Environmental Management | ESG

Environment

Environmental Management Policy

KT&G is implementing environmental management to pursue a better life together with society and consider a sustainable future. We will strive to fulfill our social responsibility for the environment in the course of conducting business and to further spread Green Impact.

Environmental Management Vision

2030 KT&G Green Impact

Mitigating Climate Change Impacts

2030

• Scope 1 + 2: 42% emissions reduction
• Scope 3: 20% emissions reduction

2045

• Scope 1 + 2 + 3: Achieve carbon neutrality

Achieve 80% renewable energy use at business sites by 2030

Expand renewable energy use at business sites

Improve energy efficiency in internal processes

Advance value chain emissions accounting and strengthen reduction partnerships

Accelerating the Transition to a Circular Economy

Reduce water withdrawal
by 20% by 2030

Achieve a 90% waste
recycling rate by 2030

Advance water and waste management systems across all business sites

Expand water and waste recycling

Obtain global water and waste certifications

Natural Capital Management and Biodiversity Protection

Achieved zero deforestation and land conversion
within protected areas in 2023

Establish a natural capital management system for the supply chain

Develop technologies to reduce dependence on natural capital

RESOURCE & CAPABILITYStrengthen Internal Capabilities

VALUE CHAIN MANAGEMENTManage the Supply Chain and Use Phase

GREEN PARTNERSHIPExpand External Influence

*AWS Declaration(Yeongju Factory)

Product Planning & Development

Research and apply eco-friendly
materials

MID-TO LONG-TERM GOAL

Develop new materials and alternative technologies
such as non-plastic cigarette filters

Review the design of minimizing
carbon footprints throughout
life cycle

MID-TO LONG-TERM GOAL

Expand activities to reduce product
environmental impact based on LCA

Purchasing Materials

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 energysaving
leaf tobacco drying machine

Build the Green Impact Alliance
with significant materials partner
companies

MID-TO LONG-TERM GOAL

Help significant partners set GHG
reduction targets (25% reduction by 2030
based on SBTi) and implement them

Manufacturing & Business Sites

Reduce GHG emissions
(internal emissions)

MID-TO LONG-TERM GOAL

Reduce Scope 1+2 emissions by 42%
compared to 2020 by 2030

Reduce and recycle water
resources

MID-TO LONG-TERM GOAL

Reduce water withdrawal by 20%
compared to 2020 by 2030

Reduce and recycle waste

MID-TO LONG-TERM GOAL

Achieve waste recycling rate to be
more than 90% by 2030

Logistics

Convert all business fleets
to Evs

MID-TO LONG-TERM GOAL

Achieve 100% conversion to EVs
by 2030

Cooperate with partners for
eco-friendly SCM management

MID-TO LONG-TERM GOAL

Expand the “ECO Change” program

Consumer Use & Discard

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

Expand value chain-linked
CSR activities

MID-TO LONG-TERM GOAL

Apply Anti-Littering programs in seven countries
covering 90% of projected sales
Apply environmental CSR programs in eight countries
(cumulative)

Archiving

KT&G is advancing ESG management and committed to transparent information disclosure.

Environmental Management Policy

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