KCC Publishes 'Sustainability Report' Reflecting Global Corporate Vision

6th Edition This Year, Presenting Vision of Advanced Materials Companies Amid Momentive Acquisition Issues

KCC has published the '2019-20 KCC Sustainability Report.'
[Photo by KCC]

[Asia Economy Reporter Kim Jong-hwa] KCC has published the '2019/20 KCC Sustainability Report' to transparently disclose its management performance and future vision in economic, social, and environmental areas to stakeholders such as shareholders and customers.

KCC annually releases a report on its sustainability status to domestic and international stakeholders based on international standards such as GRI (Global Reporting Initiative), ISO26000, and the UN Sustainable Development Goals (UN SDGs). Starting with the first publication in 2015, this year marks the sixth edition. The report published this year covers KCC's sustainability management activities, achievements, and key issues from January 2019 to the first quarter of 2020.

This report highlights KCC's acquisition of Momentive Performance Materials (hereafter Momentive) as a major issue. In May last year, KCC completed the acquisition of the US-based global silicone manufacturer Momentive and incorporated it as a subsidiary in January this year. Through this, KCC successfully executed the third-largest overseas merger and acquisition in Korean corporate history, securing competitiveness in silicone product development and production technology, and plans to expand its market not only in Asia but also in the US and Europe.

At the beginning of the report, the 'Chairman’s Message' declares the determination to create future growth engines in 2020 based on the Momentive acquisition and presents a new vision to become an advanced materials company by securing a global production and sales network.

In addition, the report provides detailed information on general management matters such as consolidated financial statements and business status, as well as KCC's sustainability management system, ethics and compliance management, and corporate governance that operates these systems. The content is organized around five key activities selected as KCC’s unique sustainability management strategies: △ Strengthening safety and environmental responsibility △ Valuing talent △ Sustainable technological innovation △ Customer and market orientation △ Creating shared value.

Among these, achievements in strengthening R&D capabilities and technology management stand out. To achieve future technology development and innovation, KCC has increased its investment in R&D annually since 2017, with an increase of more than 2.2 billion KRW in 2019 compared to the previous year. By establishing an integrated intellectual property management system and operating dedicated personnel for patents in each technology field, KCC increases the number of intellectual property rights held by more than 200 cases annually, enhancing the technological capabilities and management skills necessary for business growth.

A KCC official stated, "KCC is focusing all corporate capabilities on developing more environmentally friendly and innovative high value-added products and improving technological capabilities," adding, "We plan to take steady steps toward becoming a global materials company based on trust from stakeholders and corporate competitiveness."

Meanwhile, the sustainability report published by KCC was selected as an excellent report in the manufacturing sector at the Korea Sustainability Report Awards (Korea Readers’ Choice Awards) in September 2019, and was recognized for its content quality and design by being named a TOP 100 report at the Spotlight Awards in November 2019. Additionally, KCC was selected as one of the 'Top 100 Sustainable Management Companies in Korea' by the Korea Management Certification Institute.

This content was produced with the assistance of AI translation services.