Engagement history

Since 2019, KEPCO has been under increasing pressure to renege on four planned overseas coal projects. In 2020 a CA100+ coalition, led by the Church Commissioners, Sumitomo Mitsui Asset Management, APG, and UBS, publicly denounced KEPCO, threatening divestment and writing to the South Korean Energy Minister. A more recent coalition of 21 investors, led by Nordea, has similarly criticised KEPCO’s overseas strategy. Private dialogues conducted by BlackRock and LGIM have escalated into public engagements. Out of the four planned investments, KEPCO has committed to drop or convert plants in the Philippines and South Africa and is going ahead with their projects in Vietnam and Indonesia. These will be their last overseas coal investments. KEPCO has targeted an 18% reduction in coal capacity by 2030, yet simultaneously aims to increase its purchase of thermal power produced by Independent Power Producers by almost 60% by 2030. The report shows engagements on business models changes have had the most real-world impact. Therefore engagers could continue to pressure KEPCO and the South Korean Energy Minister to stop Vung Ang 2 and Jawa 9 and 10.