SH Becomes First Local Public Enterprise to Invest in Mutual Growth Cooperation Fund, Supporting Partners' ESG Management

[Financial News] Seoul Housing & Urban Development Corporation (SH Corporation) will become the first local public enterprise to use the Mutual Growth Cooperation Fund to strengthen the ESG (environmental, social and governance) management capabilities of its partner small and medium-sized companies.
SH said on the 25th that it had signed a memorandum of understanding with KOFCA to support mutual cooperation and voluntary ESG activities among partner SMEs. The agreement was designed to build a foundation for public institutions and their partners to grow together and to spread responsible management across the supply chain.
Under the agreement, SH will be the first among local public enterprises to provide support to 10 partner SMEs using the Mutual Growth Cooperation Fund. After on-site inspections, it will set customized ESG indicators for each company and provide expert consulting to help them establish mid- to long-term implementation plans.
KOFCA plans to issue a "Certificate of Excellent ESG Small and Medium-sized Enterprise" to outstanding companies that comply with more than 80% of SH's consulting and mid- to long-term implementation plans. SMEs that obtain the certificate will be able to receive practical benefits, including extra points when applying for future government support programs and preferential loan rates.
Hwang said, "The ESG capabilities of our partner SMEs are a key factor directly linked to building a sustainable supply chain," adding, "Through close cooperation with related organizations, we will actively support our partners' voluntary ESG activities and firmly establish a foundation for responsible management across the supply chain."

[email protected] Jeon Min-kyung Reporter