for us to create new value and therefore achieve sustainable growth if we are unable to maintain a work environment where a variety of human resources can actively demonstrate their abilities."
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Not disclosed

      Which commodities does it apply to?: Palm oil; Soy; Beef & Leather; Pulp & Paper
      "The CSR Promotion Department, part of LOTTE CO., LTD. Corporate Strategy Division, also serves as the secretariat and promotes sustainability activities for the entire Group in cooperation with related departments. In addition, the Executive Committee looks into important sustainability policies, materiality, and medium-term targets, and then confirms the progress of related efforts." This includes sustainable procurement.
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/3
    • Reporting on emissions from land-use change
      0/3
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
  • Commodity score
    15/84
    • Beef
      5/84
      • Commitment Strength
        0/28
        • Commitment to protect priority forests
          0/17
          • Commitment details
            No commitment
            0/10.7
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
        • Commitment to a traceable supply chain
          0/11
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          Lotte Co. Ltd. requires suppliers to ensure their workers have freedom of association, and to be free from forced labour, child labour and discrimination.
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          [translation] "Prohibition of discrimination Respecting the basic human rights and individuality and diversity of individuals, as well as race, ethnicity, nationality, gender, age, religion, Eliminate all discrimination based on language, disability, etc., and provide equal opportunity for employment and employment and treatment Strive to achieve fairness"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No commitment
          0/4
      • Reporting and Implementation
        0/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/3
          • Commitment to a traceable supply chain
            No
            0/3
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Palm oil
      23/84
      • Commitment Strength
        16/28
        • Commitment to protect priority forests
          9/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: RSPO
            "Our goal is to switch 100% of palm oil procured in Japan to third-party certified oil such as RSPO certification by 2023, and to realize it at domestic and overseas group companies by 2028."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "Our goal is to switch 100% of palm oil procured in Japan to third-party certified oil such as RSPO certification by 2023, and to realize it at domestic and overseas group companies by 2028."
          • Target date
            2027-2030
            0.2/1.3
            Target date
            2027-2030
            0.2/1.3
            "Our goal is to switch 100% of palm oil procured in Japan to third-party certified oil such as RSPO certification by 2023, and to realize it at domestic and overseas group companies by 2028."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: 2023
            "Our goal is to switch 100% of palm oil procured in Japan to third-party certified oil such as RSPO certification by 2023, and to realize it at domestic and overseas group companies by 2028."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          8/8
          • Commitment details
            Yes
            4/4
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            4/4
            Type of commitment: HCS; Peat
            "Our goal is to switch 100% of palm oil procured in Japan to third-party certified oil such as RSPO certification by 2023, and to realize it at domestic and overseas group companies by 2028."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "Our goal is to switch 100% of palm oil procured in Japan to third-party certified oil such as RSPO certification by 2023, and to realize it at domestic and overseas group companies by 2028."
          • Target date
            2023
            0.8/1.3
            Target date
            2023
            0.8/1.3
            "Our goal is to switch 100% of palm oil procured in Japan to third-party certified oil such as RSPO certification by 2023, and to realize it at domestic and overseas group companies by 2028."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: 2028
            "Our goal is to switch 100% of palm oil procured in Japan to third-party certified oil such as RSPO certification by 2023, and to realize it at domestic and overseas group companies by 2028."
        • Commitment to a traceable supply chain
          0/8
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          Lotte Co. Ltd. requires suppliers to ensure their workers have freedom of association, and to be free from forced labour, child labour and discrimination.
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          [translation] "Prohibition of discrimination Respecting the basic human rights and individuality and diversity of individuals, as well as race, ethnicity, nationality, gender, age, religion, Eliminate all discrimination based on language, disability, etc., and provide equal opportunity for employment and employment and treatment Strive to achieve fairness"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No commitment
          0/4
      • Reporting and Implementation
        2/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to protect High Carbon Stock areas and/or peatlands
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/1.3
          • Commitment to protect High Carbon Stock areas and/or peatlands
            No
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume
          2/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume
          2/4
          What is the non-certified/non-compliant volume?: 15,900 tonnes
          In 2018, Lotte Co. Ltd. used 15,900 tonnes of palm oil.
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper
      27/84
      • Commitment Strength
        16/28
        • Commitment to protect priority forests
          9/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: FSC
            "By 2023, 100% of the paper used for packaging materials for products procured in Japan will be switched to environmentally friendly paper such as FSC (Forest Stewardship Council) certified third-party certified paper and recycled paper, and further 2028 We have set the goal of achieving this at domestic and overseas group companies."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "By 2023, 100% of the paper used for packaging materials for products procured in Japan will be switched to environmentally friendly paper such as FSC (Forest Stewardship Council) certified third-party certified paper and recycled paper, and further 2028 We have set the goal of achieving this at domestic and overseas group companies."
          • Target date
            2027-2030
            0.2/1.3
            Target date
            2027-2030
            0.2/1.3
            "By 2023, 100% of the paper used for packaging materials for products procured in Japan will be switched to environmentally friendly paper such as FSC (Forest Stewardship Council) certified third-party certified paper and recycled paper, and further 2028 We have set the goal of achieving this at domestic and overseas group companies."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: 2023
            "By 2023, 100% of the paper used for packaging materials for products procured in Japan will be switched to environmentally friendly paper such as FSC (Forest Stewardship Council) certified third-party certified paper and recycled paper, and further 2028 We have set the goal of achieving this at domestic and overseas group companies."
        • Commitment to reduce use of virgin wood fibre
          7/8
          • Commitment details
            Yes
            4/4
            Commitment to reduce use of virgin wood fibre
            Yes
            4/4
            Type of commitment: Recycled content
            "We have set a target to expand our use of recycled paper and paper that has been certified by the Forest Stewardship Council (FSC) to 100% in Japan by FY2023 and to 100% in Japan and overseas by FY2028."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "We have set a target to expand our use of recycled paper and paper that has been certified by the Forest Stewardship Council (FSC) to 100% in Japan by FY2023 and to 100% in Japan and overseas by FY2028."
          • Target date
            2027-2030
            0.2/1.3
            Target date
            2027-2030
            0.2/1.3
            "We have set a target to expand our use of recycled paper and paper that has been certified by the Forest Stewardship Council (FSC) to 100% in Japan by FY2023 and to 100% in Japan and overseas by FY2028."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: 2023
            "We have set a target to expand our use of recycled paper and paper that has been certified by the Forest Stewardship Council (FSC) to 100% in Japan by FY2023 and to 100% in Japan and overseas by FY2028."
        • Commitment to a traceable supply chain
          0/8
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          Lotte Co. Ltd. requires suppliers to ensure their workers have freedom of association, and to be free from forced labour, child labour and discrimination.
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          [translation] "Prohibition of discrimination Respecting the basic human rights and individuality and diversity of individuals, as well as race, ethnicity, nationality, gender, age, religion, Eliminate all discrimination based on language, disability, etc., and provide equal opportunity for employment and employment and treatment Strive to achieve fairness"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No commitment
          0/4
      • Reporting and Implementation
        6/38
        • Reporting against commitments
          2/6
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to reduce use of virgin wood fibre
            Yes
            2/2
            Commitment to reduce use of virgin wood fibre
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
            "In FY2018, 45.5 thousand tons of paper was procured as packaging materials for Japanese products, of which 92.0% was environment friendly—a 0.5% increase from the previous fiscal year."
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/1.3
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          What is the non-certified/non-compliant volume?: 2,230 tonnes

          What is the compliant volume?: 42,770 tonnes
          "In FY2018, 45.5 thousand tons of paper was procured as packaging materials for Japanese products, of which 92.0% was environment friendly—a 0.5% increase from the previous fiscal year." "By 2023, 100% of the paper used for packaging materials for products procured in Japan will be switched to environmentally friendly paper such as FSC (Forest Stewardship Council) certified third-party certified paper and recycled paper, and further 2028 We have set the goal of achieving this at domestic and overseas group companies."
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Soy
      5/84
      • Commitment Strength
        0/28
        • Commitment to protect priority forests
          0/17
          • Commitment details
            No commitment
            0/10.7
            Commitment to protect priority forests
            No commitment
            0/10.7
            (For downstream soy companies only) Does the company commitment also apply to hidden/indirect soy?: No
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
        • Commitment to a traceable supply chain
          0/11
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          Lotte Co. Ltd. requires suppliers to ensure their workers have freedom of association, and to be free from forced labour, child labour and discrimination.
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          [translation] "Prohibition of discrimination Respecting the basic human rights and individuality and diversity of individuals, as well as race, ethnicity, nationality, gender, age, religion, Eliminate all discrimination based on language, disability, etc., and provide equal opportunity for employment and employment and treatment Strive to achieve fairness"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No commitment
          0/4
      • Reporting and Implementation
        0/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/3
          • Commitment to a traceable supply chain
            No
            0/3
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    8/28
    Avg. score
  • Reporting and Implementation
    2/38
    Avg. score
  • Social considerations
    5/18
    Avg. score

Profile

Lotte is a multinational holding company with businesses spanning food manufacture, retail, tourism, petrochemicals, construction and real estate. Headquartered in South Korea, the company’s origins are in the food industry, where it operates both production facilities and supermarkets. As a leading food manufacturer and retailer Lotte is exposed to forest risk commodities including palm oil, soy and beef. Lotte Co. Ltd. is selected as a powerbroker for palm oil, soy, beef and paper packaging.

Sector
Industry sector 
Food retail, Packaged food
Segments
Manufacturer
HQ
HQ 
Japan
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

Top Brands

Lotte, Mary's Chocolate, Juicy Fresh, Chic Choc, Crunky, Koala's March, Pepeo, Guylian

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.