Son Byunghwan Goes All-In on ESG... NongHyup Financial Declares Participation in UN Principles for Responsible Banking

NongHyup Financial Accelerates ESG Management by Speeding Up Participation in International Agreements
Commits to Joining and Implementing NEP FI Responsible Banking Principles

[Asia Economy Reporter Kiho Sung] “This year, by participating in various international agreements, we will establish global ESG (Environmental, Social, and Governance) standards and ultimately leap forward as a leading ESG financial group contributing to the government's '2050 Carbon Neutrality' goal.”

Son Byunghwan, Chairman of NH Nonghyup Financial Group, announced this on the 1st after joining NEP FI (UN Environment Programme Finance Initiative) and declaring the implementation of the Principles for Responsible Banking (PRB).

UNEP FI is an international partnership formed in 1992 by the United Nations Environment Programme and major financial institutions worldwide, serving as a pivotal agreement emphasizing responsible investment by financial institutions for climate change response and sustainable management. In particular, PRB is a financial principle that defines the roles and responsibilities of banks to achieve the Paris Climate Agreement and the UN Sustainable Development Goals.

Following its UNEP FI membership, Nonghyup Financial plans to explicitly incorporate PRB into its overall banking operations, including management strategies and products/services, to expand positive environmental and social impacts. Accordingly, Nonghyup Bank will analyze the environmental and social impacts of its core businesses and products/services, establish goals and plans for improvement, and implement them.

Starting with UNEP FI membership, Nonghyup Financial has established a systematic and concrete roadmap to gradually expand its participation in international agreements related to climate change and carbon neutrality at the group level. Additionally, to proactively respond to climate change risks, it is accelerating preparations to participate in reputable international agreements related to carbon neutrality such as TCFD (Task Force on Climate-related Financial Disclosures) and CDP (Carbon Disclosure Project). Furthermore, Nonghyup Bank is promoting its membership in the Equator Principles, which introduce environmental and social risk management systems for large-scale project financing (PF) projects, and the insurance division is reviewing joining UNEP FI - PSI (Principles for Sustainable Insurance).

Chairman Son stated, “Responding to climate change is the top priority at the global level,” and added, “Nonghyup Financial will proactively fulfill its responsible role toward the environment and society.”

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