Kumho Petrochem wins BB rating from MSCI's ESG ratings

Kumho Petrochemical Co. announced on Wednesday that it had received a "BB rating" in the environmental, social and governance (ESG) evaluation by Morgan Stanley Capital International (MSCI). This rating is an improvement from the previous year, indicating the company's progress in implementing ESG practices.

The company was particularly praised for its efforts to establish a climate change response strategy in the environmental sector. In terms of governance, Kumho Petrochemical implemented a number of changes, such as separating the roles of the representative director and the chairman of the board of directors. Additionally, the major committees were comprised of 100% outside directors, who were acknowledged for their independence.

The fact that Kumho Petrochemical Group Chairman Park Chan-koo resigned as a registered director in 2021 and transitioned to a non-owner professional management system was also a contributing factor to the company's improved rating.

Despite this progress, Kumho Petrochemical recognizes that there is still room for improvement. The company plans to continue its efforts to enhance its ESG promotion status and upgrade its rating by thoroughly reviewing its ESG practices.

"We plan to continue our efforts to continuously upgrade the rating by reexamining the overall ESG promotion status without being complacent with the latest rating upgrade," said a Kumho Petrochemical official.

Write to Seo-Woo Jang at suwu@hankyung.com