SEOUL, Dec. 6 (Korea Bizwire) — Daewoo Shipbuilding & Marine Engineering Co. (DSME) said Monday that it plans to develop indexes to assess the performance of Korean shipbuilders’ ESG management activities.
ESG is short for environmental, social and governance criteria using factors to evaluate companies on how far advanced they are in the sectors of environmental protection, social justice and business ethics.
DSME has signed a deal with KR, a South Korean ship quality assurance and risk management company, to cooperate on the development of the indexes, the shipbuilder said in an emailed statement.
Under the deal, DSME and KR will complete the indexes that are adequate for local shipbuilders’ business climate by the first half of next year, the shipbuilder said.
The indexes will be tested in DSME’s Okpo shipyard on Geoje Island, about 400 kilometers south of Seoul, the shipbuilder said.
The shipbuilder plans to share the indexes with its subcontractors and other local shipbuilding parts makers, it said.
As ESG has emerged as key assessment factor for an investment in companies across the globe, the indexes have been required among local shipbuilders, DSME said.