#South Korea #Seoul #ESG Rating #MSCI #KT&G

KT&G Achieves Unprecedented 'AAA' MSCI ESG Rating

In a significant advancement for corporate sustainability, KT&G has secured a prestigious 'AAA' ESG (Environmental, Social, and Governance) rating from MSCI (Morgan Stanley Capital International), marking a historic first for any player in the tobacco industry. This rating, awarded on December 10, 2025, highlights KT&G's commitment to responsible business practices and exceptional performance in sustainability.

A Historic Achievement

Every year, MSCI evaluates approximately 8,500 publicly listed companies across various industries, issuing ratings that range from AAA to CCC. Institutional investors and asset managers often use these ratings to gauge a company's sustainability and ESG competitiveness. For KT&G, this accolade represents a leap from its previous 'AA' rating, which it maintained for four consecutive years. The 'AAA' rating reaffirms KT&G's leadership position in the rapidly evolving marketplace focused on environmental responsibility.

Key Factors Behind the Rating

Several key elements contributed to KT&G's top-tier 'AAA' rating. A robust governance structure was a significant factor, where actions such as the separation of CEO and board chairperson roles played a crucial role. This strategy is backed by a board composition comprising 75% independent directors, which reinforces transparency and reduces conflicts of interest.

In addition, the company's systematic supply chain management has not only been highlighted but recognized as number one among its peers in the 'supply chain labor management' category. KT&G's commitment to responsible labor practices and systematic monitoring has set a benchmark within the industry.

Beyond governance, KT&G has also made substantial advances in its environmental strategies. The company has made notable investments in onsite water reclamation infrastructure and responsible marketing tactics. These initiatives demonstrate KT&G’s proactive approach in environmental stewardship and its understanding of the essential balance between business operations and ecological impact.

Statement from Leadership

Young-ah Shim, Director of KT&G's ESG Management Office, expressed enthusiasm over the achievement, stating, "By obtaining a AAA rating for the first time in the industry, KTG will now be recognized for its systematic ESG management performance in the capital market." Shim emphasized the company’s ongoing commitment to environmental management principles and supply chain excellence grounded in strong governance competitiveness.

This landmark rating is not just a trophy for KT&G; it reflects an ongoing journey towards sustainability that aims to reshape the tobacco industry's future. The acknowledgment from MSCI underscores KT&G’s dedication to responsible practices and positions it favorably in an industry often scrutinized for its socio-environmental footprint.

Path Forward

As KT&G looks to the future, it remains focused on reinforcing its ESG commitments across all operations. The company aims to integrate advanced sustainability practices deeper into its business model and continue engaging stakeholders in meaningful ways. This unwavering commitment is expected to enhance KT&G's reputation and build long-term value for its stakeholders.

In conclusion, KT&G's 'AAA' MSCI ESG rating serves as a landmark achievement that not only solidifies its leadership role in the tobacco industry but also sets a precedent for others to follow. With its enhanced governance and clear dedication to responsible business practices, KT&G proves that sustainability and profitability can indeed go hand in hand.