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Direction of implementation of environment management

To meet the demands for environmental friendliness that are socially increasing and to enhance mid- and long-term corporate value, KT&G perceives environment management as a social responsibility. To practice integrated and systematic environment management, KT&G manages environmental impacts throughout all processes of business activities while developing and applying diverse environmentally friendly technologies, thereby supporting the growth of society into a green society.

Environment management implementation system

Based on the environment management implementation system, KT&G is establishing and expanding it throughout the company. KT&G has selected environmentally friendly factory management, establishment of emission management systems, enhancement of employees’ sense of the environment, and external communication activities as major activities to be implemented, and is actively implementing the related activities from a mid- and long-term viewpoint.

  • Environmentally
    friendly factory
    management

    Construct a clean factory through
    environmentally friendly
    factory operation

    • designated as an environmentally friendly company
    • enhanced green purchase rate in business places
    • implemented exchanges with global advanced companies
    • newly established a department dedicated to the environment and established R&R (roles and responsibility)
  • Establishment of
    emission management
    systems

    Systematic management o
    air, waste, water quality contami
    nants, and greenhouse gases

    • enhanced and evaluated cooperative companies’ environment management ability
    • made personnel acquainted with environment manual and enhanced their ability to practice
    • began greenhouse gas emission management and responded to target management system
  • Enhancement of
    members’ sense of the
    environment

    Improve employees’ sense of
    the environment through
    systematic education and
    consciousness raising

    • continuously enhanced sense of the environment
    • enhanced personnel’s rate of completion of environment education programs
  • External
    communication
    activities

    Reinforce external environmental
    communication capacity through
    strict environmental outcome
    management

    • continuous implementation of environment-related social contribution activities
    • continuous participation in the Carbon Information Disclosure Project (CDP)

Implemented environmentally friendly business place

Water resource usage

Waste emissions

Water resource management

To minimize environmental impacts on regional residents and surrounding ecosystems and realize the environmentally friendly business place, KT&G strictly manages water resource use, effluents, and wastes.

Waste management

To reduce wastes generated in its business place, KT&G manages wastes by establishing strict plans. KT&G is reducing raw material usage by developing technologies to reduce byproducts generated in the manufacturing processes and is increasing byproduct recycling rates, as well as improving product quality, by securing technologies to recycle raw materials separated from processes.

Cooling water recycling

Cooling water recycling

To minimize the use of underground water, KT&G recycles cooling water through process improvement.

By recycling 100% of cooling water by connecting after-cooler cooling water outflow piping to the underwater pipe going to the water storage tank, KT&G reduced energy usage as well as contributed to the enhancement of compressed air quality through the sufficient supply of cooler cooling water

Strategic response to climate change as part of environment management

Direct/indirect greenhouse gas emissions

Business place energy usage

Responses to greenhouse gas·energy regulations

To establish corporate response systems and support the stabilization of a power supply in an uncertain management environment such as national power supply problems, KT&G has established and is operating summer/winter emergency power-saving scenarios. KT&G has reinforced in-house response ability by stopping the operation of some support facilities such as room heaters/coolers, air conditioners, and lighting facilities from 10:00 to 11:00 AM and 14:00 to 17:00 PM, when power demand rapidly increases, sequentially controlling other facilities depending on the situation, and operating emergency in-house generators. During the 2013 summer power-saving regulation period, KT&G achieved savings of 29.1%, which is much higher than the average obligatory power saving rate of 10%, through such efforts as adjustment of working hours and the utilization of vacations, thereby saving 124MWh of power.

Reduction of energy used in the business place

Although KT&G is not in an industry that consumes large amounts of energy, it is implementing diverse activities to reduce energy usage at the company level. KT&G has installed facilities for energy savings in each factory, participates in ESCO (Energy Service Company) projects, and to respond to government policies to prevent power crises in the winter it has implemented activities such as the management of energy loads.

Improvement of products’ environmental performance

To improve the environmental performance of products, KT&G has improved the internal and external packing materials used for products. Through this, KT&G is enhancing the recyclability of products and saving resources, thereby making efforts to improve products’ environmental performance and reduce greenhouse gas emissions. Wrapping paper improvement

Reinforcement of external environmental communications

Minimization of environmental risks in the surroundings of the business place

KT&G is expanding its investments in the environment sector so that problems due to bad smells, wastewater, or air pollutants will not occur in areas in the vicinity of its business place.

In particular, since the surroundings of the Cheonan factory has been changed from an industrial region to a general residential region in the city plan, KT&G constructed bad smell prevention facilities by investing approximately 2 billion won to prevent damage to residents due to bad smells.

Implementation of manufacturing factory tours

KT&G is operating factory tour programs at three factories (in Yeongju, Gwangju, and Sintanjin) equipped with the largest production facilities and scales in Asia.

KT&G discloses the manufacturing environment, which is based on a quality and environment system that satisfies ISO international standards and environmentally friendly facility operation, to the general public.

Shortcut to factory tour

Participation in carbon disclosure project (CDP)

The Carbon Disclosure Project (CDP) is a project to respond to climate change that is being implemented in more than 60 countries.

KT&G has been disclosing its greenhouse emissions and related strategies through CDP since 2010.

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