Choi Tae-won "Must Develop ESG and Empathy Skills" (Comprehensive)

Emphasizing 'Solutions to Overcome the COVID-19 Crisis' at Tokyo Online Forum

[Asia Economy Reporter Park So-yeon] Chey Tae-won, Chairman of SK Group, stressed the need to accelerate ESG (Environmental, Social, and Governance) management at the corporate level to overcome the environmental crisis critical to human survival, and especially to cultivate empathy towards humans.

Chairman Chey made these remarks in his opening speech at the 'Tokyo Forum 2020,' jointly hosted by the Choi Jong-hyun Academic Foundation and the University of Tokyo on December 3, under the theme of 'Global Environmental Crisis and Global Governance.'

Now in its second year following last year, the Tokyo Forum was held online over two days until the 4th, considering the COVID-19 situation. Chairman Chey attended as the chairman of the Choi Jong-hyun Academic Foundation, established by SK in honor of the late Choi Jong-hyun’s commitment to talent development.

Chairman Chey stated, "We live in the so-called 'Anthropocene,' where human greed and selfishness have caused environmental disasters," and emphasized, "We urgently need to devise new systems and methodologies to ultimately change the harmful behaviors toward the environment."

The Anthropocene is a geological concept proposed in 2000 by Nobel Chemistry laureate Paul Crutzen, referring to the era when human activities have a profound impact on the Earth's environment.

He also said, "Accelerating ESG management, where companies pursue eco-friendly businesses, create social value, and maintain transparent governance, will be the solution to overcoming environmental crises and the COVID-19 pandemic."

Furthermore, he emphasized that as companies are already being evaluated in the market based on their ESG management efforts and achievements, the more sophisticated these value measurement systems become, the more corporate behavior will change. SK has established the non-profit VBA with global companies such as BASF, Deutsche Bank, and Novartis to create international standards for measuring social value.

Chairman Chey continued, "There must be a corresponding reward system for corporate ESG management performance," introducing SK’s Social Performance Incentive system, which financially rewards the social value of products created by social enterprises.

He added, "These strategies and systems only have meaning if there is voluntary participation from the heart," emphasizing, "Above all, empathy?the ability to understand and share the feelings of those hurt by COVID-19, environmental disasters, indifference, and hatred?is what we need most right now."

The forum, held with a studio set up at the Choi Jong-hyun Academic Foundation and the University of Tokyo and connecting participants online from various countries, saw participation from over 40 global scholars, international organization officials, and businesspeople, with more than 4,500 viewers worldwide tuning in online.

Makoto Konokami, President of the University of Tokyo, said in his opening speech, "We are experiencing unprecedented crises such as COVID-19 and climate change," and added, "I believe we can utilize big data accumulated in cyberspace to find ways to reduce energy consumption and protect the environment, and even lead to changes in human behavior."

Jeffrey Sachs, professor at Columbia University in the United States, stated in his keynote speech, "The global society must formulate and implement related policies with a long-term perspective over decades to achieve carbon neutrality and biodiversity restoration."

On the second day of the forum, panel discussions were held on topics including the protection and management of global environmental assets, changes in global food supply and consumption and the establishment of systems to promote a circular economy, and the use of digital transformation (DT) for environmental protection.

Additionally, on this day, SK Group affiliates, including SK Inc., joined 'RE100' for the first time in Korea. The Climate Group, a multinational non-profit organization based in London, UK, announced that seven SK Group companies have joined RE100. This came just one month after submitting the application on the 2nd of last month. RE100 signifies 100% renewable energy, and companies joining this initiative plan to procure 100% of their electricity consumption from renewable energy sources such as wind and solar power by 2050.