KT&G and the Asian Forest Cooperation Organization (AFoCO) sign an MOU for sustainable forest creation.

KT&G (CEO Kyung-man Bang) has signed a Memorandum of Understanding (MOU) with the Asian Forest Cooperation Organization (AFoCO), an international organization, to promote sustainable forest management in Asia and mitigate the impacts of climate change.

Under this MOU, KT&G plans to engage in various forest protection activities, especially in overseas operating countries such as Kazakhstan and Indonesia, in connection with local governments' national projects.

Specifically, in Kazakhstan, KT&G will focus on restoring and preventing the recurrence of wildfire damage in the eastern Abai region, which suffered extensive losses due to large-scale wildfires in 2023. In Indonesia, the company will establish and restore new mangrove forests as a proactive measure against natural disasters.

This MOU is part of a global afforestation project linked to KT&G's mid-to-long-term ESG goal of "halting deforestation and land conversion in protected areas by 2030." This project is a key KT&G natural capital management initiative aiming to conserve forests around the world and improve the global environment amid impacts like desertification and forest degradation.

Previously, KT&G has created "Forests of Imagination" in domestic wildfire-damaged areas such as Daegwallyeong and Bonghwa to aid restoration and enhance biodiversity. With this MOU, the company will now expand its scope into global afforestation support through cooperation with overseas governments, advancing its forest management and protection efforts.

In addition to its afforestation projects, KT&G engages in various environmental protection activities as part of its environmental management efforts. Under the vision "KT&G Green Impact," the company has established an environmental management framework focusing on three core pillars: "Reducing the Impact of Climate Change," "Accelerating the Transition to a Circular Economy," and "Managing Natural Capital and Protecting Biodiversity." This structure aims to minimize the environmental impact of corporate operations and strengthen environmental responsibility across the value chain.

Accordingly, to achieve its SBTi-approved targets of reducing greenhouse gases by 2030 and reaching Net-Zero by 2045, KT&G is implementing related measures such as expanding solar power generation facilities. The company has also formed a water resource council with local governments and public institutions and designated the JangguMegi Wetland as a protected water resource area, leading efforts to preserve the ecosystem. Recognized for these initiatives, KT&G received the Minister of Trade, Industry and Energy Commendation at the "2024 Korea Energy Awards," and achieved the highest "Platinum" certification from the Alliance for Water Stewardship (AWS).

Sang-Hak Lee, KT&G's Senior Vice President (Chief Strategy Officer), stated, "KT&G is working to create a sustainable industrial ecosystem by fulfilling environmental responsibilities across the entire value chain," and added, "We will continue to actively manage various environmental management issues, mitigating environmental risks and creating shared value with our stakeholders."

(Photo Description) KT&G has signed an MOU with the Asian Forest Cooperation Organization (AFoCO) to promote sustainable forest management in Asia and mitigate the impacts of climate change. The photo shows Senior Vice President Sang-Hak Lee of KT&G (left) and AFoCO Secretary-General Chongho Park (right) taking a commemorative photo after signing the MOU.