[2022 Asia ESG Forum] Lee Chang-yang: "Must Enhance Sustainability through ESG Management amid '3 Highs Crisis'"

"Supporting Companies to Achieve Both 'Growth' and 'Social Value'"

On the 4th, a congratulatory video message from Lee Chang-yang, Minister of Trade, Industry and Energy, was shown at the 2022 Asia ESG Symposium held at the Westin Chosun Hotel in Jung-gu, Seoul. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Choi Seoyoon] Lee Chang-yang, Minister of Trade, Industry and Energy, stated, "In the complex crisis situation of high inflation, high exchange rates, and high interest rates, ESG (Environmental, Social, and Governance) management is becoming increasingly important as a way to enhance business sustainability, and related standards are gradually being strengthened."

Minister Lee Chang-yang made these remarks on the 4th at the Westin Chosun Hotel in Jung-gu, Seoul, during the '2022 Asia ESG Symposium' held under the theme 'ESG Opportunities in the Era of Complex Crises.' He said, "In preparation for strengthened ESG standardization, we plan to launch a consulting support project next year to help small and medium-sized enterprises (SMEs) and mid-sized companies respond to supply chain due diligence."

The minister explained, "The European Union (EU) plans to introduce a supply chain due diligence system that requires not only individual companies but also their partners to disclose ESG risks. Voluntary supply chain due diligence is also spreading among major global companies such as Apple and Intel. Earlier this year, the International Accounting Standards Board announced sustainability disclosure standards to measure non-financial risks and response strategies related to climate change and other issues."

He assessed that joint efforts by the government and companies are more urgent than ever to address social challenges such as climate change, energy crises, population decline, and aging. Minister Lee emphasized, "The government will strengthen regulatory innovation and support for advanced industries so that our companies can actively expand investments and enter new industries. We will promote innovation in new industry sectors where private investment has been sluggish due to high risks and support companies to achieve both growth and social value."

He added, "We will support innovative research and development (R&D) to overcome technical limitations in high greenhouse gas-emitting sectors such as steel, expand incentives for resource-circulating CCUS (Carbon Capture, Utilization, and Storage) technologies, and promote the transition to a low-carbon industrial structure. We will prepare an industrial transformation strategy to fundamentally improve the structure of our industry and continuously create future growth engines."

He stated, "In particular, we will actively support eco-friendly management of our companies by expanding the share of nuclear power, utilizing hydrogen and renewable energy to realize a low-carbon energy mix, and increasing zero-carbon energy supply. We will also carry out goal-oriented mega impact projects that solve social challenges through technological development."

Furthermore, he said, "The most important way for companies to enhance sustainability and realize social value is to continuously discover business opportunities, enter new industries, and create quality jobs. I ask for the interest and participation of many businesspeople to create a sustainable growth strategy for the Republic of Korea."