Reducing Greenhouse Gas Emissions from Albums and Concerts
Establishment of Kwangya Forest
SM logo image. SM Entertainment
On June 30, SM Entertainment announced the publication of its fourth sustainability report. This report includes the company's major achievements in 2024 and its ESG (Environmental, Social, and Governance) management strategies.
In the environmental sector, the report highlights activities such as calculating greenhouse gas emissions from album production and concert venues, creating the second phase of the Kwangya Forest, producing albums and merchandise using eco-friendly materials, and hosting an exhibition of upcycled artist costumes.
In particular, the second phase of the Kwangya Forest, established on approximately 485 square meters on the southern side of Seoul Forest Children's Garden, features 58 species of plants, including rare plants, protected wild plants designated by the Seoul Metropolitan Government, and climate change bioindicator species. Rest benches have also been installed to provide a space for citizens to enjoy.
In the social sector, the report covers activities such as a 30th anniversary commemorative performance and the production of a guidebook to improve accessibility for people with disabilities, implementation of a human rights impact assessment with external experts, establishment of a Technology Information Committee reporting directly to the CEO to strengthen information security, safety and health risk assessments and safety management at concert venues and pop-up stores, and the publication of a white paper marking the 10th anniversary of SM's social contribution initiatives.
To mark the 10th anniversary of the SMile social contribution brand, the report also details achievements such as the Smile Music Festival, the Smile for You campaign in partnership with the Korean Committee for UNICEF, and a volunteer group involving both artists and employees.
In 2024, SM implemented a shareholder return policy by canceling a total of 477,274 treasury shares in two separate instances, amounting to approximately 35.7 billion KRW. The company also plans to cancel an additional 458,937 shares (worth about 40.3 billion KRW) in February 2025.
In the governance sector, the company strengthened compliance and ethical management by enhancing the independence and transparency of the board of directors, operating the 'KWANGYA 119' reporting and response system to protect artists' intellectual property rights, processing and responding to over 190,000 reports, and running a risk management council.
Co-CEOs Jang Cheolhyuk and Tak Youngjun stated, "To mark our 30th anniversary, we have announced a new slogan, 'THE CULTURE, THE FUTURE,'" adding, "We will continue to lead the way in ensuring the social responsibility and sustainability of K-pop."
SM added, "This report was prepared in compliance with the international sustainability reporting standard 'GRI Standards 2021,' the 10 principles of the United Nations Global Compact, and the guidelines of the United Nations Sustainable Development Goals (UN SDGs)."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
