Daewoo Shipbuilding & Marine Engineering Accelerates ESG Management... Establishes ESG Committee within the Board of Directors

[Asia Economy Reporter Donghoon Jeong] Daewoo Shipbuilding & Marine Engineering (DSME) has recently accelerated its 'ESG management' efforts by establishing an 'ESG Committee' as a specialized committee within the board of directors to innovate ESG (Environmental, Social, and Governance) management, and by publishing an integrated report for the second consecutive year.

The newly established ESG Committee at DSME was launched last month following approval by the board of directors. Outside director Choi Kyung-gyu (professor at Dongguk University) serves as the inaugural chairperson, with three other outside directors from various expert fields and one inside director participating as committee members.

The ESG Committee deliberates and resolves various strategies, plans, and investments to promote ESG management. It also reviews key activities, achievements, and progress related to ESG management across all areas of environment, society, and governance.

In addition, DSME has maintained the ESG Promotion Team system established last year, renamed the existing Strategy Department to the 'Sustainable Growth Strategy Department' to serve as the dedicated ESG operational department, thereby strengthening the execution system that effectively drives decision-making by the ESG Committee.

The company also published the 2022 integrated report following last year’s edition. This report emphasizes continuity in internal and external communication. It actively incorporates diverse opinions from the company’s 'Youth Board' and external stakeholders, focusing on the company’s ESG management approach and sustainable management activities.

A notable feature of this report is its systematic inclusion of climate change response measures and key issues reflecting the characteristics of the shipbuilding industry, aligned with global ESG management standards such as the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB). Additionally, a newly included factbook quantifies the company’s major management performance from an ESG perspective, making information access and utilization easier for stakeholders. The new report is available for public viewing on the company’s website.

Choi Kyung-gyu, Chairperson of DSME’s ESG Committee, stated, "With the launch of this committee, we will establish a blueprint for DSME’s ESG management and take the lead in setting the standard for ESG management in the shipbuilding industry."

Meanwhile, DSME plans to enhance and supplement the execution system centered on the ESG Committee and dedicated organization by the second half of this year, and to carry out continuous ESG management activities including establishing a roadmap for carbon neutrality.