Environmental, social, and governance (ESG) has become a centerpiece of corporate management to achieve long-term sustainability. One of the main concerns in the field of ESG is how to sustainably maximise profits under changing circumstances, such as climate change and social norms. This is related to the impact of corporate activities on sustainability of society, environment, and the well-being of stakeholders. Long-term perspectives, double materiality, and non-financial index are the key words to be considered for ESG management.

Government officials should make an effort to enhance virtuous cycle from ESG management to maximising long-term profits, revitalising the local economy, minimising adverse environmental and social impacts, and sustainable city. This report investigates the role of government (especially, the Seoul Metropolitan Government) to facilitate the introduction of ESG management and the way forward to make ESG real in the market. Two-track approaches have been applied for public policy on ESG management. Firstly, institutionalising ESG management for the public sector, including government operations and public corporations. Secondly, facilitating ESG management in the market by providing incentives for small and medium businesses. Policy measures and recommendations were proposed based on case studies and the survey results administrated for public corporations and small-medium businesses in Seoul.