Climate Change Data

Environmental Metrics

ESG Focus Areas

• 5G Leadership
• Platform Businesses
• Future Competency Technology Competitiveness
• GHG Emission Reductions
• Renewable Energy
• Smart Energy Platform Services
• Employee Capabilities
• Supply Chain Sustainability
• Social Innovation

Environmental Achievements

• Included in Carbon Management Hall of Fame for two consecutive years in the Carbon Disclosure Project (CDP)
• Reduced GHG emissions (Scope 1,2)

Social Achievements

• Ranked first in the Sustainable Development Goals Business Index (SDGBI) for three consecutive years
• Actively participating in the implementation of the United Nations' Sustainable Development Goals (SDGs)
• Number of beneficiaries on IT Supporters and KT Sound Finding programs

Governance Achievements

• Established a 'Sustainability Management Committee' in the board of directors
• Established compliance management to prevent corruption and bribery
• High Board of Directors evaluation score

Climate Goals & Targets

Environmental Challenges

• Sophisticated and intelligent security threats
• Maintaining network stability
• Ensuring customer information protection

Mitigation Strategies

• Comprehensive network control centering on network control centers and 24/7 monitoring
• Detailed inspection of important telecommunication facilities and establishment of a disaster response plan
• Applying optimal technical and managerial protective measures to prevent customer information leakage
• Strengthening customer information protection system based on ICT technology

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, CDP, UN SDGs

Awards & Recognition

• Carbon Management Hall of Fame (CDP)
• 1st Rank in Wire/Internet Phone, IPTV, and High-Speed Internet for multiple consecutive years

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions (Scope 1: 36,059 tCO2 eq; Scope 2: 1,185,659 tCO2 eq; Scope 3: 464,378 tCO2 eq in 2020)
• Operation of PV power stations in 82 locations with a total capacity of 7.36 MW
• Installation of a 900 KW-class fuel cell power station in Daegu Logistics Center
• IDC in Yongsan, Seoul started using energy optimization from the design stage

Social Achievements

• Operation of five workplace childcare centers
• KT e-mentoring program for middle school students
• IT SUPPORTERS program for strengthening people’s digital capability
• Sarang series of programs encouraging employees to help small businesses

Governance Achievements

• Election of a female outside director to expand diversity in the Board of Directors
• Established an independent Environmental Management Committee

Climate Goals & Targets

Environmental Challenges

• Financial risks of about KRW 16 billion by 2025 and about KRW 80 billion due to the lack of carbon emission credits if GHG reduction efforts are not made.
• Data security risks related to customer information

Mitigation Strategies

• Setting emission reduction targets to respond to scenarios presented by the IPCC
• Systematization of customer information protection management and various services of customer information protection

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Emissions trading system (ETS)

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, AA1000AS v3

Third-party Assurance: Korea Management Registrar (KMR)

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13

KT plans to contribute to realization of the UN SDGs by facing challenges, getting a grasp of future business opportunities, and strengthening sustainability value.

Awards & Recognition

• A.N.D. Award Digital Media & Service Grand Prix
• Korea Brand Hall of Fame
• Stevie Awards
• K-BPI First rank in IPTV
• Stevie Award KMAC
• Red Dot Design Award 2021
• iF Design Award 2021
• Mobile Platform Award
• NCSI First rank in landline and IP telephone
• GLOMO Awards
• GEPP(Global Epidemic Prevention Platform) GSMA
• Korea Brand Hall of Fame First rank in IPTV and Kid Content
• K-BPI First rank in high-speed Internet
• NCSI First rank in communication/Internet
• INNOSTAR Top innovation product IPTV
• KSQI_Call Center
• KT Giga Internet Top award
• Korea Service Awards Grand Prize
• National Brand Competitiveness Index Top award
• Stevie Awards International Business Grand Prize
• 5G World Award Best 5G Innovation Award
• Best Communication Service Innovation Award
• Korea Sustainability Readers' Choice First rank
• Korea Safety Technology Award
• Commendation from the Minister for Contribution to Cloud Industry Development

Environmental Metrics

ESG Focus Areas

• Securing network stability
• Creating social value through social contribution
• Strengthening corporate competitiveness through DIGICO transformation
• Protecting customer information and cyber security (digital responsibility)
• Energy efficiency and renewable energy
• Establishment of ethics and integrity-based management
• Customer value innovation using ABC technology

Environmental Achievements

• Joined RE100 with a goal to use 100% renewable energy by 2050
• Established PV power stations generating 8,804 MWh of power annually
• Achieved 10% energy saving with AI building operator
• Developed and piloted AI IDC operator saving 4% electricity
• Developed corporate-wide GHG monitoring system

Social Achievements

• Joint support for small business owners through Gwanghwamun One-Team
• Support for caregiving services for socially marginalized people using KT care robot
• Establishment of code of conduct and responsibility standards for partners
• Provision of IoT hard hats
• Fostering of social enterprises using ABC technology
• Creation of social value through collaboration with startups and SMEs
• Launched KT e-mentoring program with 1,735 student participants

Governance Achievements

• Acquired A+ in governance from Korea Corporate Governance Service (KCGS) in 2021
• Discovery of affiliates’ governance items with potential for improvement and support for the improvement
• Providing customized consulting for affiliates, contributing to early improvement in compliance management
• Launching response to KCGS ESG assessment at KT Group level
• Launching group-level compliance support council and working-level council
• Launched JIUGAE campaign to protect the earth, us and individuals

Climate Goals & Targets

Environmental Challenges

• Regulations on GHG reduction
• Environmental change (natural disasters, rising temperatures)
• Global supply bottlenecks caused by COVID-19
• Semiconductor shortage
• Growth of the MVNO market

Mitigation Strategies

• Established mid- and long-term roadmap for coping with ETS
• Operate nationwide monitoring system for network equipment and promptly respond to failures
• Increase investment to improve human and physical infrastructure
• Strengthen safety management system
• Identify semiconductor supply shortage and analyze its impact early
• Diversify parts manufacturing regions and vendors
• Differentiate MNO’s own services

Supply Chain Management

Supplier Audits: 370 partners subject to ESG assessment

Responsible Procurement

• Partner Code of Conduct and Guidelines on Implementation
• Mandatory ISO 45001 certification

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters
• Rising temperatures

Transition Risks

• Regulations on GHG reduction
• Emissions trading system (ETS)

Opportunities

• Development of energy-efficient products and services
• Expansion of renewable energy

Reporting Standards

Frameworks Used: GRI, UNGC, TCFD, SASB, K-ESG

Certifications: ISMS-P, ISO 45001

Third-party Assurance: Korea Management Registrar (KMR)

UN Sustainable Development Goals

• Goal 4
• Goal 9
• Goal 3
• Goal 10
• Goal 12
• Goal 13
• Goal 8
• Goal 5
• Goal 7

KT's initiatives contribute to these goals through various programs and activities

Sustainable Products & Innovation

• AI building operator
• AI IDC operator
• Cloud BEMS
• Safe Internet
• AI Call Assistant
• Mind-Talk application

Awards & Recognition

• Korea Corporate Governance Service (KCGS) A+ rating
• Global Sustainable Leaders 100
• AAA in SRC assessment by UN Association for Supporting SDGs
• Highest corporate credit rating
• KS-QEI first place in three categories for two consecutive years
• Contact center innovation award

Environmental Metrics

ESG Focus Areas

• Securing network stability
• Strengthening corporate competitiveness through future technology
• Addressing climate change
• Creating social value through social contribution
• Establishing a system for the management of ethics and integrity
• Securing digital inclusiveness

Environmental Achievements

• Companywide GHG reduction k tons
• Built 16 new solar power sites; a total of 100 centers in operation (8MW/year)
• Reduced scope 1 emissions by 0.8% and 4.7% less than the target
• Reduced scope 2 emissions by about 35,600 tCO2eq, despite a 3.5% increase in electricity use due to 5G network equipment and IDC server upgrades
• Reduced waste generated by 4% year-on-year; 39.9% of waste recycled
• Reduced energy consumption by 2.1% less than the target

Social Achievements

• Digital divide education for 45,000 trainees (3.73 million in total)
• Added an AI coding course to E-mentoring; closed the learning gap for 3,300 people
• Celebrated the 20th anniversary of Reverse Hearing Loss
• AIVLE School trained 600 people in 2022 (6 months, 840 hours per person); 81% job placement rate
• Launched the ‘Digital Citizen’ project
• Led in resolving community issues through ‘Gwanghwamun One Team 2.0’
• Fostered ESG startups and strengthened the support system

Governance Achievements

• Implemented a diagnosis of the KT compliance system with the assistance of an external expert organization
• Provided consulting on compliance to group companies; 11 companies completed integration
• Extended the compliance platform to group companies; 25 Group companies completed integration
• Expanded the ESG management of KT Group and strengthened labor-management cooperation
• Helped improve the governance of group companies
• Supported listed companies of the group in responding to ESG evaluations

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change impacts (physical and transition risks)
• Increasing electricity costs due to failure to invest in new network technologies
• Lower revenues due to reduced consumer demand for energy-intensive products/services
• Lack of climate change action could lead to customer attrition and decline in stock prices
• Damage restoration costs incurred when network equipment fails due to extreme weather
• Increased cost of cooling telecommunication equipment due to higher average temperatures

Mitigation Strategies

• Developed alternative sourcing strategies
• Established a company-wide integrated management system for greenhouse gases
• Participated in new regulatory adoption councils
• Pursue objective data collection and disclosure to meet disclosure standards
• Continue to identify and apply network electricity reduction solutions
• Increase energy efficiency with continuous energy savings
• Continue to take action on climate change by reducing energy use, using renewable energy, etc.
• Strengthen communication with external stakeholders
• Monitor the operation of network equipment nationwide and establish a rapid response system
• Continue to drive cooling efficiency by introducing high-efficiency chillers, automating systems for cooling, etc.

Supply Chain Management

Supplier Audits: 395 companies/year (84% coverage)

Responsible Procurement

• Supplier Code of Conduct
• Guidelines on Implementation
• Mandatory ISO 45001 certification for infrastructure building suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Damage to network equipment

Transition Risks

• Regulatory changes
• Market shifts
• Rising electricity costs
• Reduced consumer demand

Opportunities

• Resource efficiency
• Renewable energy sources
• Low-carbon products and services
• Government-led expansion of energy efficiency and renewable energy market

Reporting Standards

Frameworks Used: GRI Standards 2021, AA1000AS v3, TCFD, SASB, UNGC, K-ESG

Certifications: ISMS, ISMS-P, ISO 45001

Third-party Assurance: Korea Management Registrar (KMR)

UN Sustainable Development Goals

• Goal 4
• Goal 9
• Goal 3
• Goal 10
• Goal 12
• Goal 13
• Goal 8
• Goal 5
• Goal 7

KT's activities contribute to these goals through various initiatives such as education programs, support for SMEs, occupational safety and health measures, bridging the digital divide, eco-friendly campaigns, climate change response, social contribution programs, gender equality initiatives, and renewable energy expansion.

Sustainable Products & Innovation

• Eco-friendly set-top boxes
• AI Call Assistant
• Hyperscale AI Mi:dm

Awards & Recognition

• Korea Sustainability Report Award
• Korea ESG Ranking 120 (No. 1)
• CDP Hall of Fame Platinum Club
• KS-CQI Best Call Center (consecutive years)
• Korea’s Sustainability Report Award (consecutive years)
• Maekyung Media Group Korea Accounting Awards Grand Prize
• WBA Best WiFi network provider
• Glotel Awards Best Telco
• ACA Asia Communications Awards 5G, Telco of the Year
• Korea Brand Hall of Fame
• WCA World Communications Awards (consecutive years)
• Network X Awards
• Minister of Health and Welfare Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Eco-friendly innovations in the value chain to achieve carbon neutrality
• Improved energy efficiency through technology development
• Reducing electricity consumption by efficiently operating telecommunications infrastructure
• Establishing a low-carbon supply network
• Transition to renewable energy

Social Achievements

• Enhanced social responsibility activities, such as Reverse Hearing Loss, to realize an inclusive society
• Development of AI-powered systems to prevent spam and voice phishing scams
• Promoting digital and social inclusion, providing education for digitally vulnerable groups
• Stronger communication with partner companies enabling shared growth

Governance Achievements

• Established advanced governance and stably operating our business
• Established the new Responsible AI Center, and are actively working to form an AI governance system
• More robust shareholder return policy
• Stronger supervisory role of the external directors-centered Board of Directors cultivates sound compliance and ethical management
• Following the recommendation for corporate governance standards that satisfy international standards to improve corporate value and protect the interests of shareholders

Climate Goals & Targets

Environmental Challenges

• Management crisis in 2023
• Rapidly evolving technologies and the resulting opportunities and challenges

Mitigation Strategies

• Turning the management crisis into an opportunity by establishing advanced governance and stably operating the business
• Accelerating transformation to an AICT company and securing a growth engine for the future
• Innovating business structure based on AI
• Focusing on talent acquisition and development to respond to and lead changes in the AI era
• Establishing the Responsible AI Center and forming an AI governance system

Supply Chain Management

Responsible Procurement

• Establishing a low-carbon supply network

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Launched AX Degree, an AI literacy-strengthening program for employees, with over 9,800 participants and 603 graduates in 2023.
• Launched AI Certificate for Everyone (AICE), an AI education program used in numerous companies, universities, and schools, with over 15,000 participants.
• Developed Rangtalk, an AI-powered call report service for teachers to communicate with parents without revealing personal phone numbers.
• Implemented AI-powered spam blocking, achieving 99% accuracy and reducing spam-related work time by half.

Governance Achievements

• Established a new governance system for AI safety and reliability, including the Responsible AI Center (RAIC).
• Published a white paper on AI ethics with telecommunications companies in Korea, China, and Japan.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities