Financial Holding Companies Pour Tens of Trillions into ESG... New Game Changer in the Financial Sector (Comprehensive)

Hana Financial Group to Raise and Supply 60 Trillion KRW in ESG Finance by 2030
KB and Shinhan Also Announce Large-Scale Investments... ESG as a Survival Condition for Companies

[Asia Economy Reporter Kiho Sung] As ESG (Environment, Social, Governance) emerges as a key condition for corporate survival, financial holding companies are going all-in on ethical finance by pouring tens of trillions of won into it.

Financial holding companies have declared 'coal phase-out finance' and established a management structure prioritizing ESG across all affiliates of their financial groups. Following large-scale investment declarations by KB Financial Group and Shinhan Financial Group, Hana Financial Group also announced it will invest 60 trillion won in ESG by 2030.

According to the financial sector on the 22nd, Hana Financial Group declared the establishment of the ESG mid- to long-term promotion goals '2030&60' and 'Zero&Zero,' which aim to procure and supply a total of 60 trillion won in ESG finance over the next 10 years.

The declaration ceremony held at 'H-Plus' located in front of Hongdae in Mapo-gu, Seoul, was attended by Chairman Kim Jung-tae and representatives of the group's affiliates.

Hana Financial Group's first ESG mid- to long-term goal, '2030&60,' targets a total of 60 trillion won in ESG finance procurement and supply in the environment and sustainability sectors over the next 10 years until 2030. This includes 25 trillion won in ESG bond issuance, 25 trillion won in ESG loans, and 10 trillion won in ESG investments. Through this, Hana Financial plans to provide extensive ESG financial support for solving social issues and eco-friendly businesses.

Additionally, the group will pursue 'Zero&Zero' as a strategic goal to achieve zero carbon emissions at group business sites and zero coal project finance by 2050. Over the next 30 years, all affiliates of the group will participate to achieve carbon neutrality and reduce the balance of coal project finance (coal PF) to zero.

To practice ESG management, Hana Financial Group has set three core strategic directions: ▲promoting transition to a low-carbon economy ▲expanding social contributions through finance ▲enhancing ESG management transparency and establishing a sustainable management decision-making system. To implement these swiftly and thoroughly on the ground, nine key tasks will be pursued simultaneously.

Chairman Kim Jung-tae said, "Through this declaration, we proclaim this year as the inaugural year of ESG management for Hana Financial Group and take a new step toward a sustainable tomorrow. Based on ESG management, we will do our best to improve the overall group’s structure and create social value with genuine change for future generations."

KB Financial Group ESG Committee meeting scene.

Financial Holding Companies Race to Declare ESG Management and Investment

Earlier, KB Financial Group also announced an ESG management roadmap including goals such as 'reducing carbon emissions by 25% by 2030.' The roadmap named 'KB Green Wave 2030' includes a target to increase ESG products, investments, and loans to 50 trillion won. In September, it became the first domestic financial group to declare 'coal phase-out finance.'

Shinhan Financial Group declared 'Zero Carbon' and plans to reduce the carbon emissions of its asset portfolio to zero by 2050. It also aims to reduce carbon emissions in its asset portfolio by 38.6% by 2030 and increase eco-friendly financial support to 30 trillion won.

Carbon neutrality means absorbing as much carbon dioxide as is emitted, effectively making net emissions zero. Global companies and financial institutions such as Apple, Amazon, Microsoft, HSBC, and Barclays have already declared carbon neutrality and are pursuing concrete achievement plans. A Shinhan Financial Group official said, "It is the first among East Asian financial groups to declare carbon neutrality."

In the case of Woori Financial Group, it launched the ‘Innovation Finance Promotion Committee’ (currently the New Deal Finance Support Committee), which includes CEOs of all group companies. Woori Financial declared this year as the inaugural year of ESG management and has begun setting a group-wide ESG strategy roadmap.

Woori Financial, which previously declared the realization of a ‘2050 Carbon Neutral Financial Group,’ also established the ‘Group ESG Management Council’ in January, consisting of group company CEOs to facilitate smooth communication and cooperation on ESG activities. At the end of last year, it created dedicated ESG departments in both the holding company and Woori Bank through organizational restructuring.

NongHyup Financial Group plans to invest a total of 15.6 trillion won by 2025 in connection with the K-New Deal. It will invest 14.9 trillion won in the government’s Green New Deal, including renewable energy, solar facility loans, ESG bonds, alternative investments, and New Deal PEF formation, and 200 billion won in the Digital New Deal.

NongHyup Financial plans to execute its own ESG investments divided into green finance (E) and socially responsible finance (S). Green finance will promote specialized ESG investments reflecting NongHyup’s characteristics.

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