KT Develops ESG Value Measurement Model... Industry-Academic Cooperation with Yonsei University

After the agreement ceremony, Kim Moosung, Executive Director of KT ESG Management Promotion Office (left), and Professor Lee Hoyoung, Director of Yonsei University ESG Corporate Ethics Research Center, are taking a commemorative photo.

[Asia Economy Reporter Lim Hye-seon] KT is launching a study to measure the social value and impact of its social contribution projects in order to create social value.

On the 7th, KT announced that it signed a business agreement with Yonsei University’s ESG and Corporate Ethics Research Center to jointly conduct research related to the development of an ESG value measurement model. This ESG value measurement model will ultimately serve as a core pillar of KT’s ESG management to enhance the social value created by KT and will be used as an indicator to determine the direction of KT’s social contribution projects.

To this end, KT plans to quantify its social contribution projects, eco-friendly activities, and products and services within the scope of ESG management, and evaluate the effectiveness of these projects and sustainable management activities. The system will analyze and assess how much social value KT’s ESG management activities are generating and convert it into monetary value.

The results of the ESG value measurement model to be produced through the joint research between KT and Yonsei University will be broadly classified into two categories. First, it will calculate the social costs saved due to the physical and human resources invested in social contribution and the increase in newly created social added value. Next, it will convert the direct and indirect changes affecting beneficiaries of social contribution, such as individuals, corporations, and local communities, into current monetary value.

KT plans to actively reflect the research results in the group’s ESG management strategy formulation and evaluate the value of ESG activities, including representative long-term social contribution activities, sharing the results with all group companies. Additionally, the findings will be disclosed to various stakeholders such as customers and shareholders through future ESG reports.