Kakao Pay announced on the 25th that it has published its 2024 ESG report.
This report is Kakao Pay's third ESG report, revealing the sustainability management activities of Kakao Pay and its subsidiaries Kakao Pay Securities, Kakao Pay Insurance, and PayMint.
Kakao Pay prepared the report according to international sustainability disclosure standards, particularly reflecting the IFRS Foundation's International Sustainability Standards Board (ISSB) disclosure standards IFRS S1 (sustainability disclosure standards) and IFRS S2 (climate-related disclosure standards). Additionally, it conducted third-party verification from an independent verification organization according to AA1000AS v3 standards and ISAE 3000 to enhance the accuracy and reliability of the data.
In this report, Kakao Pay selected four major issues through a 'dual materiality assessment' that considers the impact of its management activities on the environment and society as well as on financial value: consumer protection, protection of personal information and security enhancement, integrated risk management, and climate change response. Each issue's response direction is disclosed according to governance, strategy, risk management, indicators, and goals.
In particular, the special page 'Beneficial Flow, Flexible Finance' highlights how Kakao Pay, marking the 10th anniversary of its payment service launch, has created sustainable benefits in daily life through technology and finance, linking business growth with ESG management.
Last year, Kakao Pay established a climate change scenario analysis and an RE100 implementation roadmap in the environmental institutional sector, receiving approval from its ESG committee. It also disclosed scope 1, 2, and 3 greenhouse gas emissions based on a consolidation basis, achieving a 99.8% disclosure rate based on consolidated sales, and is implementing its carbon neutrality goals by procuring 12% of its power usage in 2024 from renewable energy.
In the social institutional sector, Kakao Pay established a long-term goal for human rights management and conducted a safety and health risk assessment for its Pangyo office, while implementing an electronic purchasing system to build an ethical and transparent supply chain. Externally, it continues various win-win activities with social constituents through financial education support projects such as 'Sqrt Sqrt Face School' for digitally financially marginalized groups like seniors and teenagers, and the small business win-win campaign 'Long-Lasting Together.'
In the governance institutional sector, Kakao Pay conducted risk management training for outside directors and enhanced the soundness of board and committee activities by strengthening evaluations of outside directors. It introduced a compliance officer system for each department and implemented an audit support system to strengthen the risk management framework.
Based on these achievements, Kakao Pay received an A grade in the MSCI corporate ESG evaluation in April 2025. Furthermore, it was the only domestic fintech corporation to be included in the DJSI Korea index for two consecutive years through the S&P Global corporate sustainability assessment in December last year, and it was selected as a Sustainability Yearbook Member for two consecutive years in February 2025.
Shin Won-geun, CEO of Kakao Pay, said, 'Kakao Pay aims to create a world where everyone can use financial services with peace of mind through continuous technological innovation, providing safe and convenient financial services,' adding, 'As a leading corporation in the fintech sector, we will continue to practice ESG management with a sense of responsibility.'