Kakao Pay officially launches ESG committee

Kakao Pay has officially set up an Environment, Social and Governance (ESG) committee under its board, laying a solid foundation for the sustainable growth of the mobile payment firm.

The mobile payment subsidiary of big tech firm Kakao announced Wednesday that the launch of the ESG committee came 10 months after the company kicked off a preparatory move to initiate the committee under its board.

The incumbent CEO of Kakao Pay, Shin Won-geun, is to lead the ESG committee as chair, aiming to develop unique, sustainable management strategies for the firm.

The new committee plans to draw up sustainable growth strategies and risk management policies and will publish annual reports on sustainability and corporate governance. The committee also plans to strengthen communication with shareholders, investors and customers as well as regional communities.

“With the ESG committee, the company will strive to lead ESG management in the fintech industry by putting continuous efforts into it,” CEO Shin said.

Kakao Pay has been leading ESG efforts in the local fintech sector. The firm joined the UN Global Compact (UNGC) in October last year, a voluntary initiative based on CEO commitments to implement universal sustainability principles and management. It was the first local fintech firm to do so. It has also declared support for Task Force on Climate-Related Financial Disclosures (TCFD) in November last year as the first local fintech firm.