ESG Overview | ESG

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Sustainable Management

VISION

Beyond Growth, with Sustainability

Business Mission
Promote sustainable management by strengthening core business competitiveness
ESG Mission
Strengthen the foundation for business growth by advancing ESG performance
Business Mission
Promote sustainable management by strengthening core business competitiveness

Business Mission

Global CC

  • Realize responsible global growth by securing sustainable competitiveness

NGP

  • Strengthen future growth momentum by expanding modern products

Health Functional Foods

  • Expand global growth value through science-based innovation
ESG Mission
Strengthen the foundation for business growth by advancing ESG performance

ESG Mission

Advance Climate Response Capabilities

  • Maintain a 42% reduction in Scope 1+2 GHG emissions from 2020
  • Reduce Scope 3 GHG emissions by 25% from 2020

Accelerate the Circular Economy

  • Reduce water withdrawal intensity at business sites by 20% from 2020
  • Achieve a 90% waste recycling rate
  • Convert 80% of inner liners to recyclable materials

Deliver Industry-Tailored ESG Value

  • Expand anti-littering programs to markets representing 90% of sales in directly operated countries
  • Fully comply with responsible marketing regulations
  • Apply environmental CSR programs in eight countries cumulatively

Build a Responsible Business Ecosystem

  • Conduct human rights impact assessments at 100% of business sites
  • Achieve a lost time injury frequency rate of 0.58
  • Conduct regular ESG assessments for 100% of key partners

Enable Sustainable People Growth

  • Increase women to 20% of employees
  • Increase women to 15% of management positions
  • Increase local hires to 35% of management positions

KT&G's Sustainable Management Framework

ESG Management System

Under the vision of 'Beyond Growth, with Sustainability,' KT&G links stronger competitiveness in its core businesses with advanced ESG performance. By building a virtuous cycle in which ESG results and business competitiveness reinforce one another, KT&G continues to pursue value beyond growth.

Strengthen Business Competitiveness

An integrated IT-based management system improves operational efficiency and enables more systematic risk response.

Advance ESG Performance

KT&G operates disaster-prevention targets linked to the ESG metric LTIFR (Lost Time Injury Frequency Rate), contributing to stronger occupational accident management across global operations.

Highlights

ESG Ratings

* As of 2025
MSCILogo logo
AAA
Highest rating in the sector
SNPLogo logo
87
(Included in DJSI World Index, Highest rating in the sector)
KoreaESGLogo logo
A
Acquired A level or higher for 15 consecutive years
SustinvestLogo logo
A
 
CDPLogo logo
Water
Leadership(A)
Maintained an A rating for three consecutive years
CDPLogo logo
Forest
Leadership(A)
Assessment response began in 2024; A- for two consecutive years
CDPLogo logo
CDP Climate
Leadership(A-)
Recovered to an A rating within one year
한국ESG기준원
CategoryOverallE(Environment)S(Social)G(Governance)
2025AAA+A
2024AAA+A
2023A+A+A+A+
2022AAA+A
Acquired A level or higher for 15 consecutive years

Awards

2025
Ministry of Trade, Industry and Energy

Minister's Commendation from the Korean Intellectual Property Office

- Overall ESG category
2025
CDP Korea Committee

Value-up Excellence Company · Financial Services Commission Chairman's Award

- Excellence in climate and water disclosure (A ratings from CDP)
2025
Local Governments for Climate Action and Energy Transition, and others

Grand Prize at the Korea Solar League

- Expanded the adoption and use of renewable solar energy
2025
Ministry of Health and Welfare

Minister's Award at the Korea Sharing Awards

- Continued employee giving and social responsibility initiatives
2025
Ministry of Oceans and Fisheries

Top Award for Companion Beach Activities

- Marine ecosystem protection and coastal cleanup activities

KT&G's Efforts

Environment

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Workplace GHG Emissions

(Compared to 2020 baseline)
12.7%

Renewable Electricity Usage Rate

21.4%

Water Use

(Compared to 2020 baseline)
15.4%

Recycled Waste Device Material

(Cumulative as of 2025)
Cumulative 35,933 kg
* GHG emissions in 2025: 107,785 tCO₂eq, down 13.0% from 2020 and declining for three consecutive years
* Renewable electricity use in 2025: 29.9%, up by more than 10 percentage points over the past two years

Ratio of Local Hires in Management and Leadership Positions

33.8%

Value Chain-linked CSR

(As of 2025)
Smoking Rooms Installed
842
Cigarette Disposal Bins
7,458
Portable Ashtrays
339,500

Occupational Health and Safety Management System

(Based on domestic manufacturing sites)
ISO45001 Certification

Full Purchase of Domestic Tobacco Leaves

64.5 billion KRW
* Women in management in 2025: 14.7%, reaching 98% of the 2030 target of 15%
* Cumulative value-chain CSR contribution in 2025: KRW 10.37 billion, 3.7% above the KRW 10 billion target

Corporate Governance

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Board Independence

(As of June 2025)
Outside Director Ratio 75%

Enhancement of Shareholder Rights/Value

(Total shareholder return rate: 2022: 92.4%, 2023: 99.0%, 2024: 97.4%)
Proactive shareholder return at a 100% payout ratio
Implemented cumulative and electronic voting systems

Stock Compensation Ratio

For Long-term Shareholder Value Alignment
CEO Stock Compensation Ratio 60%
(Implementing Restricted Stock Units)

Nomination by Korea Exchange in 2025

Value-up Best Practice Company
* Core indicator compliance remained at 100% from 2023 to 2025
* Total shareholder return reached 108.9% in 2025 (2023: 99.0%, 2024: 97.4%, 2025: 108.9%)
*The above performance figures are based on 2025.