NHN Achieves A Grade in ESG Evaluation by Korea ESG Standards Institute

[Asia Economy Reporter Seungjin Lee] NHN announced on the 25th that it has achieved an integrated A grade, one level higher than the previous year, in the 2022 ESG (Environmental, Social, and Governance) evaluation by the Korea Corporate Governance Service (KCGS).

The Korea Corporate Governance Service is one of the major ESG evaluation agencies in Korea, which annually assesses the sustainability management levels in the environmental, social, and governance sectors of domestic listed companies and announces ESG ratings.

In this evaluation, NHN received an A grade in the social and governance sectors, the same as last year, and achieved a B+ grade in the environmental sector, two levels higher than the previous year. The upgrade in the environmental sector rating was driven by the establishment of a dedicated organization for environmental management implementation, the establishment of a company-wide environmental management system through acquiring certifications for Environmental and Energy Management Systems (ISO14001/50001), and the operation of eco-friendly campaigns and education that encouraged employee participation. Additionally, NHN actively engaged in environmental information management and disclosure, including voluntarily conducting third-party verification of greenhouse gas emissions this year.

In the social sector, NHN was recognized for its business model and social contribution activities that consider the social responsibilities of IT companies, such as fostering local IT talent and creating jobs, as well as for promoting mutual growth with partner companies. NHN also discloses response plans and improvement activities for major risks that may arise from management activities to strengthen social responsibility management, including information security, safety and health, and human rights protection.

In the governance sector, NHN has established a transparent and professional decision-making structure centered on the board of directors and its committees, prepared a mid- to long-term shareholder return policy, and continued efforts for shareholder-friendly management through communication. The company explained that this year, for the first time since its founding, it pursued a large-scale treasury stock cancellation and worked to enhance shareholder value through the largest-ever treasury stock purchase.

Earlier, in March of this year, NHN established an ESG Committee under the board of directors, expressing its commitment to strengthening sustainable management across all ESG sectors. In May, it established a dedicated ESG organization and a group company council to systematically promote ESG management strategies and tasks by sector.

Jung Yeon-hoon, Head of NHN’s ESG Division, said, “As a result of consolidating the ESG capabilities of group companies this year, building an effective work system, and actively promoting ESG management strategies, we have achieved meaningful results in this evaluation. In 2023, we will publish the first sustainability management report reflecting the value and performance of NHN ESG and will continue to actively communicate internally and externally about ESG management.”