[Edaily Reporter Kim Hyun-ah ] KOLON CORPORATION is setting out to capture the ESG (Environmental, Social, and Governance) integrated management market by leveraging its proprietary supply chain due diligence solution. The company has combined its solution—which assesses the ESG levels of business partners, identifies vulnerabilities, and manages improvements—with SAP’s ESG management solution.

#KOLON CORPORATION’s AX specialist, Kolon Benit, announced on the 3rd that it is supporting the establishment of ESG management systems by combining SAP’s ESG management solution—developed by the enterprise management software company—with its own in-house ESG supply chain audit solution.

The in-house supply chain audit solution does more than simply assess the ESG management levels of partner companies and assign ratings. It analyzes areas of vulnerability to identify improvement tasks and manages the actual implementation of those tasks. According to the company, this enables continuous management of ESG levels across the entire supply chain.

KOLON CORPORATION plans to integrate this solution with SAP’s “BTP (Business Technology Platform).” BTP is an integrated technology platform that enables companies to connect, analyze, and develop data and business processes across multiple systems. The company envisions using this platform to connect everything—from the collection of internal ESG source data to carbon emissions calculation, disclosure, and partner management—into a single, unified system.

The growing demand for related systems, driven by mandatory ESG disclosures and strengthened supply chain management, is another factor behind the business expansion. Last July, the government finalized a disclosure roadmap requiring listed companies above a certain size to include ESG information in their business reports. Starting with KOSPI-listed companies with consolidated assets of 10 trillion won or more in 2028, the scope of the requirement will be expanded in phases.

In particular, there is a growing need to manage “Scope 3” greenhouse gas emissions—those generated not only by the company itself but also throughout the supply chain, including business partners. This means companies must establish a system capable of not only collecting their own data but also obtaining, verifying, and managing ESG information from their business partners.

KOLON CORPORATION also highlights its data integration capabilities, built through experience implementing SAP Enterprise Resource Planning (ERP) and human resources management systems. ERP is a system that integrates and manages key business operations such as accounting, procurement, production, and inventory. The company’s strategy is to leverage this experience to link ESG-related data scattered throughout the organization with existing systems and to integrate information collected from the supply chain.

KOLON CORPORATION also utilizes SAP’s “SCT,” an ESG data integration and disclosure solution, and “SFM,” a carbon footprint calculation solution. SCT consolidates and manages a company’s ESG data in one place and supports compliance with disclosure requirements, while SFM calculates the carbon footprint of a company or product based on data regarding raw materials and components.

Going forward, the company plans to expand its scope beyond ESG data collection and supply chain due diligence to include ESG disclosure based on consolidated standards and carbon accounting.

Jeong Ju-young, Senior Vice President at KOLON CORPORATION Benit, stated, “When building an ESG system, it is more important to accurately link and utilize scattered data than which specific solution is used,” adding, “Based on our experience in implementing ERP and HR management systems, as well as our proprietary supply chain due diligence technology, we will support companies in their ESG disclosure and supply chain management efforts.”