ISS QualityScore, Referenced by Major Global Investors
Korea Zinc Achieves Top Scores Across All ESG Categories
Domestic Rating Agencies Also Give High Marks to the Company
Korea Zinc announced on June 18 that it has achieved the highest score in all categories of the 'QualityScore'?an evaluation of corporate environmental, social, and governance (ESG) management?by ISS (Institutional Shareholder Services), the world's largest proxy advisory firm. As major institutional investors and pension funds worldwide refer to the ISS QualityScore, this achievement is expected to significantly enhance Korea Zinc's external reputation, credibility, and investor trust.
ISS evaluates the three ESG categories?environment (E), social (S), and governance (G)?of major global companies on a monthly basis using the latest disclosure information and an assessment model based on the Global Industry Classification Standard (GICS). The results are then benchmarked against other companies. The scoring system ranges from 1 to 10, where a score of 1 indicates the best policies and lowest risk in the category, while a score of 10 denotes the weakest policies and highest risk.
ISS uses approximately 360 factors across four areas in each of the three ESG categories when conducting its evaluations. The assessment items encompass the standards of major initiatives such as GRI, ESRS, SASB, and TCFD. Because the evaluation is based on the latest corporate disclosures and is conducted relative to peers, it is well-suited for comparing and analyzing competitiveness and performance in ESG management. This is why major institutional investors and pension funds around the world use it as a key reference when making investment decisions.
Earlier this month, Korea Zinc received the highest possible score (1 point) in all three categories of the ISS QualityScore. This result reflects the meaningful achievements that Korea Zinc's board, management, and employees have made in each ESG area through joint efforts, as well as ongoing communication with ISS.
At the end of 2021, Korea Zinc established an ESG Management Team and a management advisory body called the Sustainable Management Committee (now the Sustainable Management Promotion Committee), signaling its commitment to strengthening ESG management. Since then, Korea Zinc has undertaken various initiatives to enhance transparency and independence in governance and to increase shareholder value, such as share buybacks and cancellations, increased dividends, the introduction of a cumulative voting system, appointment of an outside director as board chair, and the establishment of an ESG committee within the board.
Last year, Korea Zinc became the first company in a national industrial complex to install a hydrogen charging station at its Ulsan Onsan Smelter and began operating hydrogen-powered forklifts. The company has also been actively investing in large-scale solar and wind power projects in Australia to build an eco-friendly smelter and achieve carbon neutrality. Additionally, the global certification body SGS (Societe Generale de Surveillance) certified that the copper and silver produced at the Onsan Smelter are made 100% from recycled resources such as electronic waste.
Korea Zinc's ESG management has also received high marks domestically. Currently, Sustinvest and the Korea ESG Research Institute both rate Korea Zinc's ESG grade as 'A.' In the first half of last year, Sustinvest ranked Korea Zinc first in the manufacturing sector among 50 companies with assets exceeding 2 trillion won in its ESG evaluation.
A Korea Zinc official stated, "It has been less than a year since we began responding to the ISS QualityScore, and we have already achieved the highest score in all ESG areas. Thanks to the ESG management philosophy of the current leadership and the practical efforts of all employees, we will strive to become a leading 'global eco-friendly materials company' that not only stands as the world’s top smelting company but also contributes to carbon neutrality and a sustainable future."
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