Dong-A Pharmaceutical earns top 'A+' ESG rating, placing among top 0.5% of non-financial listed firms

Dong-A Pharmaceutical has received an overall A+ rating — the highest possible — in the ESG assessment conducted by the Korea Institute of Corporate Governance and Sustainability (KCGS), recognizing the company's governance transparency and sustainable management capabilities.

Dong-A Pharmaceutical announced Thursday that it received the integrated A+ rating in the latest KCGS ESG assessment.

The upgrade was driven by a one-notch improvement in the governance category, which rose from A to A+. Only four companies — representing the top 0.53 percent — achieved an A+ governance rating among the 749 non-financial listed companies subject to the assessment. The social category retained its existing A+ rating, and the environmental category held steady at A, reflecting strong performance across all three pillars.

To establish a transparent management framework, Dong-A Pharmaceutical launched a "Social Responsibility Council" in 2020, composed of the group's chief executives, to oversee ESG strategy and key social responsibility initiatives.

Particularly notable were steps to strengthen board independence: a majority of board seats are held by independent directors, the roles of chief executive and board chair have been separated, and annual evaluations of the board and outside directors are conducted with results disclosed publicly. The audit committee, ESG committee and compensation committee are each composed entirely of independent directors. Two financial and accounting specialists sit on the audit committee to reinforce its oversight function, while the ESG committee independently reviews and approves major matters including intra-group transactions.

Other major listed affiliates within Dong-A Socio Group also posted strong ESG results. Dong-A ST received an integrated A rating and ST Pharm an integrated B+, with both companies earning the top A+ score in the social category.

Dong-A ST has installed solar power facilities at its Cheonan and Songdo campuses to increase its renewable energy share, and operates Happy Car Wash, a directly employed workplace for people with disabilities that supports the economic independence of vulnerable groups. ST Pharm has introduced continuous flow technology to improve the efficiency of its pharmaceutical manufacturing processes and reduce environmental impact.

"We are honored to have our sustainable management efforts recognized through the top governance rating and an integrated A+," a Dong-A Pharmaceutical official said. "We will continue to grow as a sustainable company grounded in environmental protection, social responsibility and transparent management."

The results are significant in that proactive governance reforms — including strengthening board independence and tightening oversight of intra-group transactions — translated directly into a quantifiable top-tier ranking among non-financial listed companies.