The Pulp and Paper Industry Accelerates 'ESG Management' Efforts

Establishment of Governance Subcommittees and Audit Committees Followed by Clean Nara, Hansol Paper, and Moorim Paper

Paper manufacturing companies are also accelerating ESG management. The photo shows whiteboard paper raw materials stored in the automated warehouse at Hansol Paper's Daejeon plant. Photo by Asia Economy DB

[Asia Economy Reporter Kim Jonghwa] The paper industry is actively advancing ESG (Environmental, Social, and Governance) management.

This year, driven mainly by B2C (business-to-consumer) companies and export-oriented firms, the industry is rushing to establish ESG management systems as a way to pioneer global markets, enhance management transparency, and increase shareholder value, creating a widespread ESG management trend across the sector.

Kkaekkeuthan Nara recently strengthened its ESG management by adding environment, social, and governance subcommittees to its existing ESG committee and appointing senior executives as members of each subcommittee. These subcommittees are tasked with implementing eco-friendly product and material development, expanding eco-friendly energy businesses, practicing social values such as human rights, safety and health, mutual growth, and social responsibility, as well as establishing genuine governance through transparent management to increase shareholder value.

A representative from Kkaekkeuthan Nara stated, "ESG management is a core corporate strategy to create sustainable future value and fulfill social responsibility," adding, "The declaration of ESG management will serve as a turning point for changes in the thoughts and actions of all company members."

Moorim Paper, with exports accounting for 50% of its business, is accelerating the establishment of an ESG management system that meets the standards of reputable domestic and international sustainability assessment organizations such as the Korea Corporate Governance Service (KCGS) and Ecovadis.

Moorim, the only company in Korea that produces both paper and pulp, is actively developing eco-friendly products and holds a technological advantage over other companies. Recently developed pulp-based new material products by Moorim, such as pulp hangers, automotive interior materials, and various disposable items, are gaining attention as alternatives to plastic.

Despite having no obligation to form an audit committee, Moorim Paper has established and operates one to enhance management transparency, and plans to voluntarily disclose its corporate governance report on its corporate website.

Hansol Paper, although its asset size is under 2 trillion won, also has established and operates an audit committee. Last month, it developed 'Cacao Board' using cacao shells, positioning itself as an eco-friendly company with transparent governance and shareholder-friendly policies.

An industry insider said, "Companies that once viewed ESG management as a cost and a burden have noticeably changed their attitudes by actively responding to environmental issues," adding, "The number of companies adopting ESG management is increasing, especially among B2C and export-oriented firms."

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