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KCGS's CSR Assessment for "KRX SRI Index"

Date: October 9, 2009

The Korea Corporate Governance Service (KCGS, Acting President: Young Gil CHUN) recently decided to provides social and environmental assessment and related research services in addition to corporate governance assessment, assignment of corporate governance ratings and research related services by making amendment to its Articles of Incorporation .

  • The reason for such a decision is that a new paradigm for the capital market that takes into account environment, etc. according to the government’s Low Carbon Green Growth Policy is required.
    • Since domestic listed companies need to make preparation in advance in line with global trend towards valuing Socially Responsible Investment (SRI) when foreign institutional investors make a decision on long-term investment, the KCGS decided to provide systematic support for these companies.

KCGS and Eco-frontier has jointly assessed CSR activities of companies listed on the KRX since February 2009: KCGS has arranged overall assessment, mainly on governance, and Ecofrontier has focused on environmental and social performance assessment.

  • Based on such assessment results, KRX started providing “KRX SRI Index” from September 14, 2009.
  • The SRI Index provided by KRX is a market capitalizationweighted (free-float adjusted) index) with 70 components which demonstrate outstanding performance in SRI assessment as of January 2, 2009 (Base point: 1,000P).

KCGS plans to continuously perform survey, research and education in support for CSR operations of listed companies and make an effort to promote the “KRX SRI Index” for sustainable development of Korean listed companies.

  • CSR Assessment and Application
    - Establishing CSR assessment criteria appropriate to Korea and conducting assessment
    - Developing, spreading and distributing SRI index based on the KRX’s CSR assessment results
    - Selecting and awarding excellent companies by sector (environment/society/governance)
  • Presentation of Standards for Sustainability Report and Authentication of the Report
    - Based on recommendations on sustainability report like GRI G3
  • CSR Education and Promotion
    - Providing CSR education for listed corporations and investors and promoting CSR
    - Understanding and analyzing global trend relating to CSR
    - Establishing partnership and network with domestic and international institutions involving in CSR

KCGS CSR Announcement for SRI Index.pdf [56 KB]
KRX Press Release_KRX SRI Index Launched_20090909.pdf [206 KB]

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