Press Releases

KoSIF Dispatches 'ESG, Climate, and Renewable Energy Policy Questionnaires'
Ahead of June 3 Local Elections

- KoSIF Dispatches 'ESG, Climate, and Renewable Energy Policy Questionnaires' Ahead of June 3 Local Elections

- Proposes 5 Core Policies Rooted in Local Governments’ 'Administrative Influence,' Such as Civil Financial Institution Selection and Public Procurement

- Focuses on Securing Regional Industrial Competitiveness, Ranging from Establishing ESG Disclosure Frameworks for Local Public Entities to Local Government-Led PPA Planned Sites

- KoSIF States, "Local Government ESG Policies Contribute to Enhancing the Quality of Life for Regional Residents”

Ahead of the 9th nationwide simultaneous local elections scheduled for June 3, the Korea Sustainability Investing Forum (KoSIF) dispatched its ‘ESG, Climate, and Renewable Energy Policy Questionnaires’ to seven political parties holding seats in the National Assembly, including the Democratic Party of Korea, the People Power Party, the Rebuilding Korea Party, the Progressive Party, the New Reform Party, the Basic Income Party, and the Social Democratic Party.

Recently, the international community has been rapidly expanding ESG into the public sector. This is evidenced by the Public Sector Sustainability Standards Board (IPSASB) developing the "Public Sector Sustainability Reporting Standards (SRS 1)" and the UNDP (United Nations Development Programme) releasing guidelines for managing the environmental impact of elections. The South Korean government also stepped up to establish public standards last December by introducing the Ministry of Economy and Finance’s “ESG Guidelines for Public Institutions.”

From the perspective of strengthening ESG accountability in the public sector, KoSIF queried the central party leadership of each political faction on ways to institutionalize five key policies. The goal is to ensure that local governments fully execute their roles as core drivers leading the transition toward a sustainable society, thereby diffusing ESG values down to the grassroots level of local communities to spark tangible changes.

The policy questionnaire for the June 3 local elections contains a total of five inquiries:

⦁Establishing an ESG-based integrated disclosure system for local public institutions.

⦁Providing public support for eco-friendly election methods and building a carbon emission management framework.

⦁Inducing productive finance by reflecting climate investment track records when local governments and affiliated public sectors evaluate and select civil financial institutions.

⦁Phasing climate information into public procurement driven by local governments.

⦁Designating Power Purchase Agreement (PPA) planned sites based on idle land owned by local governments and affiliated public institutions, and building connective networks with local enterprises.

In particular, the questionnaires zero in on the 'administrative influence' that local governments can practically wield. Responding to the climate crisis—such as investing in renewable energy and transitioning to climate-friendly industries—demands astronomical capital, which public budgets alone cannot satisfy. Consequently, KoSIF proposed a policy to factor 'climate finance activities, including climate investment track records,' into evaluation metrics when local governments and their affiliated public sectors (local public enterprises, invested/contributed institutions) select depository banks, primary operating banks, or insurance providers for public properties. Another proposal suggests utilizing 'climate information' in phases within local government public procurement. The market size for local government depositories and primary operating banks in the affiliated public sector reaches approximately 673.3 trillion won in integrated regional finance, while the local government public procurement market hovers around 94.1 trillion won (as of 2024).

KoSIF requested each political party to provide a clear stance of approval or disapproval regarding these laws, systems, and policies. If a party approves, they are asked to provide specific implementation roadmaps and timelines; if they disapprove, they must state their reasoning and propose alternatives. KoSIF plans to extend these policy inquiries to candidates running in major electoral districts moving forward.

Jong-oh Lee, CIO of KoSIF, stated:

"Diffusing ESG into local governments is imperative because local ESG policies help resolve regional challenges, ultimately elevating the quality of life for local residents. We intend to analyze the responses from political parties and major regional candidates and disclose them prior to the early voting period. This will enable voters to compare which party and which candidate genuinely possess the willingness to drive policies aimed at enhancing regional sustainability.“

Meanwhile, KoSIF is a non-profit organization that has proactively accelerated the institutionalization of ESG since 2007. It has consistently queried candidates and political parties on their stances regarding ESG policies during every major election cycle, including presidential and general elections.[END]

 Inquiries: Jong-O Lee CIO (argos68@kosif.org), Hanjin Yu  Team Lead (hwcharisma89@kosif.org)