We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Policy Engagement Overview: The Korea Business Council for Sustainable Development (KBCSD) appears to have limited and mixed engagement with climate policy in South Korea. The association has taken supportive positions on the need for climate action in its top-line messaging. However, it has negatively engaged with the introduction of a carbon tax in South Korea. It has taken broadly negative positions on the transition of the energy mix.
Top-line Messaging on Climate Policy: KBCSD appears to take supportive positions on the need for climate action in its top-line messaging. At a policy meeting with the Ministry of Environment in February 2022, the Vice President of KBCSD, Kim Kyo-hyun, stated support for action towards carbon neutrality, stating that low-carbon management became ‘the responsibility and duty of a company’ and they would ‘actively participate in the government’s carbon neutrality initiative’. In the KBCSD CEO Report in January 2022, the association appeared to support government regulations to respond to climate change.
Engagement with Climate-Related Regulations: KBCSD appears to have limited engagement with climate policies in South Korea. In the KBCSD CEO Report in September 2021, the association appeared to oppose introducing carbon tax in Korea, stating that the policy should not be a ‘punitive tax’ and could be a double-regulatory 'burden’ to Korean industries. In the association’s CEO Report in June 2020, KBCSD appeared to oppose the Korea Emissions Trading Scheme (K-ETS), suggesting suspending the K-ETS and easing the cost burden. In the May 2020 CEO Report, the association supported expanding government policy that would support renewable energy expansion.
Positioning on Energy Transition: KBCSD appears to take mixed but broadly negative positions on the transition of the energy mix. In the association’s CEO Report in June 2022, KBCSD supported a transition to a low-carbon economy, stating support for the South Korean government’s in expanded incentives and measures for green industries. However, the Chairman of KBCSD, Lee Kyung-ho, appeared to not support the decarbonization of road transport in an April 2021 association editorial, arguing for a ‘soft landing’ with regard to national industrial development and citing concerns over damages to the internal combustion engine vehicle industry and related job losses. In the August 2021 CEO Report, KBCSD advocated for maintaining nuclear power plants, LNG power generation and coal-fired power plants in the K-Taxonomy as ‘green economic activities’, citing that these power plants would play a ‘bridge role’ to achieve decarbonization.