Your SlideShare is downloading. ×
  • Like
SRI Index and Development of Responsible Investments in Korea
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.


Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

SRI Index and Development of Responsible Investments in Korea


Su Jeong Moon, Senior analyst - Eco-frontier Sustainable Finance Center - South Korea …

Su Jeong Moon, Senior analyst - Eco-frontier Sustainable Finance Center - South Korea

Published in Economy & Finance , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On SlideShare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. TBLI Asia 2010
    Tokyo, Japan (27-28 May, 2010)
    The Trend of SRI market and SRI Index Development in Korea
    SuJeong Moon
    Senior Analyst, Sustainable Finance Center
    Eco-Frontier Co.
  • 2. Introduction of the Eco-Frontier
    & Local authorities
    Private companies
    Public institutions
    Insurance companies
    Securities &
    Asset managers
    • Established: January, 1995
    • 3. Employees: 100
    Eco-Frontier Business
    • ESG & Carbon Rating Service
    • 4. Green Loan Rating Service
    • 5. ESG Engagement
    • 6. Green Finance Consulting
    Sustainability/Green Finance
    Low Carbon Green Growth
    Strategy Consulting
    • Carbon Management Strategy
    • 7. Corporate Sustainability Management
    • 8. e- Sustainability Management Solution
    Energy & Environmental
    Business Development
    • Biomass Business Development
    • 9. Renewable Energy Business Development
    Carbon Business Development
    • CDM Project Development
    • 10. Carbon Finance
    • 11. Green Real Estate Fund
  • Contents
    1. Trends of the SRI in Korea
    2. The SRI Index development in Korea
    3. Outlook of the Korean SRI
  • 12. 1. Trends of the SRI in Korea
  • 13. Green Finance
    • Korea supports for Green Finance through an enactment of “ Basic Act on Low Carbon Green Growth”.
    • 14. Funding to promote green growth
    - To establish funding to support a green economy and green industries
    - To develop new financial products to support a low carbon green growth
    - To promote private investment to build green infrastructure
    • Promotion the green management of companies
    - To strengthen a corporate disclosure of green management and expand financing for green companies
    • Introduction of the emission trading system
    - To set up a carbon market and promote active trading
    Promotion of Green Finance(Article 28)
  • 15. Initiatives on Green Finance
    • Korean Financial Institutions participates in International Initiatives on Green Finance.
    End of March2010 Data
  • 16. Growth of the SRI
    • The number of the SRI funds has been increased.
    • 17. The SRI market is expected to further increase since Pension Funds has begun to pay attention to SRI and Climate Change.
    Source: Korea Financial Investment Association, 2009
  • 18. Growth of the SRI
    • Amount composition ratio of the SRI Funds by investment region
    (as of 30 Apr 2009, KRW 1million)
    • Public funds (as of 30 Apr 2009, KRW 1million)
  • Growth of the SRI
    • Composition ratio of SRI funds(public+private+Pension) by a screening strategy
    (as of 30 Apr 2009, KRW 1million)
    • Public funds (as of 30 Apr 2009, KRW 1million)
  • 2. The SRI Index development in Korea
  • 19. Overview the KRX SRI Index
    • As a part of “Plan for Green Growth”, the SRI Index had been developed in the first half of the 2009.
    • 20. Considering the accessibility of information, the 330 listed companies under the 21sectors have been assessed.
    SRI Assessment Tool
    Develop the SRI Index
    KCGS’s Evaluation
    Eco-Frontier’s Evaluation
  • 21. Assessment Method
    • IVA(Intangible Value Assessment)
    • 22. Strategic scanning capability
    • 23. Agility adaptation
    • 24. Traditional governance concerns
    • 25. Intellectual capital
    • 26. Product Safety
    Strategic Governance
    Stakeholder Capital
    • Partnerships with stakeholders
    • 27. Relationships with host communities
    • 28. Management of supply chains
    • 29. Emerging market strategies
    • 30. Operations at risk of human rights abuses
    Human Capital
    • Workplace practices, including recruitment & retention
    • 31. Labor relations
    • 32. Health & safety
    • Risk management systems, including board & management oversight
    • 33. Disclosure/verification
    • 34. Efficient use of resources
    • 35. Effective waste management & reduction
    • 36. Climate risk assessment
    • 37. New product development
  • Assessment Results
    • Among 330 companies assessed, 131 companies(40%) were eligible investee companies(BBB).
    RiskMetrics Group Methodology assigns 7 ratings
  • 38. Analysis of the assessment Results
    • The remarkable results
    • 39. Finance sector: Human Capital
    • 40. Electricity & Electronics sector: Products & Service
    • 41. Machinery sector: Environmental Opportunity
    & Electronics
  • 42. SRI Index Components
    • Considering market capitalization, liquidity, and Rating, SRI Index components were selected.
  • SRI Index Components Distribution
    • The SRI Index is composed of the large portion of financial industry with the 10 components.
    • 43. In terms of market capitalization, the electricity and electronics industry accounts for 28%.
  • SRI Index Movement
    • As of December 16, 2009, SRIIndex is1,518.62P, 51.86% up from 1,000P.
    • 44. The SRIIndexmoves similarly to KOSPI 200. However, it has outperformed 6.76% thanKOSPI 200 in 2009.
    • 45. KTB Asset Management launched SRI ETF in December 2009.
  • 3. Outlook of the Korean SRI
  • 46. Outlook of the Korea SRI
    • Develop Green/Carbon Index
    - Develop ‘Green Enterprise Index’ and ‘Carbon Index’ to promote green investments
    • Expand on Integration of ESG and Engagement
    - Investors will consider the ESG and a carbon risk in investing decisions
    - Financial Institutions will be engaged with companies on ESG Issues
    • Spotlight on the SRI and Green Finance
    - Annual joint conference of P8 Pension Group and UNEP FI. ( “Financing a Low-Carbon Growth in Asia Summit”, 16~17 June, 2010)
    - National Pensions Service of Korea is expected to seek progressive movements for the SRI and the Green Finance
  • 47. Thank you very much!
    SuJeong Tel 02-3153-7801 Fax 02-3153-7703
    6F DMC Hi-Tech Industry Center, 1580 Sangam-dong, Mapo-gu, Seoul