Busan City Signs 'ESG Win-Win Cooperation Expansion and Sustainable Growth Business Agreement'

11 AM on the 10th at City Hall, Participation by City, Chamber of Commerce, and Small and Medium Business Corporation

Supporting Mutual Growth through Win-Win Cooperation between Prime Contractors and Partner Companies ... First Implementa

On the 10th at 11 a.m., Busan City will sign a business agreement for the ‘Expansion of ESG (Environmental, Social, and Governance) Win-Win Cooperation and Sustainable Growth’ with Busan City, the Busan Chamber of Commerce and Industry (Chairman Jang In-hwa, hereinafter Busan CCI), and the Small and Medium Business Corporation (President Kim Hak-do, hereinafter SBC) at the International Protocol Room of City Hall.

Busan City Hall.

At the signing ceremony, Park Hyung-joon, Mayor of Busan, Lee Young-hwal, Executive Vice Chairman of Busan CCI, and Kim Hak-do, Chairman of SBC, representing the respective organizations, will attend and sign the business agreement.

This agreement promises mutual cooperation to support co-growth through win-win cooperation between prime contractors and partner companies amid the rapidly changing international social value management environment.

With the ESG due diligence law for supply chains being implemented starting this year in Germany and expanding to the entire European Union (EU) from next year, cases requiring ESG due diligence from partner companies are increasing.

Furthermore, on May 24, the second government-private joint ‘ESG Policy Council’ prepared a ‘Corporate Support Plan for Supply Chain Due Diligence,’ which included Busan City’s win-win cooperation plan.

In response, a city official added that this agreement was prepared to proactively promote a win-win cooperation model between prime contractors and partner companies, marking the first implementation by a local government following the government’s corporate support plan.

The main contents of the agreement are as follows.

Selection of target companies within the jurisdiction, development of specialized indicators for supply chain management, and sharing of infrastructure necessary for spreading ESG awareness and co-growth.

Provision of ESG consulting (Busan City, Busan CCI), in-depth diagnosis (SBC), and customized support for each company to enhance ESG competitiveness.

Joint efforts for customized support and follow-up linkage support based on diagnosis results.

Provision of ‘Carbon Neutrality Level Diagnosis’ for high carbon-emitting SMEs and preparation of support for carbon neutrality transition.

At the signing ceremony, six prime contractors participating in the ‘Win-Win Cooperation Project’ will express their commitment to practicing ESG, and these companies will be designated as ‘ESG Win-Win Cooperation Branches,’ practicing win-win cooperation for co-growth together with partner companies.

Role of Companies in Win-Win Cooperation Projects.

The companies designated as branches are Dongil Rubber Belt, Dongil Steel, Sungwoo Hitech, Oriental Precision, Panasia, and Korea South-East Power, which applied to participate in the ‘Win-Win Cooperation Project’ along with five partner companies, aiming to strengthen ESG and carbon neutrality competitiveness through win-win cooperation.

Partner companies are expected to develop ESG capabilities under the support of prime contractors, creating new opportunities for growth.

Mayor Park Hyung-joon stated, “International companies are demanding ESG across the entire supply chain, so it is essential for our companies to respond as well,” adding, “Through this agreement, we will create an excellent case of a win-win cooperation model for ESG in the Busan region and support the spread of ESG and the realization of sustainable management in Busan without hesitation.”

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