Does Korean ESG Meet Global Standards? Accountants' Association Holds Sustainability Certification Forum

Review and Discussion of US SASB Compliance Status
"High Compliance Rate, but Standards Need Adjustment for Korean Context"

The Korean Institute of Certified Public Accountants held an event to review whether sustainability reports published by domestic companies comply with global standards and to draw relevant insights.

On the 26th, the Korean Institute of Certified Public Accountants announced that it had held the 'Sustainability Certification Forum' on the 21st to discuss these topics.

This event was organized to share the results of a survey on the compliance of domestic sustainability reports with SASB standards and to gather feedback from stakeholders. The US Sustainability Accounting Standards Board (SASB) has established sustainability (ESG) disclosure standards for 77 industries since 2018 and proposed them as the global standard.

Jeon Hongmin, a professor at Sungshin Women's University and the main presenter, stated, "Contrary to initial concerns, domestic companies are showing a relatively high rate of compliance with SASB standards. However, the Sustainable Industry Classification System (SICS) under SASB differs from the Korean Standard Industrial Classification (KSIC), and some indicators are difficult to apply in Korea." He emphasized, "Active support from the government and related organizations is needed for the domestic adoption of SASB standards."

During the subsequent general discussion, Song Minseop, a professor at Sogang University, served as moderator, and various stakeholders from certification bodies, academia, research institutions, standard-setting organizations, and the accounting industry shared their opinions.

Kim Kyungbae, Senior Expert at the Korean Standards Association, stressed, "Before sustainability disclosure and certification become mandatory in the future, companies should prepare for disclosure and certification according to SASB standards through voluntary certification."

Lee Woonghee, Standing Member of the Korea Accounting Standards Board, said, "Starting in the second half of this year, the Accounting Standards Board will operate an industry expert committee to conduct various discussions for industry-based disclosure." He added, "This committee will explore various measures to ensure that domestic industry-based disclosure achieves international consistency and usefulness, while also minimizing difficulties for domestic companies."

Materials related to this event can be found in the 'Sustainability Data Room' of the Korean Institute of Certified Public Accountants, and the event video is available on the Accounting Training Institute's website and YouTube channel.

At the 18th Sustainability Certification Forum held on the 21st, the executives of the Korean Institute of Certified Public Accountants, forum presenters, and discussants are taking a commemorative photo. Photo by Korean Institute of Certified Public Accountants