ESG Regulations Loom, but Carbon Data Management Systems Remain Fragmented

Joint Survey of 300 Export Companies by KCCI and Korea Industrial Complex Corporation
No Common Standard Platform for Carbon Data
66% Use In-House Systems, 42% Still Rely on Excel or Manual Management

The regulatory burden on export companies is increasing as global carbon regulations—including mandatory ESG (Environmental, Social, and Governance) disclosures and the European Union's Carbon Border Adjustment Mechanism (CBAM)—take effect, and with the recent announcement of Korea's domestic sustainability disclosure roadmap. However, most Korean export companies are still managing their data individually without a standardized platform or are relying on manual processes.

According to the results of a joint "Industrial Complex Carbon Emissions Management (MRV) Platform Demand Survey" conducted on 300 export companies by the Korea Chamber of Commerce and Industry (KCCI) and Korea Industrial Complex Corporation, published on August 20, 99.3% of respondents said they have already been asked to submit carbon emissions data—or expect to be asked soon—by their clients (buyers). Additionally, 90.3% replied that, as suppliers, they are already requesting data from their partners or plan to do so. This indicates that managing carbon data has become a key factor for maintaining competitiveness within supply chain relationships.

However, companies' data management capabilities are not keeping pace with the tightening regulations. Asked about how they manage carbon data, 66.3% (roughly six out of ten companies) responded that they have built internal systems such as ERP, but without a common standard platform, each company is managing data on its own.

Exterior view of the Korea Chamber of Commerce and Industry. Photo by Yonhap News.

As a result, significant burdens are arising from the need to reprocess and enter data individually in Excel or by hand (42.4%), or using each client's unique forms (38.8%), leading to "double manual work." As standards and templates differ from company to company, errors and administrative inefficiencies are increasing during data calculation and exchange.

When asked what kinds of support are most needed for smooth data exchange, companies cited the need for standardized templates and formats (64.0%) and for collaborative platforms to facilitate data exchange (53.7%). This shows a high demand for platforms equipped with standardized forms and data conversion functions—going beyond what individual companies can handle on their own.

While companies deeply recognize the need for such platforms to comply with export regulations and respond to customer requests, they are struggling with actual implementation. The biggest obstacles to adopting such platforms were identified as the cost burden to build and integrate systems (64.0%), followed by the lack of dedicated personnel and time (62.7%).

In particular, 44.7% of respondents predicted data management costs of between 10 million won and 50 million won over the next three years, while 43.3% anticipated costs exceeding 50 million won. The initial financial burden thus stands out as a major reason for hesitancy in adopting new platforms.

Additionally, when asked about the essential prerequisites for utilizing such platforms, the leading answers were "protection of corporate data such as trade secrets" (54.0%) and "mutual compatibility with international or overseas standards" (54.0%), highlighting the importance of security and interoperability.

The Korea Industrial Complex Corporation launched the "Industrial Complex MRV Platform" in June of this year, which it continues to operate. This integrated support system is designed to help companies smoothly respond to global carbon regulations, such as the EU CBAM and the Digital Product Passport (DPP), by supporting the entire process from measurement and reporting to verification of carbon emissions. The KCCI is expanding its support for companies by broadening the platform's connectivity and adoption.

Based on the survey results, the two organizations presented a set of phased policy support measures to help alleviate the burdens felt by companies. These include: expanding support for installing measurement equipment such as instruments and sensors; providing vouchers to cover costs to link the platform with existing internal systems or management formats; offering consulting and personnel subsidies for carbon data calculation—such as LCA (Life Cycle Assessment) and emission factor application; expanding financial support for low-carbon facilities; and scaling up the RE100 (100% renewable energy) initiative and ESG platforms.

Jo Youngjun, Head of the Sustainable Management Center at KCCI, stated, "With the legalization of domestic disclosure systems and the tightening of global carbon regulations, managing supply chain carbon data is now an urgent priority for exporters—if verified carbon data is not available, exports can be disrupted. The Chamber will continue to provide practical education and support, so that companies can respond easily to regulations through a standardized platform without worrying about costs or personnel."

Ha Mingun, Head of the Smart Conversion Office at the Korea Industrial Complex Corporation, also said, "We plan to enhance the functionality of the Industrial Complex MRV Platform as a support tool for export companies facing carbon regulations. Together with the KCCI, we will continuously expand practical policy support—such as subsidies for platform adoption and integration, and manpower support—in ways that companies can tangibly feel."

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