On December 10, 2025, the Ministry of Economy and Finance (MOEF) released the first-ever Public Institutions ESG Guidelines at the 11th Ownership Steering Committee meeting, with a view to enabling public institutions to play a leading role in promoting the adoption of ESG management practices.
[Background and Progress]
Amid the global expansion of ESG institutionalization and the growing emphasis on the social responsibility of public institutions, the need for systematic ESG management among public institutions has become increasingly evident. While many public institutions recognize the importance of ESG management*, they face challenges in introducing ESG practices due to limited experience and institutional capacity.
* A total of 288 public institutions (84.0%) indicated the need for ESG guidelines. (MOEF, May 2025)
In addition, although a wide range of ESG standards exists both domestically and internationally, there has been no ESG standard specifically designed to public institutions with a strong public-service mandate. Moreover, ESG-related information disclosed via the All Public Information In-One (ALIO) system has been presented mainly in the form of quantitative indicators, making it difficult for the general public to fully understand.
Accordingly, with the aim of developing ESG guidelines tailored to public institutions, a working-level task force comprising ESG experts from public institutions, research institutes, and academia was launched in March 2025, and in-depth discussions have since been underway. During the process, a broad review was conducted of domestic and international ESG standards and related research findings, and diverse input from field practitioners was also incorporated to enhance applicability for public institutions. In particular, public institutions with operational responsibility for each key indicator participated directly in the indicator development process, with efforts made to ensure a balanced reflection of institutional conditions and circumstances.
[Key Features]
The Public Institutions ESG Guidelines (hereafter “the Guidelines”) set out sub-indicators across the environmental (E), social (S), and governance (G) pillars that reflect the social roles and responsibilities of public institutions. Notably, the social (S) pillar includes indicators directly related to people’s daily lives, such as safety management, support for work-life balance, and performance in mutually beneficial procurement, thereby highlighting the unique functions of public institutions, unlike other ESG frameworks.
The Guidelines were designed primarily around indicators commonly applicable to all public institutions, while also presenting more advanced indicators, such as those related to climate risk and biodiversity, as voluntary disclosure indicators. Furthermore, by incorporating not only quantitative metrics for each indicator but also each institution’s level of achievement against its targets, its efforts and performance in pursuing those targets, and its future plans, the Guidelines are expected to make a significant contribution to enhancing public understanding of ESG management by public institutions.
Making full use of existing ALIO disclosures and statutory disclosure materials, the Guidelines are structured to serve as a practical manual for the preparation of ESG management reports by public institutions. They classify each indicator into mandatory and voluntary categories in consideration of differences in institutional capacity, and also provide illustrative examples of reporting.
[Key Points]
The Public Institutions ESG Guidelines comprise a total of 37 key indicators and 80 sub-indicators across the three ESG pillars to support public institutions in pursuing sustainable management that takes environmental, social, and governance considerations into account.
Structure of the Public Institutions ESG Guidelines
|
Category |
Key Content |
|
Overview |
▶ Covers the establishment and disclosure of ESG goals, including the formulation of objectives and strategies, stakeholder engagement, and materiality assessment. |
|
Environmental
(E) |
▶ Achieves a balance between environmental protection and social and economic needs
- Comprises a total of 13 indicators and 16 sub-indicators related to environmental factors such as greenhouse gas emissions, energy, and waste |
|
Social
(S) |
▶ Strengthens institutional social responsibility in areas such as safety, labor, human rights, and shared growth
- Comprises a total of 14 indicators and 38 sub-indicators for social responsibility, including labor, human rights protection, diversity, and social contribution |
|
Governance
(G) |
▶ Establishes a transparent governance structure through enhanced management transparency and ethical operations
- Comprises a total of 10 indicators and 26 sub-indicators covering board composition and activities, gender diversity, and internal audit functions across public institutions |
* Components by indicator: Rationale for selection, definition, basis for preparation / relevant laws and regulations, applicable institutions, key disclosure items, and examples of disclosure
[Future Plans]
As a first step toward supporting the facilitation of ESG management in public institutions, the Public Institutions ESG Guidelines will be followed by continued policy support to ensure the early establishment and wider adoption of ESG management systems across public institutions.
First, the Guidelines will be continuously revised and refined based on updates to international standards as well as feedback from experts and public institutions. In addition, drawing on the Guidelines, the Government plans to expand and systematize ESG disclosure items and strengthen linkages with ESG-related evaluation criteria in the management performance assessment framework.
Along with it, the Government intends to analyze ESG management information and publish a compilation of best practices, thereby facilitating the dissemination and sharing of management performance outcomes.
Please refer to the attached files.
