KT&G Earns MSCI’s Coveted “AAA” ESG Rating

KT&G said it has earned an “AAA” ESG rating from global investment research firm MSCI — the highest rating ever achieved by a tobacco industry player, the company noted. MSCI reviews about 8,500 publicly listed companies each year and assigns ratings from AAA to CCC that institutional investors use to judge sustainability and ESG competitiveness. The new score breaks KT&G’s four-year run of AA ratings.

MSCI cited several strengths behind the upgrade: a strong governance structure, systematic supply chain management, responsible marketing, and active environmental management initiatives. The firm specifically highlighted KT&G’s governance practices, including the separation of the CEO and board chair roles, a board composed of 75% independent directors, and the operation of active board committees.

KT&G also received recognition for its supply chain labor management, the expansion of on-site water reclamation infrastructure, and its execution of responsible marketing practices. Young-ah Shim, Director of KT&G’s ESG Management Office, said the rating reflects the company’s ESG management meeting global standards and underscores its commitment to ongoing environmental and supply chain efforts.


This article was adapted from an original report published on tobaccoreporter.com. All rights belong to the original publisher.

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