[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 

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