[Photo=KT&G]
KT&G has revamped its sustainable management framework and unveiled a new environmental, social, and governance (ESG) vision focused on climate response, circular economy, and fostering a responsible industrial ecosystem.
On June 30, KT&G announced the release of its "2025 KT&G Report," which details its sustainable management strategy and achievements in ESG implementation.
Published annually since 2007, this year's report highlights the company's profitability improvements due to global business expansion and emphasizes the establishment of transparent governance as tangible results of its ESG management.
The report introduces KT&G's new ESG vision of "Realizing Value Beyond Growth."
To achieve this, the company has identified five core values: enhancing climate response capabilities, accelerating the circular economy, realizing industry-specific ESG values, fostering a responsible industrial ecosystem, and promoting sustainable human growth.
Notably, the governance section is presented as a separate part, underscoring the importance of transparency in corporate operations and advanced governance systems.
KT&G maintains a board of directors with over 75% independent directors and has separated the roles of CEO and board chair. All board members attended 100% of the 12 board meetings held last year.
The report also highlights the company's increased shareholder returns. In 2022, KT&G returned a total of 1.1874 trillion won to shareholders, including 627.4 billion won in dividends and 560 billion won in stock buybacks and cancellations, achieving a total shareholder return rate of 108.9%.
In the environmental sector, the company reduced greenhouse gas emissions from its facilities by 9.3% compared to 2020 and increased its use of renewable energy to approximately 23%. A separate climate disclosure report detailing climate-related risks, opportunities, and response strategies will be published in July.
KT&G continues its collaborative efforts with domestic leaf tobacco farmers, being the only company in the domestic tobacco industry to purchase all locally sourced leaf tobacco. The company also supports health check-ups for farmers and provides scholarships for their children.
Last month, KT&G announced an increase in the purchase price of domestic leaf tobacco to support farmers, injecting an additional 2.2 billion won compared to last year, exceeding the inflation rate.
KT&G President Bang Kyung-man stated, "We will continue to balance enhancing our core business competitiveness with the practice of ESG management to elevate both corporate and social value."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.