Im Gyeong, CEO of the Environment Foundation, says "ESG is not a 'good deed' but a 'profit-driven activity'"

Samsung SDI and HYBE Outside Directors' Activities
Thought to Be 'Villains' but Already Doing Well
The Absolute Number of Female Outside Directors Must Increase

It is rare for someone from an NGO (non-governmental organization) background to serve as an outside director of a publicly traded company. Most come from academia or the legal profession. In this regard, Lee Mi-kyung, the head of the Environmental Foundation, is a special figure. She serves as an outside director for two companies, Samsung SDI and HYBE. She is a founding member of the Environmental Foundation in 2002 and a leading environmental expert in Korea, holding positions such as a member of the Ministry of Environment's Central Policy Committee, the Carbon Neutrality Committee, and the Hydrogen Economy Committee.

Meeting Lee at the Environmental Foundation in Jung-gu, Seoul, she said, “Although the two companies operate in completely different industries, they share a genuine commitment to ESG (Environmental, Social, and Governance),” adding, “The philosophy of the CEOs is exceptional, and their vision is clear.” She noted, “Companies that choose NGOs as outside directors have nothing to fear even if they disclose important information,” and added, “Having experienced it from the inside, I saw they had confidence in ESG.”

Interview_Imi Kyung, CEO of the Environmental Foundation. Photo by Hyunmin Kim kimhyun81@

Large Corporations’ ESG Seen from an Outsider: “Surprisingly High Level”

Recalling when she first took on the role of outside director, Lee said, “At first, I thought I might be cast as the villain, but even as an outsider, I was surprised by the level.” In the case of Samsung SDI, after CEO Choi Yoon-ho took office, the company established the ‘Sustainability Management Committee’ in January last year and reorganized the ‘ESG Strategy Group’ into the CFO’s direct organization, the ‘Sustainability Management Office,’ in February. This year, ESG-dedicated teams were also established within business divisions. “Samsung SDI had already been innovating before I joined. It is a company that has engaged in related activities since before the concept of ESG existed. From what CEO Choi said, they view ESG as an innovative management strategy critical to the company’s future.”

HYBE, compared to other entertainment companies, has rarely publicly disclosed ESG-related activities, leading to criticism that it is passive about ESG. Regarding this, Lee said, “HYBE is a company that does not engage in showy displays,” adding, “Although there is plenty to promote in the sustainability report scheduled for release at the end of July, they are thoroughly preparing and committed to practicing ESG.” As the industry leader, the company’s policy is to demonstrate cautious yet certain actions. She said, “Chairman Bang Si-hyuk recognizes ESG as a matter of corporate survival.” The commonality between Samsung SDI and HYBE is that their top executives are genuinely committed to ESG.

“Companies Doing ESG Diligently Are Not Necessarily ‘Good’ Companies”

Lee waved off the notion that companies practicing ESG are ‘good companies.’ She said, “That’s a misunderstanding due to lack of knowledge about ESG,” adding, “ESG is not about being good but about activities to earn money stably and sustainably over a long period.” She emphasized the need to clearly show that ESG can be connected to the essence of corporate management?profit and business activities. She said, “What the biggest capitalists and investors hate most is unpredictability,” adding, “If climate change worsens, there will be cases where the consequences of corporate activities become unpredictable.” “They say the worst heatwave will come this year. Refugees may arise, and food self-sufficiency issues may be linked. All of these are cases of unpredictability caused by climate change.”

Lee said, “Companies that only try to comply with existing regulations are ‘amateurs,’” and stressed, “Management-centered activities are needed so that all employees share the philosophy of ESG.” Recently, Samsung SDI held an ESG workshop attended by CEO Choi and about 20 key executives at her suggestion. It was an opportunity to diagnose ESG management and review the direction to move forward. Lee said, “It is important to make it known company-wide that the corporate culture is changing.”

She also emphasized that ESG-related departments should have higher authority and rank than other departments. Lee said, “They need to obtain materials from various departments and provide guidelines,” adding, “Everyone is busy with their work, so if the rank is low, communication won’t work.” At HYBE, Lee serves as the ESG chairperson, and CEO Park Ji-won is a committee member. Lee said, “Samsung SDI’s ESG department is also a very important department,” adding, “It is easy to obtain materials whenever there is an important agenda from a sustainability management perspective.”

“Absolute Numbers of Female Outside Directors Are Important”

Interview_Imi Kyung, CEO of the Environmental Foundation. Photo by Hyunmin Kim kimhyun81@

Lee emphasized that the proportion of female outside directors must increase significantly. She said, “Children don’t grow tall from the start,” adding, “They gain weight first and then grow taller, which is exactly the qualitative transformation.” Qualitative transformation means that when a certain quantity accumulates, a qualitative leap occurs at some point. The number of female outside directors is a visible indicator that discrimination in our society is decreasing and diverse voices are emerging.

Lee said, “For the number of female outside directors to increase, there must also be more female inside directors,” adding, “Companies need to pay special attention to career management for female employees.” “They need to create an environment where female executives can strive. Balance must be maintained. We live in a society where men and women are half and half.”

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