"Carbon Neutrality: Direction is Right, but Speed Adjustment Needed Considering Market Shock"

Advice at the Federation of Korean Industries K-ESG Alliance Meeting

Data provided by the Federation of Korean Industries

[Asia Economy Reporter Kim Heung-soon] As countries around the world set carbon neutrality as a goal, South Korea is also joining this movement, but there are claims that speed adjustment is necessary considering the shock to the market.

The Federation of Korean Industries (FKI) held the 3rd K-ESG Alliance meeting on the 7th at the FKI Hall in Yeouido, Seoul, under the theme of "Institutional Investors' ESG (Environment, Social, Governance) Investment Principles and Prospects," containing such content.

Kim Yoon, Chairman of the K-ESG Alliance and Chairman of Samyang Holdings, emphasized in his opening remarks, "ESG management is a new opportunity to create corporate value in new paradigms such as carbon neutrality and a risk management tool to respond to the era of complexity."

He also expressed concerns about greenflation, which is spreading mainly in Europe recently, and suggested, "We need to consider how to deal with side effects that cause excessive shocks to the market and whether the current speed is appropriate." Greenflation refers to the phenomenon where the share of coal power generation is reduced according to the purpose of carbon neutrality, increasing dependence on natural gas and causing energy prices to surge.

The K-ESG Alliance is an ESG coalition launched in April under the leadership of the FKI. It aims to promote sound ESG management and global ESG business initiatives. Attendees at the meeting included Chairman Kim, Kim Yong-jin, Chairman of the National Pension Service, and Yoon Jong-kyu, Chairman of KB Financial Group.

Chairman Kim said in his keynote speech, "The ESG currently being discussed is a new opportunity to strengthen social capital," and added, "ESG should be approached as an investment, not a cost."

He also revealed that the National Pension Service is promoting the "National Pension ESG Plus Initiative" as a key project, aiming to ▲ enhance predictability of companies' ESG, ▲ establish a Korean-style K-ESG, ▲ activate the ESG ecosystem, and ▲ contribute to the formation of a new international order.

Chairman Yoon advised through his keynote speech, "Currently, major powers such as the European Union (EU), the United States, and China are supporting ESG," and added, "South Korea, based on export-oriented manufacturing, must quickly create business opportunities in ESG."

He further stated, "KB Financial Group also plans to support our companies in accelerating ESG management from the financial side through its public role as a financial institution, aligning with the ESG paradigm."

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