Reportedly, it has been stated that the top 100 Korean companies invested an aggregate amount of 5.44 trillion won in terms of sales. This comes out to be ($4.3 billion) in environmental and safety efforts in 2021 respectively. This has been claimed by the Federation of Korean Industries recently.
Notably, the FKI analyzed the firms’ based on environmental, social, and corporate governance, or ESG, efforts based on the companies’ own reports. This investment records a hike of 87.6 percent, which is 2.9 trillion won in 2020 respectively.
The federation report reveals that the increase in numbers depicts how firms are recognizing the importance of integrating ESG values into their operations and strategies.
“Amid growing calls for ESG efforts, companies are increasingly turning their eyes to eco-friendly businesses and more consensus is being reached to spend more on related environmental and safety infrastructures,” said an FKI official.
The step to focus on achieving carbon neutrality
Alternatively, Korea steps up the level of its greenhouse gas reduction motive for 2030 from 26.3 percent to 40 percent. While, at the same time, the companies also make their focus on achieving carbon neutrality.
On the other hand, the South Korean giant Posco, has disclosed the road map for zero carbon emission by 2050 via hydrogen projects, as per the report.
Samsung Display also procures and procures an eco-friendly ecological plant island reservoir in Asan, South Chungcheong Province. It took six months for the island to take the desired form. While as per the company, the 14,000-square-meter island can add to the local environment. This is achieved by ingesting up to 38.7 metric tons of carbon.
Furthermore, the South Korean cable maker LS Cable & System operates a separate committee that ensures workplace safety. This is implemented with Serious Accidents Punishment Act that came into effect in January 2022. As the committee taking care of the company’s management and response to workplace disasters.
To incorporate into their policies, Hyundai Steel gives consultation services to employees. This is for those who have directly or indirectly experienced disasters and suffered trauma.
Notably, the emissions recorded a great increase in 2021, since more companies increased production as the Covid-19 pandemic started to resolve. On the other side, greenhouse gas emissions as compared to the total amount of sales have been on a gradual decline in recent years. It indicates that the production efficiency has enhanced with companies, the same going to raise interest in ESG respectively.
Therefore, the federation anticipates companies will come forward with their ESG efforts. In order to reduce the reach 2050 vision of carbon neutrality goal, that substantially helps tackle the climate crisis.
