Ahead of the P4G Summit... Financial Sector's Green Finance Participation Fever (Comprehensive)

Financial Services Commission to Host P4G Green Finance Special Session on 29th
Korea Development Bank Holds Investment Briefing for Four Green New Deal Venture Companies

[Asia Economy Reporter Park Sun-mi] Ahead of the '2021 P4G (Partnership for Green Growth and the Global Goals 2030) Seoul Summit,' Korea's first multilateral summit on environmental issues, scheduled for the 30th to 31st of this month, enthusiasm for green finance participation in the financial sector is heating up.

According to the financial sector on the 28th, the Financial Services Commission will hold a P4G Green Finance Special Session on the 29th at the Dongdaemun Design Plaza (DDP) in Seoul. The session will discuss the role of finance in green recovery with representatives from international climate and finance organizations such as the United Nations Framework Convention on Climate Change (UNFCCC), the World Economic Forum (WEF), and the International Finance Corporation (IFC), as well as corporate stakeholders. The event, held from 8 p.m. for two hours, will feature Financial Services Commission Chairman Eun Sung-soo outlining the challenges of global green finance and urging worldwide financial sector cooperation for carbon neutrality.

Earlier, the Financial Services Commission applied for membership in the 'Network for Greening the Financial System' (NGFS), a global consultative group among central banks and supervisory authorities for green finance, along with the Financial Supervisory Service. Additionally, 13 financial-related institutions declared support for the Task Force on Climate-related Financial Disclosures (TCFD) and its recommendations.

P4G aims to support sustainable development by enabling countries, especially developing nations, to respond appropriately to climate change. The P4G Seoul Summit is significant as Korea's first multilateral summit in the environmental sector, attended by President Moon Jae-in, major world leaders, and heads of international organizations numbering over 60. With ESG (Environmental, Social, and Governance) management being a major theme in the financial sector this year, the P4G summit presents an excellent opportunity to demonstrate commitment to green finance.

KDB Industrial Bank held an investment briefing for four venture companies in the green new deal sector as a pre-event to the P4G Green Finance Special Session, fostering a platform to build a domestic and international innovative startup ecosystem aimed at achieving climate change response and sustainable development goals pursued by P4G. IBK Industrial Bank created a green finance exhibition booth at the 'Korea Fintech Week,' held both online and offline until today, introducing the P4G summit, the green finance special session agenda, and green finance initiatives promoted by the bank.

[Image source=Yonhap News]

KB Financial Issues 110 Billion KRW Green Bonds and Launches ‘KB Green Wave 1.5℃ Financial Product Package’

KB Financial early on signed a business agreement with the P4G Summit Planning Team Leader to realize the carbon neutrality vision and promoted the P4G Seoul Summit through promotional videos and online channel campaigns. Additionally, KB Kookmin Bank launched the ‘KB Green Wave 1.5℃ Financial Product Package’ the day before, consisting of three eco-friendly specialized products: deposits, trusts, and cards. Donations collected through product subscriptions will be used for climate change response and carbon emission reduction. They also issued green bonds worth 110 billion KRW in the form of new capital securities.

Shinhan Financial recently held an ESG Promotion Committee meeting attended by Chairman Cho Yong-byoung and CEOs of affiliates, declaring the eco-friendly project ‘Zero Carbon·Zero Fuel,’ which includes converting all 62,843 company vehicles to zero-emission vehicles such as electric and hydrogen cars by 2030. Shinhan Card established the first ESG committee within the board of directors in the domestic card industry, and NongHyup Financial discussed ESG investment cooperation through a CEO video conference with Amundi France.

A financial sector official explained, "From the financial authorities, Korea is sending a message that it will closely cooperate with the international community to revitalize green finance, just as it shared quarantine supplies and experience worldwide during the COVID-19 crisis." The official added, "Private financial companies, which are paying attention to ESG management, also see the P4G Seoul Summit as an opportunity to convey their commitment to green finance."

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