Kakao Establishes Climate Crisis Response Principles... Strengthening ESG Management

[Asia Economy Reporter Seungjin Lee] Kakao is strengthening its ESG (Environmental, Social, and Governance) management by establishing principles to respond to the climate crisis.

On the 28th, Kakao announced the ‘Active Green Initiative,’ which embodies its commitment to actively play a role in solving environmental issues by establishing principles to respond to the climate crisis.

Kakao set a goal not only to reduce its own carbon emissions but also to contribute to societal sustainability through its various services used nationwide. Along with this, it decided to pursue 'Net Zero,' aiming for zero greenhouse gas emissions by 2040.

Recently, Kakao received approval for its climate crisis response principles centered on Net Zero through the ESG Committee within its board of directors. Kakao’s Net Zero means that by 2040, the amount of emissions of six major greenhouse gases causing global warming, including carbon dioxide, and the amount absorbed through Kakao’s technologies, services, and policies will be equalized, resulting in a net emission of zero.

Alongside this, Kakao established the three principles of the ‘Active Green Initiative’: ▲Within Kakao: efforts to reduce carbon emissions internally ▲Through Kakao: partners and users contributing to eco-friendliness by using Kakao services ▲Together with Kakao: practicing eco-friendliness through cooperation with various stakeholders.

As part of activities under the ‘Active Green Initiative,’ Kakao plans to disclose its current environmental contributions and related information transparently and systematically through the ‘Kakao Carbon Index.’ The ‘Kakao Carbon Index’ is data that converts the environmental contribution activities of the Kakao community (affiliates) into carbon reduction amounts, with annual reduction targets to be presented.

Kakao also plans to consider ways for users to easily empathize with climate change responses and participate in various eco-friendly activities. Through a carbon footprint calculator based on the Kakao Carbon Index, individuals can check the amount of carbon they have reduced by using Kakao platforms or services, and Kakao is reviewing rewards for certification of eco-friendly actions.

To ensure Kakao’s climate crisis response activities meet global standards, it will actively promote communication with global environmental organizations. Kakao is pursuing membership in global environmental initiatives ‘RE100’ and ‘SBTi.’ By applying to join SBTi as the first in the domestic internet industry, Kakao aims to have its greenhouse gas reduction targets verified and achieved based on more systematic and scientific standards.

RE100 is a campaign led by the global nonprofit ‘The Climate Group’ and the global environmental management certification organization ‘Carbon Disclosure Project,’ aiming for companies to source 100% of their electricity from renewable energy by 2050. SBTi is a global initiative that scientifically sets and verifies corporate greenhouse gas reduction targets to implement the Paris Climate Agreement.

Hong Euntaek, Head of Kakao ESG, said, “With the declaration of the ‘Active Green Initiative,’ we plan to actively explore ways for Kakao users, partners, and all members of society to contribute to eco-friendliness,” adding, “As part of ESG management, we will continuously work with the community to respond to climate change.”

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