President Kim Jong-kap of Korea Electric Power Corp. (KEPCO). (Photos: KEPCO)

Korea Electric Power Corp. (KEPCO) originated via its predecessor Hansung Electric Co. back in 1988. Hansung was set up 11 years after Gyeongbok Palace turned its lights on for the first time.

KEPCO has endured many twists and turns along the way. The corporation now supplies electricity to about 23 million households and diverse industries.

A stable supply of electricity is the greatest contribution to society KEPCO has made so far. But KEPCO is now tasked with more responsibilities on top of ensuring a stable supply of electricity — environment, social and governance (ESG).

The ESG Committee was inaugurated under the umbrella of KEPCO’s board of directors last December.

The 1st ESG Committee Meeting took place at KEPCO Art Center in Seocho-gu, Seoul, on Jan. 15. The committee, headed by Chairman Kim Kwan of the board, has three members, including Director Choi Seung-geuk and Director Pang Soo-ran.

The ESG Committee is an advisory body designed to deliberate pending management issues related to ESG and establish ESG management strategies and related business plans.

Korea Electric Power Corp. held the inaugural ESG Committee meeting at KEPCO Art Center in Seocho-gu, Seoul, on Feb. 15. CHoi Seung-guk, a non-standing director with the KEPCO’s board of directors, speaks on sustainable management during the meeting.

KEPCO’s establishment of the ESG Committee may be construed as the power company’s expanding its management strategies to the ESG sector to fulfill its social responsibility.

KEPCO has set its management goal as “establishing a warm-hearted world through the creation of value with clean energy” and established 10 strategies to implement it.

They will be implemented in accordance with the United Nations’ Millennium Development Goals, and outcomes will be managed in a mid- and long-term perspective.

As for the environment sector, KEPCO will build infrastructure to expand eco-friendly energies, establish a regime to proactively cope with climate change, and lead a shift into a high-efficiency, low-energy paradigm.

For the social sector, KEPCO will contribute to the development of regional society and participate in efforts to solve pending issues of society, build an industry ecosystem to promote win-win development and shared growth with SMEs and create a corporate culture for better working conditions.

For the governance sector, KEPCO will ramp up ESG responsibilities, upgrade an ethics, law-abiding management and integrity regimes and build an ecosystem to promote win-win development based on fair trading. KEPCO is the nation’s largest power company.

KEPCO is expected to focus on the environment sector while implementing ESG management. In this context, KEPCO will reduce coal-fired power generation and expand renewable energy production.

KEPCO plans to build renewable energy facilities with a combined capacity of 41.2GW by 2030 in cooperation with its subsidiary power companies.

Part of the plan is a ceremony to sign a contract to build a 41.2GW renewal energy complex in Shinan, Jeollanam-do, which took place on Feb. 5.

Under the plan, the 2030 Business-as-Usual (BAU) carbon emission projection calls for reducing 47 million tons of carbon.

KEPCO’s projects to establish renewable energy complexes will be implemented abroad as well. KEPCO is building a 294MW photovoltaic power complex in Mexico.

The power company constructed an 89.1MW wind power complex in Jordan.

In return, KEPCO is phasing out coal-fired power plants. The power company decided not to implement coal-fired power plant projects abroad. KEPCO is considering changing two of the ongoing overseas coal-fired power plant projects into LNF-fired ones or halting them.

As a result, KEPCO is predicted to phase out overseas coal-fired power plant projects after 2050.

A view of Korea Electric Power Corp. headquarters in Naju, Jeollanam-do.