Son Byunghwan, Chairman of NongHyup Financial, Announces 'ESG Vision'... "Declaration of Coal Phase-Out Finance"

'ESG Transformation 2025' Vision Declaration
Chairman Son Byunghwan: "We Must Spread the Perception of 'NongHyup = ESG'"

On the 3rd, at the conference room of the NongHyup Financial Group headquarters in Jung-gu, Seoul, Son Byung-hwan, chairman of NongHyup Financial Group, officially announced the ESG vision and the declaration of coal divestment finance at the 2021 Management Strategy Meeting.

NH Nonghyup Financial Mid-term Strategy and 2021 Management Direction Report

[Asia Economy Reporter Kiho Sung] Sohn Byung-hwan, Chairman of NH Nonghyup Financial Group, will lead this year’s ‘Environmental, Social, and Governance (ESG)’ management. To this end, Chairman Sohn plans to establish an ESG Strategy Council under his leadership and transform the group into an eco-friendly financial group.

According to Nonghyup Financial on the 4th, Chairman Sohn held the ‘2021 Management Strategy Meeting’ yesterday at the headquarters’ video conference room in Jung-gu, Seoul, attended by CEOs of affiliates, executives of the holding company and affiliates, and department heads, where he declared the ESG vision and coal phase-out finance.

At the meeting, Chairman Sohn declared the ‘ESG Vision and Coal Phase-out Finance.’ Nonghyup Financial aims to respond to climate change risks and align with the government’s carbon neutrality declaration and Green New Deal policy by proclaiming the ‘ESG Transformation 2025’ vision, a complete transition to an ESG management system to become an eco-friendly financial group.

Furthermore, the group declared ‘coal phase-out finance,’ which includes refraining from investing in new project financing (PF) loans and bonds for domestic and overseas coal power plant construction, while expanding investments in eco-friendly businesses and renewable energy sectors.

In line with this, Nonghyup Financial will establish a control tower by creating the ‘Social Value and Green Finance Committee,’ an ESG-related committee within the board of directors, and the ‘ESG Strategy Council’ chaired by the chairman. The existing dedicated organization, the ‘ESG Promotion Team,’ will also be upgraded to the ‘ESG Promotion Group.’

Reflecting Nonghyup’s characteristics, ESG investments will pursue a two-track strategy: ‘Green Impact Finance,’ such as investments in renewable energy, and ‘Agricultural Impact Finance,’ supporting eco-friendly agriculture and agrifood companies.

To enhance ESG execution capabilities, a pivoting strategy has also been established. Nonghyup plans to strengthen its identity and social contribution role by expanding rural volunteer activities related to the environment, and immediately implement activities converting physical resources to eco-friendly ones, such as replacing company vehicles with electric cars and installing solar panels.

On the 3rd, at the conference room of the NongHyup Financial Group headquarters located in Jung-gu, Seoul, Son Byung-hwan, chairman of NongHyup Financial Group, officially announced the ESG vision and the declaration of coal phase-out finance at the 2021 Management Strategy Meeting.

Control Tower Established and Dedicated Organization Upgraded to Activate ESG

Chairman Sohn stated, "ESG is not a temporary trend but a proactive approach ahead of the times. Nonghyup will systematically execute ESG by redefining its existing financial and social contribution activities from an ESG perspective."

He also emphasized that “Nonghyup, which has grown together with agriculture and rural communities, is inherently an organization optimized for ESG,” urging that the perception of ‘Nonghyup = ESG’ and ‘Nonghyup is ESG’ should spread the value of Nonghyup Financial’s existence and advance it as a financial group contributing to the public, local communities, and the environment.

Meanwhile, Chairman Sohn awarded excellent subsidiary awards to Nonghyup Bank, Nonghyup Life Insurance, Nonghyup Property & Casualty Insurance, NH Investment & Securities, and NH Savings Bank, encouraging their efforts by saying, "Despite difficulties in face-to-face marketing and having set aside maximum provisions for future losses, you achieved your profit targets."

The Nonghyup Financial Person of the Year award went to Manager Lee Ui-seon of Nonghyup Bank. Manager Lee was recognized for multiple awards as the bank’s ‘Best Banker,’ conducting financial education for client companies and promoting Nonghyup products. The award, given to a total of eight people, also conferred special promotions and raises.

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