Pharmaceutical and Biotech Firms Accelerate Proactive Responses Ahead of Mandatory ESG Disclosures

Domestic pharmaceutical and biotechnology companies are expanding the publication of sustainability management reports, aligning their ESG (Environmental, Social, and Governance) disclosure frameworks with international standards. As the government plans to gradually implement mandatory legal ESG disclosures from 2028, the industry as a whole is taking proactive steps in response.

According to the industry on July 15, Celltrion recently incorporated Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and International Sustainability Standards Board (ISSB) standards into its sustainability management report. To prepare proactively for mandatory ESG disclosures both domestically and internationally, the company newly introduced the 'ESRS Index (European Sustainability Reporting Standards cross-reference table)' to further strengthen its disclosure system, and also received third-party verification from the independent external agency BSI (British Standards Institution). Samsung Biologics has also published a report reflecting GRI, SASB, ISSB, ESRS, the Task Force on Climate-related Financial Disclosures (TCFD), and the Task Force on Nature-related Financial Disclosures (TNFD), and has similarly received BSI verification. SK Chemicals and GC (Green Cross Holdings) have each expanded and newly adopted a 'double materiality assessment' system, thereby restructuring their disclosure frameworks in accordance with international standards.

An increasing number of companies are joining the ranks of those publishing such reports. Samsung Epis Holdings, after transitioning to a holding company structure, published its first sustainability management report, presenting 'R&D innovation', 'product quality and patient safety', and 'pharmaceutical accessibility' as its core objectives. The company analyzed that it had created roughly 6.7 trillion won in social and economic value through the supply of biosimilars. Hanmi Science also released its first group-level report, establishing an integrated management system centered on its ESG Management Committee.

On July 8, the government and the Democratic Party of Korea held a party-government consultation meeting and announced the 'final plan for institutionalizing ESG disclosures.' Starting with business reports for 2028, listed companies on the KOSPI market with consolidated assets of at least 10 trillion won will be required to make ESG disclosures, and the criteria will be gradually expanded to companies with assets of 5 trillion won in 2029 and 2 trillion won in 2030. This is a strengthened measure compared to the Financial Services Commission's initial draft released in February, which set the threshold at assets of at least 30 trillion won in 2028. The government will also introduce a temporary exemption from liability under the Capital Markets Act for the first three years after implementation.

Although the mandatory disclosure requirement will be limited to KOSPI-listed companies above a certain size, industry experts predict that companies will preemptively align with international standards regardless of listing market or size. This is because ESG information is playing an increasingly important role in partnership requirements with global big pharma companies and in trade rules such as the European Carbon Border Adjustment Mechanism (CBAM). An industry insider commented, "When partnering with global big pharma or seeking to enter overseas procurement markets, ESG disclosures have become a prerequisite for transactions."

This content was produced with the assistance of AI translation services.