Lotte-Participated CCNC Launches 'Minna de Gen CO2 Project 2026' - Searching for Eco-labels and Considering Decarbonized Purchasing Behavior -

Lotte Co., Ltd. (Shinjuku, Tokyo; President and CEO: Hideki Nakajima; hereinafter 'Lotte') has been a participant since fiscal 2024 in the 'Challenge Carbon Neutral Consortium' (hereinafter 'CCNC'), organized by The Japan Research Institute, Limited (Shinagawa, Tokyo; President: Jun Uchikawa; hereinafter 'JRI'). The CCNC, composed of 21 private companies including manufacturers and retailers, has announced the start of the 'Minna de Gen CO2 Project 2026' (hereinafter the 'Project') in collaboration with 16 local governments and organizations across Japan to promote consumer behavior change toward decarbonization.

Overview of the Project Last year's activities provided several key insights through learning contests about eco-labels and carbon footprints (CFP), as well as promotional campaigns for environmentally friendly products at stores: - By combining 'educational awareness' and 'promotional purchasing,' learning acts as a motivation regardless of discounts, increasing the number of consumers capable of identifying eco-labels in everyday shopping. - Educational awareness of eco-labels, which serve as indicators for environmentally friendly products, leads to increased store visits and recognition of such products, subsequently boosting trial purchase rates, unit prices, volumes, and repeat purchase rates.

To build on these results, the Project will focus on: (1) accelerating social movement through the expansion of the 'Eco-label Hunter 1.5C Daisakusen' handbook and contest; (2) pursuing the quality of learning to expand and entrench behavioral change; and (3) deepening understanding of decarbonization through the analysis of broad purchasing data. Today, as part of these efforts, the project launched the special website for the 'Eco-label Hunter 1.5C Daisakusen' learning handbook and contest for children and began accepting applications.

Lotte's Role As part of its efforts toward decarbonization, Lotte has implemented the 'Smile Eco Label,' which clearly communicates its environmental initiatives on product packaging. In this Project, Lotte will promote awareness by showcasing products such as 'Koala's March' that feature the label. In the context of national decarbonization policies, focus is shifting toward the demand side, including consumers, as part of the decarbonization of the entire value chain. Through this project, Lotte will strive to realize the creation of demand for decarbonized products as envisioned by national policy.

Unique Environmental Mark 'Smile Eco Label' Lotte displays the 'Smile Eco Label' on the packaging of applicable products to communicate its environmental efforts in a user-friendly way. The company has established unique environmental design standards and displays the label on products that meet these criteria.