SM Entertainment’s sustainable management report “Promise to operate a transparent and professional board of directors”
SM Entertainment (hereinafter SM, CEO Jang Chul Hyuk) published a sustainable management report containing the results of ESG (environmental, social, governance) management activities last year.
In terms of governance, the report highlights efforts to enhance sustainable shareholder value and operate a transparent and professional board of directors. SM significantly expanded the proportion of female directors, including external directors, to promote independence, expertise and diversity within the board of directors. The board of directors consists of a total of 10 members, with 40% of them being female.
The company appointed an external director as the board of directors’ chairman and established 4 committees under the board of directors including the Governance Committee, which is responsible for reviewing and approving long-term sustainable management policies, ethical practices and policies related to shareholder value enhancement.
In terms of social, the report focuses on efforts to create a positive working environment, implement human rights practices as well as improve safety and health management. Regarding environment, it includes initiatives for protecting natural ecosystems, promoting an environmentally-friendly corporate culture and reducing resource consumption and waste.
Through these efforts, SM joined the UN Global Compact (UNGC) in June last year and obtained ISO 14001 certification for environmental management in December of the same year, gaining external recognition for their ESG initiatives.
For the future, SM unveiled their “SM 3.0” strategy, which includes 5 key growth strategies such as establishing an advanced corporate governance structure, expanding the multi-production center system, maximizing the value of intellectual property through global expansion, investing in music publishing and implementing a shareholder return policy based on an optimal capital structure.
Source: Daum
