NongHyup Financial Group Signs First Green Finance Activation MOU with Ministry of Environment Among Financial Holding Companies

Accelerating Carbon Neutrality and Green Finance Initiatives Beyond Coal Phase-Out

At the 'Business Agreement Ceremony for the Activation of Green Finance' held on the 18th at the NongHyup Financial Headquarters located in Jung-gu, Seoul, Kim Kwang-soo, Chairman of NongHyup Financial (first from the right in the photo), Cho Myung-rae, Minister of Environment (second from the right in the photo), and Yoo Je-cheol, President of the Korea Environmental Industry & Technology Institute (third from the right in the photo), are taking a commemorative photo after the agreement ceremony.

[Asia Economy Reporter Jo Gang-wook] NH Nonghyup Financial Group announced on the 18th that it signed a 'Business Agreement for the Activation of Green Finance' with the Ministry of Environment and the Korea Environmental Industry & Technology Institute at the Nonghyup Financial headquarters located in Jung-gu, Seoul, to successfully implement the Green New Deal and the 2050 carbon neutrality goals.

Through this agreement, Nonghyup Financial, the Ministry of Environment, and the Korea Environmental Industry & Technology Institute plan to promote cooperative projects in the field of green finance to support the green transition across society and the economy.

According to the agreement, Nonghyup Financial will participate and cooperate in expanding investments in green sectors and environmentally responsible investments, providing financial support to excellent green management companies, and establishing green finance systems. The Ministry of Environment will be responsible for supporting investments in green sectors and environmentally responsible investments, building institutional foundations for green finance, and spreading and promoting project outcomes. The Korea Environmental Industry & Technology Institute will support by providing environmental information for environmentally responsible investments and financial support for excellent green management companies.

The Ministry of Environment is focusing on establishing institutional foundations so that green finance becomes a socio-economic principle rather than a mere event. It plans to prepare clear classification criteria for green economic activities, which form the basis of the green finance system, by June next year and gradually advance them. Additionally, to activate green bonds with high market ripple effects, it plans to establish green bond guidelines by December this year.

By signing an MOU with the Ministry of Environment for the first time among financial holding companies to activate the Green New Deal and green finance, Nonghyup Financial has firmly established its position as an 'eco-friendly financial company.' Starting with this MOU, Nonghyup Financial explained that it plans to actively promote carbon-neutral financial support, including coal phase-out, and ESG investments.

Nonghyup Financial is currently establishing a management strategy that includes building a group ESG management system and investment processes. In particular, it plans to announce a financial investment plan encompassing coal phase-out and 2050 carbon neutrality within this year.

Kim Kwang-soo, Chairman of Nonghyup Financial, emphasized, "This agreement will be an opportunity to create a green industry ecosystem," adding, "Nonghyup Financial will strive to fulfill its role at the national level as the country's top social contribution financial institution and an environmentally responsible investment specialized financial company."

Cho Myung-rae, Minister of Environment, said, "Taking this agreement as an opportunity, we will prepare green finance policies so that green finance can act as a key means to achieve the green transition throughout our society," and added, "While government policies are important, the responsibility and role of the financial sector are paramount, so we will expand cooperation with the financial sector to activate green finance."

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