Founding Declaration

KoSIF

Founding Declaration of
the Korea Sustainability Investing Forum (KoSIF)

Sheik Ahmed Zaki Yamani, a former Minister of Oil for Saudi Arabia, once famously said:
“The Stone Age did not end because of a lack of stones, and the Oil Age will not end because of a lack of oil.”

Since the Industrial Revolution in the 18th century, humanity has achieved immense wealth and civilizational progress. However, the accumulation of greenhouse gases resulting from the excessive use of fossil fuels—which sustained this industrial growth—is now warming the planet and threatening the very survival of Earth itself. The consequences of climate change are forcing a transition from the “Oil Age” to a sustainable society dependent on new forms of energy. The defining theme of our era is “Sustainability”: fulfilling the material needs of the present generation without compromising the resources of the planet for future generations.

Domestically, waves of digitalization and globalization have left vulnerable groups—such as non-regular workers and small business owners—in increasingly precarious positions, threatening social cohesion. Despite this, clear solutions to rectify these disparities seem absent. Given that a healthy society depends on narrowing the relative gaps between classes, generations, and regions across economic, social, educational, and cultural spheres, our reality following the Asian Financial Crisis and the IMF era is deeply concerning.

However, crisis (危機) consists of both danger (危險) and opportunity (機會). Hope always blooms at the edge of despair. We propose Socially Responsible Investment (SRI) as the alternative solution to solve the ecological crisis caused by climate change and the social pain caused by diverse conflicts and desires.

SRI refers to investment that considers not only a company’s financial performance but also its social, environmental, and ethical dimensions. Already established as a mainstream investment method in advanced Western nations, this alternative approach has grown to a global scale exceeding 4,000 trillion KRW. Empowering companies that fulfill their responsibilities to the planet and society helps preserve and develop nature and civilization, facilitates communication between society and business, and creates a new quality of human life.

We focus on the positive value, performance, and power of the “money” within Socially Responsible Investment. This is akin to breathing a warm “soul” into the most powerful force: “capital.” This is what we call “awakened money.” We join in the belief that capital invested with a sense of social responsibility protects our only home, Earth, and our beautiful communities, while simultaneously ensuring stable and high returns.

SRI enhances the ability of the Korean people to respond to the external crises of the global economic order. It increases the competitiveness of Korean companies by encouraging investment in firms that are loved by the public. Furthermore, such investment moves beyond the long-standing confrontation between capital and labor, providing a point of convergence for mutual growth.

Based on the conviction that SRI is not a passing fad but the most rational path toward a healthy and sustainable society, we hereby announce the establishment of the Korea Sustainability Investing Forum (KoSIF). We aim to position KoSIF as a powerhouse of hope and a hub for SRI campaigns to achieve the following missions:

Our Missions
  1. 1.KoSIF will actively encourage our society, investors, and corporations to pursue not only economic value but also sustainability values, namely ESG (Environmental, Social, and Governance).
  2. 2.KoSIF will support investors in recognizing and exercising their shareholder rights for the sake of sustainable companies and a better society.
  3. 3.KoSIF will strive to establish a long-term investment culture that considers sustainability within our financial markets.
  4. 4.KoSIF will support the adoption of international standards for responsible investment, such as the UN PRI (Principles for Responsible Investment), tailored to the unique characteristics of our society.
  5. 5.KoSIF will contribute to the integration and development of our society through socially responsible investment and social contribution.
Our Action Plan

We intend to pursue the following initiatives to achieve this objective.

First, we will work to raise public awareness of socially responsible investment and promote its broader adoption, while developing a nationwide movement through a national support network. Most of the membership donations will be entrusted to responsible socially responsible investment management companies and invested in “beautiful companies.” The investment returns generated from these investments will be returned to the investors.

Second, we will comprehensively collect, manage, and provide members with information related to socially responsible investment both in Korea and abroad. In particular, to support deeper research, we will establish an affiliated research institute dedicated to activities such as evaluating corporate social responsibility practices, publishing annual reports on the status and evaluation of socially responsible investment by fund managers, and disseminating overseas research on socially responsible investment.

Third, drawing lessons from laws and institutions related to socially responsible investment in other countries, we will carry out policy development and legislative petition activities necessary to help establish laws and institutions suited to Korea’s own circumstances.

The sails have been raised for the launch of the Korea Sustainability Investing Forum (KoSIF). However, this is not a task for a few individuals. Only when all sectors—citizens, investors, corporations, and the government—join forces can we overcome the current crisis and create new opportunities. As the Scripture says, “Though your beginning was small, your end will increase greatly.”

Through the establishment of proper SRI activities, we will create a beautiful, virtuous cycle of community where both businesses and citizens are happy. We ask for your passionate support and participation.

March 2007

The Founders of the Korea Sustainability Investing Forum (KoSIF)