ESG Incident Analysis Report (2022) - Naver Corp.

This report utilizes ESG Incident Analysis which is based on the author’s artificial intelligence (AI) and news big data. In this report, multifaceted analysis on NAVER Corp.’s ESG risk can be found, such as its ESG risk score, risk score for each environmental, social, and governance issues and major news articles, risk score change trends, and ESG risk ranking within the same sector group.

NAVER Corp. (Korean: NAVER) is a public company listed in KOSPI market. It belongs to Information & Communication Technology sector. An AI-algorithm has analyzed that NAVER Corp. has Very High ESG risk for the past year. This report addresses what ESG incidents has happened to NAVER Corp. last year, which could be understood as a signal of a more severe ESG risks in the future.

ESG Incident Analysis analyzes news articles about corporate incidents in real-time through artificial intelligence (AI) to provide corporate environmental, social, and governance (ESG) risk data. First, we collect more than 10,000 articles daily from trusted Korean media and identify corporate news. Then, news articles are categorized into 17 ESG issues and risk scores through text analysis technology such as natural language processing and sentiment analysis. With the classified articles, the severity of Incidents and ESG risk of companies are assessed. Finally, in the analysis report we provide a company’s ESG risk score trends and peer comparison to our clients.

The following four aspects are taken into consideration when assessing ESG risks of companies.

01. Is this news article relevant to ESG?
ESG Incident Analysis analyzes news articles through natural language processing (NLP) and sentiment analysis to identify which company had an ESG incident that led to damages to stakeholders.
02. What type of ESG issue?
Each ESG incident is automatically categorized into one of the 17 ESG issues based on the international Standard on Corporate Social Responsibility (ISO26000). The more types of ESG issues a company has the higher its ESG risk score is.
03. How severe is the incident?
We analyze the severity of the incident in consideration of its impact to the society and environment, and its financial and legal consequences.
04. How frequent and recent was the occurrence of this ESG incident?
Our scoring methodology reflects the frequency and the timeliness of ESG incidents based on article-level analysis. ESG incident Analysis detects frequency of types of ESG issues that recur in a company.

In this report, all articles are scored from 0 to 5 (with 5 being the highest risk) based on the severity of risks for 3 ESG themes and 17 issues. The 17 ESG issue classifications are based on global guidelines regarding corporate social responsibilities such as ISO 26000, UN Global Compact's 10 Principles, UN Principles for Responsible Investment (PRI), and CFA Institute’s corporate governance manual.

Scope:

• Major Korean companies listed in Korean market
• Major unlisted bond issuing companies
• Major state-owned companies

Reasons to buy:

• The Incident Analysis utilizes local news of the companies, which will help you have an objective view of companies’ risk on a real-time basis.
• Investors can monitor ESG risks of the companies in their portfolio and mitigate bigger risks with early signals
• You can have a complete picture of a company's sustainability level from risk perspective along with performance data.
• The analysis has reflected on material issues of each sector classified by SASB (Sustainability Accounting Standards Board), which helps you give a thorough understanding of companies’ ESG risks with the same sector group.

This product will be delivered within 1-3 business days.