Krafton develops plans to create a sustainable future focused on the environment, social and governance to grow the value of company and various stakeholders in the short and long term, and realizes them. In addition, Krafton practices sustainability by managing not only financial risks but also non-financial risks.
Environment
| # | Items | Detailed items |
Activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 1.1 | Environmental management system | Environmental information disclosure |
•
Disclosing green management organization, water and energy use, waste generation, etc.
for 2021 on the Environmental Management Information System |
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| 1.2 | Operational environmental impact and eco-efficiency | Energy consumption |
•
Energy consumption by location for 3 years
(*1)
Computed with sales revenue in hundred million on consolidation basis
(*2)
Reduction rate
–
Energy consumptions has risen as Yeoksam office was newly opened in July 2021.
–
Energy consumptions has risen due to shift from telecommuting to office work after COVID-19 in 2022.
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| 1.3 | Energy conservation |
•
Encourage energy saving culture to employees through resource saving campaigns
•
Details of automatic power off setting
–
Large display in front of elevator: 22:00
–
Meeting room air conditioner (summer): 1st 20:00, all shut down 23:50
•
Lighting
–
Use LED lights (Pangyo, Yeoksam: Dimming function / Seocho: Only On-Off is allowed)
–
Meeting room lighting: Apply sensors, etc. to automatically power off when not using
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| 1.4 | Resources recycling |
•
Using recyclable paper shopping bag for employees
•
Using A4 recycled paper
–
Use ‘recycled pulp’ that uses waste paper as raw material instead of ‘natural pulp’ when producing paper, Reduce greenhouse gas emissions from the ‘pre-manufacturing stage’ as ‘wood collection and cutting/processing stage’ have been excluded
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| 1.5 | Carbon emissions reduction |
•
Operating shuttle bus
–
Shuttle bus use rate: about 120 applicants as of March 2023 (around 10%)
•
Shuttle bus
–
By office: Yeoksam, Seocho, Pangyo
–
Between stations: Gangnam Station, Yeoksam Station
•
Not operating vehicles for business purpose (corporate cars)
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| 1.6 | Resources conservation and environmental protection |
•
Employee campaign (HUB notice)
–
Upload more than one post per quarter
–
Upload posts or ads about resource saving and environmental protection
•
Collecting Nespresso coffee capsules separately
–
Participate in recycling program run by Nespresso
•
Promoting using tumbler at in-house cafe
–
Provide coupon when tumbler is used
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| 1.7 | Management of climate change risks and climate-related opportunities | GHG(Greenhouse Gas) emissions |
•
GHG emissions by location for 3 years
(*1)
Computed with sales revenue in hundred million on consolidation basis
(*2)
Reduction rate
–
Greenhouse gas emissions has risen as Yeoksam office was newly opened in July 2021.
–
Greenhouse gas emissions has risen due to shift from telecommuting to office work after COVID-19 in 2022.
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| 1.8 | GHG reduction |
•
Using game server cloud service
–
Currently KRAFTON is using about 20,000 cloud (A**, M**) instances as of April 2023
•
Not operating own data centers due to using game server cloud service
–
A few physical servers for in-house information systems located in third-party’s data center with lease
–
Not significant greenhouse gas emissions
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Social
| # | Items | Detailed items | Activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 2.1 | Industrial safety and health | Employee safety and health |
•
Operating Industrial Safety and Health Committee (employee member, employer member / hold meetings on a quarterly basis)
–
Measure annual air quality (for all offices)
–
Conduct bake out when moving into the Seocho office
–
Company-wide training on AED heart defibrillator
–
Annual fire drill training (Yeoksam and Pangyo in 2022 / Will also hold at Seocho in 2023)
–
Detect wiretapping, eavesdropping and illegal filming (closed space, meeting room, rest room, etc.)
–
Install dimmable equipment by replacing lighting at Pangyo (2022)
–
Semi-annual risk assessment activities (industrial safety and health committee activities)
–
Addressing agenda discussed at Industrial Safety and Health Committee meeting such as elevator issues
–
Adopted ISOS services that provides comprehensive safety management services during overseas business trips starting 2022 (covers both business travelers/dispatch employees, 300 business trips in 2022)
•
Company policy on occupation safety and health
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| 2.2 | Human resources development | Employee status |
•
Diversity of employees
(*1)
Krafton, Inc. members as of December 31, 2022 (excluding registered executives)
•
Employee turnover (*1)
(*1)
Based on regular employees
(*2)
Regardless of the organization’s intention, it is an individual-led decision to leave the organization with all reasons except non-voluntary turnover and relocation to affiliates.
(*3)
A recommendation to resign, dismissal during probation, etc. through which work relationships are terminated mainly in line with the initiative of the organization.
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| 2.3 | Employee health promotion |
•
Operating a system to promote employees’ health
–
Offer health check-up (employee and one family member)
–
Purchase a group insurance policy
–
Provide exercise expenses
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| 2.4 | Work and life balance |
•
Implement a selective working hours policy
–
Flexible working hours, excluding core time from 11:00 AM to 4:00 PM
•
Implement a telecommuting policy
–
Operation of telecommuting at least once a week at the discretion of the team unit
•
Operating KRAFTON daycare center (Yeoksam, Pangyo)
–
Little Fore (max. 180)
•
Operating an approved leave system
–
Refresh leave, long service leave, medical check-up, moving, birthday, paid sick leave, etc.
•
Operating a self-approval leave system
–
94.3% of annual leave used (as of end-2022)
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| 2.5 | Pregnancy support programs |
•
Providing reserved parking spots for pregnant employees
•
Operating nursing rooms
•
Providing maternity leave and leave of absence for parental needs
•
Reduction of working hours during pregnancy
•
Leave for prenatal health check-up
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| 2.6 | Employee family care |
•
Congratulations and condolences
–
Providing congratulatory and condolence support for the wedding, death, birth, child’s admission to elementary school, etc. and support for congratulations and operating a congratulation and condolence leave system
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| 2.7 | Employee housing support |
•
Interest-free housing loan
•
Housing loan interest assistance
•
Helping new employees settle in
–
Sharehouse
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| 2.8 | Fair employment |
•
Established the anti-discrimination policy
–
Stated in Articles 4 and 5 of the Work Rules
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| 2.9 | Employee communication |
•
Active communication with employees
–
Gathering employees’ feedback and opinions through the Board of Communication (labor-management council) meeting each month
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| 2.10 | Employee satisfaction survey |
•
Conducting employee satisfaction surveys
–
Resigned employees: Conducting a survey on workplace satisfaction and experience at the time of resignation
–
New employees: Conducting a satisfaction survey targeting new employees three months after joining the company
–
Employee benefits: Conducting a satisfaction survey on employee benefits
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| 2.11 | Employee education |
•
External training support
–
Offering training expense reimbursements of KRW 2M per person annually
▪
Job training / Foreign language training / Self-improvement training
•
Operating ‘HELLO, KRAFTON’, an on-boarding Program for new employees
–
4 steps on-boarding program for new employees’ soft landing during 3 months
•
Operating core value training
–
Program for clear understanding and practice of vision and core values aligned with organization’s direction
•
Conducting training program performance measurement(satisfaction surveys)
•
Operating partnership with external training institutions
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| 2.12 | Leadership education |
•
Operating a program to strengthen leadership competencies
–
Training for newly-appointed leaders
–
Training for team leaders
–
Training for top management
•
Conducting training program performance measurement(satisfaction surveys)
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| 2.13 | Legal compulsory education |
•
Providing Legal compulsory education once a year
–
Prevention of workplace sexual harassment
–
Personal data protection
–
Prevention of workplace bullying
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Promotion of disability awareness
–
Retirement pension education
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| 2.14 | Employee Stock Ownership Plan |
•
Mandatory for KOSPI-listed companies
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| 2.15 | Employee performance evaluation and reward |
•
Performance review
–
Conducting performance reviews twice a year (mid-year, year-end)
–
Providing multi-faceted feedback to leaders
•
Operating stock-based compensation programs for all employees
–
RSU
–
Stock options
–
ELI
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| 2.16 | Talent nurturing |
•
Business-education partnership
–
KAIST Jungle
▪
Recuritment in progress every year through this program from April 2021
•
Internship program
–
AI Fellowship: An internship program for bachelor’s degree students in top domestic/overseas universities (Jun-Aug)
–
AI Research Internship
▪
An internship program for master’s degree or PhD students in top domestic/overseas universities (Jun-Aug)
▪
Hiring Interns in 2022 and conducting research with the aim of achiecing results
–
Internship on a rolling basis
▪
Job posting and hiring on a rolling basis at the request of the team and will review transition to permanent employment if needed
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| 2.17 | Employment creation |
•
Selected as a leading company for job creation
–
In 2019, 2020 and 2022
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| 2.18 | Respect for fundamental rights | Human rights management |
•
Human rights management policy
–
Code of Conduct Chapter 4 ‘Promise to Colleagues’
▪
4-A. Respect for diversity and anti-discrimination
▪
4-B. Workplace bullying and sexual harassment
▪
4-C. Respect for the privacy of our employees
▪
4-D. Feedback based on careful consideration
▪
4-E. Protection of our members
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| 2.19 | Employee harassment report |
•
Established a system to address employee harassment issues
–
Culture Team collects reports and provides counseling (workplace harassment, sexual harassment, etc.)
▪
Collects reports via HUB or email. The process is announced on HUB.
–
Employee harassment issues are addressed based on the company policy (Workplace sexual harassment/bullying prevention and response policy)
–
A formal investigation is conducted by Compliance Dept. The investigation results and review committee’s feedback is shared with internal directors
•
Operating Speak Up
–
Can file reports on HUB or the company’s website
–
Business Assessment Office to first review the case and request Compliance Dept. to review it if it is deemed that the case should be handled by Compliance Dept.
▪
After the review, discuss disciplinary actions and measures to prevent a recurrence if necessary (consultation with HR)
▪
Report the final investigation results to management (Chairman)
▪
5 cases were reported and processed in 2022 (100% completed)
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| 2.20 | Employee Mind Care |
•
Employee Mind Care
–
Psychological counseling program to help employees address issues such as job and interpersonal stress, mental health, personal concerns, and addiction
–
Outsourcing Mind Care program via a specialized organization with 280 centers nationwide
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| 2.21 | Fair competition | Unfair competition or anti-competitive |
•
Company policy on unfair competition or anti-competitive
–
Code of Conduct Chapter 5 ‘Promise to partners’
▪
5-A. Compliance with fair trade and competition laws, etc.
▪
5-B. Pursuit of cooperation
•
Conduct risk management related to unfair competition or anti-competitive
–
Identifying risk-related business sectors and relevant departments
–
Analyzing legal risk and understanding the status of compliance control
–
Implementing detailed compliance checks for major legal risks
•
Conducting unfair competition or anti-competitive education
–
Education on group of large-scale enterprises
▪
Targeting the finance department and subsidiaries
▪
Training on precautions such as overview, disclosure, and reporting related to internal transactions
–
Education on unfair competition
▪
Targeting the business department
▪
Training on overview of regulations on unfair trade practices, detailed types, and precautions
–
Education on precautions for subcontracting transactions
▪
For business department
▪
Training of subcontracting definition, regulatory trends, and dispute prevention checklist
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| 2.22 | Improvement of consumer satisfaction | Protection of consumer rights and interests |
•
Company policy on consumer rights and interests
–
Code of Conduct Chapter 1 ‘Promise to fans’
▪
1-A. A game made with craftsmanship
▪
1-B. A healthy game
▪
1-C. Continuous and stable service
▪
1-D. Open communication with fans
▪
1-E. Protecting personal information
•
Consumer rights protection activities
–
Processing of civil complaints in the event of a dispute over consumer rights and interests(187 cases handled in 2023)
–
Promoting the protection of consumer rights and interests by providing information on suspects in the case of investigative agencies(37 cases handled until 2023)
–
Responding to complaints from the Korea Consumer Agency to protect consumer rights and interests(11 cases handled until 2023)
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| 2.23 | Local community engagement and development | Social contribution |
•
Refer to ‘CSR’ page
–
Company policy on CSR
–
Details and achievements of community contribution activities
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| 2.24 | Data protection and cyber security | Data protection system |
•
Company policy on information security and privacy
–
Code of Conduct Chapter 1 ‘Promise to fans’
▪
1-E. Protecting personal information
•
Appointment of the Chief Personal Information Protection Officer (CPO) based on Article 31 of the Personal Information Protection Act and Article 32 of the Enforcement Decree of the same Act
•
Providing legal compulsory personal data protection training
–
As it is legally mandatory, personal data protection training is provided to all employees (incl. contract employees) once a year
–
Providing personal data protection training to new employees
•
Conducting cyber security education by role
–
Security operation training based on AWS
▪
Targeting the engineering department
▪
Training in AWS security features, usage guidance and recommended security practices
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| 2.25 | Data protection certification |
•
ISMS-P certification
–
Annual external audit
–
Certification renewal every three years
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| 2.26 | Creation of an environment for data protection |
•
Running data protection-related campaigns
–
Providing pocket guide to data protection
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Governance
| # | Items | Detailed items |
Activity |
|---|---|---|---|
| 3.1 | Corporate governance | Corporate governance |
•
Corporate governance
–
‘Governance‘ page
–
Refer to ‘Corporate Governance Report‘ disclosed on May 31, 2023
•
Board Skills Matrix
–
Refer to ‘Governance‘ page
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| 3.2 | Business ethics | Speak Up policy |
•
Operating Speak Up
–
Can file reports on HUB or the company’s website
–
Business Assessment Office to first review the case and request Compliance Dept. to review it if it is deemed that the case should be handled by Compliance Dept.
▪
After the review, discuss disciplinary actions and measures to prevent a recurrence if necessary (consultation with HR)
▪
Report the final investigation results to management (Chairman)
▪
5 cases were reported and processed in 2022 (100% completed)
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| 3.3 | Compliance activities |
•
Annually conducting a compliance audit in each area
•
Conducting control activities regarding compliance and ethics in each operation
•
Reporting the compliance status (compliance report) to management half-yearly based on these findings
|
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| 3.4 | Employee ethics improvement |
•
Spreading the Code of Conduct
•
Providing compliance training sessions such as the prevention of insider trading
|
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| 3.5 | Practice and promotion of gaming ethics |
•
“Chapter 1 A Healthy Game” in the Code of Conduct
•
Posting a notice about violations of in-game ethics
•
Reviewing the ethical appropriateness of vendors when pursuing collaborations
•
Running campaigns to prevent gaming violence
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| 3.6 | Prevention of bribery and corruption |
•
Prevention of bribery and corruption
–
Run related campaigns
▪
Send Chuseok Holiday Gift announcements
▪
Send in-house manners campaign e-mails
–
Review and answer relevant inquiries from employees
▪
Inquiries related to the Code of Conduct (gifts, entertainment, unfair trade, conflict of interests, etc.)
▪
Inquiries related to the amendment and interpretation of the Code of Conduct
▪
Inquiries related to various Compliance-related systems such as the Pre-notification of Stock Trades by Officers and Employees
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