KOTRA Publishes Report on Global Companies' Carbon Neutrality Response Cases

Analysis of Response Cases from 61 Global Companies... Contains Vivid Information Gathered Locally

[Asia Economy Reporter Park Sun-mi] KOTRA announced on the 24th that it has published a report titled "Under the New Climate Regime, Overseas Companies' Response Cases and Opportunity Factors." This report was planned to identify the major countries' carbon neutrality trends changing after the Paris Agreement and overseas companies' response cases, and to derive opportunity factors for Korean companies.

As the transition to the new climate regime has been actively underway since the Paris Agreement, not only governments of various countries but also companies are voluntarily and actively implementing response measures. The number of companies joining RE100 (361 companies as of 2022) is gradually increasing as part of carbon neutrality efforts, which is expected to have direct and indirect effects on the overseas expansion of Korean companies.

This report includes ▲the status of major countries' carbon-related laws and systems ▲global companies' carbon neutrality and RE100 response cases ▲domestic companies' response status and opportunity factors. In particular, the RE100 promotion details of 61 global manufacturing companies surveyed through 21 KOTRA overseas trade centers in 12 countries are expected to provide guidelines for domestic companies to implement RE100 and establish strategies.

Among the surveyed content, of the 61 global companies joined in RE100, 30 companies have prepared regulatory measures targeting existing partners, and the most common method was establishing their own guidelines or instructions to evaluate and manage partners. Companies such as BMW Group and TSMC manage by imposing environmental obligations at the time of contract signing, which Korean companies need to pay attention to.

Additionally, 22 companies are promoting systems for win-win cooperation with partners or local communities. Many support education for partners and consulting for strategy establishment. Among them, Continental, a global tire company, has implemented a program to transfer and educate sustainable rubber tree cultivation techniques to small farmers in Indonesia who supply natural rubber raw materials.

Accordingly, the report suggests that domestic companies should actively participate in this trend by declaring carbon neutrality and joining K-RE100, and monitor and benchmark major countries' policies and global companies' movements to adapt to the changed environment.

Jung Woi-young, Head of KOTRA Innovation Growth Headquarters, stated, "It is important to quickly grasp the trends of global companies under the new climate regime and disseminate them to our companies," and added, "Through this report, we will analyze the response cases of major governments and companies and actively support our companies to proactively create new opportunity factors."

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