Investment in ESG management grows in South Korea

Companies spent more than 5 trillion won (US$4.04 billion) on managing environmental, social and governance (ESG) initiatives in 2022.
By: | January 20, 2023
Topics: News | South Korea

The top 100 companies in South Korea invested 5.44 trillion won (US$4.41 billion) in ESG management in 2022, an increase of 87.6% from the previous year, to reduce air pollution and promote workplace safety, according to a Federation of Korean Industries (FKI) report.

The investments from large companies came at a time when their greenhouse gas emissions increased nearly 5% from a year earlier.

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Last year, these companies combined emitted 267.3 million tons of carbon dioxide equivalent, a 4.7% increase over the year before. The FKI attributed this rise to increased corporate production stemming from eased pandemic restrictions and more state fiscal spending.

Some companies have also increased their efforts to promote ESG management. South Korean steelmaker POSCO has pledged to achieve carbon neutrality by 2050 in line with the government’s plan to reduce greenhouse gas emissions, also known as the nationally determined contributions.