Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions (Scopes 1 & 2) by 3.1% from 2021 levels to 2,280 tCO2e in 2022.
• Reduced energy consumption by 2.9% from 2021 levels to 44.44 TJ in 2022.
• Installed building integrated photovoltaic (BIPV) systems in 2019, generating 0.82 TJ of renewable energy in 2022 (1.85% of total energy consumed at the new office building).
• Achieved ISO 45001 (Occupational Health and Safety) certification in October 2022.
• Launched the ‘Yes Green Campaign’ in June 2022, reducing disposable paper cup usage by 70% by December 2022.
• Strategic partnership with Forest Stewardship Council (FSC) in May 2022 for using FSC-certified paper.

Social Achievements

• Established DE&I (Diversity, Equity, and Inclusion) framework ‘IDEA Framework’ in April 2023.
• Implemented a horizontal corporate culture with open communication and a labor-management council.
• Launched the ‘Fan Etiquette Campaign’ in January 2023 to respect the human rights and safety of artists.
• Implemented various welfare programs for employees, including flexible work hours, family care system, and psychological counseling.
• Organized various CSR initiatives under the vision of “With People, With Music,” including YG WITH campaign, Project Yourside, YG BOPCHA (meal truck), and Naver Happybean donation campaigns.

Governance Achievements

• Established the ESG Committee in November 2022.
• Amended the ethics charter in December 2022.
• Achieved ISO 37301 (Compliance) & ISO 37001 (Anti-Bribery) Management System certifications in April 2023.
• Implemented a whistleblowing system (YG WBS).

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on business operations.
• Maintaining a diverse and inclusive workplace.
• Ensuring ethical and compliant business practices.
• Managing risks related to reputation, production, compliance, and artists.

Mitigation Strategies

• Developed a 2040 carbon neutrality roadmap, aiming for RE100 by 2025 and 65% GHG emission reduction by 2030.
• Established the DE&I framework ‘IDEA Framework’.
• Amended the ethics charter, obtained ISO 37301 and ISO 37001 certifications, and implemented a whistleblowing system.
• Implemented a comprehensive risk management system.

Supply Chain Management

Responsible Procurement

• Using FSC-certified paper and eco-friendly materials in album and merchandise production.
• Prioritizing vendors with environmental certifications.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Standards

Certifications: ISO 45001, ISO 37301, ISO 37001

Third-party Assurance: Korea Management Registrar (KMR)

Sustainable Products & Innovation

• Merchandise made from recycled materials
• Albums using eco-friendly materials

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital
• Corporate Governance

Environmental Achievements

• Reduced Scope 1, 2 greenhouse gas emissions by 7.7% in 2023 compared to 2022. Achieved a 49.5% reduction in Scope 1, 2 emissions intensity over three years (2021-2023).
• Reduced energy consumption by 7.7% in 2023 compared to 2022. Achieved a 48.2% reduction in energy intensity over three years (2021-2023).
• Obtained ISO 14001 certification in 2023.
• Replaced LNG-based cooling systems with EHP in some areas, reducing LNG usage by 17%.

Social Achievements

• Selected as a leading company in smoking cessation culture by the Seoul Smoking Support Center in 2023.
• Received the Minister of Culture, Sports and Tourism Award for its social contribution activity 'Project Yourside'.
• Obtained ISO 45001 certification in 2023 (first in the domestic entertainment industry).
• Launched 'YG WITH' campaign to encourage employee participation in volunteer activities.

Governance Achievements

• Designated as a KOSDAQ Global Company by the Korea Exchange in June 2024.
• Strengthened the independence and professionalism of the board of directors by appointing an outside director as chairman and appointing new outside directors with expertise in accounting, law, and investment.
• Established an ESG committee within the board of directors.
• Obtained ISO 37301 (Compliance) and ISO 37001 (Anti-bribery) management system integrated certification in April 2023.

Climate Goals & Targets

Environmental Challenges

• Increased costs due to extreme weather events (physical risk).
• Strengthening of greenhouse gas emission and climate disclosure regulations (transition risk).
• Increased energy purchase costs and potential legal/administrative penalties due to inadequate response to regulations.
• Potential negative impact on sales of albums/DVDs due to Scope 3 emission regulations.

Mitigation Strategies

• Established a 2040 carbon neutrality goal (including Scope 1 and 2) and a 2030 intermediate target of a 65% reduction in emissions compared to 2022.
• Planning to achieve RE100 by 2025 through renewable energy purchases and energy efficiency improvements.
• Developing alternative sourcing strategies and mitigation guidelines for natural disasters.
• Developing methodologies for calculating and reducing greenhouse gas emissions from concerts.

Supply Chain Management

Responsible Procurement

• Prioritizing suppliers with environmental certifications (e.g., FSC).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting concerts and filming.

Transition Risks

• Strengthening of greenhouse gas emission and climate disclosure regulations.

Opportunities

• Increased sales of low-carbon, eco-friendly products.

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, KSSB (Korea Sustainability Reporting Standards)

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

Third-party Assurance: Korea Management Certification Institute (KMR), Lloyd's Register (LRQA)

Sustainable Products & Innovation

• Albums using FSC-certified paper and soy ink; packaging using PLA material.

Awards & Recognition

• Minister of Culture, Sports and Tourism Award (Project Yourside)
• Seoul Smoking Support Center Award (Smoking Cessation Culture)