Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Major business lobby groups actualizing ESG programs
Federation of Korean Industries (FKI) Vice Chairman and CEO Kwon Tae-shin, sixth from left, and AMCHAM Chairman and CEO James Kim, fourth from left, pose with other dignitaries during the 1st U.S.-Korea ESG Forum, hosted by the FKI at its headquarters in Seoul, Thursday. Yonhap
By Yi Whan-woo
By Yi Whan-woo
The country's major business lobby groups are starting to realize their environmental, social and corporate governance (ESG) initiatives, after having set up relevant internal organizations to lead them this year.
On Wednesday, the Federation of Korean Industries (FKI) hosted the inaugural meeting of the “K-ESG Alliance,” which it launched on April 14 to support small- and medium-sized enterprises (SMEs) getting on the ESG bandwagon, in addition to conglomerates.
The conference was attended by representatives from Lotte, Hanwha, GS, Korean Air and Hyosung, plus members of the American Chamber of Commerce in Korea (AMCHAM Korea), the KOSDAQ Listed Companies Association and the Korea Venture Business Association, among others.
The FKI also held the 1st U.S.-Korea ESG Forum jointly with AMCHAM Korea on Thursday, with topics such as “observing ESG principles while tackling the microchip shortage,” and other challenges faced by the business communities of the two countries.
The FKI events are the latest in a series of business lobby group meetings focused on ESG management criteria. Recent meetings have been hosted by the nation's two other key business lobby groups: the Korea Chamber of Commerce and Industry (KCCI) and the Korea Enterprises Federation (KEF).
The KCCI has held two forums so far: the first on April 8 about quantifying ESG performance, and the second on April 20 on investments and regulations incorporating ESG values.
The two forums were organized by the KCCI's ESG management team, which was formed out of expanding the corporate culture team in March, on the occasion of the inauguration of its new chairman, Chey Tae-won.
Chey is also the chairman of Korea's fourth-largest conglomerate, SK Group, which has been at the forefront of the industry's ESG push.
The KEF launched its ESG committee on April 26, and on the same day held the first of two meetings focusing on ESG this year, hosting 20 executives from affiliates of the major conglomerates, including the four largest: Samsung, Hyundai Motor, LG and SK.
The KEF meetings are designed to highlight a macro perspective on ESG management and help firms voluntarily adopt stewardship based on related values.
Industry sources were optimistic about the fact that multiple ESG meetings are being hosted by the business lobby groups, pointing out that most enterprises, regardless of size, fall under the umbrellas of the KCCI, the KEF and the FKI.
“These meetings can help the three groups listen to their member companies, as well as collaborate and come up with standardized guidelines for offering information, education and other services related to ESG,” said Shin Jhin-young, the president of the Korea Corporate Governance Service (KCGS).
Some other sources noted that it will also be important for the KCCI, KEF and FKI to each make their ESG efforts unique in terms of themes, targeted audiences and other traits.
“By doing so, we can avoid having nearly identical programs and listening to the same things over and over,” a source said.
Of the nation's top 10 conglomerates, seven have either established a separate organization to take charge of the ESG agenda, or they have expanded existing internal bodies to address ESG issues.