Samsung C&T has moved up a notch to receive an A rating in the latest MSCI ESG Ratings assessment, jumping from the previous year’s BBB rating.
MSCI, or Morgan Stanley Capital International, evaluates and announces ESG Ratings for 14,000 companies worldwide every year based on their resilience to long-term, financially relevant ESG risks and their level of ESG management.
The upgrade to an A rating is the result of positive evaluations for Samsung C&T’s efforts to improve its corporate governance and human resource management.
In terms of corporate governance, Samsung C&T was recognized for its appointment of an independent director as chairman of the board of directors and the reinforcement of the board’s ESG risk management function. Meanwhile, the company’s human resource management received acknowledgment due to its efforts to transparently disclose related activities such as employee training, compensation, and labor-management relations by composing ESG performance indicators.
Within MSCI’s Industrial Conglomerates category featuring companies operating various businesses, Samsung C&T is evaluated alongside other global firms like Siemens and 3M. Among them, there are only around 10 companies rated A or above.
Samsung C&T has been consistently recognized for its ESG management by global and local evaluators. The company has been listed in the Dow Jones Sustainability World Index for five consecutive years, in addition to earning an overall A grade in the ESG evaluation by the Korea Corporate Governance Service (KCGS) for six straight years.