CEO's New Year's Greetings
The year 2021, which started with the wish for an end to the corona, came to an end and welcomed a hopeful year of 2022, but the world has not yet finished the disaster and welcomed the new year.
Through the corona crisis, the world has realized that this disaster is not imaginary, but reality, and has come to accept the fact that abnormal weather, ecosystem destruction and extinction, which have been warned for a long time, can eventually call the end of the earth.
Early last year, in January 2021, Apple's significant announcement that everyone expected was neither a new innovative phone or pad, nor an Apple car, and Apple CEO Tim Cook's significant announcement was a $100 million anti-racism initiative (Racial Equity and Justice Initiative). ) It was about running the project. Partnering with black universities to establish global learning hubs, providing coding and technology training to Detroit students, and facilitating venture capital funding for black and Hispanic entrepreneurs.
Prior to that, the CEO of BlackRock, the world's largest asset management company, whose asset management scale is approaching 10,000 trillion won in the 2020 New Year's card, also the company's financial profits or technological development needs_ cc781905-5cde-3194-bb3b-136bad5cf58d_ We declared the withdrawal of investment from companies that failed to fulfill their social responsibilities, such as carbon emission companies, and demanded carbon net zero (carbon recovery obligations equal to the amount of carbon emitted).
With BlackRock at the forefront, global investment companies and investment banks such as JP Morgan, HSBC, UBS, and Citybank made an announcement that non-financial indicators such as environment (E), society (S), and governance (G) will be important considerations for corporate investment. They do it one after another and take on the role of ESG guardians.
As such, the world has completely changed and is changing again.
Capitalism and industrialization can no longer exist if the earth is destroyed, so all countries and companies are in the process of self-reflection and change.
The biggest risk and risk for a company, nation, or individual is the environment, and especially in the case of a company, if it fails to fulfill its social responsibilities, it will be difficult to exist anymore. is no longer an option, but a necessity.
Large investment companies and banks around the world are demanding ESG report cards from companies, and no matter how good a company's performance is, if it falls short of ESG standards, investment withdrawals are continuing. is coming to an end.
Stakeholders such as consumers no longer buy such products created by the labor exploitation of African children, carbon emissions, unfair treatment of temporary workers, owners' immorality and tax evasion, corporate corruption, and distorted governance. Generation talents also refuse to go.
Companies and products that emit carbon will be subject to a carbon tax like a tariff, which will eventually lead to loss of competitiveness, so there is no longer a place for “disguised eco-friendly strategies (cutting mountains and installing solar power, etc.)”.
Risk Freeline Co., Ltd., which has been mainly responsible for analyzing and managing risks such as internal crimes and corruption cases of companies, counterfeit product investigations, various security risks, and advisory services to government agencies and committees, has identified these ESG risks as the biggest risk and opportunity for companies. This is why we established the ESG Management Support Center this year with environmental experts and data analysis experts as advisors.
ESG risk analysis, management, and response strategies are not very different from existing risk management mechanisms, but more advanced big data and AI analysis and evaluation techniques are introduced, applied, and utilized by a dedicated customer company team. We plan to provide and support response strategies tailored to the circumstances of our client companies.
We will do our best to further promote the practice of the ideals and goals brought from the establishment of the corporation to support the sustainable development of our client companies and to be together with the community, and to prepare for the post-COVID-19 era.
May everyone have a healthier and happier year 2022, and please continue to support and encourage us. thank you
January 1, 2022
CEO of Risk Free Line Co., Ltd.
Lee Dong-yeong