Another Axis of Climate Crisis Response, Water –
 KoSIF Joins the 'Water Positive Alliance'

On the 21st, the launching ceremony of the 'Water Positive Alliance' hosted by the Ministry of Environment and K-water was held at KINTEX, Ilsan.

The launch of this alliance is an expansion of the Memorandum of Understanding (MOU) signed in March 2024 by K-water with the CDP Korea Committee, for which the Korea Sustainability Investing Forum (KoSIF) serves as the operating secretariat and acts as the committee itself. KoSIF continues to participate in this significant collaboration as CDP's Korean partner, alongside key companies such as Samsung Electronics, SK Hynix, LG Electronics, POSCO, and Naver. This initiative represents a meaningful advancement in public-private partnerships aimed at addressing the water crisis caused by climate change and aligning with the international community's trend toward sustainable water management Notably, major corporations such as Amorepacific, Pulmuone, and Coca-Cola Korea newly joined the initiative during the event.

| The Importance of 'Water Positive'

'Water Positive' is a sustainable water management strategy that aims for companies to return more water to nature than they consume. Going a step beyond simple 'conservation,' it substantially contributes to the water cycle ecosystem through various methods, including ▲ enhancing internal water use efficiency ▲ reusing treated wastewater and sewage, and ▲ improving watershed water quality and securing water resources. This strategy is particularly vital considering the instability of water supply driven by climate change and the increasing water demand in advanced industries such as semiconductors and secondary batteries.

| Background of the Alliance Launch and KoSIF's Role

The launch of this partnership can be seen as a declaration that the public and private sectors will jointly recognize water-related risks driven by climate change and build a practical framework for coordinated action. In particular, the initiative plans to identify tailored short- and long-term projects that reflect corporate needs, and to move forward with implementation after entering into agreements with participating companies. In a press release, the Ministry of Environment and K-water stated that, building on the launch of the partnership, they plan to identify customized watershed water quality improvement projects and develop incentive measures for participating companies.

A public-private partnership has been established to raise awareness of water risks caused by climate change and strengthen joint action, with phased cooperation plans to be developed.

(Source: Ministry of Environment press release)

As the secretariat of the CDP Korea Committee, the Korea Sustainability Investing Forum (KoSIF) supports Korean companies in disclosing water-related information and actively works to expand sustainable water management practices aligned with international standards.

| CDP Water Security

Over the past 20 years, CDP has built a global information platform on water security. As of 2024, over 24,800 companies, accounting for two-thirds of global market capitalization, disclose their environmental data through CDP. Among them, approximately 9,600 companies participate in CDP Water Security, transparently disclosing their water risks, management strategies, and targets. The number of participating domestic companies is also rapidly increasing.

As of 2024, 277 domestic companies responded to CDP Water Security, recording a 105% increase from the previous year, which reflects a shift in awareness and growing interest among Korean enterprises. However, compared to global leading companies, domestic water management levels still have areas requiring improvement.

Karl Yang, standing director of KoSIF, emphasized in his welcoming remarks at the reception, "Taking the launch of this alliance as an opportunity, the CDP Korea Committee plans to actively support data standardization, disclosure assistance, and linkage with international initiatives so that domestic companies can secure global-level water disclosure capabilities and expand their management scope to restore the water cycle across their entire value chains."

| Sustainable Water Management: Where Does the World Stand?

Under the dual pressures of the climate crisis and industrialization, the world is entering an era of severe water crisis. International organizations such as the UN and OECD warn that while water demand continuously rises, supply stability is severely threatened by uncertain precipitation patterns due to climate change, aging infrastructure, and regional water imbalances. Against this backdrop, the international community is seeking a strategic transition for sustainable water management, and the following global water management strategies are emerging:

Global Initiative Trends for Sustainable Water Management:

·         Water Stewardship: A framework for responsible water resource management balancing the social, economic, and environmental needs of all stakeholders.

·         Water Positive: A corporate target regarding water use, aiming to produce more water than consumed, contributing to the sustainable development of water resources.

·         Net Zero Water: Equalizing the water consumption of companies and local communities with alternative water quantities (rainwater, reuse, etc.) and minimizing water source usage through water conservation.

Although these strategies vary in method, they commonly center on securing water sustainability. Through them, the international community is accelerating efforts to combat the climate crisis and simultaneously mitigate social, economic, and environmental risks. Among them, 'Water Positive' is rapidly proliferating the responsible water management standards demanded by the international community through CDP, driven by corporations and based on international disclosures.

Responding to the climate crisis is no longer solely a climate issue. Water is a matter directly linked to survival and is a core resource that responsible corporate management must focus on in the ESG era.As the secretariat of the CDP Korea Committee, KoSIF takes the lead in proliferating a trust-based information disclosure system so that companies can perform practical water management activities and have their performance internationally disclosed and evaluated. KoSIF will continue to actively participate and cooperate in the journey of sustainable water transition alongside corporations, the government, and civil society.