Headquarters of Korea Investment & Securities in Yeouido, western Seoul (Korea Investment & Securities)
Headquarters of Korea Investment & Securities in Yeouido, western Seoul (Korea Investment & Securities)

Korea Investment Holdings, the company behind South Korea's leading brokerage house Korea Investment & Securities, earned an MSCI rating upgrade for its efforts to boost environmental, social and governance initiatives.

MSCI ESG Ratings, a gauge provided by global index manager Morgan Stanley Capital International, evaluate a company's ESG performance against peers on a seven-notch scale, considering over 1,000 data points and 35 ESG Key Issues.

Under such metric, the Korean finance firm was upgraded by three notches from the second-lowest “B” to the third-top notch “A.”

The upgrade on MSCI ESG Ratings acknowledges the holding company's efforts to introduce an ESG-driven management system across its affiliates, the firm explained.

It also cited that its brokerage arm Korea Investment & Securities has been working on specializing in sustainable financing by launching a Carbon Solution unit. The unit takes on tasks related to the environment, such as dealing with carbon credits.

"A three-tier upgrade on the reputable and influential MSCI ESG Ratings is a distinguished feat across the global financing scene," an official from Korea Investment Holdings said.

"As ESG is a core element in the investment decision-making process for global investors, the achievement is expected to strengthen the long-term corporate value and trust in the company.”

By Im Eun-byel (silverstar@heraldcorp.com)