KRX to drop 4 firms from ESG index
[THE INVESTOR] Korea’s stock market operator said on March 22 it has decided to exclude four large enterprises from its environmental, social and governance index due to their wrongdoing.
According to the Korea Exchange (KRX), the four companies, slated to be eliminated from the KRX ESG Leaders 150 Index on Friday, are Hyundai Engineering & Construction, Hyundai Steel, Daelim Industrial and Hyosung.
“The decision has been made to reflect the latest ESG ratings of listed companies by the Korea Corporate Governance Service,” the bourse operator said.
The index, which was introduced in 2015 to encourage listed firms to promote socially responsible investment and improve their governance, serves as a key marker of corporate social responsibility.
“Six firms have suffered rating downgrades, but two companies have not committed irregularities enough to be excluded from the index,” a KRX official said. “The index will be comprise of 146 companies until September, when a regular change will be made.”
By Song Seung-hyun and newswires (ssh@heraldcorp.com)