Climate Change Data

Environmental Metrics

ESG Focus Areas

• Stable oil production and supply
• Customer-oriented service
• Financial soundness based on management efficiency
• Future growth engines from new energy business
• Contribution to the development of local communities
• Risk management for oil development business
• Risk management for business partners’ sustainability
• Fair trade culture
• Protection of the rights of indigenous people near the workplace
• Privacy and information security
• Job creation and employment
• Win-win culture for shared growth
• Advanced safety and health management system
• Compliance with environmental laws and policies
• Prevention of soil and marine pollution due to oil spill
• Site safety and disaster response
• Energy saving and GHG emission reduction
• Employee training and capability improvement

Environmental Achievements

• Reduced GHG emissions by 113% over target in 2019
• Reduced VOCs emissions by 55.5% using optical inspection equipment
• Zero oil spills in the last 3 years at domestic workplaces
• Completed 275kW solar power generation facilities in Seosan, Donghae, and Yongin storage sites

Social Achievements

• Achieved zero accidents for 19 consecutive years in 10 domestic business sites
• Created 4,335 jobs in 2019 (118% of target)
• Increased purchases from local markets by 48% compared to the previous year
• Hired 16 disabled athletes in 2019
• Extended repayment period and reduced interest for economical gas stations suffering from financial problems due to COVID-19
• Donated KRW 200 million to vulnerable communities

Governance Achievements

• Enactment of the Human Rights Management Charter
• Establishment of 2019 basic safety plan
• Improved audit satisfaction score by 3.19 points compared to the previous year
• Zero corruption and ethical crimes

Climate Goals & Targets

Environmental Challenges

• Depletion of reserves due to continued production
• Increased water production blocking some reservoirs
• Low oil prices impacting profitability
• Geopolitical unrest in some operating regions
• COVID-19 pandemic impacting business operations and the global economy

Mitigation Strategies

• Re-analyzing reservoir models to find additional reserves
• Applying incremental hydrocarbon recovery techniques
• Implementing cost reduction measures (e.g., in-house maintenance, competitive bidding)
• Negotiating investment recovery agreements with KRG
• Launching a post-corona labor-management joint TF to establish future strategies

Supply Chain Management

Responsible Procurement

• Localization of parts and equipment for stockpile sites
• Support for SMEs to enter domestic and foreign markets

Climate-Related Risks & Opportunities

Opportunities

• Development of new and renewable energies
• Floating offshore wind farm project

Reporting Standards

Frameworks Used: GRI Standards (Core Options), ISO 26000, UN SDGs

Third-party Assurance: Lloyd’s Register

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 13

KNOC's initiatives contribute to these goals through various programs and projects related to energy access, job creation, infrastructure development, and climate change mitigation.

Awards & Recognition

• Grand Prize in the 2019 Job Creation Exemplary Management Prize of Korea
• Grand Prize in the 2019 Korea’s Most Trusted CEO Award (Communication Management Section)