Lee Chang-gu CEO "Climate Change is an Opportunity... First Launch of Carbon Emission Rights ETF"

Changgu Lee, CEO of Shinhan Asset Management
Launch of Korea's First Carbon Emission Allowance ETF

Changgu Lee, President and CEO of Shinhan Asset Management

"Addressing climate change is an investment opportunity."

On the 30th, Lee Chang-gu, CEO of Shinhan Asset Management, stated this during an online press conference for the 'Korea's first carbon emission rights (European, global) exchange-traded fund (ETF) listing.'

The newly listed SOL European Carbon Emission Rights Futures S&P (H) invests in the European carbon emission rights futures (EUA), the representative item among global carbon emission rights. The price of EUA has grown by 123% over the past year (as of the 28th).

SOL Global Carbon Emission Rights Futures IHS (synthetic) is an ETF that tracks the same index (IHS Markit Global Carbon Index) as KRBN, the world's only carbon emission rights ETF. On this day, besides Shinhan Asset Management, Samsung Asset Management and NH-Amundi Asset Management each launched one carbon emission rights ETF domestically, but only this ETF is designed to reflect the prices of the future Chinese carbon emission rights market. This product is also tradable through individual retirement pensions (IRP) and others.

Kim Jung-hyun, head of the ETF Management Center at Shinhan Asset Management, forecasted, "With the strengthening of global cooperation on the climate crisis, the price of carbon emission rights is expected to show an upward trend."

CEO Lee explained, "The investment opportunity in responding to climate change lies not in the stocks of related companies but in carbon emission rights," adding, "With the launch of these ETFs, domestic investors will be able to invest easily and conveniently in carbon emission rights within Korea."

Additionally, CEO Lee plans to further strengthen ESG (Environmental, Social, Governance) activities. He said, "We will expand our consideration of 'good investment' that can lead changes in the world, create social value, and simultaneously generate investment returns."

Shinhan Financial Group plans to support eco-friendly finance worth 30 trillion won. Accordingly, Shinhan Asset Management became the first domestic asset management company to join the 'Task Force on Climate-related Financial Disclosures' and the 'Net Zero Asset Managers Initiative,' a carbon neutrality movement among asset managers. They are also collaborating with investee companies to incorporate climate factors into fund management going forward.

CEO Lee stated, "Recently, uncertainties in the financial market have increased due to China's power shortage, the Evergrande crisis, tapering, and inflation," adding, "Shinhan Asset Management believes that ESG holds the key to resolving these uncertainties."

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