Global ESG Disclosure Mandate... Now an Urgent Issue for Domestic Companies Too

KCCI Holds 2nd 'ESG Management Forum'
Focused on ESG Investment and Regulation

The Korea Chamber of Commerce and Industry in Jung-gu, Seoul, where the Commerce Day ceremony was held on the 31st. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Yoonju Hwang] The Korea Chamber of Commerce and Industry (KCCI) announced on the 20th that it held the '2nd KCCI ESG Management Forum' as an online seminar in collaboration with the law firm Sejong.

The 'KCCI ESG Management Forum' was organized to strengthen the domestic industry's response capabilities to ESG (Environmental, Social, and Governance), which is a global issue, and to discuss related risk management and policy support methods.

The second forum focused on ESG investment and regulations, which are of high interest to companies. The National Pension Service Fund and the Korea Environmental Industry & Technology Institute introduced ESG investment trends and environmental sector evaluation plans, respectively, while the Korea Exchange and the Korea Corporate Governance Service presented the current status and prospects of ESG disclosure systems. Finally, SK Innovation and the law firm Sejong gave case presentations to help promote ESG management in corporate workplaces.

Before the keynote presentations, Professor Junhyuk Jeong from Seoul National University School of Law delivered a keynote speech titled 'The Present and Future of ESG.' Professor Jeong predicted that "considering the increasing influence of pension funds and global concerns about climate change, ESG will remain a subject of continuous discussion." He added, "Since related systems such as ESG disclosure and evaluation are in their early stages, it is necessary to closely monitor trends like the TCFD recommendations and to raise Korea's voice in the process of establishing international standards."

In the first session, Shin Wang-geon, Chairman of the Investment Policy Committee of the National Pension Service Fund, disclosed the NPS's ESG evaluation criteria and how ESG-related factors are considered when selecting external asset managers. Chairman Shin emphasized, "We will expand responsible investments in domestic stocks and bonds, which is a global trend."

Next, Daewoon Kwak, Director of the Green Investment Support Office at the Korea Environmental Industry & Technology Institute, introduced government policies related to the Green New Deal, including carbon neutrality, along with plans to promote green finance. Director Kwak said, "We will establish a green classification system and develop and distribute standard evaluation formulas for the environmental sector to support the spread of environmentally responsible investments," and requested active participation and advice from stakeholders to establish related systems.

Expansion of ESG-related Disclosure Systems... Companies Must Actively Disclose ESG Information

The second session, focused on ESG regulations, featured lectures from the Korea Exchange and the Korea Corporate Governance Service. Younghoon Song, Executive Director of the Korea Exchange, cited the EU's mandatory ESG disclosure as an example, explaining, "Regardless of domestic or international contexts, ESG disclosure is strengthening from voluntary to mandatory disclosure," and stressed, "Active responses from domestic listed companies are necessary."

Jinsu Yoon, Head of the Korea Corporate Governance Service, explained the 'ESG Best Practices' and shared interpretations of the 2020 ESG evaluation ratings and results. Head Yoon emphasized, "Feedback from companies undergoing ESG evaluations is important," adding, "Companies should not passively receive evaluations but proactively provide ESG information to the market themselves."

In the final session, actual ESG management cases from corporate management sites were introduced. SK Innovation presented initiatives in each ESG sector, including achieving net-zero carbon emissions, fostering social venture companies in the environmental field, and strengthening board-centered management. Youngsoo Kwon, Head of SK Innovation’s ESG Strategy Office, who gave the presentation, said, "Our goal is not just to receive good evaluations immediately but to become a company recognized by society and customers."

Following this, Sooyoung Song, an attorney from the ESG Specialist Team at the law firm Sejong, shared ESG advisory cases with domestic companies, as well as various work cases and statistical data such as green bond issuance. Attorney Song added, "Interest in ESG management is increasing not only among listed companies but also unlisted companies," and noted, "ESG demands for small and medium-sized enterprise partners are already expanding."

Taehui Woo, Executive Vice President of KCCI, stated, "Among the indicators related to ESG disclosure, the TCFD recommendations linking climate change and financial information disclosure have been adopted by financial authorities in the UK, Hong Kong, New Zealand, and over 1,700 financial institutions worldwide," emphasizing, "TCFD is emerging as the most important standard for corporate disclosure, requiring active responses from companies."

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