Kolon Benit Expands ESG Integrated Management System Business with Its Self-Developed Supply-Chain Due-Diligence Solution

In South Korea, more companies are considering introducing systems to centrally manage ESG data ahead of mandatory ESG disclosures. In July, the government finalized a disclosure roadmap requiring listed companies above a certain size to include ESG information in their business reports and began work on amendments to the Capital Markets Act to support the plan.

Starting in 2028, KOSPI-listed companies with consolidated assets of at least 10 trillion won will be required to disclose ESG information, including that of their subsidiaries. As the companies subject to the requirements expand in stages and the disclosure scope extends to greenhouse-gas emissions generated across supply chains, including by business partners, companies are now facing the task of managing ESG data both internally and throughout their supply chains.

In response, Kolon Benit will expand its ESG integrated management system business based on SAP Sustainability Control Tower (SCT) and SAP Sustainability Footprint Management (SFM). SAP SCT is a solution that integrates a company’s ESG data to support responses to disclosure requirements and regulations, while SAP SFM calculates the carbon footprints of companies and products using data on raw materials, components and other inputs.

Kolon Benit has built up its data-integration capabilities by carrying out numerous SAP S/4HANA (ERP) and SAP SuccessFactors (HR) projects, where much of the source ESG data is accumulated. Since securing and linking source data is the most time- and cost-intensive part of building an ESG system, the company plans to gain a competitive edge through its experience in directly implementing and operating SAP ERP and HR systems.

Kolon Benit has also developed an ESG supply-chain due-diligence solution optimized for the South Korean market. It supports improvements in the actual ESG performance of the entire supply chain by assessing suppliers’ ESG management levels, evaluating ESG ratings, analyzing vulnerable areas, identifying improvement tasks and managing their implementation.

Kolon Benit plans to implement its supply-chain due-diligence solution in SAP’s technology platform, BTP (Business Technology Platform), supporting the entire process—from collecting source ESG data and calculating emissions to preparing disclosure reports and managing the supply chain—on a single platform. The company also plans to expand the scope of its projects into various areas, including ESG consolidated disclosure through SAP Group Reporting and carbon accounting through SAP Green Ledger, based on its capabilities in consolidated accounting and business-planning solutions.