KT&G Receives Net Zero Greenhouse Gas Reduction Target Approval from SBTi

Policy to Achieve by 2045
"The Most Advanced Level Among Domestically Approved Companies"

KT&G announced on the 9th that it has obtained approval from the Science Based Targets initiative (SBTi) for its "2030 Greenhouse Gas Reduction Target and 2045 Net-Zero Goal."

SBTi is a global coalition organization that presents and verifies companies' carbon emission reduction targets based on scientific evidence. It was jointly established in 2015 by the Carbon Disclosure Project (CDP), United Nations Global Compact (UNGC), World Resources Institute (WRI), and World Wide Fund for Nature (WWF).

KT&G Yeongju Factory exterior. KT&G

KT&G plans to reduce the total amount of direct greenhouse gas emissions (Scope 1) and indirect emissions from energy purchases (Scope 2) by more than 42% by 2030 compared to 2020, and also reduce other indirect emissions (Scope 3) generated by business activities by more than 25% compared to 2022.

Furthermore, KT&G has set a goal to achieve net-zero emissions for all Scope 1, 2, and 3 emissions by 2045. This is considered the most advanced net-zero implementation target among domestic companies approved by SBTi.

To achieve these goals, KT&G has expanded ESG management to achieve carbon neutrality through measures such as switching to high-efficiency equipment, power purchase agreements (PPA), and the introduction of solar power generation facilities. As a result, greenhouse gas emissions from domestic and overseas business sites decreased by 9% in 2023 compared to 2020, and the share of renewable energy in electricity consumption increased from 0.1% in 2020 to 19%.

In particular, to expand the use of renewable energy, solar power generation facilities were installed last year and this year at factories in Gwangju, Yeongju, and Daejeon, and KT&G plans to expand this to five domestic factories by 2026, building power generation facilities with a capacity of approximately 21.6 Mwp (megawatt peak).

Lee Sang-hak, Senior Vice President and Head of Strategy at KT&G, said, “This approval is significant in that KT&G’s carbon reduction targets have secured international credibility,” and added, “We will continue to strengthen our response to climate change and environmental responsibility activities to practice sustainable management that can grow together with society.”

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