KT&G (CEO Baek Bok-in) announced on the 3rd that it has entered into a Power Purchase Agreement (PPA) as part of its commitment to carbon neutrality.

The PPA is a system where users purchase electricity directly from renewable energy generators. KT&G recently signed an agreement with SK E&S to supply renewable energy. With this agreement, KT&G is expected to replace 7.5% of its total electricity usage with renewable energy, thereby reducing greenhouse gas emissions by 6,640 tCO2. KT&G plans to continuously expand the use of renewable energy through additional PPA contracts.

Beyond adopting the PPA, KT&G has also installed solar power plants on idle spaces, such as the rooftops of manufacturing plants and parking lots, utilizing the generated renewable energy for its consumption. Thanks to these efforts, the proportion of renewable energy used in all of KT&G's operations increased from 0.1% in 2020 to 15.6% in 2022. Last year, it is estimated that this figure surpassed 20%.

In 2021, KT&G established its environmental management vision, 'KT&G GREEN IMPACT,' focusing on expanding the use of renewable energy to mitigate the effects of climate change. This includes enhancing internal process energy efficiency and accelerating the transition to a circular economy by expanding waste heat and water reuse.

A KT&G representative stated, “The company supports the global campaign 'RE100 (Renewable Energy 100)', which pledges to meet 100% of the company's electricity needs with renewable energy by 2050. We will actively pursue the expansion of renewable energy usage, contributing to reducing greenhouse gases and achieving carbon neutrality.”



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