FKI to Dispatch ESG Investment Delegation to the U.S. in the Second Half of the Year

Launch of K-ESG Alliance, a Coalition of Major Domestic Companies, Global Firms, Startups, and Related Organizations

Kim Hye-seong, lawyer at Kim & Chang (front row, from left), Jang Kyung-ho, chairman of the KOSDAQ Association, Kim Seok-hwan, president of GS, Choi Man-yeon, CEO of BlackRock, Woo Ki-hong, president of Korean Air, Kwon Tae-shin, vice chairman of the Federation of Korean Industries, Kim Young-joo, president of Chong Kun Dang, Shin Jin-young, director of KCGS, Park Seung-duk, president of Hanwha, Lim Sung-bok, executive director of Lotte, Kim Young-hoon, director of Amazon Web Services, and other key figures are taking a commemorative photo at the 'K-ESG Alliance Launch Meeting' held on the 12th at the Federation of Korean Industries Conference Center.
[Photo by Federation of Korean Industries]

[Asia Economy Reporter Kim Heung-soon] The Federation of Korean Industries (FKI) will dispatch an ESG (Environmental, Social, and Governance) investment delegation to the United States in the second half of this year.

On the 12th, FKI announced this plan at the 'K-ESG Alliance Launch Meeting' held at the FKI Conference Center in Yeouido, Seoul. The K-ESG Alliance is an ESG coalition launched under the leadership of FKI. Major domestic companies such as Lotte, Hanwha, GS, Korean Air, CJ, Kolon, and Hyosung, as well as global companies including 3M, Boeing, Amazon, and P&G, along with the American Chamber of Commerce in Korea, KOSDAQ Association, Venture Business Association, and Kim & Chang law firm, are participating in the alliance.

FKI plans to dispatch an ESG delegation to the United States and other countries in the second half of this year and visit the world's largest asset management firms such as BlackRock and Morgan Stanley to promote Korean companies' ESG activities through investor meetings. The delegation will be composed of major domestic companies in addition to those participating in the alliance.

Chairman Kim Yoon: "We Will Be an ESG Incubator and Facilitator"

Kim Yoon, Chairman of the K-ESG Alliance, emphasized, "ESG is not a concept with a fixed answer but one that companies will continuously construct, specify, and develop," adding, "The alliance will serve as an incubator for ESG." He further stated, "Many companies still find ESG unfamiliar," and "The alliance will become a platform that allows many companies to approach the ESG concept more easily."

The K-ESG Alliance plans to collaborate with various members to spread global ESG management trends domestically, especially to mid-sized and small businesses. Kim Bong-man, Director of International Cooperation at FKI, said, "The K-ESG Alliance is a multinational group for ESG management," and "We plan to continue communicating with various domestic and international companies and institutions to promote ESG."

Korea Corporate Governance Service: "Standardizing ESG Evaluation Criteria Is Difficult"
BlackRock: "Korean Companies Need to Manage Climate-Related Risks"

Shin Jin-young, President of the Korea Corporate Governance Service, stated in a keynote presentation that "we plan to incorporate big data analysis into ESG evaluations." This aims to enhance the reliability of corporate ESG evaluation models. President Shin categorized the ESG evaluation points of the Governance Service into four areas: ▲Regular updates on sustainability issues ▲Gathering opinions from experts and stakeholders ▲Strengthening reflection of company characteristics ▲Improving data accuracy.

Regarding sustainability issues, the plan is to secure the timeliness of evaluation models by reflecting the latest issues and legal amendments. Additionally, the opinion-gathering process will be strengthened in revising evaluation models and ESG best practice guidelines. Evaluation questions will also be subdivided and differentiated according to industry or sector characteristics.

President Shin also argued, "While standardizing ESG information disclosure is positive as it benefits both companies and investors, standardization of evaluation indicators is inappropriate because each institution has different evaluation purposes." Accordingly, the long-term stance is that institutions should present integrated guidelines through standardization of information disclosure, but individual companies must respond to the detailed requirements of each evaluation institution.

Choi Man-yeon, CEO of BlackRock Asset Management, advised, "Korean companies should strive to address climate-related risks and align with global standards to achieve carbon neutrality."