"Only 15.1% of SMEs Prepared for Carbon Neutrality Response"

Jungjinkong Announces Survey Results on Carbon Neutrality Response Trends for SMEs and Ventures

[Asia Economy Reporter Kim Cheol-hyun] While 80.6% of small and medium-sized venture enterprises (SMVEs) agreed on the necessity of responding to carbon neutrality, only 15.1% of companies responded that they were 'prepared (or in preparation)'.

The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as KOSME) announced this on the 24th by publishing the 'KOSME Issue Focus' analyzing the results of the SMVEs' carbon neutrality response trend survey. This report contains the results and implications of the 'SMVEs Carbon Neutrality Trend Survey' participated by 319 SMVEs.

According to the survey results, most SMVEs agreed on the necessity of responding to carbon neutrality, but more than half (56.1%) had no preparation plan for carbon neutrality response. Only 6.3% were prepared, and 8.8% were in preparation. Especially in high carbon-emission industries such as chemical and metal, the proportion of respondents who answered 'prepared (or in preparation)' was 11.7% and 9.5%, respectively, which was lower than the overall average level of carbon neutrality preparation.

As a carbon neutrality response measure for SMVEs, 'commercialization of low-carbon and eco-friendly technologies and products (43.1%)' was chosen most frequently, but interest in 'low-carbon and eco-friendly process improvement and facility introduction (29.4%)' was relatively low.

When transitioning to low carbon, 'cost burden of process improvement and facility introduction (44.3%)' was cited as the biggest difficulty, and the most needed government support method for facility introduction was 'a combined method of loans and subsidies (45.6%)', indicating the need to expand financial support in the low-carbon and eco-friendly sector.

Also, although carbon emissions are highest at the manufacturing stage of products, about half of the responding companies (47.0%) answered that they lacked confidence in the necessity of transitioning to low-carbon and eco-friendly manufacturing. This suggests that alongside support for process improvement and facility introduction, promotion of the necessity for low-carbon transition and consulting support are needed.

More than half (61.1%) of SMVEs hoped to transition or add businesses to alternative and promising fields to respond to carbon neutrality. However, industries such as metal, machinery, and distribution preferred 'next-generation power devices such as electric vehicles and hydrogen vehicles,' while the 'electric and electronics' industry preferred fields like 'ESS (Energy Storage Systems) and energy efficiency,' showing different interests by industry.

Chairman Kim Hak-do said, "With the declaration of carbon neutrality by major countries worldwide, climate change response is emerging as a core competitiveness for companies. KOSME is striving to discover new corporate support policies, including forming a dedicated task force." He added, "Through the Green Management Level Diagnosis System, KOSME will diagnose companies from the ESG perspectives of environment, society, and transparent management, and actively support SMVEs' transition to low-carbon management by linking various policies such as policy funds, technology, and market channels."