[2021 Mirae Company Forum] Chairman Kim Yongjin: "ESG Will Determine the Future of Companies"

Kim Yong-jin, Chairman of the National Pension Service, is delivering the keynote speech at the '2021 Asia Future Business Forum' hosted by Asia Economy on the 29th at the Western Chosun Hotel in Jung-gu, Seoul. Asia Economy set the theme of this year's Future Business Forum as 'Korean-style ESG Solutions in the New Normal Era' and organized a session to explore ways to enhance the value of Korean companies through expert lectures in the ESG field. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Dongwoo Lee] Kim Yongjin, Chairman of the National Pension Service, stated, "I am confident that new approaches to ESG's social and public values will change the world."

At the keynote speech of the '2021 Asia Future Enterprise Forum' held on the 29th at the Westin Chosun Hotel in Sogong-dong, Seoul, Chairman Kim said, "Now, even a single failure regarding social value can determine a private company's survival and future."

Chairman Kim emphasized, "If companies previously pursued passive ESG due to external pressure, going forward, they will have to establish strong and effective ESG implementation measures to receive favorable evaluations in investor markets."

He added, "Investor approaches to ESG are shifting toward a comprehensive and systematic direction. While there have been efforts to change the world before, ESG has now become a megatrend and a necessity, not an option, in corporate management."

Chairman Kim explained, "Next year, the National Pension Service's responsible ESG investments will exceed 50% of total assets," and "We will establish and apply ESG-focused management standards to overseas stocks as well."

To this end, the National Pension Service actively reflects companies' ESG in investment evaluations twice a year. Chairman Kim stated, "We evaluate individual companies' ESG ratings through a total of 52 evaluation indicators across 13 fields," and emphasized, "We have a principle that companies with an ESG rating of D or lower will no longer receive increased investments."

Chairman Kim said, "Our companies need to shift their perception that ESG is not a cost but an investment that enhances corporate value," and added, "They must act and participate more proactively."