12:30 Noon Lunch Box Keywords

NOON: Lunch Box

ESG keywords to ponder during a short lunch break.

97 articles

Greenhushing

Greenhushing refers to the act in which a company intentionally refrains from publicly disclosing or downplays its eco-friendly activities or sustainability targets. A neologism combining ‘Green’ (eco-friendly) and ‘Hushing’ (keeping silent), it is the opposite concept of Greenwashing, in which a company exaggerates an eco-friendly image without actually engaging in green management. As stakeholder scrutiny and demands regarding greenwashing have intensified, it is a kind of avoidance strategy created as a backlash by companies that find it difficult to meet stringent standards.After the 2024 U.S. presidential election, the federal government strengthened its stance of easing ESG regulations, and some Republican state governments defined ESG as an ideological issue and expressed opposition. Accordingly, to avoid becoming political targets, companies have sometimes quietly pursued ESG strategies or refrained from disclosing them altogether. [Greenhushing Ⓟ ESG.ONL/ESG Today]As a concrete example, Meta, which had been publishing climate change response reports, has recently been reducing official mentions related to climate, and Amazon has removed the specific timeline from its goal of achieving carbon neutrality by 2040. According to the ‘2024 Net Zero Report’ by the Swiss carbon finance consulting firm South Pole, the greenhushing phenomenon is widespread across countries, but not all companies have reduced their sustainability efforts. Approximately three-quarters of the 1,400 companies across 12 countries surveyed reported that they were investing more funds than before in reducing carbon emissions, yet disclosed that eco-friendly companies were more reluctant to report publicly because they face greater scrutiny the greener they are.Corporate greenhushing indicates that a company is passive about ESG activities including environmental issues. If the greenhushing phenomenon spreads, consumers become unable to judge corporate sustainability, weakening the foundation for ethical consumption, while investors lose critical ESG data and become unable to compare ESG management across companies. Long-term silence ultimately has a negative impact on both the relationship between consumers and companies and trust in corporations and policies.To prevent greenhushing, legal protections and benefit structures related to disclosure must be established so that companies can continue ESG management. This is because companies need to build quantified, data-based ESG reporting systems for responsible communication. by Editor O

03/25/2026

KEYWORD 02

Green Pricing

Green Pricing is a system in which companies or individuals pay an additional premium (approximately KRW 10/kWh) on top of their existing electricity rates to use power generated from renewable energy sources. It operates in a way that when consumers who wish to use renewable energy pay an additional amount on top of their standard electricity rates, KEPCO supplies a corresponding amount of renewable energy. As one of the means of implementing RE100 (Renewable Energy 100%), it provides an institutional pathway for companies to be recognized for their renewable energy usage without needing to enter into renewable energy Power Purchase Agreements (PPA) or generate their own power.In 2021, Green Pricing launched targeting large-scale power consumers with contract power of 1,000 kW or more. When the Ministry of Trade, Industry and Energy introduced it, it was applied to industrial and general-use electricity; it was expanded to educational use in 2022 and to agricultural use in 2023. After signing a contract with KEPCO, applicant companies can pay monthly or settle in a lump sum, and renewable energy usage certificates are issued on an annual or quarterly basis. The rate is billed with the premium charge added to the basic electricity rate, and the premium varies depending on market conditions and the type of renewable energy source. KEPCO issues Renewable Energy Certificates (RECs) to applicant companies, through which companies are recognized as having achieved RE100 performance.[Green Pricing (Green Premium) Ⓟ ESG.ONL/ESG Today]The advantage of Green Pricing is that companies can quickly secure renewable energy usage records without bearing additional facility costs. It is regarded as a highly accessible means for SMEs or companies for which self-generation is difficult. On the other hand, limitations include the increase in electricity bill burdens due to the added premium charge, and the possibility that the additional costs companies must bear may fluctuate over the contract period. It has also been pointed out that Green Pricing is operated primarily around large enterprises consuming massive amounts of power, making it difficult for small-scale businesses or ordinary households to benefit from the system.As the number of RE100 participating companies grows and ESG management spreads, Green Pricing is establishing itself as a major policy instrument to accelerate the domestic renewable energy transition. KEPCO is reviewing the expansion of the target scope and the strengthening of transparency in the rate structure through system improvements. In addition, institutional supplementation to broaden companies’ renewable energy procurement options is expected to continue. by Editor O

03/18/2026

KEYWORD 03

Creating Shared Value

As the name suggests, the most important purpose of a company is the pursuit of profit — that is, the act of obtaining economic gain. But companies are being asked to go one step further and actively engage in solving social issues. This is not simply to enhance corporate image, but because the very process of solving social issues leads to a structure that strengthens corporate competitiveness.When one thinks of ‘social contribution activities,’ ‘profit distribution’ — returning a portion of profits to society — is likely what first comes to mind. However, Creating Shared Value (CSV) differs in character from profit distribution. It is not about earning and then sharing, but a strategy of creating economic value through the very act of creating social value. First proposed by Harvard Business School Professor Michael Porter and American journalist Mark Kramer in a 2011 Harvard Business Review article, CSV starts from the perspective that companies should view solving social issues as a business opportunity.[Creating Shared Value (CSV) Ⓟ ESG.ONL/ESG Today]CSV and CSR (Corporate Social Responsibility) are concepts that are easily confused. The most crucial difference between the two lies in the ‘order.’ CSR is a structure in which a company earns profits and then returns a portion to society, with activities such as donations, volunteerism, and environmental campaigns being representative. In contrast, CSV makes solving social issues the business model itself. It is not a cost but an investment, not an obligation but a strategy.A representative example of CSV is the food company Nestlé’s ‘Nespresso AAA Sustainable Quality Program.’ Nestlé simultaneously addressed the business need to ‘secure high-quality coffee beans’ and the social challenge of ‘supporting farmers in developing countries.’ It created a structure in which it supports farmers in 18 countries with agricultural technology and funding, and in return receives a stable supply of high-quality beans. Farmers’ incomes rose, and Nestlé stabilized its supply chain.Another example is Vodafone’s mobile phone-based money service ‘M-Pesa.’ Vodafone developed a mobile money transfer service using mobile phones in Kenya, where communication infrastructure was poor. Local residents, who could now send and receive money without a bank account, gained access to financial services for the first time, and Vodafone pioneered a new market that previously did not exist. Today, three out of four Kenyan adults use M-Pesa to such an extent that it has become the very fabric of local daily finance. This is a case in which the social problem of financial exclusion became a business opportunity.CSV, in the end, is not a story about ‘good companies.’ It is a story about how only companies that can re-read social issues in the language of business possess sustainable competitiveness. What social issue can become an opportunity for our business? CSV begins from that question. by Editor O

03/12/2026

KEYWORD 04

Red List of Threatened Species

The IUCN Red List of Threatened Species, maintained by the International Union for Conservation of Nature (IUCN), is the world’s largest biodiversity database that assesses the extinction risk of species across the globe. First published in 1964, the Red List, accumulated over 60 years since then, has established itself as a key tool for gauging the pace of ecosystem collapse, going beyond a mere list of species.The Red List classifies species into nine categories based on extinction risk, ranging from ‘Extinct (EX)’ to ‘Least Concern (LC).’ Among the nine categories, the substantively threatened species consist of three categories: Critically Endangered (CR), Endangered (EN), and Vulnerable (VU). The basis for evaluation is five criteria including population decline rate, habitat area, population size, and quantitative extinction probability. Thanks to this system, governments and international organizations can objectively determine conservation priorities.[Red List Ⓟ ESG.ONL/ESG Today]The Red List species published by the IUCN in April 2025 reached 169,420 species. Among these, 47,187 species fall under the threatened categories — approximately 28% of all assessed species. Amphibians (41%), sharks and rays (37%), and corals (36%) account for particularly high threat ratios.South Korea’s ecosystem is also not unrelated to the Red List. Indigenous species such as the Suwon tree frog, the spotted seal, and the oriental stork are listed in the IUCN Red List threatened categories. South Korea operates both the Ministry of Environment-designated endangered wildlife list and IUCN criteria in parallel, but discrepancies between the two lists sometimes arise due to differences in evaluation timing and methodology. Some experts point out that the domestic evaluation cycle should be shortened and alignment with IUCN criteria should be enhanced.The Red List is also connected to ESG management. As the implementation of the Taskforce on Nature-related Financial Disclosures (TNFD) and the Kunming-Montreal Global Biodiversity Framework targets under the Convention on Biological Diversity (CBD) — an international commitment to halt global biodiversity loss and transition to recovery (Nature Positive) by 2030 — accelerates, companies are under pressure to disclose whether their supply chains encroach upon the habitats of Red List threatened species. Financial institutions have also begun to incorporate biodiversity risks into their investment decision-making.The IUCN Red List is a kind of warning system. Yet the true value of the list lies not in the data itself but in the will needed to connect this warning to policy reflection and action. Facing squarely the current state of global biodiversity — that is the task the Red List has been asking of us for 60 years. by Editor O

02/24/2026

KEYWORD 05

Conflict Minerals

Conflict Minerals refer to natural mineral resources mined in regions experiencing conflict, such as the Democratic Republic of the Congo (DRC) and adjoining countries. Under U.S. conflict minerals legislation, conflict minerals refer to four types of minerals — tin, tantalum, tungsten, and gold — commonly referred to as ‘3TG.’ The concept of conflict minerals emerged as the international community focused attention on the DRC civil war and human rights abuses between 2000 and 2010. In some regions centered on the DRC, funds from mineral sales flow to armed groups and are used in the massacres of their own citizens. Moreover, serious human rights violations such as child and civilian labor exploitation and abuse of women are occurring at mining sites.Tantalum, one of the types of conflict minerals, is the material for tantalum capacitors (capacitors using tantalum, which has excellent electrical storage capabilities, in a component that temporarily stores electricity) used in electrical circuits. As it accounts for a high proportion of reserves and is an essential component for small electronic devices, it is the most problematic of the four minerals. Tungsten, another type of conflict mineral, consists of high-strength alloy components, while tin is a metal that is a component of bronze. [Conflict Minerals Ⓟ ESG.ONL/ESG Today]In addition, while not legally regulated as a conflict mineral, there is cobalt — the main component of lithium-ion batteries widely used in electric vehicles and smartphones. Cobalt has been a source of concern as Chinese-owned companies mining cobalt in the DRC are causing human rights issues such as child labor.To block the flow of funds to armed groups and prevent human rights violations, the U.S. Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, mandating the reporting of conflict mineral usage. Under Section 1502 of this Act, companies listed on U.S. stock exchanges must investigate the use of conflict minerals, including their origin and whether they are linked to conflict. They must then conduct supply chain due diligence and report the results to the U.S. Securities and Exchange Commission (SEC). In the wake of this, many companies now verify and disclose whether the conflict minerals they use are associated with armed groups or human rights issues. Even today, companies continue their efforts to use minerals unrelated to conflict. The regulation of conflict minerals is an international trend that strengthens corporate responsibility to ensure that mineral extraction does not harm human rights and peace. by Editor O

02/20/2026

KEYWORD 06

Blue Bond

A Blue Bond is a special-purpose bond issued to raise funds needed for marine conservation, water resource protection, marine industry projects, and support for sustainable fisheries. It is a type of ESG bond and is referred to as a ‘blue bond’ in Korean. The difference from Green Bonds (which raise funds needed for projects related to terrestrial environmental conservation) is that Blue Bonds are for funding the sustainability of marine ecosystems and the marine economy.Bonds issued as Blue Bonds are invested in projects with clear environmental conservation and improvement effects. Examples of such projects include marine ecosystem restoration, research and development costs for marine pollution prevention projects, and technological development to address the marine plastics problem. Concrete investment areas in the marine environment include the restoration of coral reefs and mangroves (shrubs that grow in the muddy soil of tropical or subtropical coasts or estuaries where seawater flows in), sustainable port development, development of marine plastic reduction technologies, and the construction of eco-friendly shipping infrastructure. [Blue Bond Ⓟ ESG.ONL/ESG Today]The International Capital Market Association (ICMA, a Zurich, Switzerland-based non-profit organization representing global bond and capital market participants) has published Blue Bond guidelines, clearly presenting credible issuance standards and criteria for evaluating the environmental impact of projects. Accordingly, Blue Bonds are establishing themselves as ESG bonds trusted in international financial markets.While the market is still in its early stages with relatively few issuances, as global interest in the marine environment grows, the scale of Blue Bond issuances and the attention they draw are also expected to increase. Various countries and international organizations, including the Republic of Seychelles in the Indian Ocean, China, and Indonesia, are undertaking Blue Bond issuances.Domestically, the Korea Ocean Business Corporation issued USD 300 million in global bonds in the form of Blue Bonds in April 2025. The funds secured through the bond issuance are to be used for investments in vessels utilizing low-carbon fuels such as ammonia and methanol, ports related to low-carbon fuel supply, and offshore wind power installation vessels.Blue Bonds are being evaluated as a new instrument that will lead marine environmental conservation and a sustainable marine economy. Amid the spread of ESG management across industries, Blue Bonds are expected to play a key role in eco-friendly investment toward the marine sector and in enhancing the sustainability of the marine industry. by Editor O

02/10/2026

KEYWORD 07

Labor Director System

The Labor Director System is a system in which a worker representative directly participates in management decision-making by exercising voting rights as an outside director on the board of directors. Following the passage of the amendment to the Act on the Management of Public Institutions in January 2022, it was mandatorily introduced for public enterprises and quasi-governmental institutions in August of the same year. A non-standing director elected from among workers with three or more years of service, either through the recommendation of the worker representative or by majority vote, participates in the resolutions of the board of directors and bears the authority and responsibilities of a director.The Labor Director System differs from the existing labor-management council in that, whereas the council remained at the level of information sharing or consultation, the Labor Director System involves directly monitoring management and exercising decision-making authority within the board of directors. The Labor Director System has received positive evaluations for strengthening transparency and the checks-and-balances function, while negative concerns such as reduced decision-making efficiency have also been raised.[Labor Director System Ⓟ ESG.ONL/ESG Today]Currently, private companies are not subject to mandatory adoption under the Commercial Act, but discussions continue, centered on the financial sector and some large corporations. In parts of the financial sector, repeated attempts to appoint labor directors through shareholder proposals are being made. This shows that the recognition that companies must reflect the voices of not only shareholders but also a variety of stakeholders is spreading. Overseas, there are numerous cases in which worker participation on boards has been institutionally established. Germany has institutionalized the participation of worker representatives in the composition of supervisory boards for companies above a certain size, and France also legally mandates the appointment of labor directors for companies meeting certain requirements. Amid such trends, discussion continues on how to view the domestic Labor Director System in comparison with global governance standards.The Labor Director System is emerging as an indicator for judging the soundness and transparency of governance, going beyond mere labor-management relations. Amid the trend in which global disclosure standards such as ISSB emphasize the disclosure of information on governance structures and decision-making systems, domestic companies are also continuing to deliberate on how to reflect workers’ opinions in management, regardless of whether they adopt the system.As experience in operating the Labor Director System in public institutions accumulates, discussions surrounding the evaluation and interpretation of the system’s effects will also continue. For companies, an important task is emerging: going beyond the formal adoption of the Labor Director System to formulating a governance strategy that can reflect stakeholder participation in a balanced manner while maintaining the independence and expertise of the board. by Editor O

02/06/2026

KEYWORD 08

Task Force on Climate-related Financial Disclosures

TCFD (Task Force on Climate-related Financial Disclosures) is an international framework that addresses the impact of climate change on the financial condition of companies. Its objective is to enable investors and other stakeholders to compare and assess climate-related information by having companies disclose it in a consistent manner. The TCFD was established in 2015 by the Financial Stability Board (FSB) at the request of G20 Finance Ministers and Central Bank Governors and became the starting point for global disclosure discussions addressing climate-related topics from a financial perspective.What distinguishes the TCFD from existing socially-contribution-centered reports is that it recognized climate change not as an environmental issue but as a financial risk directly linked to corporate value. After the final recommendations were published in 2017, thousands of companies worldwide voluntarily began adopting them, and the TCFD has effectively served as the common language of global climate disclosure.[TCFD (Task Force on Climate-related Financial Disclosures) Ⓟ ESG.ONL/ESG Today]The TCFD recommendations consist of four core areas: Governance, Strategy, Risk Management, and Metrics and Targets. In particular, within the strategy area, ‘scenario analysis,’ which examines a company’s resilience under future climate scenarios, has established itself as a key requirement.Recently, however, what carries greater significance than the name TCFD is the fact that its core content is becoming established as an international disclosure standard. The TCFD officially concluded its activities in 2023, and the climate disclosure standards based on the TCFD recommendations have been integrated into the IFRS S2 (Climate-related Disclosures) standard of the International Sustainability Standards Board (ISSB).The ISSB’s S2 is not a recommendation but an international disclosure standard, and if adopted by a country’s regulatory authorities, it can become a mandatory legal disclosure standard for companies. In other words, the TCFD has not disappeared; rather, its core content has been organized and expanded into a disclosure standard capable of being institutionalized. From a company’s perspective, its experience in responding to the TCFD can serve as an important foundational competency in the process of preparing for future disclosure transitions. by Editor O

01/28/2026

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