Sustainability disclosure mandate set for 2028

Investor letters sent requesting expanded key disclosures

The Government Employees Pension Service [Government Employees Pension Service website]
The Government Employees Pension Service [Government Employees Pension Service website]

The Government Employees Pension Service said Friday it had sent investor letters to 163 major listed companies in South Korea, urging them to strengthen their climate disclosures. The move aims to expand disclosure of relevant information from portfolio companies ahead of the mandatory sustainability reporting regime and to use that information in investment analysis and stewardship activities.

In July, the Financial Services Commission announced a plan to institutionalize sustainability disclosures. Starting in 2028, climate information disclosure will be phased in, beginning with Kospi-listed companies with combined total assets of 10 trillion won ($7.42 billion) or more.

The pension service asked companies to fully disclose information on their climate reporting frameworks based on Korean Sustainability Standards Board criteria, greenhouse gas reduction targets and performance, and the financial impact of climate change on their businesses — all information investors need to assess a company's climate risks and level of preparedness.

The fund currently incorporates climate-related factors into its ESG assessments and investment analysis. As climate disclosure expands, it plans to more systematically evaluate each company's climate risks and response levels and use those assessments in investment decisions. It will also continuously monitor how companies address climate-related risks and opportunities and, where necessary, link those findings to stewardship activities such as direct engagement with companies.

"Climate disclosure is critical investment information for assessing a company's sustainable growth and long-term corporate value," said Kim Woo-ho, president of the pension service. "We will expand the use of climate information in our investment process and, through dialogue with companies, contribute to the fund's long-term profitability and the sustainable growth of the capital markets."

Meanwhile, the Government Employees Pension Service was managing 18.13 trillion won as of the end of August, with a cumulative investment return of 9.84 percent this year.


park.jiyeong@heraldcorp.com