Kolon Benit headquarters. /Courtesy of Kolon Benit

Kolon Benit, Kolon Group's artificial intelligence transformation (AX) specialist corporations, said on the 3rd it will expand projects to build ESG integrated management systems by combining the SAP Sustainability solution with its self-developed ESG supply chain due diligence solution.

Recently in Korea, more corporations are considering adopting systems to manage ESG data in an integrated way ahead of mandatory ESG disclosures. In particular, starting in 2028, KOSPI-listed companies with 10 trillion won or more in consolidation asset must disclose ESG information including subsidiaries. As the scope of applicable corporations is expanded in stages and the disclosure range broadens to greenhouse gas emissions occurring in the supply chain, such as from partners (Scope 3), corporations must manage not only internal data but also supply chain ESG data.

Accordingly, Kolon Benit will move to expand projects to build ESG integrated management systems based on SCT (Sustainability Control Tower) and SFM (Sustainability Footprint Management) of the SAP Sustainability solution. SAP SCT is a solution that integrates ESG data within corporations to support responses to disclosures and regulations, and SAP SFM uses data such as raw materials and parts to calculate carbon footprints at the corporation and product level.

Kolon Benit said it has built data-integration capabilities by carrying out numerous SAP S/4HANA (ERP) and SAP SuccessFactors (HR) projects, where ESG source data is accumulated.

Along with this, Kolon Benit developed an ESG supply chain due diligence solution tailored to domestic conditions to respond to supply chain due diligence. From diagnosing partners' ESG management levels to ESG rating evaluations, vulnerable-area analysis, and deriving and executing improvement tasks, it supports practical ESG-level improvements across the supply chain.

Kolon Benit plans to implement the supply chain due diligence solution in BTP (Business Technology Platform), SAP's technology platform environment, to support the entire process on a single platform—from collecting ESG source data to calculating emissions, disclosure reporting, and supply chain management. It also plans to expand the build scope into various areas such as ESG consolidation disclosure (SAP Group Reporting) and carbon accounting (SAP Green Ledger) of the SAP Sustainability solution, based on its in-house capabilities in consolidation accounting and business planning solutions.

Executive Director Jung Joo-young of Kolon Benit said, "The key to success or failure in building an ESG system is not 'which solution you use' but 'how precisely you integrate scattered data,'" adding, "Based on our diverse ERP and HR implementation experience and technical capabilities, we will support customers to respond effectively to ESG disclosures."

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