[Consumerwide- Youngchul Woo Reporter/ Yohan Bok Reporter] On the 1st of November, referring to KCGS, they evaluated 987 public companies for ESG and 62 privately owned companies for business management. Amongst them, 19 companies were evaluated as having an A+ level in total areas, which is a 1.9% increase from a year prior. Companies over the B+ level increased 10%p compared to last year. Most companies that were levelled below B level last year maintained the same level. In other words, companies that'd been initiating ESG management were evaluated for better performance, whereas companies that had not much practice in ESG management remained on the same level as average years. The levels are divided into S (outstanding), A+ (excellent), A (very good), B+ (good), B (average), C (weak), and D (very weak). ESG is one of the measures for consumption value; thus, practicing ESG goes beyond the image of a company, but it contributes to sales performance.

Naver rose from level A to A+ in overall sections. Additionally, they rose to A+ from A in the management and society sections. The environment section has been maintained in A since last year. Naver has been getting an Outstanding level in Shared Growth Index evaluation for 1 continuous year. KT&G and Hyundai Department Store won A+ in overall sections. HD Hyundai Construction Equipment, KB Financial Group, Naver, POSCO Holdings, S-Oil, SK, SKC, SKGas, SKInnovation, Lotte Fine Chemical, Samsung Construction and Trading Corporation, Samsung Biologics, Shinhangroup, Hyundai Glovis, and Hyundai Wia were evaluated as A+. But communications, home appliances, cars, construction, cosmetics, and delivery companies couldn't enter the A+ level.

185 companies were evaluated as A in overall sections, which is a 6.7%p increase from a year prior. GS Retail went down to the overall A level from A+ as they were degraded to A in the society section due to a violation of the distribution law by passing promotion expenses to partner companies. Three telecommunications companies were graded as A in the overall sections. SKT, KT, and LGU went down to A from A+ in the society section by violating the regulations on unfair labelling and advertising. The personal information league cases (SKT and KT) of the LGU were also considered. GS Construction was graded A in overall sections and two levels degraded in the society section, from A+ to B+, due to an Incheon apartment basement parking lot accident caused by poorly made construction. DLENC was degraded from A to B+ in the society section due to deaths of workers and constant safety accidents. HD Hyundai was also degraded from A to B+ in the environment section on account of emitting phenol-containing wastewater from the Hyundai Oilbank Daesan Factory. The beauty and daily necessities industry, including Amorepacific Group, LGH&H, Aekung Industrial Co., Kolmar Korea, Samsung Electronics, and LG Electronics, which've been emphasising ESG management, remained in overall A.

141 companies were evaluated as B+ level, which is a 1.7%p increase from a year prior. Korea Aerospace Industries, LTD. was adjusted to B+ from A in the governance section by being degraded in governance due to suspicion that they breached their fiduciary duties in handling money worth $100 billion won by current and former executives and staff this year. Accordingly, their overall level also went down to B+ from A. SGC Energy was adjusted to level B from B+ in the governance section and B+ from A in the overall section due to 35.5 billion won of penalty surcharge cases regarding unfair benefits and support in relationships with affiliated companies.

The company rate under B level was 58%, which is a 10%p decrease from a year prior due to the expansion of participant companies for ESG management practices and information announcements. 49 companies were levelled as B, which was a 3.5%p decrease from a year prior. 212 companies were levelled as C, which was a 1.5%p increase, and 198 companies were levelled as D, which was an 8.3%p decrease.

In the environment category, 39 companies were evaluated as A+, which is a 30 unit increase from a year prior. For the rest of the companies, according to level, they are as follows: A: 166 companies (81▲), B+: 121 companies (21▲), B: 48 companies (31▼), C: 243 companies (79▲), D: 174 (161▼) In the society category, 157 companies were evaluated as A+, which is an 81-unit increase from a year prior. For the rest of the companies, according to level, they are as follows: A: 155 companies (9▲), B+: 63 (40▼), B: 56 companies (9▼), C: 166 companies (15▲), D: 194 (37▼). In the governance category, 8 companies were evaluated as A+, which is a 3 unit increase from a year prior. For the rest of the companies, according to level, they are as follows: A: 110 (33▲), B+: 146 (5▲), B: 129 (8▼), C: 152 (6▼), and D: 200 (8▼).

An associated person from Hyundai Department Store Group, where all their affiliated companies were evaluated above A in the overall section, said, "ESG is one of the most important centres of management that enhances the competitiveness of each affiliate company. Furthermore, we are going to pursue more strategic and systemized ESG management, targeting growing as a company that is most trustworthy before customers."