Climate Change Data

NCSOFT Corporation

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:161,446 tCO2e/year (consolidated)
Scope 1 Emissions:680.5 tCO2e/year
Scope 2 Emissions:29,792.4 tCO2e/year
Scope 3 Emissions:130,977 tCO2e/year
Water Consumption:271,769 m3/year
Waste Generated:528 tons/year
Carbon Intensity:188.7 tCO2eq/KRW 10 billion in 2023

ESG Focus Areas

  • Human Capital Management
  • Information Security & Data Privacy
  • Business Ethics
  • Business Competitiveness
  • Corporate Governance
  • Environmental Management
  • Diversity & Inclusion in Content
  • User (Customer) Communication
  • Human Rights Management

Environmental Achievements

  • Achieved LEED GOLD certification for R&D Center and NC Tower I.
  • Replaced R&D Center lighting with LEDs, reducing energy consumption.
  • Reduced filter waste by 99% through reusable filters.
  • Implemented greywater recycling system, saving approximately 5,900㎥ of water in 2023.
  • Expanded GHG emission information and environmental impact reduction activities to domestic subsidiaries.

Social Achievements

  • Launched various employee well-being programs, including group counseling and mental health support.
  • Increased the number of female employees and leaders.
  • Implemented a variety of programs to support employees' challenges and growth through NC University.
  • Expanded the use of recycled fabric in NC Dinos jerseys and FSC-certified packaging.
  • Engaged in community initiatives such as tree planting and invasive species removal.

Governance Achievements

  • Established and implemented a robust ESG management system.
  • Maintained a steady dividend policy since 2014.
  • Conducted annual evaluations of the Board of Directors.
  • Improved the transparency and fairness of the procurement process through the NC E-Procurement Portal.
  • Implemented a comprehensive de-identification system to protect personal data during AI development.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050 (implied)
Medium-term Goals:
  • Expand the Human Rights Management System to subsidiaries and supply chain.
  • Achieve 30% renewable energy by 2030 (implied)
Short-term Goals:
  • Reduce LTIFR to 0.5 or less.

Environmental Challenges

  • Climate change related risks (physical and transition risks)
  • Data privacy risks associated with AI development
  • AI ethics risks
  • Potential for increased regulation of AI technologies
  • Unforeseen internal control risks, such as employee misconduct
Mitigation Strategies
  • Developed and implemented climate change response strategies.
  • Established a comprehensive de-identification system to protect personal data.
  • Developed and applied technology to address unethical or biased language in AI systems.
  • Established a regulatory response process for AI technologies.
  • Improved ethical management system, raised employee ethics awareness, and activated whistleblowing channels.

Supply Chain Management

Supplier Audits: 76 vendor and business partner checks completed in 2023

Responsible Procurement
  • Integrity pledge from suppliers.
  • Compliance with Integrity Contract clause in standard service contracts.
  • Integrated purchasing system.

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons, floods, wildfires, heat waves
Transition Risks
  • Strengthening climate-related policies and regulations
  • Increasing energy transition costs
  • Increased demand for GHG emissions information and reduction
Opportunities
  • Increased asset value of energy-efficient buildings
  • Reduced exposure to future fossil fuel price increases
  • Enhanced competitiveness by launching environmentally friendly products

Reporting Standards

Frameworks Used: GRI Standards 2021, K-IFRS, SASB, TCFD, IFRS Sustainability Disclosure Standards

Certifications: ISO/IEC 27001, ISO 27701, ISMS-P, CBPR, LEED GOLD

Third-party Assurance: BSI Group Korea

Sustainable Products & Innovation

  • Recycled fabric jerseys
  • FSC-certified packaging

Awards & Recognition

  • LEED GOLD certification