ESG Mandatory Disclosure 'Urgent Issue'... Small and Medium Enterprises Must Also Prepare

Baek Tae-young ISSB Member "ESG Changing from Voluntary to Mandatory Disclosure"
"Including Small and Medium Suppliers in the Supply Chain"
KCCI Releases Online Training Video 'ESG A to Z for Small and Medium Enterprises'

[Asia Economy Reporter Jeong Dong-hoon] The Korea Chamber of Commerce and Industry (KCCI) announced on the 19th that it will release the fourth series of 10 new educational videos for customized ESG online training for small and medium-sized enterprises (SMEs) and mid-sized companies titled "ESG (Environment, Social, Governance) from A to Z" on the KCCI website 'Eusseuk' and its YouTube channel.

This ESG online training was produced to enhance the understanding of corporate practitioners and support the spread of ESG management among SMEs and mid-sized companies, addressing recent global ESG issues that the economic sector should focus on next year, amid growing demands for ESG management practices not only from large corporations but also from SMEs and mid-sized companies within the supply chain partnerships.

The lectures consist of a total of 10 videos by topic, including ▲ "ESG Climate Change" explaining RE100, circular economy, and emissions trading system, ▲ "ESG Washing" covering the basic concepts of washing and explaining domestic and international cases and countermeasures, and ▲ "ESG Disclosure" introducing how to prepare sustainability management reports, ISSB disclosure standards, recent issues, and response strategies regarding ESG disclosure.

Earlier in July, KCCI produced and released 10 videos on ESG basics, advanced topics, and practical implementation to improve SMEs' and mid-sized companies' understanding of ESG. For this fourth series of online lectures, KCCI invited top ESG experts active in consulting firms, law firms, corporations, and universities as speakers.

In particular, regarding the ISSB standards, which many companies are highly interested in, the educational videos were filmed with Baek Tae-young, an ISSB member and one of only 14 inaugural ISSB members worldwide. In the video, Baek Tae-young stated, "As the environment is shifting from voluntary ESG disclosures to mandatory disclosures, the likelihood of countries adopting ISSB standards as mandatory disclosure criteria is high," adding, "According to ISSB standards, disclosures must include SMEs and mid-sized partner companies within the supply chain (Scope 3), so not only large corporations but also SMEs and mid-sized companies need to prepare accordingly."

The lectures being released this time focus on providing information about major global ESG issues represented by ‘ESG Climate Change,’ ‘ESG Washing,’ and ‘ESG Disclosure,’ and emphasize helping domestic companies establish ESG management response strategies. They especially include the latest information on how companies should respond to prepare sustainability reports in the future and on global ESG disclosure standards represented by ISSB.

Among economic organizations and related institutions leading ESG initiatives, KCCI actively supports ESG management practices for SMEs and mid-sized companies through hosting five ‘ESG Management Forums’ this year, publishing guides such as ‘Corporate Guide for Sustainable Management ESG A to Z’ and ‘Easy-to-Understand ESG for SME and Mid-sized Company CEOs.’

Woo Tae-hee, Executive Vice President of KCCI, said, “With the German Supply Chain Due Diligence Act coming into effect next year and the need to manage carbon emissions of partners, ESG regulations are tightening, and demands from global companies, investors, and rating agencies are becoming increasingly stringent. We hope this educational video will provide practical help to SMEs and mid-sized companies preparing for ESG.”

The KCCI ESG online educational videos can be viewed from 9 a.m. today on KCCI’s ‘Eusseuk’ or the YouTube channel Korea Chamber of Commerce and Industry ESG TV.

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