KAI Advances ESG Disclosure... First in Defense Industry to Introduce AI Verification

Publication of the "2026 Sustainability Management Report"
Transition to Web-Based Format and Strengthened Climate Change Response Strategies

Korea Aerospace Industries (KAI) has published a sustainability management report that advances its climate change response strategies and enhances web-based accessibility.

2026 KAI Sustainability Management Report Cover. KAI

On June 29, KAI announced the publication of its "2026 Sustainability Management Report," which outlines the company's achievements and vision in each area of ESG (Environmental, Social, and Governance). This is the fourth report since the inaugural publication in 2023.

This year's report incorporates the ESG disclosure roadmap announced by the Financial Services Commission in February, strengthening the company's strategies for climate change response and natural environment conservation. Notably, KAI is the first in the defense industry to introduce an artificial intelligence (AI) solution to enhance data verification. The report has also transitioned from a booklet-focused format to a web-based version, improving readability and accessibility for stakeholders.

The report was prepared based on global sustainability management reporting standards and climate-related financial disclosure guidelines. It also underwent verification by the Korea Public ESG Research Institute, enhancing objectivity and credibility.

In the environmental section, KAI quantitatively assesses the financial impact of climate change scenarios and reflects them in its business strategies. To reduce greenhouse gas emissions, KAI plans to install additional solar power facilities at its Goseong and Jongpo sites and expand the proportion of renewable energy from 7.3% to 12.5%. The company is also continuing to invest in research and development of low-carbon technologies, such as Advanced Air Vehicles (AAV) and hydrogen-powered aircraft.

In the social sector, KAI operates a mutual growth fund to strengthen its partners' competitiveness and establish a stable production base. To date, it has approved loans totaling 10.9 billion won for nine partner companies. KAI also provides ESG consulting to small and medium-sized partners and, in collaboration with seven partners, has completed the entire supply chain due diligence process—including in-depth diagnosis, evaluation, training, and monitoring of improvement tasks.

In the governance sector, KAI is reinforcing its domestic and international legal compliance systems, led by its compliance management office. After obtaining anti-bribery management system certification in 2018, KAI also received compliance management system certification in 2023. Furthermore, KAI became the first in the domestic defense industry to announce a corporate value enhancement plan, aiming to improve key governance indicators, expand shareholder rights, and strengthen management transparency.

Kim Jongchul, President of KAI, stated, "The 2026 Sustainability Management Report focuses on enhancing our ability to respond to global climate change regulations," adding, "We will continue to drive defense innovation and a sustainable future through ESG management that meets global standards."

This content was produced with the assistance of AI translation services.