▲ A cover of an ESG Report compiled by SM Entertainment Issues, provided by the K-pop entertainment agency on June 28, 2024. (PHOTO NOT FOR SALE) (Yonhap)

 

SEOUL, June 28 (Yonhap) -- SM Entertainment announced on the 28th that it has published its third sustainability management report, detailing the achievements and strategic framework of its ESG (Environmental, Social, and Governance) management activities from last year.

 

In the governance sector, the report includes measures such as securing the independence of the board, maintaining a 50% proportion of outside directors, and enhancing shareholder value. SM has strengthened board responsibilities and independence by establishing four committees under the board: the Outside Director Nomination Committee, the Internal Transactions Committee, the Compensation Committee, and the Governance Committee.

 

Additionally, the company increased its dividend from 200 won per share in 2022 to 1,200 won per share last year and this year, maintaining a cash dividend payout ratio (dividends/net profit) of 34%. In February this year, SM also retired 241,379 shares (approximately 19 billion won) of treasury stock for the first time in its history to enhance shareholder value.

 

In the environmental sector, SM has been working on minimizing waste emissions, producing upcycled products from discarded banners, expanding the use of FSC (Forest Stewardship Council) certified paper, and creating the Kwangya Forest.

 

The social sector of the report highlights efforts in human rights management, strengthening welfare benefits, expanding communication with employees, and engaging in various social contribution activities. SM received a B+ rating from the Korea ESG Standards Institute last year.

 

CEO Jang Cheol-hyuk stated, "We have innovated our governance to enhance sustainable value, and by forming four subcommittees, we have strengthened the board's responsibilities and roles. We will pay more attention to creating a great workplace, enhancing human rights management, and ensuring fair competition and intellectual property protection."

 

Co-CEO Tak Young-jun added, "We aim to increase corporate and shareholder value through revenue generation, diversify our business, and expand into overseas markets. By leveraging SM's IP (intellectual property) and content, we seek to foster mutual growth with various content companies and contribute to the growth of the K-content industry."

 

 

 

 

 

 

[ⓒ K-VIBE. 무단전재-재배포 금지]