Kakao (035720.KS) said Tuesday it has published the "2025 Kakao Sustainability Report," detailing its environmental, social and governance (ESG) performance.
In the environmental sector, the company confirmed through third-party verification the greenhouse gas reduction achieved by energy efficiency improvements at "Kakao Data Center Ansan." According to the verification, the annual greenhouse gas reduction amounts to 4,753 tCO2eq (tons of carbon dioxide equivalent). Kakao also introduced a solar direct power purchase agreement (PPA) for the first time and applied it to Data Center Ansan. The company's renewable energy procurement on a group-wide basis reached 29,903 MWh last year, up about 2.8-fold from a year earlier.
In the social sector, Kakao released "Kanana Safeguard," the country's first open-source AI guardrail model, to respond to the risks posed by the spread of generative artificial intelligence (AI). The company also partnered with the four science and technology institutes to establish "Kakao AI Dot," based on a fund of 50 billion won, to nurture regional AI talent and businesses. Kakao received a presidential commendation at the "2026 Fair Trade Day" for its contributions to fostering a foundation for mutual growth. Cumulative donations through its social contribution platform "Kakao Together" surpassed 100 billion won, drawing recognition that it is broadening the foundation for spreading social value.
In the governance sector, Kakao solidified its responsible management to strengthen shareholder rights protection and transparent management. Kakao implemented 14 of the 15 core corporate governance indicators, achieving a compliance rate of 93%. In particular, it streamlined group governance by reducing the number of affiliates from 147 in May 2023 to 94 as of the end of 2025, and continues to implement a mid- to long-term shareholder return policy.
This report applies global disclosure standards (ISSB) and significantly enhances visual elements. To strengthen communication with stakeholders, Kakao also newly unveiled a dedicated website, "Kakao Sustainability," that provides integrated sustainability management information.
Kakao has also earned steady recognition in global ESG assessments. The company received an A rating in the MSCI ESG assessment for three consecutive years and an integrated A rating in the Korea Institute of Corporate Governance and Sustainability (KCGS) ESG assessment for five consecutive years. In the S&P Global Corporate Sustainability Assessment, it was selected among the top 5% within its industry for three consecutive years, drawing favorable reviews from global ESG rating agencies.
"Kakao is raising both the execution capability of its sustainability management and the transparency of its information disclosure to keep its promises to stakeholders," said Kwon Dae-yeol, Kakao's head of sustainability management. "We will continue to pursue sustainable growth through disclosures that meet global standards and active communication."
