[2021 Mirae Company Forum] CEO Jeong Gyeongseon "ESG Companies' Innovative Growth, New Opportunity"

Jung Kyung-sun, Co-CEO of Silban Group, is giving a lecture at the '2021 Asia Future Business Forum' hosted by Asia Economy at the Western Chosun Hotel in Jung-gu, Seoul on the 29th. Asia Economy set the theme of this year's Future Business Forum as 'Korean-style ESG Solutions in the New Normal Era' and prepared a session to contemplate ways to enhance the value of our companies through expert lectures in the ESG field. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Dongwoo Lee] "ESG (Environmental, Social, and Governance), which has established itself as a powerful standard for consumption, will provide new opportunities for corporate innovative growth."

Jung Kyung-sun, co-CEO of Silban Group, emphasized this during a lecture titled "The Start of Sustainable Innovation in the ESG Era" at the 2021 Asia Future Business Forum held on the 29th at the Westin Chosun Hotel in Sogong-dong, Jung-gu, Seoul.

Jung stated, "According to the International Labour Organization, if the global temperature rises by 1.3 degrees Celsius by 2030, unemployment will reach 80 million cases, and the scale of GDP loss is expected to be 2.4 trillion dollars," adding, "This is why the global capital market is demanding a stronger ESG environment."

He explained that especially in North America and Europe, movements to establish ESG environments are rapidly emerging, saying, "French President Macron proposed a national referendum to add the fight against climate change to Article 1 of the French Constitution, and U.S. President Biden rejoined the Paris Climate Agreement after taking office, showing that the world is moving to build ESG environments."

The 1,109 climate change-related policies in major countries including South Korea, Europe, the United States, and China over the past decade (2011?2020), which is a 68.3% increase compared to the previous decade, also supports the recently changing global ESG environment.

Jung noted, "These policies have affected companies, triggering incidents such as Volkswagen's Dieselgate scandal in 2015, but based on this, new growing companies are also emerging," and added, "Ørsted, a Danish state-owned company known as the world's most sustainable energy company, saw its stock price rise as the carbon intensity of its energy production and operations decreased."

He predicted, "As consumers who value diversity and ethics establish ESG as a purchasing standard, companies will need to prove not only whether they engage in ESG activities but also their social achievements and impacts."

Jung argued, "Our companies need to reorganize their organizational structures by establishing departments with a high understanding of ESG and delegating authority, while introducing global standards through collaboration," and emphasized, "Above all, a change is needed to view ESG environment building not as a cost but as an investment."

He added, "The government should also provide appropriate policy support tailored to domestic circumstances so that ESG can become an opportunity for corporate innovative growth."