South Korean report identifies POSCO, KEPCO as among the top 10 polluters responsible for an estimated $119.6 billion in damages due to heatwaves.
A new study by the Institute for Climate Action, Solutions (ICAS) and the Climate Transparency Reports has highlighted the role of key South Korean companies in contributing to the country's greenhouse gas emissions and the potential impact on its climate and economic resilience.
The study found that POSCO, a steel giant, and five subsidiaries of the Korea Electric Power Corporation (KEPCO) are responsible for a significant portion of South Korea's greenhouse gas emissions. These companies are joined by five other major corporations, including Hyundai Steel, Hyundai Motor Company, Doosan Heavy Industries & Construction, SK Innovation, and Samsung Electronics, which together account for approximately half of the country's emissions since 2011.
The Companies Involved
The five KEPCO subsidiaries are Korea South-East Power Co. (KOEN), Korea Midland Power Co. (KOMIPO), Korea Western Power Co. (KOWEPO), Korea East-West Power Co. (EWP), and Korea Southern Power Co. (KOSPO).
The other five companies, in addition to POSCO and the KEPCO subsidiaries, are major contributors to South Korea's emissions. Hyundai Steel is a significant steel producer, Hyundai Motor Company is a massive automobile manufacturer, Doosan Heavy Industries & Construction is a heavy industry giant and construction company, SK Innovation is a large energy and chemistry conglomerate, and Samsung Electronics is a leading global electronics manufacturer.
The Impact
The report provides a framework for holding corporations accountable for their emissions, not just at the national level but also at the corporate level. The study warns of potential heatwave-related damages between 2025 to 2050, with cumulative damages reaching US$518.9 billion under the current policy trajectory.
The power sector plays a significant role in determining the carbon intensity of electricity consumption in South Korea. Emissions from KEPCO and its subsidiaries ultimately burden the public, and the company is expected to manage climate-related financial risk.
This year's record heatwave led to a sharp increase in livestock deaths and disrupted the supply of key ingredients like napa cabbage for traditional staple kimchi, causing its price to soar by 52% in a single month. The hardest-hit sectors were construction, agriculture, forestry, and fisheries, with prices of consumer goods expected to rise by 0.3 percentage points in the third quarter.
Six farmers have filed South Korea's first corporate climate lawsuit against KEPCO, demanding compensation for climate-related damages. The world's top court has also advised that states could be sued if they do not uphold their duties to curb fossil fuel emissions.
The report suggests that KEPCO, as a state-owned entity, has a responsibility to manage climate-related financial risk. The Singapore Exchange lodged a complaint with SFOC over KEPCO's failure to disclose material climate-related risks.
Adopting a net-zero pathway would limit damages to US$204.7 billion, avoiding over US$314 billion in losses. The ten largest companies in South Korea, including POSCO, KEPCO subsidiaries, Hyundai Steel, Samsung Electronics, Ssangyong C&E, and POSCO International, are responsible for almost half of the country's greenhouse gas emissions since 2011.
Net-zero policies are not optional add-ons but an essential part of South Korea's climate and economic resilience. The Ministry of Environment in South Korea publishes annual reports on greenhouse gas emissions from large companies, and ICAS provides reports on climate responsibility in Korea. Climate Transparency Reports offer country reports on emissions, including South Korea. Regular updates on the top emitters can be found in English-language media such as The Korea Times and Yonhap News.
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