45% of Large and Mid-Sized Companies Offer Incentives Based on Partner ESG Evaluations During Transactions

"2025 Analysis of ESG Supply Chain Management Status in Large and Mid-sized Companies" Released
Domestic Voluntary ESG Disclosure Companies Show Increasing Supply Chain Management Activities

It has been analyzed that 45.4% of listed large and mid-sized companies provide incentives to their partners based on the results of ESG (Environmental, Social, and Governance) evaluations during contracts and transactions. The proportion of companies that either provide incentives or impose penalties based on ESG evaluation results during contracts and transactions has steadily increased over the past three years.

The Korea Federation of SMEs announced on December 15 the results of its "2025 Analysis of ESG Supply Chain Management Status in Large and Mid-sized Companies," which analyzed the sustainability reports and partner codes of conduct of 218 listed large and mid-sized companies for this year. This analysis is based on reports detailing the 2024 supply chain ESG management status of domestic companies and was conducted to identify the current status and trends in supply chain ESG management, as well as to develop effective response strategies for partner SMEs.

According to the analysis of sustainability reports, supply chain ESG activities among domestic companies that voluntarily disclose such information have continued to increase. The trend of ESG supply chain management activities, analyzed using 16 proprietary indicators, rose for three consecutive years: 39.1% in 2023, 42.7% in 2024, and 50.4% in 2025. This indicates that supply chain ESG management is becoming more active as part of companies' sustainable management strategies.

Regarding the use of partner ESG evaluation results, the proportion of companies that provide incentives or impose penalties during contracts and transactions increased steadily over three years: 29.1% in 2023, 44.2% in 2024, and 58.3% in 2025. In addition, hardware support such as equipment assistance for partner ESG support increased by 10.8 percentage points compared to the previous year, while education (58.3%) and consulting (49.1%) continued to account for a significant share.

Carbon emissions management activities increased by 10.2 percentage points compared to the previous year. The main support activities included education and consulting (70.4%), indirect supply chain carbon emissions management for Scope 3 emissions calculation (48.1%), and equipment support (11.1%).

Yang Chanhoe, Head of the Innovation Growth Division at the Korea Federation of SMEs, stated, "Despite changes in the domestic and international ESG environment, supply chain management activities and the use of ESG results by domestic companies are steadily increasing." He added, "The government should design support measures that provide more incentives to large and mid-sized companies actively offering hardware support such as equipment and certifications, which can provide practical assistance to SMEs, so that companies can continue to pursue win-win partnerships with SMEs."