Seo Uk, CEO of ECONINE, met Richard Bourne, Senior Vice President responsible for EcoVadis’s Asia Pacific-Japan region, at the EcoVadis office in Hong Kong on October 5, 2023.

In 2023, ECONINE was selected as EcoVadis’s first strategic partner in Korea and the fourth in Asia. Since its founding, ECONINE has completed more than 140 ESG management projects and has a vision of contributing to innovation in the industrial ecosystem. EcoVadis is the first sustainability assessment collaboration platform operator to assess the environmental and social impact of global suppliers. EcoVadis assesses more than 100,000 companies across more than 175 countries and over 200 industries worldwide.

Through an exclusive interview with Richard Bourne, Senior Vice President responsible for EcoVadis’s Asia Pacific-Japan region, we asked what direction Korean companies should take in order to survive and stay internationally competitive in an ESG landscape that is changing fast, including supply chain due diligence laws.

Where the passion came from

Seo Uk. What led you to develop a passion for sustainability?

Richard Bourne. I grew up in the United Kingdom in the 1980s. I had a happy childhood in the countryside, where the beauty of nature was valued, and that instilled in me a deep sensitivity to environmental issues. I always thought there could be a better way to live. It always struck me as inefficient and bad for the environment to throw away reusable resources, or energy sources such as wind and hydro that could be used to generate electricity.

However, at that time there was no education on sustainability in the UK. I realised the absence of sustainability education during my university years and early career. A university lecturer recognised my passion and suggested that I pursue a career in sustainability, and that was a decisive moment for me.

I vividly remember the early 2000s, when the concept of sustainability was unfamiliar. Determined, I sought opportunities to learn about sustainability and joined several university groups. That was when I discovered EcoVadis, then a startup, and it brought an important change by connecting me with colleagues who were genuinely interested in sustainability.

My passion comes from the enormous tasks ahead in the field of sustainability. Right now, we have abundant discussion but insufficient action. I think of myself as an active reformer, someone who observes social norms while trying to bring about systemic change. That is why I believe individuals within organisations have the power to bring about revolutionary change. So whenever I meet people like those at ECONINE, who are truly passionate about their work, I draw energy from them, because they can become catalysts for meaningful change.

The Korean market

Seo Uk. What is the appeal and potential of the Korean market for EcoVadis?

Richard Bourne. Korea is an important market for us. Supply chain due diligence will become common in the Asia-Pacific region, and Korea is showing maturity and a rapidly growing interest in it. This development is impressive, and we are monitoring the market closely and working through training partners to gain insight. Historically, Europe and the United States have been the ones setting ESG-related standards. But supported by the government’s efforts to enhance the global competitiveness of Korean companies, Korea is emerging as a noteworthy player. Korea is also a region where about 60 of the Fortune 2000 companies are located. Australia, New Zealand, and Japan are important markets for us, but India and Korea are also regions that offer EcoVadis many opportunities in terms of the number of companies that have responded to EcoVadis assessments. According to our data, Korea has the fourth largest number of companies assessed by EcoVadis, after China, Japan and India. This means Korea is a priority for EcoVadis and an important market. Our goal, as our slogan says, is to guide all companies toward a sustainable future, and Korea is also part of that vision.

Advice for Korean companies

Seo Uk. What advice do you have on ESG management for Korean companies?

Richard Bourne. The key advice regarding corporate ESG management is to find employees who are sincerely passionate about sustainability. Often companies assign ESG work based on rank or title rather than passion, but that is not a good approach. A young team member can create important change in ESG management through passionate work, such as in-depth research into existing ESG management standards and management tools.

It is also important to recognise how ESG provides broad benefits to an organisation beyond simple compliance or marketing. ESG management can improve productivity, employee motivation, and ultimately profitability. According to our research, including research with Bain, sustainability management can improve corporate profitability by about 2-3%. Also, a high level of ESG-focused management can significantly improve employee Net Promoter Score (NPS), increasing the company’s attractiveness.

Another important aspect is acknowledging that one cannot be perfect from the beginning. The path to sustainability is iterative. One Singaporean manufacturer received a low score at first, but through learning and participation it gradually improved its ESG performance and eventually achieved an EcoVadis Platinum Medal. This case shows the importance of continuous corporate effort.

Finally, internal communication about ESG performance and why it matters is essential. By educating all employees on the importance of sustainability management, companies can encourage a workplace culture with high employee participation and shared overall knowledge of sustainability, thereby promoting better progress in ESG projects. This process begins by hiring the right talent, and anyone, from interns to new employees, who is motivated to create change can make a difference.

What he expects from ECONINE

Seo Uk. As a close partner of ECONINE, what do you expect from ECONINE?

Richard Bourne. Companies often have difficulty practising sustainability management in a way that fits them. There is a great deal we can do with ECONINE on market education, so that companies have that guidance. If we can provide companies with a single management system and process, we will be able to have a real impact in Korea. ECONINE and EcoVadis have strengthened our partnership and discussed marketing and webinar opportunities. Through continued discussions, I expect that we can use our commonalities and strengths to develop a comprehensive framework that enables all companies to improve sustainability management practices.

Both of our organisations occupy strategic positions in our respective areas. ECONINE provides valuable insights as an ESG consulting expert, and EcoVadis specialises in business sustainability ratings and supply chain assessments. As partners, we can serve together as a think tank for improving sustainability practices and exercise greater influence for sustainability management. Therefore, it is important that we actively form collaborative relationships, together with other training partners, to guide companies toward sustainability.