Elevating the performance of your business
Korea is one of the most leading nations taking an initiating role in greenhouse gas mitigation, and it declared 37% of reduction target compared to BAU in 2030 at former Conference of the Parties 21 (COP21) that held in Paris. Korean companies are facing challenges stronger than ever such as GHG & energy Target Management Scheme (TMS), Emissions Trading Scheme (ETS), Carbon Disclosure Project (CDP), and KMR is contributing organization's sustainable development.
GHG & energy Target Management Scheme (TMS)
TMS is a scheme that setting up GHG reduction target on organizations emits greater greenhouse gases, with the purpose of achieving the nation's GHG mitigation target. TMS was initiated since 2011, and over 800 organizations have been designated as the target management companies until 2014. And along with enforcement of Emission Trading Scheme since 2015, over approximately 300 organizations are remained under TMS.
The target management company shall submit its GHG emissions statement with verification statement of a nation-authorized third-party verification institution no later than every March 31st. And it shall establish reduction target of next year through negotiation with the government. Also, it shall submit an implement plan and an implement result report every year.
Emissions Trading Scheme (ETS)
ETS is a market-based scheme that setting up total GHG reduction target of each organization of higher GHG emissions by year and letting it achieve the target by trading the credits.
Korean government has initiated ETS since 2015 and has designated 523 organizations as the allocation target companies. The most main difference between ETS and TMS is that ETS allows companies trade emissions credits and requires them to return credits equivalent to yearly allocated emissions target by every June 30th, without negotiation process of reduction target. In addition, the allocation target companies shall complete verification until every March 31st, not only of their GHG emissions statement, but also of monitoring plan.
CDP(Carbon Disclosure Project)
Carbon Disclosure Project(hereinafter CDP) is a global not-for-profit organization, which evaluates and assessments sustainability information of over 4,500 companies that representing over 50% of the market capitalization of the world's largest 30 stock exchanges, and provides the information to 822 investors with over US$95 trillion in assets
As an incentive to encourage participation of companies, CDP grants levels by assessing the level of detail and comprehensiveness in a response, as well as the company's awareness of environmental issues, its management methods, and progress towards environmental stewardship.
Third party verification/assurance status has been included as one of core performance indicator of CDP's scoring methodology since 2015, and now, CDP more strongly requires companies to have third party verification/assurance, tightening disclosure requirements for verification/assurance status, e.g. cycle and type in place.
KMR, a nation-authorized third-party verification institution, provides a wide range of GHG verification services, e.g. GHG emissions verification, verification of reduction credits of businesses, and monitoring plan verification, in a more efficient and reliable way based on over 300 GHG project experience.