ESG Disclosure: Preparing for the 'Biodiversity' Issue Following 'Climate Change'

KCCI and European Chambers in Korea to Hold 'ESG Business Conference' on the 2nd
Discussion on ESG Disclosure and Strategies in Europe and Korea

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

[Asia Economy Reporter Hwang Yoon-joo] As the European Union (EU) prepares legislation related to ESG (Environmental, Social, and Governance), advice has emerged that Korean companies need to prepare responses.

The Korea Chamber of Commerce and Industry (KCCI) announced that it held the 'ESG Business Conference' on the 2nd in collaboration with the European Chamber of Commerce in Korea (ECCK) to discuss ESG disclosures and management strategies in Europe and Korea for the expansion of ESG management.

The EU is currently preparing ESG-related legislation including sustainable corporate governance, corporate sustainability reporting, due diligence to prevent overseas deforestation, and the sustainable product initiative. With the introduction of the carbon border tax and supply chain due diligence increasing burdens on companies in both Europe and Korea, global ESG disclosures such as those by the non-profit organization Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD), which provide guidelines for corporate sustainability management reports, are increasingly likely to act as corporate regulations in the future, making joint responses necessary.

Kim Dong-su, Director of the Korea Productivity Center, who gave the first presentation on the topic of ‘The Importance of ESG and Disclosure,’ said, "The reason ESG disclosure is important is that it is the starting point of the ESG ecosystem, including responsible investment," adding, "Especially as the importance of biodiversity has expanded after climate change, companies need to pay attention to the Task Force on Nature-related Financial Disclosures (TNFD), a T/F related to natural capital disclosures."

Im Dae-woong, UNEP FI Korea Representative, stated, "In June, the G7 resolved to mandate climate-related financial disclosures according to the Task Force on Climate-related Financial Disclosures (TCFD), and TCFD is being integrated into financial supervision such as Basel, becoming a hot issue in capital markets," and added, "The biodiversity-related TNFD disclosures, led by UNEP FI, are also newly gaining attention through the G7."

Kim Jin-sung, Team Leader at the Korea Corporate Governance Service, emphasized, "Proactively responding to ESG disclosures is a way to reduce risks and costs," and stressed, "Especially as financial institutions increasingly use ESG rating information, if companies utilize this well, it can become an opportunity for capital procurement."

Meanwhile, the presentations made on this day will be available from the 8th on the Korea Chamber of Commerce and Industry website as an online seminar.

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