[Edaily Reporter Lee So-Hyun ] Kakao(035720)has published a sustainability report detailing its Environmental, Social, and Governance (ESG) achievements from last year, including improvements in data center energy efficiency, enhanced artificial intelligence (AI) safety, and corporate governance reforms.

Kakao announced on the 24th that it has published the “2025 Kakao Sustainability Report” and launched a new dedicated website, “Kakao Sustainability,” to provide comprehensive information on sustainable management.

This report was prepared in accordance with the International Sustainability Standards Board (ISSB) guidelines, a global disclosure standard. It analyzes the impact of three major issues—user protection, information security, and climate change response—on the company, the environment, and society, and outlines corresponding strategies.

Kakao explained that it enhanced understanding by visualizing the risks and opportunities associated with each issue through illustrations depicting the various stages of the service lifecycle.

In the environmental sector, the greenhouse gas reduction effects resulting from energy efficiency improvements at the “Kakao Ansan Data Center” were verified by a third party. The verification results showed that the annual greenhouse gas reduction at the Ansan Data Center totaled 4,753 tCO2eq (metric tons of carbon dioxide equivalent).

Kakao introduced a direct solar power purchase agreement (PPA) for the first time and applied it to the Ansan Data Center. On a company-wide basis, Kakao’s renewable energy procurement volume for 2025 reached 29,903 MWh, an increase of approximately 2.8 times compared to the previous year.

The company also expanded its environmental management system certifications. Following its existing Jeju office, Pangyo Ajit, and Ansan Data Center, it obtained ISO 14001 certification for its Yongin AI Campus, bringing the total number of major business sites certified to four.

In the social sector, Kakao highlighted AI safety and mutual growth initiatives as key achievements. To address risks associated with the proliferation of generative AI, Kakao released “Kanana Safeguard,” an open-source AI guardrail model. This model is used to detect harmful content and risky requests.

To foster local AI talent and businesses, Kakao partnered with the four major science and technology institutes to establish “Kakao AI Sail,” backed by a 500억 원 fund. The company also received the Presidential Commendation at “Fair Trade Day 2026” for its contributions to supporting the digital transformation of small business owners and fostering a win-win environment in the mobile gift certificate market. Cumulative donations through the social contribution platform “Kakao Together Value” have exceeded 1000억 원.

In the area of corporate governance, the report highlighted achievements related to the protection of shareholder rights and transparent management. Kakao met 14 out of 15 key corporate governance indicators, achieving a compliance rate of 93%.

The number of affiliates has also been reduced. The number of affiliates, which stood at 147 in May 2023, decreased to 94 as of the end of 2025. Kakao explained that this move was intended to streamline group governance. The company also emphasized that it is consistently implementing its mid- to long-term shareholder return policy.

Along with the publication of the report, Kakao launched a new sustainability website. The website provides a single hub where users can access Kakao’s sustainability management direction, key policies, performance metrics, sustainability reports, policies and regulations, and the latest news. Kakao plans to expand the scope of data disclosure in the future to strengthen communication with stakeholders.

Kakao also announced that it continues to achieve strong results in global ESG evaluations. Kakao has received an “A” rating in the MSCI ESG ratings for three consecutive years. In the Korea ESG Standards Institute’s ESG evaluation, it has earned an overall “A” rating for five consecutive years. In the S&P Global Corporate Sustainability Index, it has been ranked in the top 5% of its industry for three consecutive years.

Kwon Dae-yeol, Head of Sustainable Management at Kakao, stated, “To honor our commitments to stakeholders, Kakao is simultaneously enhancing both the effectiveness of our sustainable management practices and the transparency of our information disclosure.” He added, “We will continue to pursue sustainable growth through disclosures that meet global standards and proactive communication.”