Lotte Co., Ltd.
Type of Business: Type of Business: Industry: Manufacturing (confectionery, ice cream, health food, and sundries)
Address: Address: Shinjuku Ward, Tokyo
Number of employees: Number of employees: Number of employees: 7,375 (as of March, 2023)
Founded in 1948, Lotte is dedicated to enriching the lives of people around the world through the manufacturing and sale of confectionery and ice cream products. Guided by our core principles of “User-Oriented,” “Originality,” and “Quality,” we continually strive to deliver beloved products that bring joy to our customers.
- Challenge
- 1. Our current reliance on Excel for group-wide CO2 emissions calculation and data collection is inefficient and leads to inaccuracies due to the high volume of manual data entry.
- 2. Our reliance on secondary data for Scope 3 emissions calculations means we cannot fully capture the positive impact of our suppliers’ sustainability initiatives.
- Solution
- ASUENE – Decarbonization platform
- Impact
- 1.Reduce the burden of data collection and calculation while improving accuracy. This directly addresses the pain point of manual processes and emphasizes the dual benefits of efficiency and data quality
- 2. User-friendly interface empowers staff to easily input data. This focuses on the positive user experience and how it facilitates data entry, leading to better adoption and more reliable data.
- 3. Efficiently collect and organize primary data with ASUENE to gain a clear picture of emissions reduction efforts. This highlights the future benefits of using ASUENE for accurate tracking and visualization of progress towards sustainability goals.
Complex data collection and input errors were creating a mountain of obstacles in our CO2 emissions calculations.
This is a compelling overview of Lotte’s history, values, and commitment to sustainability. Here’s a translation that captures the essence and presents it in clear, engaging English:
Lotte Co., Ltd. was founded in 1948 as a confectionery and ice cream manufacturer. The company’s name originates from “Charlotte,” the beloved of Werther in Johann Wolfgang von Goethe’s classic novel, “The Sorrows of Young Werther,” a favorite of our founder. Our slogan, “Beloved by your mouth,” embodies our aspiration to be a cherished company, much like the eternally beloved Charlotte.
Founded in the postwar era, Lotte has strived to differentiate itself from established confectionery companies. Since our inception, we have embraced three core values: “User-Oriented,” “Quality,” and “Originality.” We continually challenge ourselves with “Lottenovation,” a commitment to creating new value through innovation. This has led to the birth of unique products like “Yukimi Daifuku,” ice cream wrapped in mochi, and “Choco Pie,” a shelf-stable cake. Our flagship brand, “Ghana,” celebrates its 60th anniversary in 2024. At the time of its launch, chocolate bars typically came in brown packaging. Lotte boldly introduced Ghana in vibrant red packaging, a testament to our commitment to originality. Thanks to this spirit, we have grown into a beloved company with leading market shares in Japan: third in biscuits (with popular products like Chocolate Pie), second in chocolate (with Ghana, Koala’s March, and Pie’no’Mi), and first in ice cream.
We believe that sustainability initiatives, including CO2 emissions calculation and disclosure, are essential for the continued growth of our company. While listed companies are obligated to engage in and disclose such initiatives through the Corporate Governance Code, Lotte is not publicly listed. Nevertheless, we proactively embrace sustainability to appropriately address our business risks and opportunities. We recognize the urgency of decarbonization, viewing it as a critical issue directly linked to future financial impacts such as carbon pricing and reputational risks.
Previously, we calculated Scope 1, 2, and 3 emissions using Excel, but this approach presented numerous challenges. Collecting vast amounts of energy consumption data and invoice data from each business location, including overseas group companies, was time-consuming. Furthermore, our complex supply chain, involving in-house production, partner factories, wholesalers, and retailers, made emissions calculations extremely labor-intensive, exceeding the capacity of our Sustainability Promotion Department alone. Relying on secondary data estimations also meant we couldn’t accurately reflect the emissions reduction efforts of our suppliers. To address these challenges, we began exploring the use of a CO2 emissions visualization service.
The combination of a clear, easy-to-navigate interface and quick, helpful support from ASUENE’s consultants made it the obvious choice.
This provides valuable insight into Lotte’s selection process and the benefits they’ve experienced with ASUENE. Here’s a translation that captures the key details and presents them in a clear, informative style:
We first learned about ASUENE through a financial institution while researching CO2 emissions calculation services. After comparing and evaluating several companies, from startups to large enterprises, we ultimately chose ASUENE due to its intuitive user interface. Since multiple members across our various factories and offices will be using the service for data entry, the ease of use and clarity of the interface were crucial factors in our decision. ASUENE also offered comprehensive functionality for emissions calculations and had a strong track record with numerous successful implementations, demonstrating its position as a leader in the field of CO2 emissions visualization services.
We have been consistently impressed by the prompt and attentive support provided by ASUENE’s consulting team. Whenever we have questions about using the platform, we can call and receive immediate assistance with step-by-step guidance, which is greatly appreciated. They are also very receptive to feedback and quickly consider updates based on our suggestions. Transitioning from the flexibility of Excel, it has been valuable to have a responsive team to consult with regarding desired features. The CSV file upload function has been particularly useful. We currently collect data from multiple locations and import it into ASUENE via CSV files. With ASUENE, our team members at different locations can now view data in real-time, which we hope will further motivate our employees to engage in decarbonization efforts.
Moving forward, we aim to leverage the time saved through streamlined calculations to collect primary data for key Scope 3 categories. We also plan to establish a system for Scope 1-3 calculations that involves all employees, including those in production and corporate planning departments, to ensure information transparency and company-wide collaboration.
Furthermore, ASUENE allows us to manage not only CO2 emissions but also designated substances such as water and waste. We intend to fully utilize ASUENE to centrally manage all our sustainability-related data.
A commitment to sustainability is crucial for companies to achieve sustained growth.
Currently, we aim to reduce Scope 1 and 2 CO2 emissions by at least 23% by fiscal 2028 (compared to fiscal 2019). This target, based on our own calculations, was approved by the Science Based Targets initiative (SBTi) in May 2022. Furthermore, we are actively pursuing decarbonization initiatives with the goal of achieving carbon neutrality by fiscal 2050. We have made good progress so far through company-wide energy conservation efforts and departmental emissions reduction initiatives. However, the real challenge lies ahead. Reducing emissions involves costs, so we must constantly balance our decarbonization goals with the business impact from a management perspective. It is crucial for each employee to monitor progress and approach these initiatives with a business mindset.
We consider sustainability initiatives to be an integral part of our growth strategy. Our ultimate goal is to create a happy future. To achieve this, we must reduce the environmental impact of our business activities. We are committed to this endeavor, leveraging the capabilities of ASUENE.
This year marks our 76th anniversary, and our popular brand, Koala’s March, celebrated its 40th anniversary. While we have many long-selling brands, we also strive to provide new value based on these established products. To realize a happy future, we are committed to providing well-being value. On January 30, 2024, we established the “Chocotto Shiawase Kenkyujo” (Little Happiness Research Institute) to explore the positive effects of chocolate on emotional well-being. We will continue to provide well-being value to our customers through various products and brands.
