Climate Change Data

KCI LIMITED

Climate Impact & Sustainability Data (2020, 2021, 2022)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:5966.76 tCO2eq/year (Scope 1 & 2)
Scope 1 Emissions:2499.86 tCO2eq/year
Scope 2 Emissions:3466.90 tCO2eq/year
Renewable Energy Share:0%
Total Energy Consumption:19224.56 MWh/year
Water Consumption:15.93 ML/year
Waste Generated:1853 tons/year

ESG Focus Areas

  • Product sustainability
  • Customer value creation
  • Sustainable supply chain management
  • Business portfolio expansion
  • Risk management
  • Human rights
  • Climate change action
  • Labor and work-life balance
  • Ethics and integrity
  • Information security and personal information protection
  • Training and evaluation
  • Governance
  • Stakeholder engagement
  • Contribution to local community

Environmental Achievements

  • Received COSMOS Approved certification
  • Improved energy efficiency by suspending operation of old facilities, introducing inverters, high-efficiency pumps, and LED lighting; improving insulation and waste heat recovery
  • Achieved 95% waste recycling rate
  • Maintained zero chemical spills and environmental law violations

Social Achievements

  • Implemented a flexible working system, including work-from-home options
  • Provided a shortened work hour system for pregnant employees
  • Improved welfare facilities, including shower rooms
  • Implemented a customer satisfaction survey
  • Obtained Halal certification

Governance Achievements

  • Complied with laws, articles of incorporation, and Board of Directors regulations
  • Compulsory appointment of outside directors to secure independence and diversity
  • Regular board meetings held quarterly
  • Implemented ethical management principles and action guidelines

Climate Goals & Targets

Long-term Goals:
  • Zero occupational accident, general accident, accident rate, and process accident by 2030
Medium-term Goals:
  • Reduce GHG emissions by 20% from 2014 levels by 2030
  • Reduce energy usage by 20% per production unit by 2030 compared to 2018 levels
  • Conduct CSR evaluation and on-site audits of all key suppliers by 2030
  • Achieve zero violations against ethics and anti-corruption by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Economic downturn and disruption due to COVID-19
  • Global political uncertainty and the resurgence of COVID-19
  • Potential risks from climate change impacting raw material supply (e.g., El Niño)
  • Potential damage to facilities from extreme weather events
  • Growing demand for eco-friendly and safe products from stakeholders
Mitigation Strategies
  • Risk diversification through overseas market strategy
  • Active R&D activities
  • Long-term supply contracts and dual sourcing of raw materials
  • Investment in energy efficiency improvements
  • Development of eco-friendly products using natural ingredients, RSPO/COSMOS certifications

Supply Chain Management

Supplier Audits: Comprehensive evaluation of suppliers in areas such as quality, process, environment, labor, safety, and health

Responsible Procurement
  • RSPO certification for responsible palm oil purchasing
  • KCI Sustainability Policy based on RSPO principles
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (scorching heat, heavy snow, rain)
  • Impacts on production facilities
Transition Risks
  • Changes in domestic policies and laws
  • Shifting stakeholder behaviors
  • Disruption to raw material supply
Opportunities
  • Development of energy-efficient products
  • Expansion of low-carbon and eco-friendly product lines

Reporting Standards

Frameworks Used: GRI Standards (Core Option), TCFD, SASB, UN SDGs

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 22716, COSMOS Approved, Halal (MUI), RSPO

Third-party Assurance: Marcspon

Sustainable Products & Innovation

  • Products using bean or rape flower extracts
  • COSMOS and RSPO certified products

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:5,435.04 tCO2e/year (Scope 1+2)
Scope 1 Emissions:2,211.67 tCO2e/year
Scope 2 Emissions:3,223.37 tCO2e/year
Scope 3 Emissions:6,304 tCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:18,059.53 MWh/year
Water Consumption:30.99 ML/year
Waste Generated:1,690.31 tons/year
Carbon Intensity:0.57 tCO2eq/ton (Scope 1+2)

ESG Focus Areas

  • Climate Change
  • Resource Use and Emission
  • Customer-centric Management
  • Occupational Health and Safety
  • Sustainable Products and Operations
  • Supply Chain Management
  • Labor-Management Cooperation and Personnel Development
  • Information Security
  • Human Rights Protection
  • Business Diversification through Innovative Management
  • Ethical Management and Legal Compliance
  • Governance

Environmental Achievements

  • Achieved EcoVadis Gold level certification in sustainability (CSR) assessment (top 5%)
  • Reduced greenhouse gas emissions (Scope 1+2) from 5,666.76 tCO2eq in 2020 to 5,435.04 tCO2eq in 2021
  • Introduced indirect evaporative cooling equipment (IEC) to reduce energy consumption and greenhouse gas emissions.

Social Achievements

  • Launched Total Productive Maintenance (TPM) activities for production innovation.
  • Introduced company shuttle bus for employees at Daesan plant.
  • Improved employee facilities (locker rooms and break rooms) at Daesan plant.
  • Implemented flexible work-from-home system (50% of office staff during COVID-19).

Governance Achievements

  • Published second sustainability report.
  • Joined UN Global Compact (UNGC).
  • Strengthened board independence and expertise.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Reduce greenhouse gas emissions by 20% by 2030 (compared to 2020 levels).
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Supply chain disruptions due to climate events (e.g., 2015 El Niño)
  • Increasing environmental regulations.
  • Customer demand for sustainable products.
  • Cybersecurity threats.
Mitigation Strategies
  • Developed alternative sourcing strategies (e.g., dual sourcing of raw materials).
  • Implemented energy efficiency improvements (e.g., replacing pumps with high-efficiency models, LED lighting).
  • Increased R&D investment in sustainable products (e.g., natural-derived emulsifiers).
  • Strengthened information security systems (e.g., document security system, spam filtering system).

Supply Chain Management

Supplier Audits: 5 key suppliers audited annually

Responsible Procurement
  • Supplier CSR assessment
  • RSPO certification for palm oil
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Supply chain disruptions
Transition Risks
  • Changes in environmental regulations
  • Shifting market demands for sustainable products
Opportunities
  • Development of energy-efficient products
  • New market opportunities in sustainable products

Reporting Standards

Frameworks Used: GRI Standards (Core Option), TCFD, SASB, UN SDGs

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 22716, COSMOS Approved, HALAL, RSPO Mass Balance

Third-party Assurance: Markspon

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Polyglycerin ester products
  • RSPO and COSMOS certified products

Awards & Recognition

  • EcoVadis Gold

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:5,652 tCO2e/year (2022)
Scope 1 Emissions:2,211.67 tCO2e/year (2022)
Scope 2 Emissions:3,376.86 tCO2e/year (2022)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:112.62 TJ/year (2022)
Water Consumption:18.74 ML/year (2022)
Waste Generated:1,539.10 tons/year (2022)
Carbon Intensity:0.53 tCO2e/ton (2022)

ESG Focus Areas

  • Climate Change
  • Environmental Management
  • Resource Use and Pollutant Emissions
  • Green Product Investment
  • Customer-centric Management
  • Safety and Health Prevention Activities
  • Product Sustainability Enhancement
  • Sustainable Supply Chain Management
  • Human Rights Management and Talent Development
  • Business Structure Enhancement through Innovative Management
  • Ethical Management and Legal Compliance
  • Transparent Information Disclosure

Environmental Achievements

  • Reduced greenhouse gas emissions by approximately 30% from 2020 to 2022 (Scope 1+2)
  • Achieved EcoVadis Gold rating (top 5%)
  • Converted all diesel forklifts to eco-friendly electric forklifts
  • Increased investment in environmental facilities to reduce pollutants
  • Expanded COSMOS Approved certified products

Social Achievements

  • Launched various employee well-being programs (childcare support, family allowance, health checkups, etc.)
  • Maintained high employee satisfaction (81.48 points)
  • Strengthened customer communication channels
  • Implemented Total Productive Maintenance (TPM) for continuous production process innovation
  • Expanded Halal-certified products

Governance Achievements

  • Established an ESG Committee in 2023
  • Introduced electronic voting system in 2023
  • Improved employee work environment through office relocation
  • Strengthened ethical management and legal compliance systems
  • Enhanced transparency in information disclosure

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Reduce greenhouse gas emissions by 20% by 2030 (compared to 2020)
  • Reduce water, air pollutants, and waste by 20% by 2030 (compared to 2020)
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Climate change impacts on production facilities
  • Supply chain disruptions due to climate events
  • Increasing demand for eco-friendly products
  • Maintaining customer satisfaction amidst changing market demands
  • Ensuring worker safety and health
  • Managing risks related to chemical handling and environmental regulations
Mitigation Strategies
  • Developed a 2050 carbon neutrality roadmap
  • Implemented energy efficiency improvements (LED lighting, insulation, waste heat recovery)
  • Developed alternative sourcing strategies
  • Increased investment in R&D for eco-friendly materials
  • Strengthened safety and health management systems (ISO 45001 certification)
  • Established a robust risk management system
  • Enhanced communication and engagement with stakeholders

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • ESG purchasing policy
  • Supplier Code of Conduct
  • RSPO certification

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Natural disasters
Transition Risks
  • Changes in environmental regulations
  • Shifting market demands for sustainable products
Opportunities
  • Development of energy-efficient products and processes
  • Expansion into new markets for sustainable products

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Global Compact, TCFD, SASB

Certifications: ISO 14001, ISO 45001, COSMOS Approved, HALAL, RSPO Mass Balance

Third-party Assurance: Korea Management Certification Institute (KMR)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Dimethyl Isosorbide (DMI)
  • Polyglycerin ester series
  • Guar Polymer
  • COSMOS Approved products

Awards & Recognition

  • Hidden Champion (Korea Eximbank)
  • Jang Yeong-sil Award
  • 30 Million USD Export Tower Award
  • 50 Million USD Export Tower Award
  • Korea Chamber of Commerce and Industry Corporate Innovation Award