Resources

CDP Korea Climate Change and Water Report 2025

The CDP Korea Climate Change and Water Report 2025 analyzes the sustainability level and status of 292 Korean companies that responded to CDP in 2025, based on climate change and water security related data.

[Table of Contents]

Foreword – Jee-in Jang, Chair / CDP Korea Committee

Foreword – Sherry Madera, CEO / CDP

Climate Change

• - Climate Governance
• - Climate Risk Management
• - Business Strategy
• - Engagement
• - GHG Emissions
• - Reduction Targets and Carbon Credits

Energy

• - Energy
• - Electricity and Renewable Energy Use by CDP Respondent Companies and RE100 Companies
• - Renewable Energy Target Implementation Status of Korean RE100 Companies

Plastics & Biodiversity

• - Plastics
• - Biodiversity

Water Security

• - Water Governance
• - Water Risk
• - Water-related Business Impact
• - Water Data
• - Five-Year Water-Data Tracking of Korean Companies

Korea Leaders

• - List of Award-Winning Companies
• - CDP Scoring System

[2025 CDP Korea Report Summary]

CDP Disclosure

• - CDP now drives environmental disclosure from more than 23,100 companies, cities, and regional governments worldwide
• - In 2025, approximately 700 Korean companies disclosed climate data through CDP
• - The Asia-Pacific region accounts for 37% of total corporate disclosures, leading global participation
• - 640 investors managing $127 trillion in assets and more than 270 major purchasing companies request data collection through CDP

1. Climate Change

Climate Governance

• - 91% of boards and 94% of management hold responsibility for climate change, and 65% of companies provide climate-linked incentives
• - The rate of alignment between board and management oversight types is only 33%

Climate Risk and Response Strategy

• - 93% of Korean companies have a climate risk management process, and 85% conduct double materiality assessments
• - Transition risk (54.4%) is rated higher than physical risk (45.6%); only 9% of companies have extended their assessment to tier 2 or beyond in the supply chain

Business Strategy

• - 70% of Korean companies conduct scenario analysis; 55% apply a 1.5°C transition scenario, and 51% apply a physical scenario of 3.0°C or higher
• - Among the Korean Top 100 companies by revenue, 86% have established a 1.5°C transition plan, compared to 59% globally

Engagement

• - Among the Korean Top 100 companies by revenue, 69% incorporate climate issues into procurement contracts
• - The main requirements for tier-1 suppliers are setting science-based reduction targets (36%) and implementing emissions reduction initiatives (36%); 21% require disclosure of Scope 1, 2, and 3 emissions

GHG Emissions and Calculation Methodology

• - Excluding 5 power generation companies, 98% of the 287 Korean companies calculate/report Scope 1+2 emissions
• - 222 companies reported Scope 3 emissions, representing 77% when excluding the 5 power generation companies
• - The verification rate for Scope 1+2 emissions is 92% of companies, covering 96% of total emissions
• - The verification rate for Scope 3 is 67% of companies, covering 65% of total Scope 3 emissions

GHG Reduction Targets and Carbon Credits

• - 57% of domestic respondent companies have established net-zero targets; 9% have committed to SBTi targets, and 7% have received actual approval
• - 13% of companies have set Scope 3 reduction targets, covering 47% of total Scope 3 emissions
• - 2 companies use carbon credits, while 35% responded that they intend to use carbon credits

2. Energy

Energy and Renewable Energy Use

• - The overall renewable energy ratio for Korean companies is 12%; based on domestic operations only, it is 6.22%
• - For Korean RE100 companies, the overall renewable energy ratio is 26.2%, and the domestic renewable energy ratio is 12.9%

3. Plastics & Biodiversity

Plastics

• - Companies that have implemented/reported plastics value chain mapping: 24% in Korea vs. 40% globally
• - Companies that have established plastics-related targets: 25% in Korea vs. 41% globally

Biodiversity

• - 36% of Korean companies assign biodiversity responsibility to the board or management
• - 20% of companies report biodiversity issues directly to the board; 0% provide biodiversity-linked monetary incentives

4. Water Security

Water Governance

• - 77% of Korean respondent companies hold water-related responsibility at the board level, and 86% at the management level
• - 50% of companies provide water-linked monetary incentives; 19% target the board/CEO level

Water Risk and Business Impact

• - 66% of Korean respondent companies have a water risk management process
• - 49% have integrated water risk into their enterprise-wide risk management process; 37% assess water risk across their entire value chain

Water-related Targets and Data

• - 49% of companies withdraw water from water-stressed areas; withdrawal from stressed areas accounts for 19% of total withdrawal volume; 33% reduced their withdrawal volume year-over-year
• - 60% of companies have set water-related targets, with an average target year of 2029 and an average achievement rate of 54% relative to the base year

Five-Year Water Data Tracking of Korean Companies

• - From 2020–2024, Korean companies’ water withdrawal increased by 21%, and discharge increased by 17%
• - Over four years, the average annual growth rate was 4.84% for withdrawal and 4.02% for discharge, while the discharge-to-withdrawal ratio decreased by an average of 0.78% annually

5. Korea Leaders

List of Award-Winning Companies

• - Climate Change: Hall of Fame, Carbon Management Honors Club, Carbon Management Sector Honors, Carbon Management Special Award
• - Water Security: Grand Prize, Excellence Award, Sector Excellence Award, Special Award

CDP Scoring System

• - CDP's scoring system was developed to systematically evaluate corporate environmental performance, encouraging disclosure and improving companies' environmental management levels
• - Companies are assessed and assigned one of 8 grades ranging from D– to A

Inquiries: cdp@kosif.org