The voluntary disclosure of sustainability management reports by companies listed on the KOSPI market is steadily increasing. (Image courtesy of Pixabay/CCL)
SEOUL, Jan. 10 (Korea Bizwire) — In 2024, the number of publicly listed companies on South Korea’s main stock exchange voluntarily disclosing sustainability reports rose by nearly 30%, reflecting growing awareness of environmental, social, and governance (ESG) principles.
The Korea Exchange reported on January 9 that 204 companies listed on the KOSPI voluntarily released sustainability reports last year, up from 161 in 2023. A significant majority, 67%, submitted reports in June.
Larger corporations were more likely to publish these reports. Among firms with total assets exceeding 2 trillion won, 63% disclosed sustainability data, compared to just 9% of those with smaller assets.
Similarly, 88% of companies with a market capitalization of over 10 trillion won published reports, whereas only 16% of firms valued below 2 trillion won did so.
Seventy percent of the reporting companies were affiliated with large business groups, with Hyundai Motor Group leading the pack (11 companies), followed by Samsung (10), Lotte, SK, and LG (9 each). By sector, manufacturing companies accounted for the largest share (105 firms), followed by finance and insurance (44).
Most reports (79%) addressed climate-related risks and opportunities, though only 18% quantified financial impacts and 33% used scenario analysis, indicating room for improvement.
Regarding greenhouse gas emissions, 99% disclosed Scope 1 and Scope 2 emissions (direct emissions and those from purchased electricity, respectively). However, just 3% of these reports included data on a consolidated basis, incorporating subsidiaries.
While 66% disclosed Scope 3 emissions—indirect emissions from activities like logistics, product use, and disposal—challenges remain in ensuring data reliability and comparability.
To enhance corporate ESG disclosure capabilities, the Korea Exchange plans to publish exemplary reporting practices on its ESG portal and offer educational programs based on forthcoming Sustainability Standards Board of Korea (KSSB) guidelines.
“The growing adoption of voluntary ESG disclosures demonstrates corporate readiness for mandatory reporting requirements,” said the Korea Exchange. “We will continue to support companies in preparing for regulatory changes and fostering robust sustainability practices.”
Lina Jang (linajang@koreabizwire.com)
