Celltrion announced on the 11th that it has earned the top 'AAA' rating in the Environmental, Social and Governance (ESG) assessment by MSCI, a global investment information provider, for the first time.
By receiving the highest rating, two notches above its previous A rating, Celltrion demonstrated world-class ESG management capabilities. The company explained that this result reflects its systematic ESG management activities and achievements in advancing sustainable management to date.
The MSCI ESG assessment is a representative ESG metric that compares and evaluates companies' risk management capabilities regarding opportunities and risks related to the Environment, Social factors, and Governance against global peers. Global institutional investors and asset managers use it as a key criterion for analyzing corporate ESG risks and making investment decisions. Ratings range from the highest AAA to the lowest CCC across seven tiers. AAA is the highest rating awarded to leading companies with excellent ESG risk management capabilities.
In the environmental sector, Celltrion is advancing its environmental management system by focusing on managing the environmental impact of all production processes, conserving natural capital (the value of the natural environment and ecosystems that benefit human life and economic activities), and promoting resource circulation. The company is also continuously expanding biodiversity conservation activities in accordance with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), an international framework designed to help companies identify and manage their impacts on nature and nature-related risks and opportunities.
Last year, Celltrion expanded its Life Cycle Assessment (LCA), which analyzes the environmental impact of all processes from raw material sourcing to disposal, to 11 biosimilar products. By establishing an LCA data management system and an in-house analysis system, the company laid the foundation for conducting regular assessments.
In the social sector, Celltrion has developed a medium- to long-term roadmap for strengthening human rights management and is implementing it step by step. The company has advanced its human rights management framework by expanding human rights education and related programs while broadening the scope of its annual human rights impact assessments to include partners and local communities.
Celltrion is also carrying out activities to improve medical environments in developing countries. Using funds raised through "Cellup Market," a bazaar involving employees, the company donated essential medical equipment, such as electric surgical drills, to a local hospital in Madagascar and provided cell pathology training for local medical staff.
In terms of employment and welfare, Celltrion was selected as a "Top Job-Creating Company in Korea" for two consecutive years through last year, recognizing its achievements in expanding youth hiring and creating an employee-friendly work environment.
In the governance sector, Celltrion strengthened the independence and accountability of its board of directors by introducing a senior independent director system, among other measures. The company is also striving to enhance shareholder value through shareholder returns via the acquisition and cancellation of treasury shares, as well as continuous communication with shareholders.
Celltrion has earned an integrated 'A' rating for three consecutive years in the ESG assessment conducted by Korea ESG Standards Institute (KCGS), a domestic ESG evaluation body. Through this, Celltrion has secured excellent ratings in major domestic and international ESG assessments, including MSCI and KCGS, gaining recognition for its sustainable management capabilities.
While advancing its ESG management, Celltrion continues to grow its performance and demonstrate biosimilar competitiveness in the global market. In the third quarter of this year, on a consolidated basis, the company recorded revenue of 1.5755 trillion won and an operating profit of 525.3 billion won, setting a new quarterly record. It achieved its highest-ever operating profit even after reflecting research and development (R&D) costs for new drugs and next-generation biosimilars. The strong results were driven by factors such as the rising global market share of high-margin new biosimilar products.
A Celltrion official said, "Earning the top 'AAA' rating in this MSCI ESG assessment is a result of our efforts being recognized for consistently working toward sustainable management." The official added, "Going forward, we will continue to advance our ESG management, fulfill our social responsibilities as a global comprehensive biotechnology company, and strengthen the foundation for sustainable growth."
in THEBIO
