Cha Kwang-myoung, executive director of the management and planning headquarters at the Korea Environment Corp., speaks during an interview with The Korea Times at the corporation's head office in Incheon, July 10. Courtesy of Korea Environment Corp.
The Korea Environment Corp. (K-eco) is taking significant steps to enhance the transparency of the country's environmental, social and governance (ESG) efforts amid the global shift toward prioritizing ESG standards in response to the climate crisis, according to a K-eco executive.
The organization is increasing ESG disclosures for public institutions and promoting the adoption of these practices in the private sector.
"Our mission is to contribute to building an environmentally friendly nation by enhancing environmental quality, promoting resource circulation and cutting greenhouse gas emissions," said Cha Kwang-myoung, executive director of the headquarters of management and planning at K-eco, in a recent interview with The Korea Times.
As the sole environmental public institution in Korea, K-eco plays a multifaceted role in addressing national environmental concerns, including climate, air quality, water, resource circulation and chemical safety.
Cha emphasized the growing global focus on carbon neutrality, noting its significance on the international stage.
"Environmental issues were once secondary, but now they have become the primary focus at international conferences," he said.
In response to the growing emphasis on ESG standards, K-eco launched a comprehensive ESG management plan in 2021.
In the environmental sector, K-eco established a department of ESG management aimed at achieving carbon neutrality by 2040. The corporation introduced initiatives like the climate response fund and new strategies for reducing greenhouse gas emissions to support the establishment of a national financial foundation geared toward carbon neutrality.
On the social front, the corporation focused on expanding employment opportunities for people with disabilities and ensuring transparent recruitment processes. These efforts were recognized as best practices in fair recruitment, earning accolades from the Ministry of Economy and Finance and the Ministry of Employment and Labor.
In terms of governance, K-eco achieved International Organization for Standardization (ISO) certification for anti-corruption measures and compliance with standards, implementing systems to prevent related risks.
K-eco's head office in Incheon / Courtesy of Korea Environment Corp.
There is a widespread belief that promoting environmental sustainability results in more stringent business regulations.
This sentiment has been echoed in concerns and criticism regarding the EU's new carbon pricing mechanism, the Carbon Border Adjustment Mechanism (CBAM), which targets imports like steel, cement, fertilizer and aluminum.
In response, K-eco is taking proactive measures to help companies adapt. It has allocated emission allowances to incentivize businesses to reduce greenhouse gas emissions, utilizing a trading system that facilitates exchanges between companies with surplus and deficit emissions.
It also offers helpdesk services to provide consulting and bolster companies' preparedness for CBAM. This service, which began last year, has conducted 1,280 consultations as of June this year.
"We aim to support ESG management for small- and medium-sized enterprises that lack the resources to develop these capabilities on their own, ensuring that no one is left behind," Cha said.
Furthermore, it has also established the ACT Center to assist local governments struggling with the development and implementation of carbon neutrality plans. The center is currently supporting 137 local governments, aiding the public sector's efforts toward achieving carbon neutrality.
"We plan to tackle the climate crisis proactively," Cha said.
"This includes encouraging companies to reduce their carbon footprints through the emissions trading system, enhancing carbon neutrality in environmental services, bolstering water environment sustainability and promoting a circular economy by recycling high-quality resources."