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

  Establish an environmental department
  to carry out activities such as integrated
  management of energy and environment,
  prevention of environmental pollution,
  and introduction of the latest
  technology

  • 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 emissions trading 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

(In ton)

Water resource usage

year	Water supply	Sewage
2013	357,711	95,691
2014	323,801	58,443
2015	322,459	90,585
2016	289,115	95,490
2017	365,873	98,700
2018	376,274	93,646

Waste emissions

(In kilograms)

Waste emissions

year	a numerical value
2013	3,078,596
2014	2,799,492
2015	2,332,789
2016	2,367,998
2017	2,532,224
2018	3,571,691

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

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

(in tCO²)

Strategic response to climate change as part of environment management

year	Direct emission	Indirect emission
2013	40,659.73	62,292.93
2014	37,600.55	63,534.67
2015	38,251.29	58,633.19
2016	30,621.32	64,207.60
2017	31,221.58	67,974.26
2018	33,021.68	70,821.43

Business place energy usage

(in TJ)

Business place energy usage

year	LNG	전력
2013	721.49	1,282.60
2014	664.698	1,308.17
2015	720.429	1,207.25
2016	571.13	1,322.02
2017	557.26	1,399.58
2018	616.30	1,469.98

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.

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