Statista announces sustainability leaders after surveying more than 1,250 companies
By Kim Hyun-bin
Korean companies are taking the initiative to enhance their environmental, social and corporate governance (ESG) practices to be better aligned with the global trend, with many carrying out restructuring to establish ESG committees that can better aid sustainability efforts.
To check on their progress and figure out which companies are leading in ESG campaigns, German market research firm Statista worked with The Korea Times and its sister paper the Hankook Ilbo to conduct the “Korea's Sustainability Leaders 2022” research.
The analysis, designed to highlight Korean companies that have excelled in sustainability and social and environmental responsibility, will provide a catalyst for companies to adopt more effective and practical ESG strategies -- an essential tool for sustainable growth -- while aiming to recognize the Korean companies with the most outstanding ESG performance.
Investors, customers and employees are now paying greater attention to promoting a green economy, and companies are increasingly investing in resources that improve the sustainability of their corporate policies.
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“The detailed analysis consisted of an independent survey conducted on more than 3,000 Korean residents, research based on publicly available key performance indicators derived from corporate annual reports and ESG reports,” Statista said in a statement. “The analysis focused on a holistic view of corporate sustainability that considers the three dimensions of ESG.”
For each company and for each ESG dimension, a score was calculated based on the research results as well as the analysis of the key performance indicators. The 100 companies with the best performance in the three dimensions of ESG have been recognized as being Korea's sustainability leaders for 2022.
Thomas Clark, senior partner at Statista, said, “Korea's economic development has been enormous, but with its impressive mix of heavy and high-tech industry, it is particularly important that Korean companies act in a sustainable fashion. Almost every company says that it takes care of the environment, is a good neighbor, acts socially and responsibly, but we wanted to find the best: Korea's Sustainability Leaders.”
Statista analyzed about 1,250 largest companies by revenue with headquarters in Korea to select the top 100 ESG champions. It selected ESG leaders among those which have published an ESG or similar report, annual report, and other relevant reports. Excluded from the survey were those which were involved in major lawsuits, corruption cases and other illegal activities.
Kim Seo-young, an analyst at Statista who played a key role in the research, said Statista's analysts checked more than 1,250 companies and broke down the reported environmental, social, and governance criteria into 30 key performance indicators.
She said the massive analytical effort was then complemented by a survey of thousands of Korean consumers on their opinion of specific Korean companies in terms of their sustainability efforts.
“At the end, we could identify the top 100 which, no doubt, deserve the title Korea's Sustainability Leaders and should carry it with pride,” Kim said.
In selecting the ESG champions, it weighed how ordinary Korean people perceive each company's ESG activities, with the survey being conducted using an online access panel.
The environmental dimension covers reduction rates of waste, greenhouse gas emissions, energy and water usage between basis year and previous year for key performance indicators. Along with the assessment of indicators, the consumer survey collected the perception on the company's attitudes to environment protection and responsible resource usage.
In the social dimension, it measured reported indicators of diversity such as share of women in board and employees with disabilities, occupational safety, and philanthropic engagement. Each company's policies and preventive steps involving occupational accidents and injuries and its commitment to increasing diversity were important measurement elements for the survey score.
In the corporate governance issue, it factored in the degrees of transparency with public disclosures and how the company works against corruption and illegalities. Financial stability was also a significant part of the evaluation for corporate governance.
Hyosung Advanced Materials Corp. stood atop the overall list in the environmental sector, scoring a maximum of 100. Following behind Hyosung were SK Ecoplant (94.9), Mando Corp. (94.9) and Samsung C&T (91.5).
In the social category, Korea Gas Corp. led the pack with 100 points, followed by Incheon International Airport Corp. (92.7), Korea Marine Environment Corp. (91.1) and Samsung Card (89.8).
For governance, LG Innotek topped the list with 100, followed by LG Electronics (99.9), SK hynix (98.1) and SK Telecom (95.5).
Statista is one of the world's leading data platforms for strategic market analysis, statistics and editorial research results. Its analytical unit, Statista Research and Analysis, creates rankings and benchmark studies in close collaboration with media partners and established rating sites worldwide.
Last year, Statista, The Korea Times and Hankook Ilbo released the "Korea's Best Employers 2021" report to find out which companies in Korea have the most satisfied employees.
Click here for the list of leading ESG companies