Kumho Petrochemical announced on June 23 that it has published its "Sustainability Management Report 2025," which includes environmental, social, and governance (ESG) performance data for the year.
This marks the eighth edition of the report, which is structured to cover the company's sustainability management system, activities and achievements, performance of major affiliates, and an ESG Data Pack. The report outlines Kumho Petrochemical Group's sustainability strategies, goals, implementation efforts, and key achievements.
Notably, the report conducts an IRO (Impact, Risk, Opportunity) analysis to assess the degree of impact on environmental and social issues based on the GRI (Global Reporting Initiative) reporting topic selection principles, IFRS sustainability disclosure standards, and ESRS (European Sustainability Reporting Standards) double materiality guidelines.
Through this analysis, Kumho Petrochemical has redefined five major issues: greenhouse gas reduction and carbon neutrality, supply chain sustainability, a sustainable business portfolio within a circular economy, and energy efficiency. The report also details response strategies and achievements for each issue, referencing international reporting standards such as the ISSB Framework. Additionally, it enhances transparency by adding Performance Trends for the past three years for each of the five major issues.
In the critical area of greenhouse gas reduction and carbon neutrality, Kumho Petrochemical has completed the establishment of CCUS (carbon capture, utilization, and storage) facilities in line with its roadmap for achieving carbon neutrality by 2050. The company is also pursuing ongoing activities to reduce greenhouse gas emissions through process improvements, transitioning to zero-emission vehicles, and producing renewable energy from biomass for self-consumption. Furthermore, in the sustainable business portfolio section, the report highlights research and development efforts aimed at expanding sustainable products and technologies, including SSBR and NB latex based on bio raw materials, as well as carbon nanotubes (CNT) for secondary batteries.
The report also strengthens its analysis of natural capital and climate risks. The physical risk analysis reflects the latest status of all currently operating business sites, while the transition risk analysis applies the allocation criteria from the fourth planning period of the greenhouse gas emissions trading system. Additionally, the scope of the L stage in the LEAP analysis, following the TNFD (Taskforce on Nature-related Financial Disclosures) guidelines, has been expanded to include all domestic business sites this year. The report also details various biodiversity protection activities, including a project to create habitats for endangered migratory birds in the Yeosu region, based on the IUCN (International Union for Conservation of Nature) Red List of endangered species.
This report was produced with active participation from the "ESG Committee," the highest decision-making body for ESG management at Kumho Petrochemical. The report underwent a final approval process by the ESG Committee after including interviews with the chairperson regarding the identification of opportunities and risks associated with major issues during the initial production phase.
Kumho Petrochemical CEO Baek Jong-hoon stated, "Even amid industry challenges, we will enhance the transparency of our management activities and solidify the sustainability and trust of our company through responsible management based on continuous communication with various stakeholders, including customers and shareholders."
Meanwhile, the Kumho Petrochemical Group is actively pursuing a "Project to Improve Habitats for Endangered Migratory Birds" in the Yeosu region to conserve biodiversity and address climate change. This initiative involves five affiliates, including Kumho Petrochemical, Kumho P&B Chemicals, Kumho Mitsui Chemicals, Kumho Polychem, and Kumho T&L.