Environment ministry partners with bio-health firms on sustainability disclosures

The environment ministry said Thursday it has joined forces with five leading bio-health companies to build a specialized system for calculating Scope 3 greenhouse gas emissions. The Ministry of Climate, Energy and Environment held an inter-industry meeting at the Korea Press Center in central Seoul on July 30 to discuss tailored calculation frameworks and support measures for the sector.

Participants included Samsung Biologics, Samsung Bioepis, HK inno.N, GC Green Cross and Hanmi Pharmaceutical, along with representatives from accounting standards bodies and industry associations. The gathering aimed to review how domestic firms are responding to expanding global regulations on environmental, social and governance disclosures while addressing the unique complexities of the bio-health supply chain.

Scope 3 emissions refer to indirect greenhouse gases generated across a company's entire value chain, ranging from raw material sourcing to product disposal. Because the bio-health industry involves lengthy and intricate processes including research, clinical trials, manufacturing and distribution, developing accurate estimation criteria that reflect these specific business types is critical.

With South Korea set to implement mandatory sustainability reporting starting in the 2028 fiscal year for listed companies with consolidated assets exceeding 10 trillion won, the need to bolster corporate readiness has grown urgent.

To address these challenges, the ministry signed work agreements with key industry players in June and is currently developing a guidance manual specifically for bio-health firms. This document will analyze distinct business models and value chains to provide practical calculation examples that companies can apply directly in the field.

During the session, the Korea Environmental Industry & Technology Institute presented findings from its three-year support project covering the secondary battery, semiconductor and petrochemical sectors. The Korea Shipbuilding & Offshore Engineering Association also shared current progress and on-site hurdles from its own Scope 3 calculation efforts initiated earlier this year.

Lee Ho-hyun, the ministry's second vice minister, stated that reliable ESG information is becoming a core factor determining corporate competitiveness as supply chain regulations expand. He pledged to cooperate closely with industry stakeholders to establish a practical calculation system that enhances the sector's capacity to meet upcoming disclosure requirements.