KBCSD Disseminates
Policies to Promote Green Growth
- Proactive steps needed to spur corporate activities and environmental protection

KBCSD, in its third year since its inception in 2002, has made strenuous efforts toward sustainable development by conducting research on strategies and policies on sustainable development for continued economic growth.
Hur Dong-soo, the chairman of Korea Business Council for Sustainable Development (KBCSD) said, "Large-sized corporations will implement voluntary environmental protection programs designed to transmit expertise on sustainable management to SMEs and promote exchanges among companies to share know-how on reduction of greenhouse gasses."
KBCSD will actively participate in drawing up the government's third package of measures to cope with the Kyoto Protocol, and also take the initiative in developing greenhouse gas reduction plans by the business sector, Chairman Hur, also the chairman and CEO of GS-Caltex, said in an interview prior to MCED 2005.
He said KBCSD is putting more energy into developing environmental technology with the government as well as sharing information on global environmental regulations in a bid to cope with rising environmental restrictions.
For the benefit of both the environment and the economy, the government should reinforce policies that encourage companies to voluntarily protect the environment while carrying on their activities, rather than develop more stringent restrictions, he noted. The following are the excerpts of the interview.

Question: Would you specify the major issues that will be taken up during the Private Sector Forum, being sponsored or organized by the Ministry of Environment and UNESCAP?
Answer: The Private Forum, titled , "Corporate and Public Policies to Promote Green Growth" is aimed at not only raising the importance of collaboration between corporations and society, and innovation on the part of government and corporation for an environmentally sustainable development, but also disseminating sustainable management among the business community and exploring rational policies for sustainable development. Korea Business Council organized the forum for Sustainable Development (KBCSD) and the Asian Development Bank (ADB).
Session One will deal with the status of environmental management in the domestic industry, ADB's presentation of corporations' social responsibility and ESCAP's proposal on government-civilian partnership. Practices related to domestic companies environmental management and their strategies to expand "Green Management" will be introduced during Session Two. Examples of developing domestic infrastructure for sustainable management will be announced under the theme of "Future Tasks for Sustainable Management" during Session Three.

Q: What do you suggest as corporate management policies for harmonizing environment and economic development in a bid to ensure sustainable development?
A: First of all, corporations individually are required to have all staff members, including the CEO, declare their determination to ensure sustainable management, and they have to form a company task force connected with corporate strategies and philosophy to support the cause. At the same time, companies need to strengthen protection of human rights of the underprivileged, such as employment of minors, women and disabled people.
Each company is asked to induce sustainable management among its related upstream and downstream industry companies, develop common programs on environmental sustainability and share best practices to enhance sustainable development.
Corporations will have to take such measures as analyzing developments on sustainable management through international collaboration networks.

Q: Could you comment on the third anniversary of KBCSD on March 21?
A: Since its establishment in 2002, when even the concept of sustainable development was uncommon, KBCSD has made strenuous efforts toward sustainable development for continued economic growth of Korea and domestic corporations by conducting research on strategies and policies on sustainable management, publishing materials,and organizing diverse events.
As concerns and demands for globally sustainable management have mounted in the wake of the recent force of the Kyoto Protocol taking effect and increasing emphasis on companies' environmental and social responsibilities, KBCSD plans to explore a variety of projects for corporate sustainable management and sustainable economic growth in the future.
KBCSD seeks to become an institution that leads Korea's sustainable development by strengthening its presence through reinforcement of staff members, opening its office and corporate registration.

Q: What activities does KBCSD conduct?
A: KBCSD draws up and implements sustainable management strategies, spreads awareness of sustainable management, establishes international collaboration networks, and pursues projects designed to cope with environmental issues.
Specifically, KBCSD has carried out research on implementation tasks on sustainable development and business sector's measures against the United Nations Framework Convention on Climate Change. As part of its efforts to spread awareness of sustainable management, it has organized such forums as the one on strategies and tasks of sustainable management in an era of global limitless competition and a session on presenting best practices of sustainable management.
KBCSD holds meetings with foreign environment experts to build up an international collaboration network, visit and survey exemplary companies on sustainable management, KBCSD also expresses its opinions regarding corporate sustainability prior to amendment of such laws as the Special Measures on Seoul Metropolitan Area Air Quality Improvement.

Q: Would you explain the background of your company's name change from LG-Calex Oil to GS-Caltex?
A: GS-Caltex is the flagship of GS Holdings Corp, which was split from LG Group in July 2004. The Fair Trade Commission approved the split of the energy and distribution service units of LG Group into GS Holdings Corp. in January 2005. LG-Caltex will change its name to GS Caltex, effective as of March 31, 2005, and adopt a new CI/RI/BI.
The new corporate identity is made up of the color orange, which symbolizes the dynamics of energy, as well as blue and green, each representing leadership through transparent management and stable growth.
The new name GS Caltex indicates its status as the flagship of GS Holdings as well as its position as a specialized total energy service company armed with a global competitive edge by removing "Oil" from its name. GS-Caltex's position has become stronger than before since it accounts for some 80 percent of the assets of GS Holdings Corp.
The company plans to strongly present its new image through integrated marketing activities, including TV and newspaper advertisements and various sales promotion activities. At the same time, it is making efforts to raise the value of the GS- Caltex brand by developing new customer service models and implementing group-wide common marketing activities.

Q: Would you tell our readers about your company's overseas resources development projects?
A: GS-Caltex struck oil in all of the four drilling wells in Cambodia's Block A Mining Zone last January. The results of a survey on the exploratory drilling 130 km off the west coast of Cambodia showed that crude oil reserves are 41 to 149 feet thick, depending on the location of the drilling, and they are found to be in a high quality.
GS Caltex has a 15 percent interest in the exploration project, along with ChevronTexaco Corp. of the United States, which has a 55 percent stake and Japan's Mitsui Oil Exploration Corp., which has a 30 percent interest. Each partner has ownership over future production of crude oil and gas according to each stake.
Under a new vision of striving to become a Leader in Providing Total Energy Service, unveiled in 2000, GS-Caltex has expanded its business domains as an integrated energy service provider, including LNG, city gas, electric power, exploration and production, alternative energy, e-Business and convenience retail on top of the existing petroleum and petrochemical businesses.
GS-Caltex plans to prepare for high crude oil prices by directly participating in exploration and production projects to secure a stable supply of crude oil and ensure long-term profitability by developing various energy resources.

Q: What steps do businesses plan to take to cope with the Kyoto Protocol on climate change?
A: The business community will announce its own voluntary action plans and annual implementation schedules to reduce environmental waste and greenhouse gases by industry.
Large-sized corporations will implement voluntary environmental protection programs designed to transmit expertise on sustainable management to SMES and promote exchanges among companies to share know-how on reduction of greenhouse gases.
KBCSD will actively participate in drawing up the government's third package of measures to cope with the Kyoto Protocol, and also take the initiative in developing greenhouse gas reduction plans by the business sector.
It is redoubling its efforts to develop environmental technology with the government as well as sharing information on global environmental regulations through an information network on environmental regulations of advanced economies, operated by KBCSD and the Ministry of Environment.
KBCSD will work toward expanding overseas projects to gain greenhouse gas emission rights.

Q: What is your view on Korea's environmental policies?
A: Corporations, the government and consumers are now asked to conduct activities conducive to the environment as the public concern over the environment and demands for a better environment have increased.
In accordance with this trend, the government has developed and implemented a variety of regulations and policies aimed at protecting the environment, some of which cause difficulties to companies by dampening corporate activities and hindering continued growth.
As environmentally advanced countries such as the EU and Japan and trading partners like China have strengthened environmental restrictions, companies have strived to protect the environment by operating antipollution equipment, reducing resource consumption and encouraging recycling as well as implementing the life cycle assessment system concerning eco-friendly production, sale, disposal and retrieval.
For the benefit of both the environment and the economy, the government should reinforce policies that encourage companies to voluntarily protect the environment while carrying on their activities, rather than develop more stringent restrictions. nw