Minister Kwon Deok-cheol: "National Pension Fund Management Requires Environmental Regulation Risk Management"

[Asia Economy Reporter Park So-yeon] Kwon Deok-cheol, Minister of Health and Welfare, emphasized on the 30th that the National Pension Fund also needs to be managed in line with the global trend of strengthening environmental regulations.

Minister Kwon stated in his opening remarks at the 5th National Pension Fund Management Committee meeting held at The Plaza Hotel in Jung-gu in the afternoon, "With the strengthening of global environmental regulations, private sector global companies and financial institutions are also shifting their transaction targets to eco-friendly ones," adding, "The National Pension Fund also needs risk management regarding the strengthening of environmental regulations in fund management."

Minister Kwon explained, "The Biden administration in the United States announced at the Climate Summit that it will reduce greenhouse gases to half the 2005 level by 2030," and "The Moon Jae-in administration also declared the 2050 carbon neutrality goal in the 2021 budget speech last October."

He said, "Global administrative regulations are expected to be strengthened, and domestic companies are also expanding management activities such as establishing ESG boards," adding, "Private sector global companies and financial institutions are also shifting their transaction companies and investment targets to eco-friendly companies."

He continued, "I will report on measures to revitalize the Alternative Investment Subcommittee to actively execute alternative investments of the National Pension Fund," and said, "The main content is to rationalize the decision-making requirements of the Alternative Investment Subcommittee to secure excellent alternative investment opportunities and activate execution."

On this day, the Fund Committee plans to focus on discussing two main topics: 'Introduction of Responsible Investment Restriction and Exclusion (Negative Screening) Strategy' and 'Measures to Revitalize the Operation of the Alternative Investment Subcommittee.'

The National Pension Fund plans to discuss the negative screening strategy and establish principles to exclude investments in coal companies on this day. The Fund Committee will also discuss measures to simplify the alternative investment discussion process to activate investments. Large-scale investments such as real estate and infrastructure must go through the Alternative Investment Subcommittee, and the purpose is to further simplify this procedure.

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