[2021 Asia Financial Forum] CEO Lee Ui-cheol: "ESG Management Transition, Core Condition for Survival"

'Future Financial Innovation and Sustainable Growth' Theme
10th 2021 Seoul Asia Financial Forum

Lee Ui-cheol, CEO of Asia Economy

[Asia Economy Reporter Kim Hyo-jin] Lee Ui-cheol, CEO of Asia Economy, stated on the 25th that "the transition to an ESG (Environmental, Social, Governance) system is no longer an innovation but a core condition and necessity for survival."

Lee made this remark in his opening address at the "10th 2021 Seoul Asia Financial Forum," held under the theme "Future Financial Innovation and Sustainable Growth" at the Westin Chosun Hotel on Sogong-ro, Jung-gu, Seoul.

He diagnosed that "since COVID-19, social demands to protect the environment and strengthen social safety nets have increased, making ESG the biggest issue in corporate management."

Below is the full text of Lee's opening address.

Distinguished guests, hello. I am Lee Ui-cheol, CEO of Asia Economy. I am very pleased to greet you today at the '2021 Seoul Asia Financial Forum.'

This year marks the 10th anniversary of the Asia Financial Forum, and its theme is 'Future Financial Innovation and Sustainable Growth.' Since COVID-19, social demands to protect the environment and strengthen social safety nets have increased, making ESG?an acronym for Environment, Social, and Governance?the biggest issue in corporate management.

ESG aims to predict and properly evaluate the impact of non-financial factors such as environment, social, and governance, in addition to financial elements like economic performance, on management outcomes.

Organizations, including companies, should not focus solely on measurement and evaluation but should innovate management activities through long-term strategies and effective implementation of initiatives, aiming to develop financial performance and ESG outcomes in a balanced manner through systematic activities.

Larry Fink, CEO of BlackRock, the world's largest asset management company, has announced that climate change risks and ESG will be core factors in investment decisions.

Large investment firms such as Fidelity, PIMCO, and Goldman Sachs are also strengthening ESG investments, and big tech companies like Facebook, Apple, Google, and Microsoft are aligning with ESG management and reshaping the market.

Klaus Schwab, Chairman of the World Economic Forum (WEF), warned in his book "The Great Reset" that "if ESG is not considered, the real value of companies could be destroyed, and even their survival threatened."

In response to these changes, domestic companies and financial institutions are showing swift movements by establishing ESG committees or dedicated teams. ESG information disclosure, eco-friendly regulations such as carbon reduction, and stewardship codes are also being strengthened. The transition to an ESG management system is no longer an innovation but a core condition and necessity for survival.

At this forum, we aim to discuss and deeply examine future financial innovation strategies through ESG, sustainable green leadership, global investment strategies and responses after COVID-19, which are challenges and tasks for finance in the next normal era.

Through this forum prepared by Asia Economy, we hope that diverse discussions among domestic and international experts will take place and contribute, even if slightly, to the innovation and development of the financial industry. Thank you.

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