– Focused on “Society” (S) in Environment, Society and Governance (ESG), the company carries out various social contribution activities
– Rated higher in ESG than the world’s 3 largest tobacco companies
Seoul, South Korea, August 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 rating indices begin to have a direct impact on companies’ business activities, such as financing and sales.
The Korean tobacco group KT&G, which this year celebrated its tenth anniversary of entering the Indonesian market, has also made its best efforts to strengthen 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 sales by 5,000 billion KRW, the highest since its inception. To become a global corporate giant, KT&G is strategizing to exceed its financial value to maximize non-financial value encompassing environment, society and governance.
As a global corporate citizen, KT&G has various ongoing social contribution projects to fulfill its social responsibility not only in Korea, but also in countries where it has overseas offices. In Indonesia, the company operates “Sangsang Univ”, “Korean Language Center”, “Job Training Center” and other sustainable social platforms to help empower young people and help socially neglected classes 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 of cultural exchanges between the two countries. In the same year, the company started running a student community called “Sangsang Univ Indonesia” to provide young people with free opportunities to develop their talents as future engines of the national economy.
In addition, KT&G funds “Coffee Lab”, a vocational training center for coffee, to help indonesia the coffee industry is growing and creating more jobs, Indonesia is one of the four largest coffee producers in the world. In March 2021, KT&G established the “KT&G Vocational Training Center in Indonesia” within Universitas Kristen Cipta Wacana to initiate free technical training for low-income families. KT&G plans to hold textile technology training until September next year for local low-income families and young people in welfare institutions.
KT&G contributes to the local community by creating a cumulative amount of approximately 4,800 new jobs since 2016, or approximately 900 per year. She also buys tobacco leaves and local supplies to increase economic activities.
KT&G has rigorously reinforced its social responsibilities as a corporate citizen and was awarded an AA rating in the ESG Index Assessment conducted by Morgan Stanley Capital International (MSCI) in February of this year. KT&G has been rated with eleven other global tobacco companies and has been rated higher than the ratings of the world’s top 3 tobacco companies. AA grades or above are classified as an ESG leader in the industry.
A KT&G official said, “We will continue to show active global social contribution activities to become a leading ESG company that creates positive change. Specifically, Indonesia and Korea have long been partner countries with active exchanges, which is why we plan to strive to help boost the Indonesian economy and increase social value through locally focused social contribution.
SOURCE KT&G Corporation