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ESG Weekly Review | South Korea ESG Controversies for May 27 - June 2, 2024

ESG Weekly Review | South Korea ESG Controversies for May 27 - June 2, 2024

ESG Weekly Review | South Korea ESG Controversies for May 27 - June 2, 2024

ESG Weekly Review | South Korea ESG Controversies for May 27 - June 2, 2024

FairLabs Team

Jun 3, 2024

Weekly ESG Controversies (May 27 ~ June 2)


Summary

This week's ESG controversies highlights significant ESG challenges faced by leading companies, with a particular focus on Samsung Electronics. Key issues include competitive behavior, labor disputes, systemic risk management, business ethics, and employee health and safety. The enduring nature of ESG controversies underscores a broader industry-wide struggle for resolution and improvement.


Key takeaways

  • Samsung Electronics at the Forefront of ESG Issues:

    • Samsung Electronics emerges as a focal point in most of the top 5 risk categories this week.

    • The company's patent infringement lawsuit, significant historic strike declaration, failure to pass NVIDA’s test,  accusations of illegal merger and the radiation exposure incident manifest the urgent need for comprehensive ESG risk management within its operations.


  • Notable Increase in Competitive Behavior:

    • This category's surge to 29.78% from 16.07% last week is highlighted by ongoing controversies involving HYBE’s ongoing legal disputes  and Samsung Electronics’ IP challenges.


  • Sustained Labor Union Disputes:

    • Persistent disputes highlight the significant negotiation challenges facing companies like Samsung and Hyundai Motor with their labor unions, pointing to a broader industry trend of unresolved labor relations.


  • Repetitive Challenges for Sector Leaders:

    • Kakao, Samsung Securities, and Korea Electric Power remain entangled in recurrent operational and systemic issues, from service disruptions to infrastructure failures, emphasizing the need for robust risk management strategies.


  • Critical Employee Health & Safety Alerts:

    • Notably, Employee Health & Safety issues, especially concerning Samsung Electronics and LG Chem, have climbed into the top 5 ranks this week.




  1. Competitive Behavior (29.78%)

  • Dominated by HYBE's legal and control battles, accounting for 67.5% of the concerns.

  • Samsung Electronics is also highlighted for patent infringement lawsuits.



  1. Labor Practices (21.21%)

  • Samsung Electronics leads with wage negotiation disputes and a significant strike declaration, exemplifying deep labor relations challenges.

  • Hyundai Motor Co. faces allegations of child labor practices in the United States.



  1. Systemic Risk Management (18.88%)

  • Led by Kakao's service disruptions, this category focuses on essential systemic improvements in disaster management, representing nearly 59% of the total concerns.

  • Samsung Securities and Korea Electric Power showed significant issues related to system failures and power outages.



  1. Business Ethics (6.79%)

  • Samsung C&T and HYBE face serious ethical accusations, from illegal mergers to breaches in fiduciary duties, showcasing governance challenges within these entities.



  1. Employee Health & Safety (6.36%)

  • Samsung Electronics' radiation exposure incident at its Giheung plant highlights major health and safety concerns, accounting for over 70% of this category's worries.

  • A toxic gas leak incident in India by LG Chem has resurfaced.



This week's ESG controversies underscores the multifaceted challenges faced by Samsung Electronics and other major companies, highlighting the pervasive nature of unresolved ESG issues. The prominence of employee health and safety concerns serves as a stark reminder of the importance of stringent workplace standards. Addressing these ongoing risks requires continuous monitoring, transparent practices, and proactive stakeholder engagement.




Disclaimer: This content was made with the help of AI. It may contain errors or inaccuracies, and should not be relied upon as a substitute for professional advice. The information contained in this article is not investment advice. FairLabs does not endorse or recommend any investments and assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained in this article.

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Reach Us

FAIR LABS CO., LTD.

83 Uisadang-daero, Yeongdeungpo-gu, Seoul

team@fairlabs.io

Copyright 2024. All Rights Reserved.

Reach Us

FAIR LABS CO., LTD.

83 Uisadang-daero, Yeongdeungpo-gu, Seoul

team@fairlabs.io

Copyright 2024. All Rights Reserved.