The South Korean government is set to assist bio and health companies in calculating their greenhouse gas emissions as the mandatory sustainability disclosure for KOSPI-listed companies with total assets exceeding 10 trillion won begins in 2028. The government plans to establish Scope 3 calculation standards that reflect the industry's characteristics, covering everything from raw material procurement to clinical trials, production, distribution, and disposal.
On July 30, the Ministry of Climate Energy and Environment announced it will hold a 'Sustainability Disclosure Response Meeting for the Bio and Health Sector' at the Korea Press Center in Jung-gu, Seoul.
Major companies in the bio and health sector, including Samsung Biologics, Samsung Bioepis, HK inno.N, GC Green Cross, and Hanmi Pharmaceutical, will attend the meeting. Relevant organizations such as the Korea Environmental Industry and Technology Institute, the Korea Accounting Standards Board, the Korea Chamber of Commerce and Industry, and the Korea Pharmaceutical and Bio Association will also participate.
The government and industry representatives will review the companies' responses to domestic and international sustainability disclosures and environmental, social, and governance (ESG) regulations, and discuss specialized Scope 3 calculation systems and support measures for the bio and health sector.
Scope 3 refers to indirect emissions that occur throughout the value chain, including raw material procurement, transportation, product use, and disposal, as opposed to Scope 1 emissions from facilities owned or controlled by the company and Scope 2 emissions from the use of purchased electricity and heat.
Collecting data from suppliers and partners outside the company's control is often cited as one of the biggest challenges in the sustainability disclosure process. The bio and health industry, in particular, faces difficulties due to its lengthy value chain, which includes drug research and development, raw material procurement, clinical trials, production, storage, transportation, distribution, and disposal, making it hard to apply uniform standards.
Last month, the Ministry of Climate Energy and Environment signed a memorandum of understanding with major companies in the bio and health sector to begin developing a specialized Scope 3 calculation guide. The plan is to analyze each company's business type, value chain, and major emission sources, incorporating real-world calculation examples to enhance practical usability.
On the same day, the Korea Environmental Industry and Technology Institute will share the results of its Scope 3 calculation support project conducted for five sectors, including secondary batteries, semiconductors and displays, petrochemicals, and steel. The Korea Shipbuilding and Marine Engineering Association will also present the status and challenges of its ongoing Scope 3 calculation efforts in the shipbuilding sector, which began in March.
Lee Ho-hyun, the second vice minister of the Climate Ministry, stated, "As sustainability disclosures and supply chain regulations expand, accurate and reliable ESG information is becoming a key factor in determining corporate competitiveness. We will work closely with the industry and relevant organizations to establish a Scope 3 calculation system that companies can practically utilize and enhance their disclosure response capabilities."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.