[Interview Article] Ecolab helps Korean partners profit from ESG management
[INTERVIEW] Ecolab
helps Korean partners profit from ESG management
U.S. firm vows
continuous investments in Korea
By Park Jae-hyuk, The
Korea Times - Concerns are growing recently that management focusing on
environmental, social and corporate governance (ESG) factors is losing steam
globally, as the lingering inflation and high-interest rates have caused
uncertainties in the business environment. In contrast to the
enthusiasm for ESG management a few years ago, investors and policymakers also
appear to be putting less emphasis on efforts for sustainability. Ryu Yang-kwon,
market head of Korea at Ecolab, however, told The Korea Times in a recent
interview that ESG management can be durable, although the recent economic
slowdown made it difficult for companies to take care of the environment and
fulfill their social responsibilities. “For the trend of
ESG management to be sustained, corporate efforts to overcome the climate
crisis and various other problems should lead to profits,” said Ryu, who also
co-chairs the American Chamber of Commerce in Korea’s (AMCHAM) ESG committee
and serves as a director of the Korea Business Council for Sustainable
Development. “If we increase
examples of companies that create both social and economic values, I believe
more companies will follow the trend.” With a solution
called eROI (exponential return on investment), Ecolab has helped its customers
achieve business and environmental goals and manage potential risks, according
to the Korean office head. Although the
company’s name could be unfamiliar to consumers, the century-old U.S. firm has
tried to live up to its corporate identity as an “ESG solution provider,” given
that it is the world’s leading company in water, hygiene and infection
prevention services. “Our business can be
defined simply as ‘protecting important things,’” Ryu said. In Korea, Ecolab
provides services to around 10,000 companies. “A domestic
steelmaker was able to reduce 340,000 tons of water consumption and 33,000 tons
of carbon dioxide emissions annually, after applying our smart factory solution
that improves process efficiency and our digital platform named Ecolab3DTM,
which allows users to check the efficiency of their factories in real time and
take necessary measures,” Ryu said. “An oil refiner here
also reduced over 2 billion won ($1.5 million) worth of energy costs and around
40,000 tons of carbon emissions annually, through our solution that removes
impurities in crude oil.” Investment in
semiconductor sector During President
Yoon Suk Yeol’s trip to the U.S. in November for his participation in the
Asia-Pacific Economic Cooperation (APEC) summit, Ecolab joined four U.S. firms
that promised to invest a combined $1.16 billion in Korea’s high-tech sectors. The company's
investment is intended to build a production facility in Yangsan, South
Gyeongsang Province, for high-purity nanoparticles, colloidal silica, an
essential ingredient in the production of chemical mechanical polishing (CMP)
slurry used as an abrasive in semiconductor manufacturing. Minister of Trade,
Industry and Energy Bang Moon-kyu said at that time that the four companies’
investments will greatly contribute to cementing the bilateral alliance in
advanced industries and stabilizing Korea’s semiconductor supply chain. This is the first
time for Ecolab to build a colloidal silica production facility outside the
U.S. “We competed with
Ecolab subsidiaries in China, Singapore and Japan,” Ryu said. “The global
headquarters chose Korea, considering major Korean chipmakers, such as Samsung
Electronics and SK hynix.” Although Ecolab did
not disclose the specific amount of its planned investment, Ryu emphasized that
the company will gradually increase its investments, even after the new factory
starts its operation in 2025, so as to enhance its production capacity. “The factory will
target the entire Asia-Pacific market,” he said. “We will export products from
the plant and contribute greatly to the Korean economy.” Importance of Korean
market The investment plan
shows that Ecolab’s global headquarters recognize the importance of the Korean
market, according to Ryu. Compared to Ecolab’s
other subsidiaries, Ecolab Korea has grown more rapidly. The Ecolab Korea
chief anticipated $200 million in revenue this year from domestic market. “Ecolab’s revenue
has grown 4 to 5 percent globally every year, but in Korea, it has continuously
enjoyed double-digit growth,” he said. “In terms of ESG management, the Korean
market outpaces the Japanese market.” On the occasion of
the 100th anniversary of the global headquarters, Ecolab Korea plans to hold a
celebration event in mid-December with its employees. Ryu, who has led
Ecolab Korea over the past decade after joining the firm three decades ago,
promised that he will do his best for the happiness of the company’s employees. Source: https://koreatimes.co.kr/www/tech/2023/12/419_364206.html?da
2023.12.05
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