[The Korea Times Global ESG Forum] Korea Times forum proposes global investors' ESG principles
Korea Times
forum proposes global investors' ESG principles By
Baek Byung-yeul, The Korea Times - The importance of environmental, social and
corporate governance (ESG) has greatly expanded as a key facilitator to promote
the transformation toward sustainable growth in the post-COVID-19 time.For the
sake of sustainable growth, it has become essential to understand global
investors' investment principles. From this standpoint, The Korea Times hosted
the Global ESG Forum at the Korea Chamber of Commerce and Industry (KCCI)
building in central Seoul, Oct. 29, providing an opportunity to discuss key ESG
issues and trends among global investors and help them strategize effective ESG
tactics. The event was held in cooperation with the KCCI. In accordance with
the health authority's quarantines guidelines, only 49 officials working at
local companies and global investment institutions attended the event.
Korea
Times Chairman Seung Myung-ho gave a welcome speech to announce the start of
the forum. Financial Supervisory Service (FSS) Governor Jeong Eun-bo delivered
an opening speech and Korea Investment Corp. (KIC) CEO Jin Seung-ho gave a
keynote speech.
"Now
is the time to solve social problems through responsible management and more
actively implement management that has a positive impact on the environment.
ESG, which demands environmental and social responsibility, and sound and
transparent management, has become the most important factor in sustainable
development beyond the problem of corporate survival," Chairman Seung
said.
"We've
seen that the more environmental and social responsibilities are fulfilled
through ESG management, the more positive an effect they can have on corporate
performance. To secure sustainable growth engines, companies should make ESG
management a more active corporate strategy. I hope today's forum hosted by The
Korea Times will serve as an opportunity for domestic companies to come up with
more realistic and effective strategies for ESG management."
In
his opening speech, FSS Governor Jeong stressed that companies should further
strengthen their ESG responses, before it is too late to catch up with changing
trends, even while the global economy is struggling with uncertainties caused
by the prolonged virus pandemic and global supply shortage issues. "Under
severe internal and external economic conditions, I think ESG management
practices can be a big burden on companies. Nevertheless, the emphasis on ESG
at today's forum is due to the justification that it is difficult but is the
way we should go and the urgency that it will be late if not now," he
said.
The
FSS governor further mentioned that pursing ESG can threaten corporate
management practices, but it also presents opportunities to meet more
investors.
"As
an example to that is that the ESG level of companies has a positive effect in
attracting foreign investors. Also, the so-called value consumer, led by the MZ
generation, is showing purchasing behavior in consideration of the ESG
activities of companies, so ESG has become an important factor in securing
future consumers," he said. The MZ generation is a Korean term referring
to people born between 1981 and the early 2010s.
In
his keynote speech, KIC CEO Jin urged institutional investors to join hands
together to pursue ESG strategies based on social responsibility.
"The
KIC took an initiating role in establishing global stewardship principles among
domestic institutional investors, and has made great efforts to improve
profitability and sustainability through ESG investment," the CEO said.
"The introduction of an ESG integration system that applies ESG values to
the entire asset group and working processes can be a representative example of
our efforts."
For
ESG value to contribute to improving environmental problems and solving
corporate and social issues, Jin vowed that the KIC "plans to continue
developing ESG investment and invest in ESG strategy funds and green
projects."
After
the speeches, two panel discussions followed. Moderated by Richard Lee, senior
partner of McKinsey Korea, the first panel discussed global investors' ESG
investment principles, with panelists including National Pension Service (NPS)
Global Responsible Investment & Governance Division Head Yi Dong-sub, BNL
Paribas Asset Management's Global Client Group Head Steven Billiet, BlackRock
Korea Country Head Choi Man-yeon and Swiss Re Korea Branch Head Jonas von
Oldenskiold.
The
Korea Times President-Publisher Oh Young-jin moderated the second session,
discussing how to bring ESG value to society, with SK SUPEX Vice President Kwon
Key-joon and Shinhan Financial Group Deputy President Park Sung-hyun.
Source:
www.koreatimes.co.kr/www/biz/2021/10/367_317890.html?da#
2021.11.01