KCC Publishes 'Sustainability Report' Detailing ESG Management Performance

Introduction to ESG Activities and Achievements Including Eco-friendly Management, Social Contribution, and Transparent Governance Operations

2020-21 KCC Sustainability Report. [Photo by KCC]

[Asia Economy Reporter Kim Jonghwa] KCC published the '2020/21 KCC Sustainability Report' to transparently disclose its management performance last year 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), ISO 26000, and the UN Sustainable Development Goals (UN SDGs). Since its first publication in 2015, this year marks the seventh edition. The report published this year contains details of KCC's sustainable management activities and their outcomes in 2020.

The Sustainability Report provides detailed information on general management matters including the consolidated financial statements and business status, as well as KCC's sustainable management system, ethics and compliance management, and the corporate governance that operates these. Additionally, activities and achievements are segmented into five categories: △ Strengthening safety and environmental responsibility △ Valuing talent △ Sustainable technological innovation △ Customer and market orientation △ Creating shared value.

Particularly noteworthy is the report on ESG (Environmental, Social, Governance) management activities and achievements, which has recently become a key topic. In the environmental sector, KCC recognizes that efforts and activities for environmental preservation are essential for a sustainable future and practices eco-friendly management at all domestic and overseas business sites. Through an environmental investment cost of 12.5 billion KRW, which increased by approximately 40.7% compared to the previous year, KCC minimizes environmental impacts from corporate activities and reduces emissions of environmental pollutants such as chemical substances, water pollutants, air pollutants, and waste.

In the social sector, KCC continuously promoted social contribution activities linked to its business. It has consistently participated in projects such as 'Saetteul Village,' 'Warm Neighborhood Forest,' and 'Firefly House,' which improve the living environment of marginalized groups through public-private cooperation. By providing KCC's eco-friendly paints and building materials and supporting home renovations, KCC leads efforts to create a society that lives together with local communities.

In the governance sector, KCC has strived to protect shareholders' rights and operate transparent governance. KCC prioritizes shareholders' rights and values, introducing an electronic voting system to maximize shareholders' exercise of voting rights. It advanced the notice and announcement of shareholder meetings by four weeks and held meetings avoiding concentrated dates to ensure shareholders' voting rights.

Besides ESG management activities, strengthening R&D capabilities for sustainable technological innovation is also a distinctive feature. Since 2018, KCC has continuously increased R&D investment costs (consolidated basis), investing 151.4 billion KRW in 2020, an increase of 68.2 billion KRW (81.97%) compared to the previous year, accelerating efforts to secure global competitive advantage and enhance research capabilities. To secure technology rights and form a patent network, KCC has actively applied for overseas patents as well as domestic ones, holding 2,976 intellectual property rights, an increase of 150 compared to the previous year, thereby solidifying the foundation for business growth.

A KCC official stated, "Through this report, we transparently disclosed KCC's activities and achievements last year, including ESG activities that stakeholders consider important," adding, "KCC will prioritize stakeholders and fulfill its responsibilities and roles as a sustainable company by securing excellent technology and capabilities through continuous investment."

Meanwhile, the Sustainability Report published by KCC won the Korea Sustainability Report Award in October last year, and in November, it received the highest grade, Platinum, in the Sustainability Report category at the US Spotlight Awards and was selected as a 'TOP 100' report, recognized for its high-level message delivery and design that stakeholders can easily access.

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