Summary

As a follow-up project of Costs of Climate Inaction of Emission-intensive Companies in Korea, this report identified and analyzed the magnitude of estimated climate-related risks of three most emission-intensive companies in Korea from the cement, display and nonferrous metals industries. These industries form the very foundations of Korea's industrial sector but their climate risks have not been actively discussed so far. According to the report, their operating profits will get reduced by as much as 44.6% in 2030 (compared to 2021). In sum, the report gives policy guidance on how the industry sector and the government can effectively handle the increasing climate-related risks.  

Contents

Executive Summary

 I. Introduction: Climate-related risks are not just problems only for conglomerates

 II. Pathways through which Climate-related Risks Affect Financial Statements of a Company 

 III. Financial Impact of Climate-related Risks on Three Domestic Emission-intensive Companies in Korea

 1. Methodology

 2. Results of analysis by company

   1) Cement lndustry – Ssangyong C&E

   2) Display Industry – LG Display

   3) Nonferrous Metals Industry – Korea Zinc

Ⅳ. Conclusion: Climate risk management is critical for financial stability

   Appendix-1. Policy goals and regulations related to climate change in Korea and overseas

   Appendix-2. Cost increases caused by climate-related regulations

   Appendix-3. Strengthened K-ETS Scenario

Reference