by Park Soyeon
Published 06 Jan.2025 08:53(KST)
MBK Partners rejected the claim by Korea Zinc that it did not adopt the principles of fiduciary responsibility, stating that it is a mistaken assertion stemming from a misunderstanding of private equity firms.
An MBK representative explained the difference, saying, “The Stewardship Code is a voluntary guideline primarily aimed at institutional investors such as pension funds or asset management companies investing in publicly traded stocks to actively encourage exercising voting rights. For private equity firms with the purpose of acquiring management control, establishing and applying responsible investment policies is even more necessary and important.”
The representative added, “MBK Partners was the first domestic private equity firm to sign the United Nations Principles for Responsible Investment (UN PRI) in March 2013, twelve years ago. It is one of the few leading GPs in Asia that has established ESG responsible investment policies and incorporated them into the investment process for over a decade.”
After signing the UN PRI, MBK Partners immediately established its Responsible Investment Policy in March 2013, and in April 2023, it began expanding the application of this policy with consulting from ‘MJ Hudson,’ a globally recognized firm in ESG consulting.
Additionally, MBK Partners independently developed an ESG evaluation manual in September 2023, which is currently used for due diligence and ESG management of portfolio companies. Based on the responsible investment policy and ESG evaluation manual, related risks and improvement opportunities are thoroughly reviewed during due diligence and reflected in investment decisions.
Depending on the nature of the target company, MBK Partners also hires specialized ESG due diligence consulting firms, and there have been cases where investments were not pursued after due diligence due to ESG risks.
They conduct detailed assessments not only on greenhouse gas emissions, energy and water usage, supply chain management, and environmental risks but also on social risks and governance matters such as overall compliance with laws and regulations, responsible business practices, working conditions and workforce diversity, consumer health and safety, and cybersecurity risks.
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