Press Releases

KoSIF and SBTi Sign MOU to “Accelerate Science-Based Emissions Reductions
by Korean Companies and Financial Institutions” 

- SBTi is a corporate climate action organization that enables companies and financial institutions worldwide to set science-based emissions reduction targets 

- Growing interest among Korean companies seeking to set credible, science-based targets 

- The partnership is expected to help Korean companies and financial institutions take credible, science-based climate action in line with global standards 

The Korea Sustainability Investing Forum (KoSIF) has established a partnership with the Science Based Targets initiative (SBTi), the corporate climate action organization that develops the standards, tools, and guidance enabling companies to set—and that validates—science-based greenhouse gas (GHG) emissions reduction targets. 

KoSIF announced that it has signed a Memorandum of Understanding (MOU) with SBTi, stating that it will “promote the setting of emissions reduction targets in line with the Paris Agreement’s goal of limiting the rise in global average temperature to 1.5°C.” Specifically, KoSIF plans to expand activities that help Korean companies and financial institutions set science-based emissions reduction targets and take more ambitious climate action. 

(Image: Logos of the Korea Sustainability Investing Forum (KoSIF) and the Science Based Targets initiative (SBTi)) 

SBTi is a corporate climate action organization that enables companies and financial institutions worldwide to play their part in combating the climate crisis. It develops the standards, tools, and guidance that allow companies to set greenhouse gas (GHG) emissions reduction targets grounded in climate science, and—through its subsidiary, SBTi Services—it validates whether a company’s targets meet its criteria. This validation enables credible, science-based climate action that companies can communicate to stakeholders. 

SBTi’s standards translate the latest climate science—drawing on the scenarios of the Intergovernmental Panel on Climate Change (IPCC)—into concrete decarbonization pathways. They comprise near-term targets, which define how much a company must reduce its GHG emissions over the next 5–10 years, and long-term targets, which set out the reductions needed to reach net-zero by 2050 at the latest. 

Near-term targets are designed to be ambitious, driving the rapid, deep emissions cuts this decade that are consistent with a 1.5°C pathway. Targets must also cover value chain emissions (Scope 3)—the indirect emissions that occur across a company’s value chain, from its supply chain through to the use and end-of-life of its products—reflecting where the majority of most companies’ emissions arise. 

Worldwide, around 10,000 companies are taking action with the SBTi, and 7,135 have had targets validated. In Korea, 81 companies and financial institutions are taking part, of which 50—including LG Electronics, KB Financial Group, Shinhan Financial Group, SK Telecom, and Hyundai E&C—have validated near-term targets and are already cutting emissions. Of these, 15—including Amorepacific, Hankook Tire & Technology, and SK Networks—have validated net-zero targets, committing to reduce emissions across their value chain and reach net-zero by 2050. 

KoSIF, which also serves as the CDP Korea Committee and an RE100 Local Campaign Partner, plans to deepen its cooperation with SBTi through this agreement. Under the partnership, KoSIF will share relevant reports and materials so that Korean companies and financial institutions can engage with SBTi’s standards, tools, and guidance and access the information they need to set and validate science-based targets. It will also facilitate communication between SBTi—a global corporate climate action organization—and Korean companies and financial institutions, broadening cooperation. Through these efforts, KoSIF aims to reduce greenwashing risk among Korean companies and financial institutions and to widen the channels through which the Korean private sector’s voice can inform SBTi’s development of its standards and guidance. 

Choon-seung Yang, CEO of KoSIF, explained that “SBTi’s validation process makes it possible to prove that the targets set by a country or company are aligned with the 1.5°C pathway, and SBTi is growing in importance as a standard for GHG reduction criteria.” He added, “This agreement will help raise Korea’s level of climate response and accelerate the low-carbon transition of the Korean economy.” 

Tracy Wyman, Chief Impact Officer (CIO) of SBTi, said, “Korea has a robust and dynamic economic foundation and stands at the forefront of global innovation in advanced technology sectors. Korean companies’ commitment to setting science-based reduction targets is not only a step toward sustainability but also a powerful signal of climate-action leadership.” She added, “Through our partnership with KoSIF, SBTi aims to encourage more Korean companies to set science-based targets and to create a ripple effect that amplifies the collective voice of Korean industry leaders.” 

KoSIF added that, as climate action accelerates worldwide, demand has grown among companies seeking to set credible, science-based targets through clear standards and validation. Kim Min-ah, a KoSIF researcher in charge of SBTi, said, “At a time when a company’s level of climate response is becoming a measure of competitiveness, SBTi is establishing itself as the standard for corporate climate action.” She added, “However, while domestic interest in SBTi is rising and now extends even to small and medium-sized enterprises, many companies find target-setting difficult. Through this agreement, we will work to ease these difficulties and further accelerate GHG reductions.” (End) 

About the Korea Sustainability Investing Forum (KoSIF) 

The Korea Sustainability Investing Forum is a non-profit organization specializing in sustainable finance that works to view and change the world through an ESG lens. It was established in 2007 to build a better world by spreading sustainable finance grounded in corporate social responsibility (CSR) and environmental, social, and governance (ESG) principles. As Korea’s first non-profit organization dedicated to sustainable finance, it conducts a wide range of activities including ESG- and CSR-related research, policy development and legislative support, international cooperation, education, and campaigns.

About the Science Based Targets initiative (SBTi) 

The Science Based Targets initiative (SBTi) is a corporate climate action organization that enables companies and financial institutions worldwide to play their part in combating the climate crisis. It was initially founded in 2015 as a collaboration between CDP, the United Nations Global Compact (UNGC), the World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the We Mean Business Coalition. Today it is registered as a charity in England and Wales and has a subsidiary, SBTi Services Limited, which delivers target validation services. SBTi develops the standards, tools, and guidance that enable companies to set greenhouse gas (GHG) emissions reduction targets in line with the goals of the Paris Agreement—limiting global warming to 1.5°C—including sector-specific guidance that reflects the differing emission profiles of various industries. Companies can submit near-term and net-zero targets set in line with SBTi’s standards for validation. More than 10,000 companies worldwide are taking action with the SBTi, including 81 in Korea. Notable Korean companies with validated science-based targets include LG Electronics, SK, Shinhan Financial Group, and KB Financial Group. 

Inquiries: ESG Management (cdp@kosif.org), Dajeong Kim  Senior Researcher (kimdj@kosif.org)