KT&G Publishes ‘2023 KT&G Integrated Report’ Showcasing ESG Achievements

KT&G (CEO Bang Kyung-man) has released the '2023 KT&G Integrated Report,' encapsulating its sustainable management strategy and ESG (Environmental, Social, and Governance) performance.

The report comprises the 'Strategic Report' detailing the group's vision, the 'ESG Report' highlighting performance across various ESG areas, and the 'ESG Factbook' reflecting global disclosure standards and quantitative results. Additionally, it has enhanced climate disclosures by referencing the sustainability disclosure standards of the International Sustainability Standards Board (ISSB) under the International Financial Reporting Standards (IFRS) Foundation.

Notably, this report presents substantial ESG management outcomes under the 'New Vision' of becoming a 'Global Top-tier' company. This includes innovation in the business structure of three core areas (NGP, health supplements, and overseas cigarettes), expansion of the environmental management vision, and enhancement of governance structures.

KT&G has intensified its climate crisis response, reducing greenhouse gas emissions by 9% compared to 2020 and increasing the use of renewable energy in its operations to 19%. Based on these achievements, KT&G has advanced its group-wide 'Net-Zero' goal from 2050 to 2045, broadening the scope of its greenhouse gas reduction efforts across the value chain.

Furthermore, KT&G has bolstered the completeness of its environmental management vision by newly committing to halt deforestation and land conversion in natural conservation areas, including its supply chain, as part of its natural capital management and biodiversity protection efforts.

In governance, KT&G has diligently adhered to the 15 key governance indicators recommended by the Financial Services Commission, achieving 100% compliance. These indicators include whether the board chair is an outside director, establishing and operating a CEO succession policy, and adopting cumulative voting.

Additionally, KT&G is leading the charge in fostering a sustainable industrial ecosystem across the value chain by supporting the ESG capabilities of its key partners and actively pursuing social responsibility initiatives.

Since 2007, KT&G has published reports to transparently and accurately convey its commitment to sustainable management and ESG information to stakeholders domestically and internationally. The '2023 KT&G Integrated Report' is prepared by the 'GRI Standards,' the international guidelines for sustainability reporting, and incorporates recommendations from major global institutions such as the Sustainability Accounting Standards Board (SASB) and the Taskforce on Nature-related Financial Disclosures (TNFD) to enhance objectivity and reliability.

Bang Kyung-man, CEO of KT&G, stated, "The company's ESG capabilities are the seeds of innovation that drive business structure transformation and global growth. Under the vision of becoming a 'Global Top-tier' company, we will connect the era's demands for ESG to opportunities for sustainable growth, realizing genuine 'value-up' for the company and actively communicating this process with stakeholders."

(Photo Description) Cover image of the '2023 KT&G Integrated Report'