ESG, why is it so important?

2021.09.14

Minjun Son

Image Source: 우리문화신문

ESG management is emerging as a high interest among companies these days. The reason ESG, which stands for corporate environment, society, and governance, is attracting attention is that more and more companies are pursuing sustainable management.

The basic purpose of ESG is not to simply increase sales, but to manage the future by improving the social structure while preserving the global environment. The most representative example is the recent movement to reduce plastics among companies. The government has also taken steps to reduce the use of single-use items.

ESG is an abbreviation for Environmental Protection, Social Contribution, and Governance. It means that a company takes the lead in environmental protection, supports the socially disadvantaged and actively engages in social contribution activities, and practices ethical management that strictly complies with laws and ethics.

In other words, when a company manages or invests, it is ESG management that reflects social and ethical values such as ESG in addition to financial factors such as sales.

To meet consumers’ desire to buy products made in an environmentally friendly way, companies are producing environmentally friendly products to reduce carbon emissions.

In terms of social responsibility, companies are continuing to practice eradicating child and forced labor, and to protect the rights and interests of workers.

In addition, various activities are being carried out to enhance sustainability by making the governance a sound and transparent company.

  1. Reducing plastic straws

A few years ago, Starbucks coffee shops first started the movement to use paper straws instead of plastic straws. Convenience stores that are introducing biodegradable straws are also expanding. Convenience stores CU and GS25 replaced paper straws with biodegradable plastic straws. 7-Eleven introduced a straw-free cup coffee that you can drink without using a plastic straw at all, and Maeil Dairy has also eliminated straws in yogurt products and milk.

2. Making eco-friendly textiles from waste plastic bottles

Hyosung TNC is promoting a project to separate and collect transparent waste PET bottles and make them into recycled fibers. Last year, Hyosung carried out a project to make eco-friendly bags by recycling Samdasoo PET bottles in Jeju Island in February. This time, it is planning to release clothes and accessories in collaboration with the North Face, a brand of outing clothes, with waste plastic bottles in the metropolitan area. Also, recently, a company that collects waste plastics from ships and turns them into bags has appeared

3. Removing the plastic label from the beverage bottle

For the first time, Lotte Chilsung Beverage introduced a label-free product with no label on the body of the Isis bottled water. This is to reduce the hassle of removing labels from plastic bottles and the use of labels, and to increase the convenience of separation and recycling of PET bottles. For carbonated drinks, Chilsung Cider and Sprite were replaced with transparent plastic bottles instead of green plastic bottles, which are difficult to recycle. Water separation labels with labels that are easily soluble in water and can be easily removed are also spreading to various companies.

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