Discussion on New Corporate Accounting Standards Reflecting ESG in Korea

[Asia Economy Reporter Park So-yeon] An international discussion on properly measuring ESG (Environmental, Social, and Governance), a core element for corporate sustainability, and reflecting it in accounting will be held in Korea.

According to SK on the 26th, the global corporate alliance VBA (Value Balancing Alliance), established last year to develop global standards for ESG monetization measurement, will hold the ‘VBA 2020 Korea’ seminar on the 28th from 4 PM to 6 PM at the Korea Foundation for Advanced Studies in Yeoksam-dong, Seoul.

Under the theme of ‘Integrating Financial Performance and ESG Performance,’ this seminar is expected to be a platform for sharing related efforts by global companies and for in-depth discussions among experts from various fields.

VBA is a leading organization in this field, having secured the ‘Green Accounting’ project promoted by the European Union (EU) in February to reflect the environmental impact of corporate activities in accounting.

Germany’s BASF serves as the chair company, with SK and Novartis as vice-chair companies, and 14 global companies including Deutsche Bank, Kering (parent company of Gucci), and BMW are registered members. Government agencies, economic organizations (OECD, World Bank), the Big Four global accounting firms, and Harvard University in the U.S. are active as cooperating organizations.

At the event, numerous experts from government and related agencies will attend both offline and online to engage in practical discussions necessary for realizing ESG performance measurement efforts within institutional frameworks.

SK Chairman Chey Tae-won will deliver a welcome address (via video), expressing gratitude to both online and offline participants and emphasizing that it is a time to reflect on the fundamental role of companies and new principles of corporate management.

Regarding ESG measurement and standardization and integrating these with financial performance, SK, as a VBA vice-chair company, is expected to convey its commitment to leading trends domestically and internationally.

First Vice Minister of Strategy and Finance Kim Yong-beom and Maria Castillo Fernandez, Ambassador of the EU to Korea, will attend in person and deliver congratulatory remarks on the pioneering discussions in Europe and Korea about measuring ESG performance in monetary terms and reflecting it in accounting.

Vice Minister Kim will emphasize that ESG is a key issue of the current era, highlight the significance of international responses and VBA activities, and outline the government’s related policy directions.

Keynote speeches by experts will continue online. George Serafeim, a world-renowned ESG management expert and Harvard University professor, along with Christian Heller, VBA CEO, will introduce VBA’s activities and significance. Thomas Verheye, Senior Advisor at the EU Directorate-General for Environment, plans to present on ‘Efforts to Transform Industrial Systems through the EU Green Deal.’

Kim Eui-hyung, President of the Korea Accounting Standards Board; Ryu Young-jae, CEO of Sustainvest; Jang Ji-in, Chairperson of the CDP (Carbon Disclosure Project) Korea Committee; and Kang Dong-soo, SV Promotion Team Leader of SK SUPEX Council, will participate as panelists to engage in lively discussions on the ‘Current Status of Domestic ESG Measurement Standardization.’

At the closing ceremony, Saori Duborg, Chairperson of the VBA Board, and Lee Hyung-hee, Vice Chairperson of the VBA Board (Chairperson of the SV Committee of SK SUPEX Council), will share the significance of holding this event and future prospects.

Considering the COVID-19 situation, only a minimal number of pre-invited guests will attend the VBA 2020 Korea event in person, but anyone interested can watch the event via online live streaming.