Ministry of Industry Explores Response Measures with Companies
Also Discusses Ways to Expand CFE Initiative
The Ministry of Trade, Industry and Energy announced on the 28th that Lee Seung-ryeol, Director General of Industrial Policy, held a meeting to explore response measures with the industry regarding domestic and international ESG (Environmental, Social, and Governance) norm trends, and to discuss cooperation plans for the global expansion of the Carbon-Free Energy (CFE) Initiative.
At the meeting, major listed companies such as Samsung Electronics, SK Hynix, POSCO Holdings, and Daesang, as well as key economic organizations including the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, the Listed Companies Association, the Korea Productivity Center, and the CF Union, along with academic experts, participated.
The European Union (EU) is promoting mandatory human rights and environmental due diligence on supply chains for companies above a certain size. Recently, concerns about the increased burden on companies due to strengthened ESG norms have been reflected in some countries such as the United States, Germany, and Italy, causing delays in the EU’s supply chain due diligence law vote and the mandatory ESG disclosure requirements in major overseas countries including the U.S.
The Ministry of Trade, Industry and Energy reported that participants at the meeting all agreed that strengthening ESG norms is an international trend and that domestic companies must proactively respond to the strengthening of ESG norms. However, there were also opinions that domestic companies are still insufficiently prepared for ESG norms, making on-site application difficult.
The meeting also discussed trends and expansion plans for the CFE Initiative.
Since President Yoon Suk-yeol proposed the CFE Initiative to the international community at the United Nations General Assembly last September, empathy and support for CFE have been spreading. Five countries? the United Kingdom, France, the Netherlands, Saudi Arabia, and the United Arab Emirates?have officially expressed support, and in addition, seven countries and organizations including Japan, Canada, and the International Energy Agency (IEA) participated in the 'Carbon-Free Energy Roundtable' hosted by the Korean government at the IEA Ministerial Meeting held in Paris on the 13th.
The CF Union plans to design a CFE certification system that is internationally applicable to accelerate the spread of the CFE Initiative. Domestic companies expressed their agreement with the purpose of the CFE Initiative and indicated their willingness to participate in future discussions for the expansion of carbon-free energy.
Lee Seung-ryeol, Director General of Industrial Policy, said, "In the situation where ESG norms are being strengthened, we will communicate closely with the industry and provide multifaceted support to minimize the burden on companies," adding, "To expand the CFE Initiative, we will cooperate with the CF Union to attract new members and continuously expand our external activities by strengthening external engagements at international events."
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