– Focusing on “Society” (S) in Environment, Society, and Governance (ESG), the company drives various social contribution activities
– Rated higher in ESG than the global top 3 tobacco companies
SEOUL, South Korea, Aug. 24, 2021 /PRNewswire/ — Environment, Society, and Governance (ESG) have become increasingly popular in the global capital market. Companies are expanding their ESG business management as ESG evaluation indices begin to directly impact companies’ business activities, such as funding and sales.
The Korean Tobacco company KT&G, which celebrated its tenth anniversary of entering the Indonesian market this year, also put in its best efforts to reinforce ESG management. KT&G has maintained the largest market share in Korea for many years and is the fifth-largest tobacco company in the world in terms of market share and sales.
Last year, the company exceeded its consolidated revenue of KRW 5 trillion, the highest since establishment. To step up as a global corporate giant, KT&G is strategizing to go above their financial value to maximize non-financial value encompassing the environment, society, and governance.
As a global corporate citizen, KT&G has various ongoing social contribution projects to carry out their social responsibility not only in Korea but also in countries where it holds overseas offices. In Indonesia, the company operates “Sangsang Univ”, “Korean Language Center”, “Job Training Center” and other sustainable social platforms to help empower youth and to assist socially neglected classes to gain independence.
In 2014, KT&G was the first Korean company in Indonesia to open a Korean language center in the country as a vanguard for cultural exchanges between the two countries. The same year, the company began to operate a community for college students called “Sangsang Univ Indonesia” to provide free opportunities for youth to develop their talents as the future driving forces of the national economy.
Moreover, KT&G funds “Coffee Lab”, a job training center for coffee, to help Indonesia’s coffee industry grow and create more jobs, as Indonesia is one of the world’s four largest coffee producers. In March 2021, KT&G established the “KT&G Indonesia Job Training Center” within Universitas Kristen Cipta Wacana to initiate free technical training for low-income families. KT&G plans to conduct textile technology training until September next year for local low-income families and youth in social welfare facilities.
KT&G is contributing to the local community by creating a cumulative sum of about 4,800 new jobs since 2016, about 900 annually. It is also purchasing local tobacco leaves and supplies to add to economic activities.
KT&G has rigorously strengthened its social responsibilities as a corporate citizen and was rewarded with an AA grade in the ESG indices evaluation conducted by Morgan Stanley Capital International (MSCI) in February this year. KT&G was evaluated along with eleven other global tobacco companies and was rated higher than the grades of the global top 3 tobacco companies. Grades AA or higher are classified as ESG Leader in the industry.
An official at KT&G said, “We will continue to show active global social contribution activities to become a leading ESG company that creates positive changes. In particular, Indonesia and Korea have long been partner countries with active exchanges, which is why we plan to endeavor to help spur the Indonesian economy and increase social value through a locally-focused social contribution.”
SOURCE KT&G Corporation