KT&G (Chairman Bang Kyung-man) published the “2024 KT&G Report” last Wednesday highlighting the company's ESG management achievements.

KT&G has been releasing this report since 2007 to demonstrate its commitment to sustainable management and to transparently share accurate ESG performance with stakeholders both in Korea and overseas. The 2024 KT&G Report is themed “Future Rush”, reflecting the company's focus on building stronger foundational competitiveness and driving future growth. The report shows practical ESG achievements, including structural innovation and value-up strategies across KT&G's three core businesses (NGP, health functional foods, and global CC), as well as improvements in governance and enhanced ESG capabilities at its global business sites.

The report consists of three sections: the Strategic Report outlining the group’s vision and business direction, the Governance Report showing KT&G’s commitment to strong corporate governance, and the Progress Report providing details of ESG management achievements.

In particular, it includes a dedicated section for governance-related contents such as corporate governance disclosures to emphasize the company's excellent governance practices and transparent operations. The company is faithfully implementing best governance practices this year as well by fully complying with all 15 core governance indicators recommended by the Financial Services Commission.

In the environment sector, KT&G reduced greenhouse gas emissions at its business sites by 12.7% compared to 2020 by improving its response systems to climate change. The company also increased its use of renewable energy to 21.4% of the total energy consumption. KT&G is also dedicated to creating sustainable value across the value chain by conducting human rights impact assessments at 100% including its overseas business sites in line with its global business expansion strategy and supporting the growth of ESG capabilities of its key partners.

As a result, the company has maintained an AA rating, the highest in its industry group, for four consecutive years in the ESG index assessment by global investment research firm Morgan Stanley Capital International (MSCI).

 It has also maintained an A grade (Excellent) or higher in the governance category from Korea Institute of Corporate Governance and Sustainability every year since 2012.

KT&G Reports also comply with the GRI Standards, an international sustainability reporting framework, and incorporate global standards such as those set by the Sustainability Accounting Standards Board (SASB) to enhance its objectivity and reliability. The company is advancing its ESG disclosures based on the standards set by the International Sustainability Standards Board (ISSB) under International Financial Reporting Standards (IFRS) and planning to publish a Taskforce on Nature-related Financial Disclosures (TNFD) report in July to show its influence on the environment.

President Bang Kyung-man stated, “ESG capabilities are a key indicator to show foundations for structural innovation and new growth engines.” He also added, “We will continue to connect core business competitiveness and ESG management practices to create sustainable growth opportunities in order to realize true ‘value-up’ of the company and actively communicate with stakeholders throughout the process.