We set GHG reduction target based on SBT* to actively respond to climate change.
We commit to reduce entire value chain emissions by 20% by 2030 compared to 2020
and achieve Carbon Neutral by 2050 and to transparently monitor
and disclose emissions from each scope.

* SBT: Science Based Target

Mid- to Long-term GHG Reduction Target and Activities

KT&G set emissions reduction target based on SBT according to the Paris Agreement, which aims to curb average global temperature increase below 2℃ and limit to 1.5℃ compared to the pre-industrial level. We aim to reduce emissions by 20% (scope 1+2 25%, scope 3 12.3%) by 2030 compared to 2020 level and achieve carbon neutral by 2050. To achieve our goals, we consider possibility to implement in short-term, GHG reduction potential, and effectiveness of each GHG reduction activities. We proactively respond to climate change by improving energy efficiency in our operations and utilizing renewable energy power and etc.

Value Chain GHG Emissions* (2020)

KT&G’s value chain GHG emissions as 2020 is 197,565 tons where 63% of emissions are from direct operations and 37% from value chain. We will continuously manage scope 3 by inventory advancement.

[Scope 3]

[Scope 3]

Purchased goods & services	· Emissions from tobacco leaf farming, curing, Reconstituted tobacco leaf, NGP device and non-tobacco material production
Upstream transportation & distribution	· Emissions from vehicle (diesel/gasoline) for raw material logistics
Waste generated in operations	· Emissions from waste treatment such as incineration, landfill, and recycling
Business travel	· Emission from transportation(aviation fuel) for employees’ business travel

[Scope 1+2]

[Scope 1+2]

Scope 1 (Direct emissions)	· Emissions from tobacco production facilities (LNG) and operating vehicles (diesel) at domestic and int’l facilities
Scope 2 (Indirect emissions)	· Emissions from electricity and steam consumption at domestic and int’l facilities

[Scope 3]

[Scope 3]

Downstream transportation & distribution	· Emissions from vehicle (diesel/gasoline) for final goods logistics
Use of Sold Products	· Emissions from electricity used charging NGPs
End-of-life treatment of sold products	· Emissions from disposal of NGP (incineration)

* Scope 3 emission could be re-calculated
after advancing data management system,
and the figures are not officially verified.

We aim to strengthen our responsibility for direct and indirect GHG emissions caused by our business activities. To accurately manage scope 3 emissions from raw material procurement to consumer use as well as emissions from offices to factories, we plan to gradually advance the data management system.