Samsung C&T, Hankook Tire, and 5 Other Companies' ESG Integrated Ratings Downgraded by One Level

[Asia Economy Reporter Park Jihwan] The Korea Corporate Governance Service announced on the 30th that the integrated Environmental, Social, and Governance (ESG) ratings of seven companies, including Samsung C&T, Hankook Tire & Technology, and Daewoo Shipbuilding & Marine Engineering, declined by one grade in the first quarter of this year.

The Corporate Governance Service regularly publishes individual ratings evaluating companies' Environment (E), Social (S), and Governance (G) aspects, as well as the comprehensive ESG integrated rating, to promote socially responsible investment. The ratings are classified into seven grades: S, A+, A, B+, B, C, and D.

As a result of this adjustment, the number of companies whose ratings were downgraded due to risks in each ESG category were one in Environment, ten in Social, and eight in Governance. Accordingly, the integrated ratings of a total of seven companies were lowered.

In the case of Samsung C&T, the integrated rating was downgraded from A+ to A after current and former executives and employees received prison sentences due to the execution of a group-level strategy to dismantle the Everland labor union. Hankook Tire & Technology and Hankook Technology Group each saw their integrated ratings fall from A to B+ after their CEOs were prosecuted on charges including embezzlement.

The Corporate Governance Service has adjusted ratings once every six months but plans to adjust them quarterly starting this year. A representative of the Corporate Governance Service stated, "We will support domestic companies in improving ESG practices through the advancement of the evaluation system."

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