Research Reports

This study delves into the crucial area of corporate responses to climate change, with a specific focus on Korean construction companies. The primary goal is to delineate successful response strategies and tasks that enable these companies to effectively tackle the challenges posed by climate change. The research commences with an evaluation of the existing responses of Korean construction firms to climate change, followed by an extensive examination of global standards and guidelines pertinent to corporate climate change responses. Furthermore, the study scrutinizes response strategies and noteworthy initiatives implemented by leading advanced companies. Drawing implications from the analysis, the study formulates essential response strategies and tasks for Korean construction companies to navigate climate change successfully. These identified activities are structured in a five-step model. The initial step involves establishing a carbon emissions reduction roadmap, emphasizing the need for clear timelines, intermediate reduction goals, and target scopes. Detailed guidelines for achieving this objective are presented. The second step underscores the necessity of organizational design tailored for climate change responses. This includes establishing a climate change response committee, a dedicated department at the head office, and placing personnel at project sites. Clear roles, responsibilities, and work cooperation systems are deemed critical for analyzing risks, formulating response strategies, and overseeing implementation. The third step addresses the establishment and implementation of carbon-neutral strategies and major activity plans. Strategies encompass both carbon emission reduction and offsetting, with a focus on distinguishing between different carbon emission scopes. The study outlines key strategies and activities for each sector. The fourth step emphasizes the importance of measuring and providing feedback on performance related to climate change. A proposed performance measurement system includes key performance indicators (KPIs) for major strategies and activities. It is recommended to link KPIs with organizational evaluations and executive compensation systems. The efficient utilization of an information system for data calculation and aggregation is also underscored. The fifth and final step pertains to the verification and disclosure of carbon emission reduction goals and performance. Standard methodologies, including the Greenhouse Gas Protocol, are highlighted for calculating carbon emissions. External verification from a professional organization is suggested for performance indicators, and adherence to recognized guidelines, such as TCFD recommendations and SBTi methodology, is encouraged for the disclosure of climate change response activities and financial impacts.