Shinhan Financial Group Declares Carbon Neutrality "Targeting All Assets by 2050"

East Asia Financial Group's First Zero Carbon Declaration
Aiming for Zero Carbon Emissions Within Group and Asset Portfolio by 2050
Setting a New Standard for Eco-Friendly Finance for Future Generations

[Asia Economy Reporter Kangwook Cho] Shinhan Financial Group has declared ‘Zero Carbon’ and decided to reduce the carbon emissions of the asset portfolio owned by the group to ‘zero (0)’ by 2050.

On the 13th, Shinhan Financial held a Social Responsibility Management Committee under the board of directors and announced on the 15th that it declared the eco-friendly strategy ‘Zero Carbon Drive’ to actively participate in international cooperation on climate change as the first East Asian financial group.

Shinhan Financial’s ‘Zero Carbon Drive’ is a differentiated eco-friendly financial strategy aligned with international carbon neutrality policies. It not only manages loans and investments in high carbon-emitting companies and industries but also contributes to the transition to a low-carbon economy by expanding eco-friendly financial support within industries.

Through the ‘Zero Carbon Drive,’ Shinhan Financial has presented a new standard for eco-friendly finance by precisely measuring and systematically managing the carbon emissions of assets, which has not been attempted in the industry until now.

Going forward, Shinhan Financial plans to reduce the group’s own carbon emissions by 46% by 2030 and 88% by 2040, and also reduce the carbon emissions of the group’s asset portfolio by 38% by 2030 and 69% by 2040.

Along with this, the group has set a goal to make the carbon emissions of its asset portfolio ‘zero’ by 2050 by expanding eco-friendly financial support such as loan support for eco-friendly technology companies, capital investment in renewable energy projects, and eco-friendly facility conversion for companies and industries.

Before the establishment of global standards for carbon emission measurement, Shinhan Financial has built a database (DB) that calculates and manages carbon emissions considering the group’s asset portfolio for a total of 1,042 domestic companies subject to carbon emission rights allocation and greenhouse gas & energy target management.

To scientifically promote the ‘Zero Carbon Drive,’ the group plans to further advance its carbon emission measurement model by utilizing the methodology presented by the Partnership for Carbon Accounting Financials (PCAF). It also plans to join international organizations such as the Science Based Targets initiative (SBTi) and PCAF to have its emission reduction targets internationally verified.

Recently, countries around the world have been establishing greenhouse gas reduction plans under the Paris Climate Agreement. The European Union, South Korea, and Japan have declared carbon neutrality by 2050, and China by 2060. Additionally, global financial companies such as HSBC, Barclays, and ANZ have declared carbon neutrality by 2050 and are promoting its reflection in their businesses.

Shinhan Financial Chairman Yong-byeong Cho said, “Expanding eco-friendly finance is an essential role of finance for future generations,” adding, “Under the group’s mission to make the world better through finance, Shinhan will do its utmost to spread positive influence in our society.”

This content was produced with the assistance of AI translation services.