Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Digital Safety
• User Protection
• Data Privacy and Security
• Service Reliability
• Digital Accessibility
• Human Rights and Diversity
• Employee Well-being
• Win-Win Partnerships
• Social Impact
• Corporate Governance
• Risk Management
• Ethical Management and Compliance

Environmental Achievements

• Doubled renewable energy consumption compared to the previous year.
• Achieved 100% renewable energy for two consecutive years at its Jeju office.
• Completed eco-friendly designed Kakao Data Center Ansan.
• Obtained GRS certification to improve eco-friendly e-commerce.
• Launched user-participatory upcycling project ‘Saegaburch’.
• Reduced Scope 1+2 emissions through the replacement of outdated equipment and the introduction of high-efficiency equipment.

Social Achievements

• Published the ‘2023 Kakao Diversity Report,’ the first of its kind in the domestic IT industry.
• Launched ‘KakaoTalk made easier guide’ for digital novices.
• Increased information security investment and personnel (investment up by 49%, personnel up by 69%).
• Surpassed a cumulative donation amount of KRW 74.3 billion through Kakao Together.
• Surpassed KRW 30 billion in cumulative transactions for agricultural and fishery products through the Kakaomakers ‘Saegaburch’ project.
• Provided digital transformation support programs for small business owners.
• Dangol Market project received the Presidential Award.

Governance Achievements

• Established a Compliance and Trust Committee.
• Enhanced board independence (increased the ratio of independent directors to 62.5%).
• Established and managed Risk Management Governance Structure via the establishment of an ERM Committee.
• Improved voluntary free-trade compliance systems (especially for the commerce sector).

Climate Goals & Targets

Environmental Challenges

• Concerns among stakeholders regarding trust and reliability.
• Supply and price instability of renewable energy.
• Reduced operational stability of data centers due to water resource depletion.
• Incurring social costs in case of infringement of user privacy.
• Diminished service quality and societal conflict due to compromised diversity and biased viewpoints.
• Incurring fines and other costs due to strengthened domestic and international regulations related to human rights.
• Generating negative experiences among stakeholders due to internal risks.
• Negative impact on corporate sustainability due to the decline in board performance.
• Causing negative impacts if the societal implications of technology are not considered.
• Increased costs due to rising industrial electricity prices.
• Increased costs due to increased demand for eco-friendly products and services from consumers.
• Decreased brand value due to inadequate climate change adaptation.
• Reduced investment amount due to inadequate climate change adaptation.
• Increase in extreme weather events such as typhoons, heavy rainfall, and heatwaves.
• Gradual increase in annual mean temperature.

Mitigation Strategies

• Strengthened service stability and engaged in collaborative activities with various stakeholders.
• Augmented investment in information security by 48.8% compared to the previous year.
• Conducted a comprehensive company-wide disaster recovery drill.
• Established a Compliance and Trust Committee.
• Enhanced board independence.
• Established an integrated risk management system.
• Improved voluntary free-trade compliance systems.
• Developed and implemented the T.R.U.S.T framework for stability management.
• Established a robust compliance and trust management framework.
• Developed strategies and roadmaps to achieve Net Zero by 2040.
• Transitioned Jeju office to 100% renewable energy usage and 10% for Pangyo office.
• Launched Kakao Carbon Index beta and established its criteria.
• Implemented user-engaging recycling project ‘Saegaburch’.
• Developed and operated additional services with eco-friendly features.
• Managed Kakao Carbon Index performance.
• Established marine environment improvement and forest restoration fund.
• Created funds for the conservation of endangered species and bees.
• Implemented various preventive content pieces.
• Established a system that detects and warns against suspected financial fraud activities.
• Operated a 24/7 illegal video reporting center.
• Implemented a comprehensive security support system.
• Operated a bug bounty program.
• Operated a 24/7 security control center.
• Conducted regular and improvised simulation exercises.
• Implemented a commercial ASM system and operated a proprietary ASM system.
• Conducted company-wide disaster recovery simulation exercise.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• ESG Self-Checklist
• ESG compliance audits

Climate-Related Risks & Opportunities

Physical Risks

• Increase in extreme weather events
• Gradual increase in annual mean temperature

Transition Risks

• Policy and regulatory changes
• Uncertainty in the supply and price of renewable energy
• Increased costs due to rising industrial electricity prices

Opportunities

• Transition to eco-friendly data centers
• Cost reductions resulting from emission management
• Revenue expansion through the promotion of environmentally friendly product sales and purchases
• Compliance with electricity supply regulations

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Internet Media & Services Industry Standards, UN Global Compact's 10 principles, UN SDGs

Certifications: ISO 14001, AA1000AS v3 Moderate Level, Type 2, GRS

Third-party Assurance: BSI Korea

Sustainable Products & Innovation

• Reusable cup made from bamboo fiber
• Reusable wine glass set
• 2023 diary using recycled paper and soy-based ink
• Eco-friendly stationery products
• Mugs made from bio-based materials

Awards & Recognition

• CDP Korea’s Sector Leaders Award
• Presidential Recognition for Dangol Market project
• CDP Leadership A rating
• S&P Global’s Corporate Sustainability Assessment (Top 1%)
• Korea Workers’ Compensation and Welfare Service Childcare Contest awards