Kumho Petrochemical Advances One Level in MSCI ESG Rating

Upgraded from BB to BBB
High Scores in Environment and Governance Categories

Kumho Petrochemical announced that it received a higher grade than last year in the global ESG (Environmental, Social, and Governance) evaluation.

On the 18th, Kumho Petrochemical stated that it obtained a BBB rating in the ESG evaluation conducted by Morgan Stanley Capital International (MSCI). This is a one-step improvement from the BB rating it received last year. MSCI has been evaluating key ESG issues of publicly listed companies worldwide annually since 1999, assigning ratings on a seven-level scale from CCC to AAA. In the chemical industry sector, 49 major global companies including Kumho Petrochemical are evaluated.

This year, Kumho Petrochemical improved its scores in all three categories: Environment, Social, and Governance compared to last year. In the Environment category, which holds the highest importance among the evaluation areas, the company’s performance improved year-on-year in all items including ▲carbon emissions ▲hazardous substance emissions and waste ▲water stress ▲clean technology opportunities, surpassing the industry average.

In the Governance category, it also received scores above the industry average. Since 2021, Kumho Petrochemical has consistently announced improvements related to governance, such as transitioning to a professional management system, separating the roles of CEO and chairman of the board, and establishing committees centered on outside directors.

CEO Baek Jong-hoon said, "It is very encouraging to have achieved a rating upgrade despite the industry slowdown," adding, "We will do our best to promote sustainable management strategies."

Meanwhile, in February, Kumho Petrochemical set three goals to enhance corporate value: a sales growth rate of 6%, a return on equity (ROE) of 10%, and a shareholder return ratio of up to 40%.

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