KT&G received an AA rating in Morgan Stanley Capital International’s (MSCI) environment, social and government (ESG) index evaluation—one level higher than it received last year and the highest score for a Korean company.
Every year, MSCI classifies more than 8,500 listed companies worldwide by industry. The investment information provider evaluates management status related to the environment, social responsibility and corporate governance to assign ratings ranging from AAA to CCC.
Among the 11 tobacco companies evaluated this year, KT&G took first place for responsible marketing and excellent quality management within the “Product Safety and Quality” category.
In the “Governance” category, KT&G received high marks for newly established items such as “business ethics” and “tax transparency.” The company’s board of directors was rated best in the industry in terms of its diversity and expertise.
“The evaluation result this year is meaningful in that KT&G’s ESG management has been recognized worldwide and that the company is now classified into the ESG Leader group,” a KT&G spokesperson said in a statement. “We will continue to strive for the sustainable development of the company based on our advanced governance.”
KT&G was also honored with the “Grand Prize” of the corporate governance evaluation conducted by the Korea Corporate Governance Service in 2019 in recognition of its sustainability management system.