The Seoul Metropolitan Government (SMG) is taking action to actively introduce environment, social, and governance (ESG) factors to its municipal administration to spread awareness of climate change.

Starting this year, the city will implement a climate budget system to analyze the impact of greenhouse gas (GHG) emissions by budget-funded projects for drafting up next year’s budget. The scope of projects will be altered according to GHG emissions; projects will be expanded if they are expected to reduce GHG emissions and shrunk if expected otherwise unless measures to offset the emissions are taken.

The city will expand support for companies taking the lead in ESG by giving priority to private consignments and contracts for construction and services, which will encourage active and voluntary participation, as well as expand consulting support for small and medium-sized enterprises to apply ESG in their management, which was largely centered on conglomerates.

Seoul will build a society-wide ecosystem for ESG together with enterprises and citizens to enhance its ability to respond to climate change and implement carbon neutrality by 2050.

The city will create a foundation for ESG in its municipal administration by implementing the climate budget system for the public sector, fully reflecting ESG performance indicators in the management evaluation of city-funded/invested institutions, expanding the mandatory purchase of green products by public institutions, and more.

Moreover, the city will promote ESG from various angles, such as giving enterprises that are committed to ESG priority for private consignments and contracts to expand the participation of the private sector, as well as establishing and operating cooperative networks with economic groups to foster and support green industries.

Seoul plans to fully commit itself to creating society-wide ecosystem for ESG in cooperation with enterprises and citizens on its path to carbon neutrality.