KaKao

- ESG Committee approved Kakao’s principles to respond to global climate change, aiming to contribute to social sustainability through Kakao services.

- Kakao plans to implement Net Zero (zero greenhouse gas emissions) by 2040.

- Kakao will prepare action plans enabling participation by partners, users and the members of the society.

- Kakao makes efforts to secure public trust by joining global environmental initiatives including SBTi.

 

[April 28, 2022] Kakao, led by Namgoong Hoon, is stepping up its ESG management efforts.

 

Kakao developed its principles to respond to the climate change, and announced the Active Green Initiative, a commitment to play active roles in addressing environmental issues. participate in the global trend of pursuing sustainable goals. Going beyond reducing the company's carbon emissions, the company presented a goal to contribute to social sustainability through Kakao's various services used by people across the country. In addition, Kakao is planning to implement Net-Zero aiming to cut greenhouse gas emissions to zero (carbon-zero) by 2040.

 

Kakao has recently obtained the ESG Committee’s approval on Kakao’s principles to counter climate change, of which central plank is Net Zero. Kakao’s Net Zero means that by 2040, the emissions of six major greenhouse gasses that cause global warming, including carbon dioxide, will be equal to the emissions absorbed through Kakao's technology, services and policies, making net emissions zero. Along with it, the company also established three principles of the Active Green initiative - ▲Within Kakao: Making efforts to reduce carbon emission within KakaoGroup, ▲Through Kakao: Encouraging Kakao’s partners and users to contributing to environmental preservation while using Kakao services, and ▲ With Kakao: Participating in eco-friendly activities through collaboration with various stakeholders.

 

Kakao will aggregate the eco-friendly impacts made by the Active Green Initiative and disclose its status and related information in the Kakao Carbon Index as a way to verify the impacts transparently and systematically.

 

‘Kakao Carbon Index’ is data that quantifies KakaoGroup's environmental contribution activities in terms of carbon reduction. Kakao plans to set reduction targets annually based on the total carbon reduction amount identified through the index. For Kakao Pay, it replaced 126 million invoices and paper documents from the launch of its electronic document service in February 2016 until the end of 2021, which translates to a carbon reduction of 378,000 kg. As for Kakao Mobility, reduction effects such as reducing taxi operations and converting taxis to electric vehicles in Kakao Mobility are also measured in a single unit of carbon reduction and included in the index. Also, raising funds for the planting of approximately 65,000 trees in wildfire-damaged areas in Gangwon Province and Uljin, North Gyeongsang Province, organized by Kakao Together, are also reflected in the index by calculating carbon reduction per tree, contributing to the overall measurement of KakaoGroup’s activities contributing to environmental preservation.

 

The company is also considering ways for users to easily empathize with climate change adaptation and participate in various eco-friendly activities. It plans to explore the use of a carbon footprint calculator based on the Kakao Carbon Index, through which individuals can verify the amount of carbon they have saved while using Kakao platforms or services, as well as considering rewards for eco-friendly action verification.

 

Kakao actively promotes communication with global environmental organizations to ensure that its climate crisis response activities are in line with global standards. Kakao is currently working towards joining global environmental initiatives such as 'RE100 (Renewable Energy 100%)' and 'SBTi (Science Based Targets initiative)'. As the first company in the domestic internet industry, Kakao is applying for membership in SBTi to verify and achieve greenhouse gas reduction targets in a more systematic and scientifically validated manner.

 

RE100 is a campaign led by the global non-profit organization Climate Group and the global environmental management certification Carbon Disclosure Project, with the goal of sourcing 100% of corporate electricity consumption from renewable energy by 2050. SBTi, on the other hand, is a global initiative aimed at setting and validating companies' greenhouse gas reduction targets scientifically to comply with the Paris Agreement.

 

Hong Eun-taek, Kakao's ESG (Environmental, Social, and Governance) Head, stated, "In light of the 'Active Green initiative' declaration, Kakao plans to actively explore ways in which all members of our society, including Kakao users and partners, can contribute to environmental sustainability." He further emphasized, "As part of our ESG management, we will continue to collaborate with communities to address climate change persistently." (End)