• Journal of Intelligence and Information Systems
• /
• v.29 no.1
• /
• pp.1-25
• /
• 2023

ESG management is becoming a necessity of the times, but there are about 600 ESG evaluation indicators worldwide, causing confusion in the market as different ESG ratings were assigned to individual companies according to evaluation agencies. In addition, since the method of applying ESG was not disclosed, there were not many ways for companies that wanted to introduce ESG management to get help. Accordingly, the Ministry of Trade, Industry and Energy announced the K-ESG guideline jointly with the ministries. In previous studies, there were few studies on the comparison of evaluation grades by ESG evaluation company or the application of evaluation diagnostic items. Therefore, in this study, the ease of application and improvement of the K-ESG guideline was attempted by applying the K-ESG guideline to companies that already have ESG ratings. The position of the K-ESG guideline is also confirmed by comparing the scores calculated through the K-ESG guideline for companies that have ESG ratings from global ESG evaluation agencies and domestic ESG evaluation agencies. As a result of the analysis, first, the K-ESG guideline provide clear and detailed standards for individual companies to set their own ESG goals and set the direction of ESG practice. Second, the K-ESG guideline is suitable for domestic and global ESG evaluation standards as it has 61 diagnostic items and 12 additional diagnostic items covering the evaluation indicators of global representative ESG evaluation agencies and KCGS in Korea. Third, the ESG rating of the K-ESG guideline was higher than that of a global ESG rating company and lower than or similar to that of a domestic ESG rating company. Fourth, the ease of application of the K-ESG guideline is judged to be high. Fifth, the point to be improved in the K-ESG guideline is that the government needs to compile industry average statistics on diagnostic items in the K-ESG environment area and publish them on the government's ESG-only site. In addition, the applied weights of E, S, and G by industry should be determined and disclosed. This study will help ESG evaluation agencies, corporate management, and ESG managers interested in ESG management in establishing ESG management strategies and contributing to providing improvements to be referenced when revising the K-ESG guideline in the future.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.18 no.1
• /
• pp.47-65
• /
• 2023

As stakeholder demands and sustainable finance grow, ESG management and ESG evaluation are becoming important. SMEs should also prepare for the trends of ESG rating practices that affects supply chain management and financial transactions. However, SMEs have no choice but to focus on survival first, so there are restrictions on putting into ESG management. In addition, there is a lack of research on the legitimacy of ESG management by SMEs, and volatility in ESG evaluation systems and rating grades is also increasing. Accordingly, it is necessary to review ESG evaluation trends and practical guidelines along with the review of previous studies. As a result of the exploratory study, SMEs need to implement ESG management and make efforts to specialize in ESG related new businesses under conditions in which their survival base is guaranteed in terms of implementation strategies. In addition, it is necessary to focus on the strategic use of various evaluation results along with accumulating information favorable for ESG evaluation through organizational learning and software management. The implications of this study are that various studies such as the classification criteria for SMEs and the relationship between ESG evaluation grades and long-term survival rates are needed in ESG evaluation of SMEs. At the government policy level, it is time to consider the ESG evaluation system exclusively for SMEs so that ESG management can be implemented and ESG evaluation at different levels by industry and size.

• Journal of Intelligence and Information Systems
• /
• v.29 no.2
• /
• pp.1-22
• /
• 2023

Existing studies on mixed ratings that combine ESG ratings and credit ratings have been rare. Through meta-frontier analysis, this study examines the relationship between the prime and non-prime groups in ESG ratings, credit ratings, and mixed ratings that consider ESG ratings and credit ratings at the same time. Efficiency was compared. Meta-frontier analysis was used to compare the efficiency of 143 listed manufacturing companies in Korea between the prime and non-prime groups based on the ESG ratings assigned to them by KCGS and the credit ratings assigned by Korea's three major credit rating agencies. As a result of this study, first, the meta-efficiency of the prime mixed-grade group was statistically more efficient than the non-prime mixed-grade group under the variable return scale (VRS) assumption. Second, the prime ESG rating group had a relatively higher proportion of scale inefficiency than the non-prime ESG rating group. Third, in terms of economies of scale, the prime credit rating group had a higher proportion of diminishing returns to scale (DRS) than the non-prime credit rating group. This study will help companies interested in sustainability management to do ESG management.

• Journal of the Korea Society of Computer and Information
• /
• v.29 no.5
• /
• pp.155-164
• /
• 2024

This study proposes an unsupervised learning-based clustering model to estimate the ESG ratings of domestic public institutions. To achieve this, the optimal number of clusters was determined by comparing spectral clustering and k-means clustering. These results are guaranteed by calculating the Davies-Bouldin Index (DBI), a model performance index. The DBI values were 0.734 for spectral clustering and 1.715 for k-means clustering, indicating lower values showed better performance. Thus, the superiority of spectral clustering was confirmed. Furthermore, T-test and ANOVA were used to reveal statistically significant differences between ESG non-financial data, and correlation coefficients were used to confirm the relationships between ESG indicators. Based on these results, this study suggests the possibility of estimating the ESG performance ranking of each public institution without existing ESG ratings. This is achieved by calculating the optimal number of clusters, and then determining the sum of averages of the ESG data within each cluster. Therefore, the proposed model can be employed to evaluate the ESG ratings of various domestic public institutions, and it is expected to be useful in domestic sustainable management practice and performance management.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.18 no.6
• /
• pp.87-104
• /
• 2023

Recently, concerns are growing over small and medium-sized companies holding out on debt as domestic loan interest rates have risen sharply due to the prolonged impact of COVID-19 and soaring raw material prices. In addition, loans from small and medium-sized enterprises, which are difficult in the business environment, are increasingly being rejected due to high loan interest rates and excessive submission documents and financial statements-oriented screening of loans by the financial sector. Therefore, since it is necessary to discuss ways to promote financing and investment by SMEs, this study intends to suggest ways to promote investment through the use of SMEs' ESG systems. The purpose of this study is to suggest that the use of ESG evaluation indicators used as non-financial indicators helps predict the corporate value of SMEs and the importance of SMEs actively participating in ESG information disclosure. This study suggests the necessity of introducing and practicing ESG by SMEs where financing is important, and aims to analyze as an empirical result that the use of non-financial indicators helps predict corporate value. As a result of the study, the ESG performance and corporate value of SMEs showed a positive (+) relationship. It can be seen that both the grades and corporate value of SMEs by ESG sector have a positive (+) influence relationship. The total ESG rating was confirmed to have a positive effect on corporate value, and it was confirmed that SMEs with higher ESG environment, social, and governance ratings were evaluated higher. According to the research results, it is suggested that SMEs also need to use ESG evaluation indicators, and in order to promote the growth of SMEs, it is suggested that research on ways to re-examine the corporate value of SMEs is necessary. Therefore, this study suggests that the use of ESG should be actively recommended and implemented as a way to establish a management strategy for SMEs, and that efforts to disclose ESG information can soon help SMEs solve information asymmetry. In addition, SMEs want to understand the investment mechanism that the introduction and practice of ESG can lead to the improvement of the value of SMEs and suggest the necessity of SME-type ESG policies in the future.

• 한국벤처창업학회:학술대회논문집
• /
• 2023.11a
• /
• pp.73-77
• /
• 2023

최근 COVID-19 장기화 영향과 원자재 가격 급등으로 국내 대출금리가 가파르게 오르면서 빚으로 버티는 중소기업에 대한 우려가 커지고 있다. 또한, 높은 대출금리와 금융권의 대출심사 시 과도한 제출서류와 재무제표 위주의 심사로 인해 경영 환경에 힘든 중소기업의 대출은 거절되는 경우도 증가하고 있다. 따라서 중소기업의 자금조달과 투자 활성화 방안에 대한 논의가 필요하기에 본 연구는 중소기업의 ESG 제도의 활용을 통한 투자증진방안을 제언하고자 한다. 본 연구의 목적은 비재무적 지표로 활용되는 ESG 평가지표의 활용이 중소기업의 기업가치를 예측하는 데 도움이 되며, 중소기업이 ESG 정보공시에 적극적으로 참여해야 하는 중요성을 제시하는 것이다. 본 연구는 자금조달이 중요한 중소기업의 ESG 도입과 실천의 필요성을 제언하며, 비재무적 지표의 활용이 기업가치를 예측하는 데 도움이 된다는 것을 실증적인 결과로 분석하고자 한다. 따라서, 중소기업의 투자 활성화 방안으로 ESG 활용이 적극적으로 권장하고 실천해야 하며, ESG 정보공시를 위한 노력이 곧 중소기업의 정보 비대칭성을 해결하는 데 도움이 될 수 있음을 시사한다. 또한, 결과적으로 중소기업은 ESG 도입과 실천이 자금조달 및 투자 활성화로 이어질 수 있다는 투자 메커니즘을 이해하고 향후 중소기업형 ESG 정책의 필요성을 제언하고자 한다.

• Asia-Pacific Journal of Business
• /
• v.13 no.1
• /
• pp.153-166
• /
• 2022

Purpose - ESG(Environmental, Social and Governance) rating is an indicator to predict the sustainable development and long-term value creation of enterprises, which is becoming more and more important. This study divided the ESG rating into each sector(E, S and G) to identify which ESG elements are effective in enhancing enterprise value according to the characteristics of the enterprise, which is different from previous studies. Design/methodology/approach - In this study, Bloomberg ESG Disclosure Score was used to empirically analyze the relationship between ESG ratings and corporate value by taking the listed companies of China's Shanghai Composite Index from 2017 to 2020 as the object. Findings - First, the relationship between ESG ratings and enterprise value shows a statistically significant positive correlation, which supports the results of previous studies. Second, the analysis results from the classification of ownership structure of enterprises (state-owned enterprises and non-state-owned enterprises) show that compared with state-owned enterprises, the ESG ratings of non-state-owned enterprises is more closely related to enterprise value. Third, the analysis of various industries (manufacturing and non-manufacturing) shows that compared with manufacturing, ESG scores of non-manufacturing has a more positive effect on enterprise value. Lastly, the analysis by industry type (heavy-contaminated companies, non-contaminated companies) confirmed that ESG scores of non-contaminated companies has a positive effect on corporate value than heavy-contaminated companies. Research implications or Originality - This study classified ESG evaluation grades(E, S and G) for listed companies in China and analyzed in detail how they affect corporate value according to corporate characteristics, drawing implications for what ESG indicators should be focused on to increase corporate value.

• The Korean Journal of Archival Studies
• /
• no.79
• /
• pp.33-82
• /
• 2024

Interest in ESG management, which spread through the UN PRI in 2006, has recently spread throughout our society. Consumers use a company's activeness in the ESG field as the standard of consumption behavior, and the international community is reorganizing and strengthening various regulatory measures. In the investment market, non-financial performance (ESG information) is used as an important investment indicator along with financial performance (credit rating). Due to these changes in the corporate evaluation paradigm and market pressure, if a company neglects ESG response activities, it is more likely to be excluded from market selection, and accordingly, the importance of ESG management is also increasing. Companies are making various efforts to secure legitimacy in response to these market pressures, but in the process, it is difficult to systematically manage and utilize records/data that are the basis for ESG management. For a basic understanding of ESG management, this paper summarizes the emerging process of ESG and the current ESG-related regulations applied to companies. Through this, it can be seen that ESG management is not carried out with the good will of the company, but is accepted as a management strategy for the survival of the company according to the change in the corporate evaluation paradigm. Through interviews with the company's ESG-related personnel, the company's ESG response process was divided into passive communication and active communication, and the problems identified during the interview were summarized for each communication type. In addition, in the process of passively and actively communicating ESG management information with internal and external stakeholders, the possibility that ESG archives can function as a tool to overcome problems for each communication type was raised, and five types of ESG archives that can play this role were presented.

• Journal of Intelligence and Information Systems
• /
• v.29 no.3
• /
• pp.317-340
• /
• 2023

In a business context, ESG is defined as the use of environmental, social, and governance factors to assess a firm's progress in terms of sustainability. Social media has enabled the public to actively share firms' good and/or bad deeds, increasing public interest in ESG management. Therefore, this study aimed to investigate the association of firm performances with the respective sentiments towards each of environmental, social, and governance activities, as well as comprehensive ESG sentiments, which encompass all environmental, social, and governance sentiments. This study used panel regression models to examine the relationship between social media ESG sentiment and the Return on Assets (ROA) and Return on Equity (ROE) of 143 companies listed on the KOSPI 200. We collected data from 2018 to 2021, including sentiment data from a variety of social media channels, such as online communities, Instagram, blogs, Twitter, and other news. The results indicated that firm performance is significantly related to respective ESG and comprehensive ESG sentiments. This study has several implications. By using data from various social media channels, it presents an unbiased view of public ESG sentiment, rather than relying on ESG ratings, which may be influenced by rating agencies. Furthermore, the findings can be used to help firms determine the direction of their ESG management. Therefore, this study provides theoretical and practical insights for researchers and firms interested in ESG management.

• Journal of Navigation and Port Research
• /
• v.48 no.1
• /
• pp.55-61
• /
• 2024

Environmental, Social, and Governance (ESG) management may be one of the recent hot topics in corporate management. The purpose of this paper was to study the level of ESG activities of shipping companies. The shipping industry is known to have low transparency and low favorability (Yun, 2022). This study determined whether ESG activities of shipping companies known to the public or studied qualitatively were consistent with objective facts through quantitative analysis. Analysis was conducted on 8,009 firm-year KOSP I listed companies from 2010 to 2022 using ESG ratings evaluated and published by KCGS. As a result of the analysis, it was found that shipping companies had a lower level of ESG activities than non-shipping companies. Although many research studies have been done on companies' ESG activities, research on corporate social responsibility activities and ESG activities of domestic shipping companies is limited. This paper is significant in that it is the first study to quantitatively analyze ESG management status of domestic shipping companies. Shipping companies should make efforts to improve their images, improve their business performances, and increase corporate sustainability by taking the lead in proactive ESG activities rather than performing passive ESG activities due to external regulations such as IMO 2020 and IMO 2050.