Implementation of Sustainable Management in Environment, Governance, and CSR
Climate Disclosure and TNFD Report to Be Published in July
KT&G published the "2024 KT&G Report" on June 25, detailing its sustainable management strategy and ESG management achievements.
Since 2007, KT&G has been releasing this report to communicate its commitment to sustainable management and accurate ESG performance to stakeholders both in Korea and abroad. The latest "2024 KT&G Report" is themed "Future Rush," which signifies a bold leap toward the future through the strengthening of fundamental competitiveness. It includes KT&G's structural innovation and value-up strategies for its three core businesses (NGP, health supplements, and global CC), the advancement of governance, and the enhancement of ESG capabilities at global business sites, highlighting the company's tangible ESG management achievements.
The report consists of a "Strategy Report" outlining the group's vision and business direction, a "Governance Report" demonstrating excellence in governance, and a "Sustainability Report" presenting ESG management performance. In particular, governance-related content, including corporate governance disclosures, is organized in a separate section to emphasize the superiority of KT&G's governance and the transparency of its corporate operations. This year as well, the company faithfully adhered to all 15 core governance indicators recommended by the Financial Services Commission, fully complying with exemplary governance standards.
In the environmental sector, KT&G reduced greenhouse gas emissions at its business sites by 12.7% compared to 2020 by enhancing its climate crisis response system, and increased its use of renewable energy to 21.4%. In line with its global business expansion strategy, the company also conducted human rights impact assessments at 100% of its overseas business sites and supported the strengthening of ESG capabilities among key partners, dedicating itself to creating sustainable value throughout the entire value chain.
Based on these achievements, KT&G has received an "AA" rating, the highest level within its industry group, for four consecutive years up to last year in the ESG index evaluation by the global investment information agency Morgan Stanley Capital International (MSCI). It has also maintained a governance rating of A (Excellent) or higher from the Korea ESG Standards Institute since 2012.
Meanwhile, the KT&G Report complies with the GRI Standards, an international sustainability reporting framework, and faithfully reflects other global standards such as those of the Sustainability Accounting Standards Board (SASB), thereby enhancing objectivity and credibility. KT&G is also advancing its ESG disclosures in accordance with the standards of the International Sustainability Standards Board (ISSB) under the International Financial Reporting Standards (IFRS) Foundation. In July, the company plans to separately publish a TNFD report disclosing information on the impact of its business on natural capital.
KT&G CEO Bangkyungman stated, "A company's ESG capabilities are a key indicator that forms the foundation for structural business innovation and new growth engines. Going forward, KT&G will continue to link the strengthening of its core business competitiveness and the practice of ESG management to opportunities for sustainable growth, realize true 'value-up' for the company, and actively communicate this process with stakeholders."
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