NAVER 
TCFD Report 2020
Task Force on Climate-related Financial Disclosures
(Updated in April, 2021)

03
NAVER’s Climate Strategy
NAVER’s greenhouse gas (GHG) emissions are forecast to increase over the next decade due to 
construction of our 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. We 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. We declared a strategy that achieves “2040 Carbon Negative” 
by maximizing eco-friendliness effects through business activities and minimizing negative 
environmental impact that is triggered by business activities.
Carbon Negative is a strategy of offsetting by reducing greenhouses gases more than the GHG 
amount that is emitted, thus making the net emissions amount 0 or less. To achieve this goal, we 
have set the following three detailed strategic directions and plan to expand relevant activities. 
By ①pursuing operational excellence that enables us to reduce our environmental impact; 
②developing future green products and services; and ③expanding external partnerships, we will 
actively take part in accelerating the transition to a low-carbon economy. In this process, we will 
make joint efforts with several partners who use NAVER platforms to expand the eco-friendly 
ecosystem.
NAVER  TCFD Report 2020
■	Outlook for GHG emissions (Business as Usual, BAU)
1)
■	Reduction of GHG emissions
	
Net Emission Curve
Net Emission
Carbon Negative
GHG emissions 
(BAU)
①	Operational  
Excellence
②	Future Green  
Product
③	Offset  
Partnership
2020
2030
2040
1) An emission projection estimates future emissions based on current emissions
CONTENTS
03 	 NAVER’s Climate Strategy
05 	 Governance
06 	 Strategy
10 	 Risk Management
11 	 Metrics and Targets

04
05
NAVER  TCFD Report 2020
Governance
A. The Board’s oversight of climate-related risks and opportunities 
NAVER established the ESG Committee, consisting of the CEO and three independent outside 
directors, based on a BOD decision in October 2020. In 2020, the ESG Committee reviewed and 
decided on setting the 2040 Carbon Negative goal and establishing NAVER’s mid- to long-term 
direction to respond to climate change. Moving forward, the ESG Committee will review NAVER’s 
mid- to long-term climate change strategy directions every quarter, and approve major tasks while 
also managing and supervising the execution of the tasks.
B. Management’s role in assessing and managing climate-related risks and 
opportunities 
The Chief Financial Officer (CFO) is assigned with roles and responsibilities for various matters 
related to executing investments and raising capital for the establishment and implementation of 
climate change strategies of NAVER. The Chief Executive Officer (CEO) takes the lead in identifying 
business items that are related to environmental sustainability within the area of commerce to call 
for the transition to a low carbon economy and to expand green business opportunities.  
What NAVER’s management has been mainly interested in since the announcement of the 2040 
Carbon Negative is to promote understanding among all employees of the direction that NAVER 
should move towards in order to counter climate change and to induce company-wide cooperation. 
Accordingly, outside experts were invited in the second half of 2020 to provide trainings on climate 
change strategy to environmental management leaders who are in charge of office building and 
data center operations and commerce leaders who devise green business items. Management is 
directly taking the lead for active discussions on relevant items.
Future Green Product
Increasing investments and 
cooperation for reduction  
of environmental impact  
of packing materials
Expanding eco-friendly  
fulfillment services
Developing and expanding 
sustainable product groups 
within the Smart Store
Operational Excellence
Maintaining and improving  
PUE of data centers 
Increasing the use of  
renewable energy
Reducing the amount of  
energy used in offices
Reducing the environmental 
impact of means of 
transportation within the 
business site
Offset Partnership
Increasing investment in 
carbon-free technology/
business
Developing carbon footprint
2) 
offset programs and increasing 
partner participation
Taking part in global initiatives 
for climate change response
2040 Carbon Negative
Internally, we are reducing the environmental impact of facilities by increasing renewable energy 
use. Externally, we are actively looking for business opportunities to increase various businesses 
and investments related to eco-friendliness, such as technology investments and M&As with 
key players in the area of eco-friendly commerce. The status and plan of our climate action 
implementation will be actively monitored and reviewed by the ESG Committee under the BOD, and 
will be continually communicated to our stakeholders, including shareholders. We will continue to 
take the lead in creating a more sustainable business environment and fulfill corporate social roles 
and responsibilities.
2)	Total greenhouse gas emissions 
directly/indirectly caused by  
an individual or organization

06
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NAVER  TCFD Report 2020
Strategy
A/B. Climate-related risks and opportunities the company has identified over  
the short, medium and long term, and the impact on the company’s businesses, 
strategy and financial planning 
NAVER is an information & communications technology (ICT) company, and its business areas 
include search platform, commerce, fintech, contents, and cloud. The risks and opportunities that 
may arise from climate change throughout NAVER’s overall business can be categorized as follows:
Types of Risks Due to Climate Change 
Transition Risks
Changes in policy and regulation, technology, and market that arise 
in the process of shifting to a low carbon economy and impact on 
reputation
Physical Risks
Acute/chronic risks in business infrastructure aspects that are triggered 
by the abnormal climate and worsening severe weather that are caused 
by climate change
a 	 A rise in expenses from purchasing carbon credit and GHG emission liabilities  
in case the credit price increases or emissions continue to increase
NAVER is subject to the national carbon emissions trading scheme, and for the amount of carbon 
emissions that is in excess of the emission permit, the company is required to purchase carbon 
credit in the Korea Exchange ETS (K-ETS) market. In this regard, we have been recognizing and 
managing GHG emission liabilities in our financial statements since 2019, and the amount stood 
at around KRW 970 million as of the end of 2020. This is less than around 0.018% of the annual 
consolidated operating revenue in 2020. However, relevant financial impact is expected to intensify. 
For example, GAK Sejong which is our second internet data center (IDC) in Sejong that is planned 
for completion at the end of 2022, is at least six times larger than Chuncheon Data Center GAK, and 
is planned to be built at a hyperscale, with more than around 100 thousand servers. Data centers, 
which is highly carbon-intensive compared to general office buildings, are included in those to which 
emission regulations apply, and are required to reduce the amount of electric power used every 
year. However, the arrival of 5G and the contactless era will exponentially increase NAVER’s data 
processing, resulting in an inevitable rise in carbon emissions levels. Accordingly, if NAVER is not 
able to adjust its carbon emissions or if the carbon credit price continues to rise in the trade market, 
our expenses from purchasing the carbon credit and GHG emission liabilities will increase and can 
have an impact on financial soundness. Based on forecasts on future emissions level increases, we 
derived that our financial burden from purchasing carbon credit can reach an accumulative KRW 
1.3 trillion by 2030 if we fail to secure emissions rights with the completion of our second IDC. To 
respond to this financial risk, we established a mid- to long-term carbon reduction target and are 
looking into various measures to realize this target, including expanding renewable energy and 
participating in offset programs.
b 	 A rise in low carbon facility and infrastructure investment costs and relevant assets
Low-carbon and low-power infrastructure regulations and relevant certifications are expanding. 
There is also demand for minimizing environmental impact due to business site operation. Facility 
investment aimed at satisfying eco-friendly building requirements requires investment costs. 
NAVER has recognized the importance of eco-friendliness in business site operation and is already 
operating a data center with the world’s lowest-level power usage effectiveness (PUE), as well as 
an eco-friendly office building with an LEED platinum grade. In particular, the Data Center GAK uses 
photovoltaic energy, and also continually invests in relevant businesses. We markedly improved 
the capability of photovoltaic power generation at the building in 2018, and as a result, 213 MWh 
of power were saved in 2020, along with about 95 tons of GHG emissions. To further expand this 
achievement, we are increasing green purchasing for our second office building and r second IDC 
that are now under construction, in addition to the currently-operated business site. Expected to be 
completed in 2021, “1784”, our second office building, has a 763.2 kW geothermal system to make 
the most of its basement space, and will have a 140.8 kW photovoltaic power generation facility on 
the rooftop despite a shortage in its area to apply new & renewable energy facilities due to its site 
characteristics.
Financial Impact of Short, Mid- to Long-Term Risks and Opportunities
Impact on profit/loss
Impact on financial position
  Risk
  Opportunity
Short- 
term
Mid to 
long-term
Transition 
Risks
Fluctuation in renewable  
energy purchase costs
Growth of intangible assets  
such as brand value and goodwill, 
resulting from taking leadership  
in green/sustainable business
e
f
Mid to 
long-term
Short- 
term
Physical
 Risks
Asset impairment and resulting 
compensation/restoration expenses
Asset impairment from 
the data center, etc.
g
Increase in operation costs of data 
center due to rising temperatures
Reduction in operating revenue 
from e-commerce business due to 
a damage in the supply chain and 
logistics chain
i
—
—
A rise in expenses from  
purchasing carbon credit in case  
the credit price increases and  
emissions continue to increase
A rise in GHG emission liabilities  
in case of an increase in expenses  
from purchasing carbon credit
A rise in low carbon facility and 
infrastructure investment costs
Expansion of low carbon facilities  
and infrastructure
b
Fluctuation in operating  
revenues due to a rise in  
consumer demand for green 
products and services
c
Reduction in cost of capital and 
attraction of new investments 
in case of inclusion in the ESG 
investment asset class
d
a
h

08
09
NAVER  TCFD Report 2020
c 	 Fluctuation in operating revenues due to a rise in consumer demand for green products 
and services
The worsening climate change and the resulting ecological, physical damage all across the globe 
has been increasing the importance of sustainability in purchase decision-making, mainly by 
the millennials and Generation Z. Consumers prefer products that minimize environmental load 
and create social value throughout production, distribution, and consumption steps, and pay 
more for these products adopting them as a criterion for brand selection. A company may lose 
competitiveness in the market if it fails to respond to these trends or expand green products and 
services for preemptive positioning for changing market demand. NAVER plans to expand green 
product groups by actively engaging Smart Store, a major prat of its Commerce Business, which 
accounts for at least 18% of total revenue as of the end of 2020, and is cooperating with CJ 
Logistics to build a sustainable fulfillment system. We also recognize the environmental impact of 
packing materials as a major environmental risk of the e-commerce industry, and are making active 
preparations for reduction of packing materials and replacement by sustainable materials.
d 	 Reduction in cost of capital and attraction of new investments in case of inclusion  
in the ESG investment asset class 
A company’s ESG risks will be assessed with greater importance in investment decision-making 
as a result of climate change, and companies with a high degree of negative environmental impact 
are already suffering from capital flight. In contrast, the size of ESG investment in companies with 
proven ESG management capabilities is sharply growing. NAVER has an MSCI ESG Rating of A as 
of December 2020, and has the highest component ratio (14.58%) among listed in the MSCI Korea 
ESG Leaders Index. NAVER will develop into a global ESG leader by continually strengthening ESG 
risk management, and secure opportunities for greater exposure to ESG investors.
e 	 Fluctuation in renewable energy purchase costs
A data center is a facility which requires large electric power consumption, and it is essential to 
increase power consumption efficiency and to make an energy transition in a more cost-efficient 
and eco-friendly direction. As one of the major directions for achieving 2040 Carbon Negative, 
NAVER is considering the way to reduce carbon emissions by increasing the use of renewable 
energy. However, due to domestic conditions where there are limitations to self-generation 
from renewable energy, we need to consider purchasing externally-produced renewable energy 
generation credits through the green premium system or Renewable Energy Certificate (REC) 
system, among RE1003) implementation support systems. In this aspect, the renewable energy 
purchase price is forecast to become an important variable in our operation costs. Accordingly, we 
are analyzing applicability, in economic and environmental perspectives, of several options that 
are presented by the domestic RE100 implementation support system, and seek to establish an 
investment plan and relevant plans from a mid- to long-term perspective of at least a decade.
f 	 Growth of intangible assets such as brand value and goodwill, resulting from  
taking leadership in green/sustainable business
Consumer demand for sustainable products and services will steadily increase with worsening 
climate change. As such, a company that secures green business leadership can make operating 
revenue improvements over the short term by increasing its market share, while making 
improvements to its reputation over the mid- to long-term future to result in an increase in brand 
value and goodwill.
g 	 Asset impairment and resulting compensation/restoration expenses 
Our data center is one of the key assets that form the foundation of NAVER’s business, and because 
business dependence is high and useful life is long, the economic damage caused by calamity 
and disaster due to climate change would be enormous. NAVER’s Data Center GAK was designed 
with disaster prevention capabilities for earthquakes of 6.5 or higher magnitude, flood, typhoons, 
and fire, so as to strengthen its durability in extreme weather situations. It has a system that can 
generate electricity for up to 72 hours even when external supply of electric power discontinues in 
case of an emergency, thereby minimizing relevant risks. 
h 	 Increase in data center operation costs due to rising temperatures 
A rise in temperatures caused by climate change is directly connected to an increase in electric 
power costs for cooling down a data center. According to research, at least 75% of annual operation 
costs of a general data center consists of energy-related costs, of which at least 60% is used for 
cooling systems and power receiving/distribution facilities. Therefore, the improvement of cooling 
system efficiency and minimization of outside temperature impact should be managed with great 
significance in the aspect of operation costs. NAVER’s Data Center GAK Chuncheon uses Snow 
Melting (a road heating system which uses waste heat in the wintertime) and a natural cooling 
system using outside air to reduce server heat in a sustainable way. By doing so, the Data Center 
GAK minimizes the amount of electric power used for cooling, and the number of days that it uses 
coolers in a year is no more than around 30 days. As of the end of December 2020, the power usage 
effectiveness (PUE)4) of the Data Center GAK Chuncheon was 1.09. This signifies that only 8% of total 
electric power was used for cooling, and 92% was used for IT resources, thereby reducing electric 
power needed for cooling. This is significantly lower than the average PUE of domestic data centers 
at 2.66 and the green data center PUE standard presented by the Korean government which is 1.75.
i 	 Reduction in commerce operating revenue due to a damage in the supply chain  
and logistics chain
Commerce Business accounts for around 18.2% of operating revenues of NAVER’s business as of 
the end of 2020. Commerce revenues are indicating firm growth as a result of a continued rise in 
online shopping demand and merchants with the advent of the contactless era. However, worsened 
unusual weather, including earthquake, flood, and fire from climate change, can cause a physical 
blow to the supply chain and logistics chain, and the resulting service delay/suspension acts as a 
severe risk to customer attraction and retention.
C. Resilience of NAVER business when considering the climate change scenario 
Based on the estimated carbon emissions amount for the next decade, NAVER estimated the range 
of costs to respond to the emissions trading system, in consideration of carbon prices in line with 
the 1.5°C limit and 1.5°C - 2°C scenarios presented by the IPCC; average carbon emissions trading 
price in South Korea from 2017 to 2019; and the highest carbon emissions trading price in South 
Korea in August 2020, which was the time of analysis. Based on this estimation, we established 
a GHG emission reduction target, and are striving to minimize financial risks that accompany 
measures against climate change. We will go beyond financial risks from responding to regulations 
and advance our analysis on climate change scenarios’ financial impact on tangible/intangible 
assets, thereby further detailing our strategies to achieve the climate change target.
4)	Power Usage Effectiveness:  
The ratio of total amount of energy 
consumption of a data center 
facility to the energy consumed by 
IT equipment. A value closer to 1  
means higher efficiency.
3)	RE100: A global initiative to 
increase the use of renewable 
energy led by the Climate Group 
– a non-profit organization to 
address climate change. Members 
of the initiative are committed 
to transition to 100% renewable 
power no later than 2050.

10
11
NAVER  TCFD Report 2020
Risk Management
Metrics and Targets 
A/B/C. NAVER’s processes for identifying, assessing and managing climate-
related risks and integrating them into the company’s overall risk management
A/B. Metrics used by the company to assess climate-related risks and opportunities  
NAVER manages the amount of GHG emissions, amount of energy consumption, and PUE of its 
IDCs to manage climate-related risks and opportunities.
(1) Greenhouse Gas (GHG) Emissions
2017
2018
2019
2020
Greenhouse Gas (GHG) Emissions
Total GHG emissions
Total
tCO2e
57,080
72,416
78,712
79,907
Green Factory
7,541
7,510
7,178
6,731
Data Center GAK
49,539
64,906
71,534
73,176
GHG emissions
Scope 1
Green Factory
276
295
244
197
Data Center GAK
141
48
52
33
Scope 2
Green Factory
7,265
7,215
6,934
6,534
Data Center GAK
49,398
64,858
71,483
73,143
GHG intensity
1)
Total
tCO2e/
Revenue 
(KRW billion)
12.20
12.96
18.07
15.07
Green Factory
1.61
1.34
1.65
1.27
Data Center GAK
10.59
11.62
16.42
13.80 
(2) Energy Consumption
Total energy consumption
Total
TJ
1,178
1,495
1,624
1,649
Green Factory
159
159
152
143
Data Center GAK
1,019
1,336
1,472
1,506
Energy intensity
2)
Total
TJ/
Revenue 
(KRW billion)
0.25
0.27
0.37
0.31
Green Factory
0.03
0.03
0.03
0.03
Data Center GAK
0.22
0.24
0.34
0.28
Direct energy consumption
Sub Total
TJ
7.4
6.7
5.7
4.5
LNG
Green Factory
5.3
5.8
4.8
3.9
Diesel
0.01
0.04
0.01
0.01
Mobile combustion
Data Center GAK
0.1
0.1
0.1
0.1
Diesel
1.6
0.4
0.4
0.1
LNG
0.5
0.3
0.4
0.4
Indirect energy consumption
Sub Total
TJ
1,171
1,488
1,618
1,645
Electricity
Green Factory
144
143
138
130
Steam
9.6
10.0
8.8
8.5
Electricity
Data Center GAK
1,017 
1,335
1,471
1,506
1)	GHG intensity in 2019 and 2020 is calculated by reflecting discontinued business (LINE and its affiliates) disclosed 
through the 2020 Business Report
2)	Energy intensity in 2019 and 2020 is calculated by reflecting discontinued business (LINE and its affiliates) disclosed 
through the 2020 Business Report
Management organizations manage environmental risks in operating NAVER’s office buildings, IDCs 
and other infrastructure of the company as its tangible assets. They are also in charge of green 
purchasing for green facility construction and operation. Company-wide ESG management team 
under the CFO reviews and identifies the company’s overall climate change risks based on outside 
expert advice, and establishes a short-term and mid- to long-term response directions. The CFO 
examines mid- to long-term investment expenditures or acquisition of financial resources that 
are needed to respond to the risks. Finally, the ESG Committee under the BOD makes decisions on 
the direction for managing major non-financial risks and on investments. In the event of a severe 
calamity/disaster caused by climate change, the Risk Management Committee under the BOD and 
supporting organization under the CEO that is exclusively in charge of risk management manage 
business continuity.
Integrating climate-related  
risk/opportunity management into 
decision-making process across  
the company
Board ESG Committee
Green Impact (ESG-dedicated team under CFO)
Environment Impact (Environment-dedicated team under GI)
Risks and opportunities 
related to local  
environmental regulations
Risks and opportunities in 
operating office buildings  
and IDCs
Risks and opportunities 
related to eco-friendly 
business
Space & Utility Center
Data Center Service 
Business units  
under the CEO
Space Engineering
Data Center Service
Better Space
TF for 1784,  
a second office building
Space Branding Studio
Organization  
in charge

12
NAVER’s carbon emissions rose by around 39.99% at the end of 2020 compared to the end of 2017. 
This is mainly attributable to continued increase in energy consumption used by our data center 
although the amount of energy used by the Green Factory office building has been indicating a 
downward trend for three consecutive years since 2017. The carbon credit price in South Korea 
rose by some three-fold from around KRW 7,800 per ton on January 2, 2017 to approximately 
KRW 23,000 at the end of December 2020, reflecting that the financial burden caused by increased 
emissions. Moreover, the third plan period of the emissions trading system will be adopted in 2021 
and the completion of the construction of our second data center in Sejong City, and accordingly 
the scope of NAVER’s business sites, included in the GHG emissions management scheme, will be 
expanded. We therefore decided to establish a mid- to long-term goal to reduce carbon emissions 
throughout our business and to manage relevant financial impact.
C. Targets used by the company to manage climate-related risks and opportunities 
and performance against targets
NAVER pursues the goal of “Carbon Negative” (including scope 1, 2, 3), which means to have GHG 
reduction levels to be higher than GHG emissions by 2040. Increased use of renewable energy is a 
prerequisite to reducing the environmental impact of consumption of electric power, which accounts 
for the highest proportion among our GHG emission sources. As such, we plan to engage in decision-
making that is based on efficiency in the aspect of the renewable energy purchase price and return 
on investment (ROI) on infrastructure investments. Regarding achieving our climate change goal, 
in consideration of insufficient institutional and infrastructure conditions for expanding renewable 
energy use in Korea as of the second half of 2020, when we established our mid- to long-term 
goal, we plan to actively implement the carbon emissions reduction/offsetting system throughout 
our overall value chain. We plan to continually communicate with our stakeholders the amount of 
reduction compared to our climate change goal and performance in pursuing the goal.
Climate Risk & Opportunity Management – Environmental Impact of Hardware Infrastructure	
(Unit: MWh) 
2017
2018
2019
2020
Total energy saving
Sub Total
28,997
37,303
41,689
41,199
Saving through office management
Green Factory
–
138
517
837
Saving of electricity for air-conditioning 
and heating by adopting geothermal 
energy
101
101
101
101
Saving through office management
Data Center GAK
426
511
511
514
Saving through natural cooling system
28,435
36,371
40,343
39,534
Saving by producing renewable energy
35
182
217
213
Renewable energy consumption
Sub Total
136
283
318
314
Geothermal power
Green Factory
101
101
101
101
Solar power
Data Center GAK
35
182
217
213
PUE
Data Center GAK
1.11
1.11
1.09
1.09
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NAVER  TCFD Report 2020
Reduction performance in energy consumption at the end of 2020 recorded around a 42% increase 
from the end of 2017. Power generation based on renewable energy went up by around 2.3-fold 
during the same period, and the PUE of our data center has been improved. 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. We set up 22 electric vehicle-charging facilities and thus 
reduced the burden of commuting using an eco-mobility, and participate in “Earth Hour” every year, 
which is an environmental campaign hosted by the World Wide Fund for Nature. In addition, we 
radically improved the photovoltaic power generation facility at the building in 2018, and as a result, 
213 MWh of power were saved in 2020, along with about 95 tons of GHG emissions. In addition, 
we are constantly monitoring and upgrading our data center operations in order to reduce water 
consumption for air-conditioning. Although our IT resources and resulting water consumption were 
increased in 2020, we made ceaseless efforts to develop improvement measures through the use 
of natural energy and increased energy efficiency, thereby reducing nearly 20,000 tons of GHG 
emissions per year. Our second office building, “1784”, which is expected to be completed in 2021, 
was designed to earn LEED platinum certification and have an energy efficiency level of 1+, and will 
have a 763.2 kW geothermal system in its basement space, and a 140.8 kW photovoltaic power 
generation facility on the rooftop. As of the end of December 2020, the construction is in progress, 
and primary energy consumption is estimated to be 160.7 kWh/m2 a year, which is in the top 10% of 
business facility buildings with total floor space of 10,000 m
2 or more, based on statistics provided 
by the Korea Energy Agency. The new building has already earned 1+ preliminary energy efficiency 
certificate, with main certification to be finalized after the completion of the construction work.