As ESG (environment, society, and governance) has become a core management principle of global companies, domestic companies’ steps toward them are busy.
LG Chem announced on the 15th that it will issue a total of 1.2 trillion won in corporate bonds, including 820 billion won in ESG bonds and 380 billion won in general corporate bonds.
Corporate bonds worth 1.2 trillion won are the largest among corporate bonds issued by domestic companies so far, and ESG bonds are also the largest.
In particular, LG Chem’s issuance of 800 billion won ESG bonds is evaluated as an opportunity for the industry’s ESG management, which has remained at the declarative level, to transition to the stage of full-scale investment and execution. ESG bonds are bonds issued for investment purposes in eco-friendly and socially responsible management. LG Chem has decided to use the funds raised by this ESG bond to invest in renewable energy conversion to reduce carbon dioxide emissions, construct production processes using eco-friendly raw materials, and expand battery materials for electric vehicles such as cathode materials.
“This year, we will establish and implement specific measures to accelerate ESG management in all business sectors, further strengthening our status as a leading company in the sustainable field,” said Chai Chai, vice president of LG Chem’s chief financial officer (CFO).
Other companies are no exception. Major domestic companies are vying for ESG management regardless of industry. This is because ESG management is becoming an essential factor for preoccupying the future market and survival of companies. In the future, it becomes almost impossible to attract large-scale investments or enter advanced markets without ESG.
The movement of Hanwha Group’s flagship affiliates draws attention. Hanwha Energy recently established a joint venture with France Total to jointly promote the development and operation of solar energy in the US market. Hanwha Solutions decided to preemptively invest in solar power and green hydrogen business in line with the trend of the era of’great energy conversion’ and’carbon neutrality’. The group’s financial affiliates are also keeping pace with ESG management emphasized by Chairman Seung-Yeon Kim through the declaration of’de-coal financing’.
Due to the high use of coal fuel, the movement of industries with high carbon emissions is also busy. In 2019, POSCO succeeded in issuing USD 500 million of sustainable bonds for the first time as a steel company to raise funds for eco-friendly business and social problems. Regional investors such as Asia (65%), the US (28%), and Europe (7%) participated and showed even interest in POSCO ESG bonds. As a part of ESG-related bonds, POSCO issued sustainable bonds by combining green bonds for financing eco-friendly projects and social bonds for financing projects to solve social problems such as job creation.
Hyundai Steel was included in the World Index for the third consecutive year in the 2020 Dow Jones Sustainability Index (DJSI) released in November of last year, and was selected as the best company in the steel industry for the second consecutive year. Hyundai Motor Company, which received the highest score in the ESG evaluation of the Korea Corporate Governance Service last year, is’all-in’ in ESG management, focusing on five areas of sustainability management, such as smart mobility-based customer experience innovation, pursuit of eco-friendly values throughout the entire process, and creation of a sustainable supply chain. have.
Reporters Kicheon Na and Gunho Kim [email protected]
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