"Public Institution ESG Disclosures at One-Third the Level of Listed Companies"

DWSG, '2022 Public Institution ESG Evaluation Report'

[Asia Economy Sejong=Reporter Kwon Haeyoung] The disclosure items and status essential for the Environmental, Social, and Governance (ESG) evaluation of public institutions were found to be less than one-third of those of listed companies.

Duiesuji and ESG Moneta announced this in the '2022 Public Institution ESG Evaluation Report' released on the 12th.

The report was prepared using 78 items across 16 categories by collecting ESG-related detailed items disclosed on the Alio Public Institution Management Information Disclosure System for 370 public institutions, as well as data from the Ministry of Environment, Ministry of Employment and Labor, and others.

Domestic ESG evaluation agencies classify the 215 to 350 basic items disclosed by listed companies into 14 to 24 categories and assign comprehensive ESG evaluation grades. On average, listed companies include 13 to 15 basic items per category in Environment (E), Social (S), and Governance (G), whereas public institutions have fewer than 5 basic items per category. Although the ESG-related disclosure items of public institutions are expanding, the disclosure items necessary for ESG evaluation amount to less than one-third of those of listed companies.

The company stated, "In the case of ESG evaluation for public institutions, there were difficulties in accessing data on basic items in the social and governance sectors of public institutions," adding, "Expansion of ESG-related disclosure items and securing access to disclosure information are expected to enable ESG evaluation of public institutions at the level of listed companies."

Earlier, the Ministry of Economy and Finance reorganized the evaluation items and classification system for public institution management evaluations in February and revised the standards for integrated disclosure of public institutions. The policy aimed to lead private companies through solid ESG management of public institutions. In March last year, it also announced plans to significantly expand ESG-related items in public institution disclosure.