Lotte Chilsung accelerates ESG management to reduce carbon footprint

South Korean beverage firm cuts 3,000 tons of plastic through bottle redesign

Lotte Chilsung Beverage, one of South Korea’s largest drinks manufacturers, cut plastic use by approximately 3,000 tons in 2024. The company also reduced greenhouse gas emissions by around 6,400 tons over the same period. These reductions came from packaging changes and energy management across its operations.

The firm achieved these cuts while maintaining production volumes. This matters because it demonstrates that material reduction can happen without compromising output. For UK businesses watching international best practice, the case shows how manufacturing changes can deliver measurable environmental gains.

Lotte Chilsung set a 2030 target to reduce petroleum-based virgin plastic by 20% against 2023 levels. The company also aims for carbon neutrality by 2040. It has already cut emissions by 17% compared to 2018 figures.

Mechanical recycling breakthrough in food-grade packaging

The company launched South Korea’s first 100% mechanically recycled PET bottle for its Chilsung Cider brand in 2023. This approach uses post-consumer plastic that has been cleaned and reprocessed without chemical breakdown. The technology saves approximately 2,200 tons of virgin plastic each year.

Mechanical recycling differs from chemical recycling by physically processing waste plastic rather than breaking it down to molecular components. The method costs less and uses less energy. However, it requires high-quality input material to meet food safety standards.

In 2024, the firm expanded this 100% recycled plastic approach to three more products. These included Pepsi Zero Sugar Lime, Icis, and Saero. Each product line now uses bottles made entirely from recovered plastic material.

Lotte Chilsung also reduced bottle weight across multiple product ranges. Water bottles saw neck height cut by 12%, saving 810 tons of plastic. Other drinks used preforms that weighed up to 5 grams less, cutting 1,650 tons. Additionally, the company applied aseptic PET technology to larger products, saving 240 tons.

The firm works with the Korea National Park Service and Korea Post to collect clear PET bottles from national parks. This material then becomes food-grade packaging through the mechanical recycling process. Currently, around 440,000 bottles per year go through this system. The approach creates a closed loop where drinks packaging returns as new containers.

Energy measures deliver 6,400 tons of carbon savings

Renewable electricity formed part of the carbon reduction strategy. The company increased its use of green power across production sites. This shift reduced the carbon intensity of manufacturing operations.

Fuel conversion also contributed to emissions cuts. Sites switched to lower-carbon energy sources where technically feasible. These changes required equipment modifications but delivered ongoing emissions reductions.

Electric vehicles entered the logistics fleet during 2024. The transition reduced diesel use for product distribution. Transport emissions represent a significant share of total carbon footprint for beverage manufacturers.

Power management systems and energy-saving equipment went into production facilities. These installations cut carbon emissions by approximately 1,600 tons. The systems monitor energy use in real time and adjust consumption based on production requirements.

The company achieved a 99% waste recycling rate across operations. This earned a Gold rating under the Zero Waste to Landfill certification scheme. Most manufacturing waste now returns to productive use rather than going to disposal.

Science Based Targets initiative approval validates the firm’s greenhouse gas reduction targets. SBTi assesses whether corporate climate goals align with limiting global temperature rise to 1.5 degrees Celsius. The approval indicates that Lotte Chilsung’s targets meet this threshold.

What UK manufacturers can learn from these material cuts

These results show that packaging weight reduction delivers immediate material savings. UK businesses face similar pressures around plastic use and waste. Consequently, the Lotte Chilsung approach offers a tested model for cutting material consumption.

Bottle lightweighting requires careful engineering. Containers must maintain structural integrity during filling, transport, and handling. However, incremental weight reductions across high-volume products create substantial savings. For example, a 12% height reduction on water bottle necks might seem minor per unit but scales significantly across millions of bottles.

Mechanical recycling for food-grade packaging presents regulatory challenges. UK businesses must meet Food Standards Agency requirements for any packaging that contacts consumable products. Nevertheless, several UK manufacturers now use recycled PET in drinks bottles, demonstrating that regulatory compliance is achievable.

The closed-loop collection system addresses a key challenge in recycling. Quality control improves when you know the source of recovered material. UK businesses involved in extended producer responsibility schemes might consider similar partnerships with collection networks. Local authorities and waste management firms represent potential collaborators.

Energy management systems deliver ongoing returns. The initial investment in monitoring and control equipment creates continuous efficiency gains. UK businesses can access funding for energy efficiency improvements through schemes like the Industrial Energy Transformation Fund. Moreover, reduced energy use lowers both carbon emissions and operating costs.

Electric vehicle adoption in logistics fleets aligns with UK policy direction. The government plans to end sales of new diesel vans by 2035. Early transition allows businesses to gain operational experience before regulatory deadlines. Furthermore, running costs for electric vans typically fall below diesel equivalents once capital costs are amortized.

Facts about Lotte Chilsung’s environmental performance

• The company cut plastic use by approximately 3,000 tons in 2024 through packaging innovation and material reduction measures.
• Greenhouse gas emissions fell by around 6,400 tons in the same period through renewable energy, fuel conversion, and electric vehicles.
• Lotte Chilsung launched South Korea’s first 100% mechanically recycled PET bottle for food and beverage use in 2023.
• The firm targets a 20% reduction in petroleum-based virgin plastic by 2030 against 2023 baseline levels.
• Carbon neutrality is planned for 2040, with emissions already down 17% compared to 2018 figures.
• Waste recycling rates reached 99% across operations, earning Gold certification under the Zero Waste to Landfill scheme.
• Science Based Targets initiative approval confirms that reduction targets align with 1.5-degree climate goals.

Practical implications for carbon reporting and material efficiency

UK businesses with carbon reduction targets can draw useful comparisons from this data. The 6,400-ton emissions cut came from multiple interventions rather than a single measure. This demonstrates that comprehensive carbon management requires action across energy, transport, and operational efficiency.

Companies reporting under PPN 06/21 for public sector contracts must show carbon reduction plans. The Lotte Chilsung case illustrates how manufacturers can document specific interventions and quantify their impact. Measurement and verification matter as much as the actions themselves. Therefore, businesses need systems to track savings accurately.

Material reduction affects both environmental reporting and cost control. Less plastic means lower raw material costs and reduced packaging waste charges. UK firms subject to plastic packaging tax pay £210.82 per ton for packaging with less than 30% recycled content. Consequently, increasing recycled material or reducing total plastic use directly affects tax liability.

Energy efficiency improvements cut carbon emissions and energy bills simultaneously. UK businesses face significant electricity costs, especially in manufacturing. Power management systems create savings that compound over time. As a result, the return on investment often exceeds initial projections.

Supply chain emissions represent Scope 3 in carbon accounting frameworks. Electric logistics vehicles reduce these downstream emissions. UK businesses increasingly face questions about Scope 3 from customers and tender evaluators. Transport emissions fall within the categories that many firms now need to address.

The closed-loop recycling system demonstrates circular economy principles in practice. UK businesses can explore similar partnerships with waste collectors and reprocessors. Extended producer responsibility regulations create incentives for this type of collaboration. Material recovery becomes easier when collection systems target specific, clean waste streams.

Progress tracking matters for credibility. Lotte Chan Chilsung’s SBTi approval shows external validation of climate targets. UK businesses can pursue similar verification through SBTi or other recognized schemes. Independent assessment strengthens reporting and demonstrates serious commitment to reduction goals.

How packaging changes affect procurement and operations

Switching to recycled materials requires supply chain adjustments. Mechanically recycled PET costs differently than virgin plastic, and pricing varies with oil markets and recycled material availability. UK businesses need to assess total cost of ownership rather than just material price per ton.

Quality assurance becomes more complex with recycled content. Food safety standards require rigorous testing to confirm that recycled packaging meets all requirements. Nevertheless, established suppliers now offer recycled PET that meets UK and EU food contact regulations. The technology has matured significantly over recent years.

Lightweighting affects production line settings. Thinner or lighter containers may require adjustments to filling speeds, capping pressure, or handling systems. UK manufacturers should pilot changes on limited production runs before full rollout. Testing identifies potential issues before they affect output or quality.

Customer perception matters for packaging changes. Some consumers associate lighter packaging with lower quality, even when performance remains identical. Clear communication about environmental benefits helps address this concern. However, the primary focus should be maintaining product protection throughout distribution.

Recycled content claims must be accurate and verifiable. UK businesses face scrutiny over environmental statements under consumer protection regulations. Documentation from material suppliers provides the evidence base for any recycled content claims. Furthermore, third-party certification can strengthen credibility.

Energy efficiency projects require capital allocation. UK businesses can access support through carbon reduction programs that help with project planning and funding applications. Project payback periods typically range from two to five years for energy management systems. Consequently, these investments compete with other capital projects for budget approval.

Sector context for beverage manufacturing efficiency

Beverage manufacturing uses significant amounts of plastic and energy. UK soft drinks production consumed approximately 250,000 tons of PET in 2022. Therefore, even small percentage reductions in material use create substantial absolute savings across the sector.

The UK Plastics Pact sets targets for packaging reduction and recycled content. Members commit to eliminating unnecessary plastic packaging and ensuring that all plastic packaging is reusable, recyclable, or compostable. Additionally, the pact aims for 30% average recycled content across all plastic packaging. These targets align with the type of work that Lotte Chilsung has undertaken in South Korea.

Deposit return schemes will change collection economics in the UK. Scotland plans implementation of its scheme, while England, Wales, and Northern Ireland continue development of a similar system. These schemes will increase availability of clean, separated PET for recycling. As a result, mechanical recycling should become more economically viable for UK manufacturers.

Energy costs hit UK manufacturers particularly hard in 2022 and 2023. Although prices have moderated, electricity remains expensive compared to pre-crisis levels. Energy efficiency therefore delivers greater financial returns than in previous years. This makes investments in power management and energy-saving equipment more attractive.

Carbon pricing affects energy-intensive manufacturing. UK businesses in certain sectors participate in carbon trading schemes or face carbon charges. These costs will likely increase as climate policy tightens. Consequently, early action on energy efficiency and renewable energy creates competitive advantage.

Supply chain expectations continue rising. Large buyers increasingly require suppliers to demonstrate environmental performance. Public sector procurement particularly emphasizes carbon reduction plans and environmental management. Manufacturers who can document material efficiency and emissions cuts strengthen their position in tender processes.

Sources for further information on packaging and carbon reduction

The UK Plastics Pact provides guidance and targets for packaging reduction. Members share best practice on material reduction and recycled content. The initiative is run by WRAP, which also offers technical resources on packaging design.

The British Soft Drinks Association publishes data on sector environmental performance. Their sustainability roadmap covers packaging, water use, and carbon emissions. Members represent most major UK beverage manufacturers.

DEFRA publishes guidance on extended producer responsibility for packaging. These regulations affect businesses that manufacture, import, or sell packaged goods. Understanding compliance requirements helps with planning for material reduction and recycled content.

The Carbon Trust offers resources on energy management and carbon reduction. Their guidance covers measurement, target setting, and verification. They also provide certification schemes for businesses demonstrating emissions reductions.

Science Based Targets initiative sets standards for corporate climate goals. Their criteria define what level of reduction aligns with climate science. UK businesses can submit targets for validation through their website.