Daegu Companies, Only 26% Adopt ESG Management... Daegu Chamber of Commerce Conducts Survey

"Detergent Support and Expansion of Policy Finance"

According to the recent "ESG Management Status and Challenges Survey" conducted by the Daegu Chamber of Commerce and Industry (Chairman Park Yoon-kyung), one in four respondent companies (26.7%) have adopted ESG management.

By industry, manufacturing (32.3%) showed a higher adoption rate than non-manufacturing (11.9%), with battery and chemical (50.0%), automotive parts (46.4%), and electrical and electronics (40.0%) industries having particularly high adoption rates within manufacturing.

Daegu Chamber of Commerce and Industry

The most cited reason for adopting ESG management was "requests from domestic and overseas clients (46.6%)," followed by responses citing "social responsibility" and "enhancement of corporate image" at 27.6% and 15.5%, respectively.

Additionally, among companies that have adopted ESG management, 36.2% disclose ESG-related information, approximately one in three, and the most challenging area within E.S.G was "Environment," with 63.8% indicating it as the most difficult.

On the other hand, when asked why they have not adopted ESG management (multiple responses allowed), "lack of human and material resources" was the highest at 50.3%. Regarding future plans to adopt ESG management, "no plans to adopt" was the most common at 54.1%, followed by "considering adoption within 5 years (21.4%)," "considering adoption within 3 years (20.1%)," and "considering adoption within 1 year (4.4%)."

The biggest challenges in practicing ESG management (multiple responses allowed) were "lack of expertise" at 63.8%, followed by "cost burden for facility improvements (37.9%)," "responding to demands from clients (investors) and other external organizations (34.5%)," "lack of personnel (34.5%)," "lack of support systems (32.8%)," and "responding to ESG disclosures (10.3%)."

A representative from automotive parts manufacturer Company A stated, "We adopted ESG in response to client requests and for sustainable corporate management, and we are currently responding by forming a TFT (Task Force Team)." He added, "Starting next year, we plan to establish a dedicated organization, but despite being a mid-sized company, we lack dedicated ESG personnel, so support policies such as labor cost assistance are needed."

A representative from paper manufacturer Company B said, "We adopted ESG due to client requests, but we are facing difficulties due to the absence of dedicated organizations and personnel, as well as complex procedures." He emphasized, "ESG adoption is essential for securing the competitiveness of local companies, so government support is urgently needed."

In this survey, the most requested policy to promote ESG management (multiple responses allowed) was expanding tax support at 48.4%, followed by expanding consulting services (41.9%), infrastructure development (38.2%), and expansion of policy finance (36.4%).

Lee Sang-gil, Executive Vice Chairman of Daegu Chamber of Commerce and Industry, stated, "Recently, discussions on the enactment of the 'ESG Basic Act' have been active, centered around the National Assembly. It is necessary to approach this from a 'support' perspective rather than a 'regulation' perspective." He added, "Since many companies are expressing difficulties due to lack of personnel and cost burdens, it is necessary to prepare multifaceted support measures, such as expanding tax support and policy finance for companies practicing ESG management."

Meanwhile, since 2022, the Daegu Chamber of Commerce and Industry and Daegu City have been providing support such as ESG consulting, education, and one-on-one expert counseling to promote ESG management among local companies.