이 기사는 2021년 11월 09일 08:06 thebell 에 표출된 기사입니다.

South Korea’s National Pension Service (NPS) has issued a request for proposals seeking an advisory firm to establish a process and framework to screen companies engaging in coal-related activities.

Proposals are due by November 12, with a final selection expected at the end of this month, according to the RFP.

The selected firm will be responsible for studying regulations in industries related to coal mining and power generation, evaluating the effects of such regulations on company values, and examining domestic and overseas practices that limit investment in coal mining businesses and projects.

The selected firm will need to submit a final report by March 2022 with recommendations on the criteria and methodology to screen investments according to the pension fund’s pledge to exit coal.

“This is part of efforts to enhance the fund’s returns steadily over the long term,” NPS said. “We will establish a framework to reduce exposure to the coal mining and power generation industries.”

The move comes after NPS’ fund management committee approved to declare a coal exit in May this year, with the pension fund subsequently vowing to integrate that policy into its investment strategy in phases.

In 2019 NPS introduced a negative screening process to exclude industries and companies deemed to have low environmental, social and governance (ESG) standards – such as weapons and coal mining – in its push for socially responsible investing.

NPS will finalize internal guidelines in the first half of next year based on the selected firm’s report and opinions of stakeholders from a range of sectors. This is expected to accelerate the pension fund’s divestment from fossil fuel companies in the future.

NPS had 930.5 trillion won ($785.2 billion) in assets under management at the end of August 2021, with its assets expected to grow to 1,778 trillion won by 2041. (Reporting by Hee-yeon Han)