Top 100 Revenue Companies Spent 5 Trillion Won on Environment and Safety Fields

FKCCI Analyzes ESG Performance of Top 100 Companies by Revenue
13.5% Decrease in Greenhouse Gas Emissions Compared to 2021 Revenue Year-on-Year

[Asia Economy Reporter Han Yeju] It was found that the top 100 companies by sales invested approximately 5.44 trillion KRW in the environment and safety sectors alone in 2021. As corporate environmental management to achieve carbon neutrality by 2050 becomes more active and responses to the climate crisis intensify, eco-friendly investments such as reducing environmental impact are expected to accelerate further.

The Federation of Korean Industries (hereinafter FKI) announced on the 18th the '2022 K-Companies ESG White Paper,' analyzed based on sustainability management reports published by companies. The white paper contains exemplary cases of E (Environment), S (Social), and G (Governance) of major companies among the top 100 by sales, as well as ESG management strategies.

Key environmental issues include corporate climate change response activities such as carbon emission reduction and environmental investments; social issues cover industrial and safety management, supply chain ESG management; and governance issues include risk management linked to ESG and ESG management strategies.

According to the ESG white paper, corporate greenhouse gas emissions showed a slight decrease followed by an increase over the past two years (3.2% decrease from 2019 to 2020, 4.7% increase from 2020 to 2021). This is analyzed to be due to increased corporate production resulting from the easing of the COVID-19 situation in 2021 and the continuation of expansionary fiscal policies. On the other hand, greenhouse gas emissions relative to sales have decreased for three consecutive years, indicating that corporate greenhouse gas emissions are gradually being managed.

Additionally, the investment scale in environment and safety by the top 100 companies by sales was approximately 5.44 trillion KRW in 2021, an increase of about 87.6% compared to the previous year (approximately 2.9 trillion KRW in 2020). An FKI official added, "As ESG management accelerates, the transition to eco-friendly business structures is becoming active, and consensus on investments in environment and safety facilities appears to be spreading."

Notable corporate movements toward achieving carbon neutrality were also observed. Companies are reducing greenhouse gas emissions through activities such as ▲establishing NDC 2030 achievement strategies ▲carbon emission reduction management ▲biodiversity conservation ▲activation of the circular economy.

In the social sector, companies focused on ▲industrial safety management ▲strengthening digital responsibility ▲supply chain ESG management. In particular, efforts to strengthen mutual growth through managing partner companies’ ESG (due diligence) and providing financial and technical support were highlighted as key points.

Companies also utilized ESG linked to internal risk management as a means to identify opportunities.

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