IT Software & Service
NAVER Green Factory
6 Buljeong-ro, Bundang-gu
- A rating at MSCI ESG Ratings
- A+ ESG evaluation conducted by Korea Corporate Governance Service (KCGS) in 2020
- Best Rating at the Win-win Index Evaluation conducted by Korea Commission for Corporate Partnership for four consecutive years
- GRI Index
- National Customers Satisfaction Index (NCSI) – ranked on the top
CHIEF SUSTAINABILITY OFFICER
- The Best Company Award in the Win-Win Index Evaluation for four years in a row in the Korea Win-Win Awards
- Grand Leader’s Award from the Climate Change Center in 2018
- Energy Champion Prize in 2017
- Presidential Medal 2016 in the Korea Energy Efficiency Award
Report created by Katerina Vargova
NAVER Co., Ltd. (Naver) is South Korea’s largest web search engine, as well as a global ICT brand that provides services including LINE messenger, currently with over 200 million users from around the world, the SNOW video app, and the digital comics platform NAVER WEBTOON. NAVER BAND, a group social media platform, boasts one million monthly active users.
The sustained research and development of AI, robotics, mobility, and other future technology trends are propelling Naver forward, in pursuit of the transformation and innovation of technology platforms, while it also remains devoted to a paradigm of shared growth, joining hands with users from the global community as well as a vast number of partnerships. In 2020, Naver was ranked as the 37th World’s Best Employers by Forbes and 33th in Fortune’s the Future 50.
Naver runs its Search Platform, Commerce, and Fintech Business based on the “NAVER” service, a leading internet search portal in South Korea. And as a company that has the nation’s largest internet data centre (IDC), Naver is expanding its Cloud Business, with a particular focus on public and financial sectors, and is also providing a wide range of IT infrastructure and solutions. Naver is an ICT company that is expanding its global business foundation through its Contents Business including webtoon, music, and V LIVE.
Company Sustainability Activity
Naver’s greenhouse gas (GHG) emissions are forecast to increase over the next decade due to the construction of its second data center and a rise in data use in the contactless/5G era, and this can become a major risk to easing climate change. In addition, it can reduce revenues and increase operation expenses, in various forms, of the business of Naver, where data center is used as a key asset and is therefore expected to have a substantial impact on securing sustainable business competitiveness.
Naver recognized this operational risk and established a strategy on minimizing the risk, while also formulating an eco-friendliness strategy that secures mid-to long-term business opportunities and reviewing goals. Naver declared a strategy that achieves “2040 Carbon Negative” by maximizing eco-friendliness effects through business activities and minimizing the negative environmental impact that is triggered by business activities.
Carbon Negative is a strategy of offsetting by reducing greenhouse gases more than the GHG amount that is emitted, thus making the net emissions amount 0 or less. To achieve this goal, Naver has set the following detailed strategic directions and plan to expand relevant activities. By pursuing operational excellence that enables Naver to reduce its environmental impact; developing future green products and services; and expanding external partnerships, Naver will actively take part in accelerating the transition to a low-carbon economy. In this process, Naver will make joint efforts with several partners who use Naver platforms to expand the eco-friendly ecosystem.
- Total GHG emissions in 2019 – 78,712 tonnes of CO2e (72,416 tonnes of CO2e in 2018)
- Total energy consumption in 2019 – 1,624 terajoules (1,495 terajoules in 2018)
- Reduction performance in energy consumption at the end of 2019 recorded around a 44% increase from the end of 2017
- 25.8% of female managers
- The Green Factory was designed to save energy and does so at a rate of more than 5% every year through continued efforts to reduce energy consumption
- Adopted a partner agreement on practising sustainable management
- Naver donates at least 1% of its domestic sales for charity, and the ratio of its donation to sales is the highest among companies in South Korea
- 2040 Carbon Negative strategy – Naver pursues the goal of “Carbon Negative” (including Scope 1, 2, 3), which means to have GHG reduction levels be higher than GHG emissions by 2040
- Maintain and improve power usage effectiveness (PUE) of data centers
- Increase the use of renewable energy
- Reduce the amount of energy used in offices
- Reduce the environmental impact of means of transportation within the business site
- Increase investments and cooperation for reduction of the environmental impact of packing materials
- Expand eco-friendly fulfillment services
- Develop and expand sustainable product groups within the Smart Store
- Increase investment in carbon-free technology/business
- Develop carbon footprint offset programs and increasing partner participation
- Take part in global initiatives for climate change response
- Owns an eco-friendly policy that embodies Naver’s unique philosophy
- Operates the “Green Factory”, an energy-saving office building, and has a plan to complete construction of the “1784”, Naver’s second office building that will combine the latest technologies
- Operates Data Center “GAK”, which has applied eco-friendly technologies – LEED Platinum grade, global-level power usage effectiveness (PUE) – 1.08 PUE of the Data Center GAK
- Naver is establishing a GHG reduction target and implementation measure in line with the TCFD framework
- Establishes an environment for joint efforts to promote the circular economy by working together with partners that use NAVER’s shopping platforms
- Contributes to an eco-friendly logistics environment through partnerships with shipping companies
- Provides training that enhances employee awareness
Political and economic instability
- Monitors trends in South Korea and abroad 24/7
- Runs diverse services to maintain/strengthen competitiveness in the domestic market
United Nations Sustainable Development Goals
United Nations Sustainable Development Goals Compliance
- Contributes to enhancing the digital literacy for software, AI, and data by running the Naver Connect Foundation
- A fair and reasonable HR system under which capabilities can earn recognition and compensation
- The ratio of female leadership on a steady increase
- Energy-saving practices by using renewable energy at the business sites
- Naver makes continued efforts to improve energy efficiency at the business sites
- Provides financial support to SMEs to help them with digital transformation
- Nurtures start-ups with high potential through D2SF tech start-up accelerator
- Hires young talent with development disabilities directly by establishing a social enterprise, N-VISIONS
- Naver does not discriminate on the basis of gender
- Fosters environmentally-friendly ecosystem through joint endeavor by Naver and its stakeholders
- Introduces the company’s sustainability management and activities by publishing an ESG Report
- Runs campaigns for a sustainable lifestyle on Naver portals
- Enhances environmental management governance and execution strategy aimed at achieving the 2040 Carbon Negative strategy
- Code of Ethics and employees’ pledge to business ethics
- Conducts fraud risk assessment and self-check monitoring
- Operates the company-wide Risk Management Committee
- Strives to provide information accessibility and digital safety for all, and to guarantee freedom of expression
Naver, Corp. is listed in the GRI Index and on the top of South Korea’s sustainable companies. Naver also gained sustainable awards for its activities toward sustainable energy consumption and has a platinum LEED certificate. Naver is in compliance with some of the United Nations Sustainable Development Goals.
Although Naver’s reporting appears transparent, Naver does not publish key performance indicators and does not have clear targets.
Impakter Index rates Naver with a C.
Analyst Outlook: Positive
Further reading did not reveal any crucial problems which Naver could face. Naver admits that its greenhouse gas emissions are forecast to increase over the next decade, Naver’s plans to reach a carbon-neutral future include mostly the use of renewable energy for its centers, offsetting and limiting power consumption, it does not concern energy consumption of its more than 200 million users.
- GAK uses only 30% of the power of conventional data centers
- Part of GRI Index
25.8% of female managers