Korea Exchange (KRX) publicly announced that it has joined the United Nations Sustainable Stock Exchanges (SSE) Initiative as a Partner Exchange to promote sustainable business practices among listed companies at the UN Global Compact Korea Leaders Summit 2015 held on the 19th May 2015 in Seoul.
The UN SSE Initiative, launched by Secretary-General Ban Ki-moon in 2009, aims to explore how exchanges can work together with investors, regulators and companies to enhance corporate transparency on Environmental, Social, and corporate Governance (ESG) issues and encourage responsible long-term approaches to investment.
Stock exchanges play a critical role in encouraging listed companies to practice sustainable business strategy to improve business performance on non-financial issues. KRX has made efforts on ESG related issues in Korea such as enhancing corporate governance of listed companies by introducing voluntary disclosure of ESG information.
KRX believes that pledging to the SSE Initiative will promote sustainable business performance of listed companies and will support practice of ESG in Korean capital market. Dr. Kyungsoo Choi, Chairman and CEO of KRX, emphasized the importance of corporate social responsibility; "I firmly believe that joining the SSE Initiative shows our strong commitment to being a responsible member in the international community. We will continue dialogue with stakeholders and work with exchanges as a member of the World Exchange Federation's (WFE) Sustainability Working Group, and will continue to support Korean listed companies to recognize the importance of sustainable management."
KRX will encourage spread of ESG practices in listed companies through providing corporate governance code, facilitating institutional investors to invest in corporations with transparent ESG practices, and also promoting sustainable long-term investment by developing a new Sustainable Responsibility Index. Moreover, KRX will endeavor to contribute to secure soundness of capital market in Korea by increasing responsibilities of exchange-listed companies to have sustainable business practices.