"Need to Adjust Carbon Neutrality Pace Considering Market Shock" (Update)

, K-ESG Alliance Meeting
Discussion on Concerns over Green Inflation and More

Kim Yong-jin, Chairman of the National Pension Service (front row, left), Kim Yoon, Chair of the K-ESG Alliance, and Yoon Jong-kyu, Chairman of KB Financial Group, are delivering greetings at the "3rd K-ESG Alliance Meeting" held on the 7th at the Federation of Korean Industries Conference Center in Yeouido, Seoul.
[Photo by Federation of Korean Industries]

[Asia Economy Reporter Kim Heung-soon] As countries around the world are putting their lives on the line for carbon neutrality, Korean companies are also under pressure to reduce carbon emissions, but there are claims that speed control 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 building in Yeouido, Seoul, under the theme of "Institutional Investors' ESG (Environmental, Social, and Governance) Investment Principles and Prospects," containing such content.

Kim Yoon, Chairman of Samyang Holdings and Chair of the K-ESG Alliance, expressed concerns about greenflation spreading recently, mainly in Europe, during his opening remarks, suggesting, "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, in line with the purpose of carbon neutrality, the share of coal power generation is reduced, leading to increased dependence on natural gas and a sharp rise in energy prices.

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.

Yoon, who gave the keynote presentation, emphasized, "ESG management is directly related to the restructuring of our industrial structure, which has a high proportion of manufacturing and coal power generation."

He added, "Considering that the European Union (EU) Commission's legislative proposal (Fit for 55), which aims to reduce carbon emissions by 55% from 1990 levels by 2030, will be effectively applied from 2026, the situation is urgent. Under the belief that ESG is the trend, a system to measure and understand our carbon emissions by industry must be established."

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