The purpose of this study is to identify key agenda items for activating community-based ESG management for sustainable urban development and to examine roles and solutions across the Environmental, Social, and Governance(ESG) domains. The Seoul ESG Management Forum contributed to strengthening Seoul’s ESG ecosystem by providing a platform for dialogue among government, academia, and industry experts, thereby helping to identify policy agendas and develop measures to enhance support for ESG management in Seoul. The study addressed major ESG themes(such as ESG assessment, disclosure, climate, environment, technology, human rights, safety, supply chains, management, finance, and law) and explored practical solutions.
ESG management has become an essential framework for corporate performance evaluation and has been declared a national agenda for sustainable development. It is also increasingly being adopted by local governments as a form of “ESG administration.” in Korea, local governments are moving quickly to mainstream ESG as a universal value framework, competing in ESG assessments across municipalities and pursuing recognition as leading ESG cities.
In March 2024, the Seoul Metropolitan Government enacted the Seoul Metropolitan City Ordinance on the Promotion of Environmental, Social, and Governance(ESG) Management. Seoul is exploring a range of measures to support the adoption and expansion of ESG practices among its affiliated public enterprises and city-invested and city-funded institutions, as well as among small and medium-sized enterprises with headquarters or business sites in Seoul. Seoul is now at a point where it must respond proactively to shifts in ESG management and carbon-reduction markets while strengthening the foundations for sustainable growth.
Hosted by the Seoul Metropolitan Council, The Seoul Institute convened eight sessions over approximately five months(from June to November 2024) with Seoul citizens and experts from diverse sectors to discuss strategies for revitalizing ESG management in depth. A total of 87 experts(including representatives from the city council, academia, research institutions, relevant government bodies, the business community, the legal community, associations, and civil society organizations) participated through presentations, panel discussions, and Q&A sessions with citizens. Media engagement, including news outlets, newspapers, and social media, further supported open public discussion and helped build shared understanding of community needs and potential solutions.
Based on issue analyses across 24 topics within the Environmental, Social, and Governance domains, as well as discussions of key issues in six thematic areas, the forum established the following objectives:
First, in the environmental domain, to build a sustainable leading city capable of responding to climate change by fostering voluntary carbon markets and the climate-tech industry;
second, in the social domain, to strengthen social value by protecting stakeholders’ human rights, improving safety, and preventing greenwashing;
third, in the governance domain, to enhance long-term corporate value and establish fair trade and mutual growth through transparent and accountable governance structures.
After selecting priority issues by domain, the environmental domain highlighted the implementation of the EU Carbon Border Adjustment Mechanism(CBAM), the feasibility of achieving the 1.5°C climate goal and the expansion of voluntary carbon markets in the international community, and the urgency of addressing greenwashing in ESG management. In the social domain, key issues included the enforcement of Korea’s Serious Accidents Punishment Act and emerging challenges related to the EU’s supply chain due diligence requirements and fair trade. In the governance domain, major issues included the rollout of Korea’s Value-Up Program to address declining corporate value and the importance of compliance-based management to ensure fair trade among companies.
Drawing on the issue analyses and discussions, the forum identified the tasks Seoul must address to revitalize ESG management: (1) measures to respond to the EU CBAM; (2) strategies to foster voluntary carbon markets and the climate-tech industry; (3) measures to prevent and remedy greenwashing in ESG management; (4) pre-emptive measures in response to the Serious Accidents Punishment Act; (5) measures to promote fair trade and win-win cooperation among companies in response to the EU’s supply chain due diligence requirements; (6) measures to implement the Value-Up Program as a means of accelerating ESG management; and (7) measures to strengthen fair trade and compliance-based management. Based on these tasks, three core agendas for revitalizing ESG management in Seoul were identified.
[Agenda 1] Revitalizing voluntary carbon markets and the climate-tech industry to achieve carbon neutrality targets — challenges and strategies for nurturing future growth engines
[Agenda 2] Serious-accident prevention and greenwashing in ESG management — solutions for establishing preventive systems and expanding awareness
[Agenda 3] Value-up and fair trade for the sustainable development of companies, local governments, and the nation — institutionalizing boundless stakeholder engagement and communication
Based on a review and analysis of current conditions and key issues for each agenda, the roles of the central government, local governments, companies, and citizens were categorized as follows: (1) the fundamental role of local government; (2) the roles of ESG evaluation institutions, citizens, and local government; (3) the roles of central ministries, local government, and companies in responding to international regulations; (4) the roles of citizens, companies, and local government in mitigating social threats; (5) the roles of companies and local government in strengthening governance for accountability and transparency; and (6) shared public–private roles in advancing ESG management and carbon neutrality.
The policy direction implied by these community roles suggests that Seoul should pursue a phased approach: delivering short-term results while building enabling conditions over the medium to long term. The specific policy directions proposed in this study, reflecting the demands of the ESG era in 2024, can be realized through broad community support and sustained investment in human resources and budgets. These directions include strategies to foster voluntary carbon markets and the climate-tech industry, measures to establish preventive systems for serious-accident safety and prevent greenwashing, and concrete actions to promote value-up initiatives and strengthen fair trade. Building on the policy directions proposed through this study, this report anticipates further progress in Seoul’s ESG management and its achievement of carbon neutrality goals.