Gyeonggi Province is launching the '2026 ESG Management Support Initiative for Small and Medium-sized Enterprises (SMEs)' to promote the adoption of environmental, social, and governance (ESG) management practices and bolster the global competitiveness of local businesses.

This initiative comes in response to the increasing urgency for SMEs to align with global ESG standards, particularly as the European Union (EU) rolls out mandatory ESG reporting under the Corporate Sustainability Reporting Directive (CSRD) starting in 2024.

With SMEs accounting for a significant portion of Gyeonggi's export activities, the need for systematic ESG preparation has become a pressing concern.

In this context, Gyeonggi Province is implementing tailored support strategies to enhance the ESG capabilities of SMEs through various initiatives, including:

1. **Support for Sustainable Management Report Preparation**: Assisting businesses in developing their ESG reports in compliance with disclosure requirements.

2. **Hosting SME ESG Forums**: Organizing five forums focused on industry-specific ESG requirements, facilitating information exchange among companies.

3. **ESG Awareness Training**: Offering training to 1,000 participants to enhance understanding of ESG practices.

4. **ESG Diagnosis and Improvement Support**: Providing assessment and remedial support to 300 SMEs to strengthen foundational capabilities while addressing vulnerabilities.

5. **ESG Management Consulting**: Delivering expert guidance to SMEs on integrating ESG into their business strategies and operations.

6. **Support for International ESG Certifications**: Assisting companies in achieving international ESG certifications like EcoVadis to strengthen their credibility on the global stage.

Newly introduced this year, the sustainable management report preparation and the SME ESG forums will enable businesses to diagnose their existing ESG data, receive expert feedback, and thereby improve their capacity to respond to public disclosure demands.

These forums will also cater to industry-specific ESG challenges, ensuring that participating companies gain valuable insights pertinent to their sectors.

Furthermore, Gyeonggi Province is collaborating with specialized agencies like the Korea Trade-Investment Promotion Agency (KOTRA) and the Cooperation Foundation for Large and Small Businesses to expand the scope of support for SMEs.

This partnership will help streamline international market entry and provide incentives for exemplary companies seeking to innovate their ESG practices.

Eligible participants for the Gyeonggi ESG Support Initiative include SMEs with headquarters or plants in Gyeonggi Province that have been operational for at least three years.

Interested companies can apply through the Gyeonggi Business Secretary portal (egbiz.or.kr) starting in April.

Detailed schedules and information will be available through the respective announcements for each initiative.

Song Eun-sil, Director of the Social Innovation and Economy Bureau in Gyeonggi Province, emphasized the significance of ESG management, stating, “ESG management has become an essential factor determining a company's sustainability and competitiveness.

We are dedicated to providing comprehensive support to ensure that our SMEs can seize ESG not as a crisis but as a new opportunity for growth.”