373 KT&G Obtains a Grade A in the MSCI ESG Evaluation 2020.10.07
KT&G (President: Baek Bok-In) has obtained a Grade A in the Environment, Social and Governance (ESG) Evaluation conducted by the global investment information provider Morgan Stanley Capital International (MSCI).
Every year, MSCI evaluates about 8,500 listed companies worldwide by dividing them into different types of business and rating their business status related to the environment, social responsibilities, and corporate governance in the range of AAA to CCC. This year, KT&G was evaluated along with 11 global tobacco companies.
As a result, the company won Grade A, which is one level up from last year’s BBB. This is also a higher level than those of the global top three tobacco players.
In particular, KT&G ranked first among all 11 companies in the domain of “product safety and quality” for its responsible marketing and outstanding quality management, and earned a high score in the domain of “supply chain labor standards” in recognition of its efforts, such as strengthening its code of conduct to improve the labor practices of its partners. Moreover, MSCI assessed the company’s “corporate governance” at the industry’s highest level regarding the operation of a board of directors equipped with diversity and expertise.
A source related to KT&G said, “This evaluation is significant in that the ESG management that KT&G has pursued was recognized not only domestically, but also globally. We will endeavor to maximize our corporate and shareholder values and fulfill our social responsibility based on our advanced governance.”
Last year, KT&G also obtained the best grade (A+) for the second consecutive year and won the “Grand Prize” in the domain of governance in the ESG evaluation performed by the Korea Corporate Governance Service, in recognition of its establishment of an excellent sustainable management system. The company has also been publishing the “KT&G REPORT” since 2007 to deliver transparent and accurate ESG information to domestic and overseas stakeholders as well as share various social responsibility activities with them.