Korean Air Receives 'Integrated Grade A' for 2 Consecutive Years in ESG Evaluation by Korea Corporate Governance Service

Social Sector A+, Environment and Governance Sector A
Recognition of Improvement Efforts Including Separation of CEO and Chairman

[Asia Economy Reporter Dongwoo Lee] Korean Air announced on the 29th that it has received an integrated grade of A for two consecutive years in the 2021 ESG (Environmental, Social, Governance) evaluation of listed companies conducted by the Korea Corporate Governance Service.

In the category-specific grades, the governance sector, which was rated B+ last year, was upgraded to A in recognition of improvement efforts such as separating the CEO and the chairman of the board, appointing female outside directors, and proactively establishing and operating an ESG committee composed solely of outside directors. Accordingly, Korean Air received grades of A or higher in all sectors, including the social sector A+, and the environmental sector A, which were the same as the previous year.

To improve corporate governance, Korean Air has separated the CEO and the chairman of the board since last year and appointed all members of the Outside Director Candidate Recommendation Committee as outside directors to enhance governance transparency and the independence of the board. In August of the same year, the company established an 'ESG Committee' composed entirely of outside directors to oversee ESG-related matters and has been carefully reviewing major management issues that significantly affect shareholder value and shareholder rights.

In addition, to respond to climate change risks such as greenhouse gas reduction, Korean Air agreed in June this year to cooperate with Hyundai Oilbank to establish a foundation for the production and use of bio-aviation fuel, and in September, it began cooperation with SK Energy to introduce carbon-neutral aviation fuel. The company has been actively engaged in activities to reduce carbon emissions, including issuing ESG bonds for the additional introduction of the eco-friendly Boeing 787-10, the first among domestic airlines.

Korean Air is also actively participating in the transportation of COVID-19 vaccines, pharmaceuticals, and humanitarian relief supplies by leveraging the characteristics of the aviation industry. Furthermore, the company is committed to active social contribution activities, such as continuous cooperation with local communities and mutual growth with partner companies.

The Korea Corporate Governance Service is the largest ESG evaluation and proxy advisory institution in Korea, conducting evaluations, research, and investigations on corporate governance and social responsibility. Every year, it announces ESG evaluations and grades based on the levels and results of environment, social, and governance for listed companies in Korea. This year, evaluations were conducted on a total of 950 companies.

Korean Air stated, "We plan to actively carry out management activities that reflect non-financial factors such as environment, society, and governance, which have a significant impact on corporate value and sustainable growth potential."

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