Press Releases

Supporting 'Physical Risk Measurement' Using Meteorological Information: CDP Korea Committee and Korea Meteorological Institute Sign MOU

l   Cooperating in the development and verification of physical risk measurement models for floods, typhoons, etc.

l   Anticipated to strengthen domestic companies' response to climate risks and sustainable management.

On Wednesday, April 30th, the CDP Korea Committee (Chairman Jang Ji-in, Secretariat: Korea Sustainability Investing Forum), a global environmental information disclosure platform, signed a Memorandum of Understanding (MOU) with the Korea Meteorological Institute (KMITI, President Hwang Myung-kyun).

This agreement is aimed at supporting domestic companies in their response to 'Climate-related Disclosures (IFRS S2)' by utilizing meteorological data provided by the Korea Meteorological Administration. The partnership will specifically focus on supporting 'physical risk measurement,' a key component of the disclosure requirements.

▲ Photo of the MOU signing ceremony between the Korea Meteorological Institute and the CDP Korea Committee

The 'physical risks' measured in these disclosures refer to the dangers arising from direct natural environmental changes caused by climate change, such as floods, typhoons, and heatwaves, as well as the broader impacts of sea-level and average temperature rises. With corporate sustainability disclosure standards being strengthened globally—such as the European Union's (EU) Corporate Sustainability Reporting Directive (CSRD)—responding to climate change is rapidly emerging as a crucial competitive factor for businesses.

Accordingly, the two organizations have agreed to utilize South Korea's meteorological information to develop measures that support domestic companies in measuring physical risks. Their collaborative efforts will include:

l   Supporting private companies in responding to climate disclosures.

l   Developing and verifying physical risk measurement models.

l   Establishing a physical risk measurement platform.

l   Measuring the monetary value of physical risks.

Jang Ji-in, Chairman of the CDP Korea Committee, emphasized, "This cooperation with the Korea Meteorological Institute serves as an important milestone for the CDP to raise the standard of climate-related disclosure among domestic companies and to secure more reliable data. We expect this to significantly contribute to enabling investors and data users to make decisions based on highly accurate information."

Hwang Myung-kyun, President of the Korea Meteorological Institute, stated, "Through this MOU with the CDP Korea Committee, we will continuously strive to establish methods that allow not only large corporations but also small and medium-sized enterprises (SMEs) to more easily and efficiently measure and respond to physical risks caused by climate change using meteorological data. We will do our utmost to contribute to the sustainable growth of domestic companies by actively leveraging the expertise and networks of both institutions."

Through this agreement, the two organizations plan to maintain continuous cooperation, not only in supporting physical risk measurement via meteorological data but also in actively contributing to the sustainable management practices of South Korean enterprises. (End)