Seongdong-gu Local Government Leads Sustainable City with First ESG Indicator Development

[Seoul District News] Seongdong-gu Develops Total of 82 Seongdong-type Indicators, First Nationwide to Establish Theoretical Framework for ESG Administration & Selects E+ESG Indicators Incorporating Economy Sector & Promotes Various Initiatives Including Coffee Grounds Recycling and School Route Living Lab ... Jungnang-gu Bang Jeong-hwan Education Support Center Introduces Weekday Evening Lifelong Learning Programs for Workers Including Pet Culture Class and Coffee Drawing

[Asia Economy Reporter Park Jong-il] Recently, as ESG (Environment, Social, Governance) has emerged as an important evaluation indicator in companies, the paradigm is shifting from growth-centered to sustainable management.

As such sustainable administration becomes important in the public sector as well, local governments are also adopting ESG administration.

Seongdong-gu, the first local government nationwide to develop ESG indicators

Recently, Seongdong-gu (Mayor Jung Won-oh) announced that it has developed the ‘Seongdong-type ESG indicators’ to apply the corporate-centered ESG concept to the public sector. Seongdong-gu is the first local government to independently develop ESG indicators.

ESG is a corporate performance indicator that has emerged as social responsibility for sustainable corporate development has become important. Seongdong-gu, to utilize this as useful data at the urban administration level, collaborated with researchers from Seoul National University Industry-Academic Cooperation Foundation from March to August for six months to develop the Seongdong-type ESG indicators, preparing a total of 82 indicators. With this, Seongdong-gu, which has been implementing advanced ESG administration, has established a theoretical framework, further enhancing its status as a sustainable city.

The foundation of a sustainable city is a strong economy... Addition of the Economy (E) sector

The Seongdong-type ESG notably adds the economy (E) sector to the existing ESG administration. For local governments to promote ESG administration aiming for sustainable cities, a comprehensive renewal of the city’s existing structure and overall behavior is necessary, which inevitably requires massive financial investment. Therefore, Seongdong-gu’s idea reflects that a strong economy is the prerequisite for ESG administration.

To derive clear, practical, and objective indicators, extensive domestic and international data were reviewed, and interviews and surveys were conducted with numerous public-private councils, companies, and residents within Seongdong-gu to ensure the indicators resonate with various stakeholders.

Seongdong-type ESG seen through measurable detailed indicators

The economic sector that Seongdong-gu focuses on is divided into five themes: market size, market attractiveness, corporate management environment, Seongdong-gu’s financial status, and inclusive economy. It includes general economic indicators such as ▲GRDP (Gross Regional Domestic Product), ▲employment rate and number of businesses, ▲financial autonomy of the district, as well as indicators considering public sustainability elements such as ▲the number of social enterprises, cooperatives, and social venture companies.

The environmental sector has established 11 indicators to respond to climate change, including ▲the ratio of renewable energy, ▲per capita electricity consumption, ▲waste emissions, ▲air pollution levels, and ▲walking environment satisfaction.

The social sector selected 25 indicators such as ▲the scale of public rental housing, ▲childcare and elderly welfare facilities, ▲employment rate of those aged 65 and over, and ▲employment rates of disabled persons and women. The governance sector selected 14 indicators including ▲the ratio of public procurement from the social economy, ▲civil complaint handling satisfaction, ▲trust in public institutions, and ▲the scale of resident participation budgets.

So far, the district established the ‘2022 Seongdong-type ESG Policy Comprehensive Plan,’ selecting a final 21 ESG public project bodies, and formed a social consensus to fully implement ESG through cooperation among the public sector, companies, and residents. Currently, various projects are underway, including the coffee grounds recycling project, reusable cup sharing project at coffee shops, upcycling projects for sewing companies, Seongdong Purumi recycling stations, and safe school route living labs.

In the future, high-quality data will be accumulated according to the Seongdong-type indicators, and innovative tasks for ESG administration will be continuously discovered through the publication of evaluation reports.

Jung Won-oh, Mayor of Seongdong-gu, said, “Through the Seongdong-type ESG, which incorporates the economic sector, we expect that diverse opinions within Seongdong-gu will be better reflected in district administration,” adding, “We will continue to strive to make Seongdong-gu a city firmly established with sustainability.”

Jungnang-gu (Mayor Ryu Kyung-gi) will newly open and operate a weekday evening lifelong learning program for local working residents at the Bang Jeong-hwan Education Support Center.

The district explained that the evening programs were established to guarantee the learning rights of workers who usually have low access to lifelong learning and to enable them to enjoy a life with evening culture.

The first program is a pet culture class. It will be held five times every Tuesday at 7 p.m. until October 11. Under the theme ‘Petiquette: Dogs to be Together With,’ participants will learn basic etiquette education, health knowledge and first aid, etiquette education, how to handle barking, and how to make a leash.

From October 17, a coffee-themed program will be offered, covering topics such as coffee suited to oneself and latte art. Participants will learn about the history of coffee, brewing coffee practice, principles of coffee extraction, how to use coffee machines, and basics of latte art, enabling them to easily enjoy coffee with preferred beans at home.

The district plans to prepare and expand more diverse evening lifelong learning programs based on residents’ preferences and demands. Program applications can be made through the parent support section on the Bang Jeong-hwan Education Support Center website.

Ryu Kyung-gi, Mayor of Jungnang-gu, said, “Although various educational programs are operated at the local lifelong learning center, workers find it difficult to participate due to time constraints, so we newly opened evening lectures,” adding, “We will continue to organize programs in various fields needed by residents to expand opportunities for self-development and self-realization through lifelong learning.”