YG Entertainment has published its '2025 Sustainability Management Report' detailing its ESG (Environmental, Social Responsibility, and Corporate Governance Improvement) achievements and activities.
The report, released on the 30th, draws attention with a special report format that highlights YG Entertainment's pioneering 'sustainable performance' activities and their outcomes.
The 'Sustainable Performance Report', the first of its kind published by a domestic entertainment company in 2024, is based on extensive performance expertise and outlines the 'Seven Principles of Sustainable Performance' (▲ Greenhouse Gas Management ▲ Improving Performance Accessibility ▲ Fan Engagement ▲ Enhancing Content Impact ▲ Venue Safety Management ▲ Reducing Venue Environmental Pollution ▲ Sustainable Performance Governance), detailing key activities applied to each performance, improved outcomes, and stakeholder voices.
This special report includes an assessment of greenhouse gas emissions from audience movement, energy use, waste disposal, and equipment transportation during three performances held last year, as well as interviews with fans who positively evaluate various efforts stemming from voluntary awareness and wish to actively participate, along with specific improvements such as venue safety compliance standards and inspection checklists.
In this year's sustainability management report, a 'double materiality assessment' was conducted to analyze the social and environmental impacts of ESG activities on the company and their financial implications, resulting in four key issues: ▲ Climate Change Response and Carbon Neutrality Roadmap Implementation ▲ Strengthening Corporate Governance ▲ Talent Acquisition and Development ▲ Promoting Compliance and Ethical Management.
YG Entertainment aims for carbon neutrality by 2040 and RE100 achievement by 2025, having reduced greenhouse gas emissions (down 28% from the previous year) and energy usage (down 3.0%) for three consecutive years, while increasing the proportion of renewable energy use (up 28.8%). This year, it also verified the greenhouse gas emissions of its major subsidiaries, YG PLUS and YG JAPAN, and expanded the Scope 3 (other indirect emissions) categories from two to four, including 'fuel and energy-related activities', 'waste generated at business sites', and 'employee commuting', laying the groundwork for establishing effective reduction strategies.
Additionally, to consider environmental protection in album production, YG has established an 'Eco-Friendly Album Roadmap' that outlines step-by-step implementation plans to enhance sustainability across the industry. In the short term, it plans to measure carbon emissions across the entire album production supply chain, reduce plastic use during the production process, and explore the use of recycled materials. In the medium to long term, it is looking into more fundamental alternatives such as introducing eco-friendly transportation methods within the distribution network and strengthening efforts and collaboration within the industry.
Furthermore, to enhance expertise and independence, a new outside director with accounting and legal expertise has been appointed as the chair of the board, establishing a foundation for independent operation. A board evaluation system has also been introduced for the first time to improve board operations and increase reliability.
This report complies with global reporting guidelines such as GRI (Global Reporting Initiative), SASB (Sustainability Accounting Standards Board), and ISSB (International Sustainability Standards Board). It has also secured reliability through third-party verification by the Korea Management Certification Institute (KMR). An English version of the report for overseas stakeholders is planned to be released in August.
[Ji Seung-hoon, Star Today Reporter]
