[2021 Summer FMBA Special Lecture] ‘Understanding ESG Management and Implementation Strategy’ – Sam-il PWC Partner Yun Young Chang

Sam-il PWC partner Yun Young-Chang

At Korea University Business School (Dean= Johngseok Bae) Finance MBA summer semester’s ‘Special lecture’ - Practices in Finance,’ Sam-il PWC partner Yun Young-Chang was invited as a lecturer and covered the topic of ‘Understanding ESG management and implementation strategy’. The lecture was held both online and offline, strictly following COVID-19 guidelines to prevent infections.

Partner Yun Young Chang defined what ESG management is before dealing with the details of establishing an ESG strategy. While CSR focuses on the relationship between corporate-society by ‘firms voluntarily assuming various social responsibilities’, ESG is focused on ‘the evaluation of a company’s nonfinancial capabilities(environmental, social, governance) for the purpose of the stakeholders’ investment decision’.

Partner Yun introduced the current situation where ESG regulations are being reinforced, citing examples such as the movement to expand various environmental regulations led by the US president Biden, BMW’s demand for eco-friendly energy use from its business contractors, etc. He then emphasized that when implementing an ESG strategy companies should keep in mind ‘how to build∙implement an ESG strategy in accordance with the companies features while minimizing impairment in one’s business competitiveness’. Intel’s ‘RISE Strategy’, Hyundai Motor’s ‘Promotion of Eco-friendly vehicle vision alignment throughout its affiliates’, SK group’s ‘Social value measurement’ were particularly introduced as systematically well formed ESG strategies and implementation plans.

Among the three agendas of ESG management, ‘Environmental’, ‘Social’, ‘Governance’, confrontation toward carbon-neutrality was mainly dealt for the ‘Environmental’ factor during the lecture. Partner Yun introduced carbon neutral goal plans of global firms such as the use of renewable energy, technological development and achievement in economic feasibility through R&D, etc. Then emphasized the need for domestic companies’ strategic responses on carbon neutrality. In addition, human rights management, BoD composition, etc. were the focuses of ‘Social’ and ‘Governance’ factors. Partner Yun stated that it is necessary to prepare evaluation criteria suitable for the situation of Korea rather than to apply global ESG governance evaluation indicators directly.

Korea University Business School FMBA hosts ‘Practices in Finance-Special Lectures’, during the summer semester, invites practical experts from various fields in the financial sector to give special lectures on their field’s current status, prospects, major issues, and cases. It is to provide practical knowledge and convey experience in the financial field. It will be held in the form of a special lecture on individual topics such as ESG, Private Equity, IB, Venture Capital, and FinTech etc.

Article·Photo | Management Support Team