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▶ Acquired the highest rating, AAA, for the first time in the world in the same industry in Europe, the US, and Asia
▶ Scores rise evenly through various activities in all areas of environment, society, and governance
▶ Among domestic listed companies, only 6 companies, including SK Corporation, KB Financial Group, and Woori Financial Group, received AAA
SEOUL, South Korea, July 9, 2024 /PRNewswire/ — LOTTE rental(https://www.lotterental.com/) was awarded the highest AAA rating in the 2024 ESG evaluation announced by Morgan Stanley Capital International(MSCI), a global investment information provider. LOTTE rental is the first and only company in the world to receive an AAA rating in the passenger ground transportation industry.
MSCI ESG Evaluation is a global appraisal that evaluates the sustainability of companies and provides useful information to investors. Every year, the ESG management status of about 8,500 listed companies around the world is evaluated and classified into 7 levels (AAA-AA-A-BBB-BB-B-CCC). It is one of the most authoritative global rating agencies recognized by investors around the world.
LOTTE rental was listed on the stock market in August 2021 and has been receiving MSCI ESG evaluation since 2022. It obtained AA grade, the highest level in the industry, for two consecutive years in 2022 and 2023, and rose to AAA grade, the highest grade in this year’s evaluation. This is a result of an even increase in scores across the environmental, social, and governance evaluation areas. It is interpreted that the sustainable management activities that have been continuously pursued despite uncertain internal and external business environments have been recognized.
In the 2024 MSCI ESG evaluation, AAA rating was given to only 15% of companies worldwide. Along with LOTTE rental, there are only six domestic listed companies that received an AAA rating, including SK Corporation, KB Financial Group, and Woori Financial Group.
MSCI said in a report, “LOTTE rental aims to achieve carbon neutrality (Net-Zero), which reduces net greenhouse gas emissions to ‘0’ by 2040. It highly evaluated the environment area, saying, “We have eco-friendly vehicles such as electric and hybrid vehicles, and our greenhouse gas emissions are lower than those in the same industry.”
The area where scores increased the most was the social area. LOTTE rental is carrying out various activities to create an organizational culture that is good to work in and to fulfill its social responsibilities. LOTTE rental implements a work-from-home and sabbatical leave system for child care, as well as a voluntary dress code and voluntary work commute system. In addition, it has created a corporate culture where executives and employees communicate and share opinions, such as anonymous/named online chat rooms where management issues are resolved through collective intelligence, and the CEO operates a direct communication channel. In addition, LOTTE rental conducted a human rights impact assessment to identify potential factors affecting human rights through corporate activities and achieved an excellent overall achievement rate of 96.7%. It also made efforts to protect customer information, such as obtaining Information Security Management System(ISMS) certification.
Governance, which had the highest evaluation weight, saw scores for all items increase. LOTTE rental introduced an electronic voting system to encourage shareholder voting and appointed outside director system to strengthen the independence of the board of directors. It also acquired ISO37001 certification, an international standard for anti-corruption management systems.
It is expected that this MSCI ESG rating increase will have a positive effect on credit rating evaluation. This is because not only domestic institutional investors, but also domestic and foreign credit rating agencies heavily reflect ESG ratings, especially governance factors, in their credit rating methodologies, and view them as important evaluation factors when investing in bonds and stocks.
Choi Jin-hwan, CEO of LOTTE rental, stated, “We will continue to lead the industry’s ESG management across the environment, society, and governance, and in particular, continue efforts to enhance shareholder value under a transparent and sound governance structure.”
Since LOTTE group declared ESG management in July 2021, it has been working to build a global-level ESG management environment. As a result, in addition to LOTTE rental, LOTTE CHEMICAL’s rating went up by one level from BBB to A, and LOTTE Fine Chemical’s rating went up by one level from BB to BBB.
About LOTTE rental
LOTTE rental, the only comprehensive rental company in Korea, provides better value with various business portfolios, including auto mobility services that encompass car life, business solution services that support more efficient businesses.
LOTTE rent-a-car is creating an innovative car life as the No.1 car rental brand. Greencar, Korea’s –first car-sharing brand, is drawing a better mobility service.
LOTTE rental is moving forward as a mobility leader that connects customers’ precious lives.
For more information about LOTTE rental, please visit: https://www.lotterental.com/
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