Objective and Necessity
For the pursuit of ESG (Environmental, Social, Governance) management, we are driving sustainable business practices to secure long-term competitiveness, attract investments, and align with global market trends.
In recent years, there has been a strong commitment to sustainability and ESG principles, with many large corporations adopting ESG practices. In this environment, small and medium-sized enterprises have also embraced these principles to maintain their competitiveness, integrate into global supply chains, and execute business strategies based on ESG management principles to adapt rapidly to the changing business landscape.
Strategies for each of the three categories (Environment, Social, Governance)
Environmental Sector
• Carbon Footprint Assessment
Measuring and monitoring the company's carbon emissions using tools and services.
• Sustainable Sourcing
Engaging suppliers to adhere to sustainable practices.
• Waste Management
Implementing waste reduction plans, promoting recycling, and partnering with waste management companies.
Social Sector
• Labor Practices
Review and adjust HR policies in line with international standards such as the UN's business and human rights guidelines.
• Health and Safety
Conduct regular safety training, invest in employee education, and ensure workplace safety standards.
• Community Engagement
Collaborate with local NGOs, support local initiatives, and collect feedback from the community.
Governance sector
• Transparent Reporting
Adopt international reporting standards such as GRI and SASB and disclose ESG performance annually.
• Ethical Business Practices
Establish a code of ethics and ensure that all employees understand and adhere to it.
• Stakeholder Engagement
Organize regular stakeholder meetings and collect feedback on ESG-related issues.
Medium to Long-Term Implementation Strategies
Education and Training
- • Provide continuous ESG-related education to employees and management.
- • Collaborate with external organizations to continually update global best practices.
Monitoring and Reporting
- • Utilize ESG monitoring tools to track progress.
- • Regularly disclose ESG performance to stakeholders and use feedback for improvement.
Partnerships and Collaborations
- • Collaborate with local and international NGOs, industry associations, and other stakeholders to strengthen ESG initiatives.
- • Partner with other SMEs for joint initiatives or knowledge sharing
Policy Integration
- • Verify that ESG principles are integrated into business strategies and policy decisions.
- • Regularly review and update policies to reflect evolving ESG standards.
Technology adoption
- • Invest in technology that supports sustainable practices, ranging from energy-efficient machinery to carbon footprint monitoring software.
Feedback and Improvement
- As Korean SMEs aim for ESG management, the key idea is that ESG should not be seen as a mere add-on initiative but rather as an integrated approach that becomes a part of everyday operations and long-term strategy. For the successful establishment of ESG management in Korean SMEs, continuous efforts, transparency, and stakeholder engagement are essential.