Shinhan Bank Declares 'Coal Phase-Out Finance'... Practicing ESG Management

Jungsanghyuk, Head of the Management Planning Group at Shinhan Bank, is declaring support for climate finance to achieve carbon neutrality.

[Asia Economy Reporter Kwangho Lee] Shinhan Bank announced on the 10th that it will participate in 'decarbonization finance' by not engaging in project financing (PF) for the construction of domestic and overseas coal power plants and not acquiring bonds for coal power plant construction.

On the 9th, Shinhan Bank officially declared its commitment to decarbonization finance by attending the 'Climate Finance Support Declaration Ceremony' hosted by the Korea Socially Responsible Investment Forum.

This Climate Finance Support Declaration is a pledge to practice climate finance to achieve carbon neutrality by 2050. Shinhan Bank has fulfilled all three practical commitments: the decarbonization finance declaration, signing the Carbon Disclosure Project (CDP), and supporting the Task Force on Climate-related Financial Disclosures (TCFD), thereby enhancing its climate risk response and climate finance competitiveness.

Shinhan Bank became the first domestic commercial bank to join the Equator Principles in September last year and has been conducting financial transactions in accordance with environmental and social risk management principles to fulfill the environmental and social responsibilities of financial institutions. Regarding PF, it applies the 'Equator Principles screening process' for review, and plans to introduce the Equator Principles review process to its global network starting with its local subsidiary in Vietnam this year.

In his New Year's address, Jin Ok-dong, President of Shinhan Bank, stated, "Reflecting again on the founding principle of being a bank for the country, we will actively engage in creating social value such as ESG (Environmental, Social, and Governance) and innovative financial support."

To further expand ESG management at the enterprise level, Shinhan Bank established an ESG Planning Team within the Strategic Planning Department, which plans ESG projects and serves as the control tower for all ESG-related projects across the bank. To practice ESG environmental management, the bank plans to introduce about 30 electric vehicles for business use within the year, accelerating internal eco-friendly management. Additionally, it plans to apply for the position of working group leader at the Equator Principles Association to expand its influence as a financial institution that has joined the Equator Principles.

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