Governance

Pondering the social responsibility of businesses,
LOTTE Chemical has continuously evolved to create social value.
We are committed to driving sustainable growth by creating a safer and sound working environment for employees, talent development for the future, and pursuing mutual growth with our partners and communities to build a future where we can grow together based on strong trust from various stakeholders by setting forth strategic directions that consider social value and expanding our business model.

What is the Code of Best Practice for Corporate Governance?
The Code of Best Practice for Corporate Governance is the standard guideline necessary for Korean companies to establish a desirable corporate governance. It was formulated by the Korea Institute of Corporate Govemance and Sustainability(KCGS) in September 1999 by referring to the codes of best practice for corporate governance of advanced countries and the opinions of experts in relevant fields.
Difference from the Code of Best Practice
Difference from the Code of Best Practice
Recommended Code of Best Practice Adopted Remarks
Cumulative Voting, Voting by Written Ballot X
Convening the Board of Directors (more than once per quarter) O
Requirements for forming the Board of Directors (outside directors forming the majority) O Independent directors ratio of 55%
Independency of outside directors (Independency from the company, management, and controlling stockholder) O
Requirements for forming the Audit Committee (all outside directors) O One financial · accounting expert included
Compensation Committee O
Maintaining liability insurance for Directors O Expenses borne by the Company
Formulation and disclosure of the Code of Ethical Business Conduct O On the homepage (Ethical Management)
Explanation of its difference from the Code of Best Practice O
ESG rating by KCGS, MSCI
ESG rating by KCGS, MSCI
ESG rating by KCGS, MSCI
Evaluating Body Category 2024 2023 2022 2021 2020 2019 2018 2017 2016
KCGS* Integrated Rating A B+ A A A B+ A A A
Environment(E) A A B+ B B+ B B+ A A
Society(S) A+ A+ A+ A+ A A+ A+ A+ A+
Governance(G) B+ B A A A B+ A B+ B
MSCI** Integrated Rating A BBB BBB BBB BB BBB BBB BB BB

* KCGS : Korea Institute of Corporate Govemance and Sustainability

** MSCI : Morgan Stanley Capital International

Carbon Disclosure Project(CDP) Korea Awards
Carbon Disclosure Project(CDP) Korea Awards
Evaluation Agency Distinction 2023 2022* 2021
CDP Climate Grade B A- A-
Water Resources A- B A-

* 2022 CDP Korea awards winner : Carbon Management Sector Honors (Raw Materials)