Climate Change Data

Korea Aerospace Industries, Ltd.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:61,701 tCO2e/year (2022)
Scope 1 Emissions:14,512 tCO2e/year (2022)
Scope 2 Emissions:47,189 tCO2e/year (2022)
Scope 3 Emissions:1,269.7 tCO2e/year (2022)
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,246 TJ/year (2022)
Water Consumption:473,964 m3/year (2022)
Waste Generated:1,638.7 tons/year (2022)
Carbon Intensity:5.24 tCO2e/KRW billion (2022)

ESG Focus Areas

  • Climate Change
  • Social Responsibility
  • Governance

Environmental Achievements

  • Reduced greenhouse gas emissions by replacing 3,477 floodlights with LEDs (833 tons reduction)
  • Reduced greenhouse gas emissions by replacing 19 boilers and burners (877 tons reduction)
  • Achieved a 5.13% reduction in waste emissions compared to 2021
  • Achieved over 10% water recycling rate by 2022
  • Achieved a 1.1% reduction in electricity use and a 7% reduction in gas use compared to April 2022

Social Achievements

  • Recertified as a Family-friendly Business
  • Donated KRW 10 billion to the Korea Foundation for Cooperation of Large & Small Business
  • Donated KRW 5.2 billion annually to the Joint Labor Welfare Fund
  • Provided KRW 23.3 billion to 17 companies through its Business Crisis Emergency Fund
  • Provided training to 43 companies in 2021 and 50 companies in 2022 on fair trade practices
  • Provided paid vacation training to 5,500 partner employees (2020-2022)
  • Donated KRW 650 million for various social contribution activities

Governance Achievements

  • Enacted Corporate Governance Charter (April 2022)
  • Established the ESG Committee (April 2022)
  • Obtained ISO37001 (Anti-Bribery Management System) certification
  • Obtained ISO37301 (Compliance Management System) certification
  • Appointed a female director (March 2023)
  • Achieved 100% processing rate of cyber reporting

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero carbon emissions by 2050
Medium-term Goals:
  • Achieve 50% reduction in GHG emissions
  • Expand solar power generation
Short-term Goals:
  • Reduce waste generation by 3% by 2023
  • Reduce hazardous substance use by 3% in 2023
  • Complete ESG system for partners by 2025

Environmental Challenges

  • Climate change
  • Supply chain disruptions
  • High incidence of musculoskeletal disorders among employees (50%)
  • Securing manpower
Mitigation Strategies
  • Investing in solar power systems to achieve RE100
  • Developing eco-friendly aircraft using electricity and hydrogen fuel
  • Implementing various safety measures and training programs to reduce accident rates
  • Implementing win-win growth programs to support partners
  • Actively participating in the agreement on the voluntary reduction of fine dust
  • Strengthening supply chain ESG risk management
  • Improving the E-7 visa policy and holding an Aviation Job Fair to secure manpower

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Fair and transparent transactions
  • Four subcontracting practices: open competition, contracts for collaborative cooperation, transparent selection and management of partners, and written subcontract transactions

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of eco-friendly aircraft

Reporting Standards

Frameworks Used: GRI Standards 2021, AA1000AS (2008) v3, AA1000AP (2018)

Certifications: ISO 14001, ISO 45001, ISO 37001, ISO 37301

Third-party Assurance: Korea Productivity Center; Shinwha Engineering Architecture Co., Ltd. (Scope 3)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Eco-friendly aircraft
  • Advanced Air Vehicles (AAVs)

Awards & Recognition

  • Caring Company (Ministry of SMEs and Startups)
  • Excellent grade for 9 consecutive years in the Win-Win Growth Index evaluation

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:65,285 tCO2e/year
Scope 1 Emissions:17,824 tCO2e/year
Scope 2 Emissions:47,461 tCO2e/year
Scope 3 Emissions:1,569 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:174,294 tons/year
Waste Generated:1,750.44 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Replaced 3,477 high-efficiency LEDs, reducing 833 tons of GHGs
  • Replaced 19 aging boilers and burners, reducing 877 tons of GHGs with a 15% efficiency increase
  • Completed a government-supported solar power installation project in March 2024, expected to reduce GHG emissions by about 3,000 tons per year
  • Achieved energy management systems (ISO 50001) certification

Social Achievements

  • Promulgated a Human Rights Management Declaration
  • Increased maternity incentive payment system to a maximum of 30 million won
  • Recertified as a family-friendly company by the Ministry of Gender Equality and Family
  • Developed a program to train 5,400 talents from suppliers from 2019 to 2023

Governance Achievements

  • Institutionalized and stabilized the appointment of outside directors based on their expertise
  • Established and operated an ESG committee within the board of directors
  • Achieved compliance management systems (ISO 37301) certification
  • Became the first company in the domestic defense industry to be certified for information security management systems (ISO/IEC 27001)

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality
Medium-term Goals:
  • Achieving 100% Renewable Energy Procurement
  • Reduce waste generation by 3% year on year
Short-term Goals:
  • Reduce greenhouse gas emissions by 50% by switching to clean energy technologies
  • Create social value by respecting human rights and engaging with local communities
  • Establish transparent governance with a sustainable and responsible management system

Environmental Challenges

  • Increase in various disasters caused by climate change
  • Extreme conflicts between countries
  • Economic recession
  • Supply chain instability
Mitigation Strategies
  • Established an energy transition plan to achieve substantial carbon neutrality
  • Implemented investments in solar power generation
  • Actively engaging in independent and autonomous management activities in which the Board of Directors actively participates
  • Strengthening the responsible management activities of the Board of Directors to enhance sustainable corporate value
  • Developing a mid-to-long-term carbon neutrality strategy
  • Preparing to build an ESG data platform
  • Implementing ESG education for suppliers
  • Establishing social value measurement standards

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Performance-based cooperation system
  • ESG education, due diligence diagnosis, consulting, and monitoring of improvement activities to 10 suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Various disasters caused by climate change
Transition Risks
  • Regulatory changes
Opportunities
  • Development of eco-friendly electric and battery-based future mobility
  • Development of next-generation hydrogen-fueled aircraft

Reporting Standards

Frameworks Used: GRI Standards 2021, AA1000AS v3

Certifications: ISO 50001, ISO 14001, ISO 45001, ISO 37001, ISO 37301, ISO/IEC 27001

Third-party Assurance: Korean Standards Association; Samjong Accounting Corp. (financial data)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Advanced Air Vehicles (AAVs)
  • Eco-friendly electric and hydrogen-powered aircraft

Awards & Recognition

  • Thoughtful Corporation (Ministry of SMEs and Startups)
  • Excellent rating in the Shared Growth Index (9 consecutive years)