South Korea’s Financial Supervisory Service (FSS) has established a new Capital Market ESG Supervision Task Force. The taskforce will be responsible for supervising companies making ESG disclosures, ESG-related financial products, and financial firms that sell those products. The disclosure rules look to address information asymmetry, prevent greenwashing and promote responsible management. The taskforce will be comprised of three workstreams: Corporate Disclosure Improvement, ESG Financial Product Activation and Risk Management Enhancement. Under the task force, seven asset management companies – selected based on the scale of their ESG fund operations – will work with Korea Financial Investment Association (KOFIA) and Korea Capital Market Institute (KCMI) to prepare new ESG fund disclosure standards. The disclosure standards will cover investment strategy and targets, relevance to ESG, and management capabilities and performance. “The standards are expected to help create an ESG investment environment that meets global standards by resolving investor information asymmetry, preventing greenwashing and inducing responsible management,” the FSS said. Korea also plans to introduce a mandatory ESG disclosure system for listed companies for implementation in 2025.
The task force will develop #ESG fund disclosure standards to address information asymmetry, prevent #greenwashing and promote responsible management.https://t.co/2T1EMvpuMO
— Regulation Asia (@RegulationAsia) April 11, 2023
