Performing Environmental Responsibility across the Value Chain
To mitigate climate change risks and discover business opportunities throughout its value chain, KT&G established and implemented the KT&G Green Impact, an environmental management vision and strategy system aimed at reducing the impact of climate change and ransforming into a circular economy. On various strategic tasks and projects to effectively achieve mid-to long-term goals related to greenhouse gas (GHG) reduction, carbon neutrality, water saving, and waste recycling. Furthermore, we are continuously striving to reduce negative environmental impacts that may occur not only at our busines sites but also throughout the value chain while creating shared value with our stakeholders.
Environmental Management Vision System
Green Impact Pathway
KT&G is committed to identifying and implementing a wide range of tasks to minimize environmental impacts across the value chain. Going forward we continue advancing our mid-to long-term goals, thereby achieving practical results.
1Product Planning & Development
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Research and apply eco-friendly materials
Mid-to Long-term Goa- Apply recyclable materials to all packaging materials by 2025, Develop new materials and alternative technologies such as eco-friendly cigarette filters
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Review the design of minimizing carbon footprints throughout the life-cycle
Mid-to Long-term Goal- Expand product lines to which eco-design is applied through LCA
2Purchasing Materials
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Reduce environmental impact through sustainable agriculture
Mid-to Long-term Goal- Achieve 100% participation rate in STP of tobacco farms by 2030, Continue expanding the installation of energy-saving tobacco leaf drying machine
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Build Green Impact Alliance with significant materials partner companies
Mid-to Long-term Goa- Help significant partners set GHG reduction targets (25% reduction by 2030 based on SBTi) and implement them
3Manufacturing & Business Sites
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Reduce GHG emissions (internal emissions)
Mid-to Long-term Goal- Reduce Scope 1+2 emissions by 42% compared to 2020 by 2030
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Reduce and recycle water resources
Mid-to Long-term Goal- Reduce water consumption by 20% compared to 2020 by 2030
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Reduce and recycle waste
Mid-to Long-term Goal- Achieve waste recycling rate to be more than 90% by 2030
4Logistics
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Convert all business fleets to EVs 100%
Mid-to Long-term Goal- Achieve 100% conversion to EVs by 2030
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Cooperate with partners for eco-friendly SCM management
Mid-to Long-term Goal- Expand the “ECO Change” program
5Consumer Use & Discard
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Expand recycling of discarded NGP1) devices
Mid-to Long-term Goal- Increase the recycled amount by securing various platforms for collection and encouraging consumer participation
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Expand value chain-linked CSR Activities
Mid-to Long-term Goal- Achieve KRW 10 billion for social contribution projects in value chain contributions by 2025 (cumulative from 2022 to 2025)
1) NGP(Next Generation Products)
Establishment of Reduction Targets in Line with Global Standards
4 Establishment of SBTi-based GHG Reduction Target | KT&G has set goals in alignment with the Paris Agreement, which aims to limit the global temperature rise to below 2℃ compared to pre-industrial levels. These goals are intended to strengthen the company's commitment to reducing GHG emissions in line with global standards. We also have established mid-to long-term reduction targets based on the Science Based Targets Initiative (SBTi) guidelines, and aim to achieve SBTi certification moving forward.
Accelerate Transition to Circular Economy
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KPIMid-to Long-term
(Baseline : 2020)Percentage
Compared to Mid-to Long-term Goal
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Water withdrawal (tons)20% of reduction by 203022%
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Waste recycling rate (%)Achieve 90% by 203090%
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Consumption rate of recyclable packaging materials (by weight, %)Use 100% by 202596%
AWS Certification
KT&G is pursuing the acquisition of AWS(Alliance for Water Stewardship) certification, which is the most authoritative water resource certification internationally for sustainable water resource management, and plans to expand to all workplaces starting with the Yeongju plant.
