Go to the ESG Evaluation Website
WHY ESG?

Corporate sustainability management is increasingly viewed as a key management theme every corporation must pursue, and investors pay close attention ever to the sustainability performance of the investee companies.

GSIA ( Global Sustainable Investment Alliance )
Non-financial factors such as governance structures, employees, partners, and environment also increasingly impact corporate value and growth. By preventing and managing non-financial risk through sustainability management, companies can balance financial and non-financial growth and enhance access to capital markets including the steadily growing responsible investment market.
  • An essential management theme, not a strategy pursed by the selective few
  • Saved cost of capital and increased actual benefit of listing
    by helping regain investors’ trust and invigorate capital markets
  • Corporate image and brand value enhancement
  • Sustainable growth

KCGS has conducted evaluation of corporate governance since 2003 based on a high level of transparency and expertise. In 2011, it adopted annual ESG evaluation adding social responsibility and environmentally responsible management to measure the level of sustainable management by the listed companies in Korea.
Through ESG evaluation, KCGS aims to help listed companies understand where they are in sustainability management and seek improvement where necessary. The ESG evaluation model has been developed by KCGS independently, not only aligned with international standards such as the OECD principles on corporate governance and ISO26000, but also faithfully reflective of legal and management circumstances in Korea.

  • Collection of Raw Data

    Corporate disclosure (e.g. business reports, sustainability reports, and website), materials such as from regulatory bodies and municipalities, and media coverageAbout 900 listed companies are evaluated.
    More than 900 raw data are collected per company.

  • Fundamental Evaluation

    Is a system in place to minimize ESG risks?13 Major Categories, 237 Core Evaluation Criteria

    In-Depth

    Evaluation

    Is there any ESG-related issue likely to degrade corporate value?38 Core Evaluation Criteria

  • Verification

    Adopt various data verification methods for accurate evaluation

    Feedback

    Two-way feedback via a web-based evaluation system

KCGS evaluates all the KOSPI-listed companies and selected KOSDAQ companies. Initial evaluation is performed based on publicly available data and the evaluated companies can provide their feedback on our website dedicated to ESG evaluation, where detailed information regarding evaluation is available including evaluation results, evaluation model and guidelines, and revision history.

ESG평가참여 표 내용
Usage of ESG Evaluation Results
KRX Leaders Indices
Used for KRX to construct its 4 SRI Indices :
KRX ESG Leaders 150,
KRX Governance Leaders 100,
KRX Eco Leaders 100, and
KRX ESG Social Leaders (S)
SRI Advisory Service
Used to help institutional investors make SRI decisions
Policy Suggestion and Research
Used to make policy suggestion and research including diagnosing current state and identifying problematic areas, and exploring improvement plans
ESG Evaluation Report
ESG Evaluation Reports are provided for free to the evaluated companies.
Sample Reports
Announcement of Evaluation Ratings
Evaluation ratings and analysis details are publicly released every year to help make investment decisions
Go to Check Evaluation Ratings
Trust Marks

KCGS has designed trust marks for ESG ratings so as to help investors easily recognize ratings and support the evaluated companies to make use of the rating result in their public relations activities.
The marks and banners provided below may be used in the companies’ website and publicity materials.

TRUST MARK
  • ESG Integrated
    Rating
  • Environmental
    Rating
  • Social Rating
  • Governance
    Rating

For questions, please contact Analysis Team 1 at +82-2-6951-3701

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KCGS

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