Empowering
Sustainability for Growth
KT&G Envisions a Future Rooted in Sustainability
Future
Paths
Strategic
Pillar
- Focus on New Future Growth Engine of Tobacco Business
- Strengthen the competitiveness of health and consumerfriendly products
- Create sustainable business growth opportunities
- Perform environmental responsibility across the value chain
- Build a sustainable business ecosystem
- Advance governance and Strengthen execution capability
Diversify
NGP portfolio
-
Tobacco
- Diversify NGP portfolio
- Strengthen science-based NGP development capabilities
- Implement responsible marketing principles
-
Health Functional Food
- Strengthen R&D to secure evidence of consumer effectiveness and technology with competitive advantage
- Establish an eco-friendly brand identity
-
Pharmaceuticals, Cosmetics, Others
- Expand access to global healthcare through new products
- Intensify cosmetic ODM expertise based on clean beauty technology
- Expand ESG-based investment portfolio
-
- Advance response to climate change
- Accelerate the circular economy
- Protect biodiversity
-
- Pursue Global-Level Human Rights Management and Policy
- Realize an increase in social and environmental values in a farmhouse
- Enhance ESG capabilities of supply chain
- Expand value chain-related social contributions
-
- Internalize ESG KPI at organization-and management-level
- Advance compliance management system
- Support ESG disclosures of subsidiaries
Strategic Pillar
- Focus on New Future Growth Engine of Tobacco Business
- Strengthen the competitiveness of health and consumerfriendly products
- Create sustainable business growth opportunities
Diversify
NGP portfolio
-
Tobacco
- Diversify NGP portfolio
- Strengthen science-based NGP development capabilities
- Implement responsible marketing principles
-
Health Functional Food
- Strengthen R&D to secure evidence of consumer effectiveness and technology with competitive advantage
- Establish an eco-friendly brand identity
-
Pharmaceuticals, Cosmetics, Others
- Expand access to global healthcare through new products
- Intensify cosmetic ODM expertise based on clean beauty technology
- Expand ESG-based investment portfolio
Strategic Pillar
- Perform environmental responsibility across the value chain
- Build a sustainable business ecosystem
- Advance governance and Strengthen execution capability
Diversify
NGP portfolio
-
- Advance response to climate change
- Accelerate the circular economy
- Protect biodiversity
-
- Pursue Global-Level Human Rights Management and Policy
- Realize an increase in social and environmental values in a farmhouse
- Enhance ESG capabilities of supply chain
- Expand value chain-related social contributions
-
- Internalize ESG KPI at organization-and management-level
- Advance compliance management system
- Support ESG disclosures of subsidiaries
KT&G Group’s
Mid-to Long-term Sustainability
Management Goals
To accelerate the execution of strategic tasks in key areas, KT&G established and has been managing mid- to long-term goals that target the Year 2025/2030 since 2021. We are raising internal ability in executing the key tasks by adopting ESG KPIs when evaluating the performance of top management, executives, and units every year. In 2022, we systematized the Group-level sustainability management goals, targeting themes that were finalized or planned for global disclosure, including by the International Sustainability Standards Board (ISSB). We also compared and analyzed lacking areas by subsidiary and examined benefits against investments in the goal implementation process, feasibility, and other matters. In addition, we established KPIs and goals that should be executed by KT&G Group by 2030 in consideration of each subsidiary’s degree of importance, such as proportion of sales within the group and whether it is listed, as well as business characteristics. We will continue to practice sustainability management by setting and implementing detailed goals.
Global ESG
Ratings
(Based on the Second Half of 2022
to the Second Half of 2023)
-
AA
Highest rating in the sector
-
10%
Top in the industry
-
78points
Included in the Korea Index
-
Climate Change
A-
Leadership level achieved
-
Water
A-
Leadership level achieved
-
Supplier Engagement Rating
A
Leadership level achieved
ESG Ratings
in Korea
(As of November 2023)
-
A+
Acquired A level or higher for 13 consecutive years
-
A
Criteria for ‘Scale and Grade’
-
A+
The highest level: S
Foreign awards
-
for sustainability management in 2022
Government Award (Prime Minister’s Commendation, overall ESG category) - Leadership ratings for Climate Change and Water Security sectors in CDP Korea Awards
-
Awarded as the Best Governance Company
of 2023 by the Korea Institute of Corporate Governance and Sustainability
