KT&G Achieves 'AAA' Rating in MSCI ESG Evaluation, First in Its Industry Group

Outstanding Corporate Governance and Systematic Supply Chain Management

KT&G announced on December 10 that it has become the first company in its industry group to receive the highest-ever rating of 'AAA' in the ESG index evaluation by MSCI (Morgan Stanley Capital International), a leading global investment information provider.

Each year, MSCI evaluates the ESG status of more than 8,500 listed companies worldwide, classifying them by industry and assigning ratings across seven levels, from the highest AAA to the lowest CCC. Institutional investors and asset management firms use MSCI's evaluations to analyze companies' sustainability management capabilities and ESG competitiveness.

KT&G CI. KT&G

KT&G, along with nine other global tobacco companies, was evaluated by MSCI and received the highest rating of AAA this year. Previously, KT&G had earned an AA rating for four consecutive years through last year, demonstrating its top-tier ESG competitiveness within the industry.

The key factors behind this top rating include outstanding corporate governance, systematic supply chain management, responsible marketing practices, and faithful implementation of its environmental management vision. In particular, KT&G was recognized for establishing exemplary governance practices, such as separating the roles of CEO and board chair, and operating both permanent and ad hoc independent committees, based on the competitiveness of its board, which is composed of 75% outside directors.

Additionally, KT&G ranked first among the nine companies in the 'supply chain labor management' category due to its systematic due diligence and supervision of suppliers. The company also received high marks compared to industry peers in areas such as expanding infrastructure for water reuse at business sites and implementing responsible marketing practices.

Shim Youngah, Head of ESG Management at KT&G, stated, "By becoming the first in our industry group to achieve an AAA rating, our systematic ESG management performance has been recognized in the capital market. Going forward, we will continue to strengthen our environmental management practices and proactive supply chain management, leveraging our globally competitive governance structure."

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