[2021 National Audit] Banks and Insurance Companies Invest 19.2 Trillion KRW in Oil and Natural Gas, Major Causes of Climate Crisis

NongHyup 4.4 trillion, Woori 2.1 trillion, Hana 1.9 trillion, Samsung Life 1.3 trillion, etc.
Min Hyung-bae: "Oil and natural gas investments are the main culprits of the climate crisis"

Current Investment Status of Domestic Banks in Oil and Natural Gas

[Asia Economy Reporter Park Sun-mi] It has been revealed that domestic banks and insurance companies have invested a total of 19.2 trillion KRW in oil and natural gas over the past 10 years. Oil and natural gas are the second largest sources of carbon dioxide emissions after coal, and experts warn that continued investment in these sectors will make achieving carbon neutrality by 2050 difficult.

According to data received on the 6th from the Financial Supervisory Service through Min Hyung-bae, a member of the Democratic Party of Korea, domestic banks and insurance companies invested 19.2909 trillion KRW in oil and natural gas from 2011 to 2020, the most recent 10 years. By sector, banks invested 12.0079 trillion KRW, and insurance companies invested 7.283 trillion KRW.

Among banks, Nonghyup Bank invested the most with 4.4729 trillion KRW, followed by Woori Bank with 2.1142 trillion KRW, Hana Bank with 1.9689 trillion KRW, and Kookmin Bank with 1.5992 trillion KRW. Among insurance companies, Samsung Life Insurance invested 1.3906 trillion KRW, Kyobo Life Insurance 980.7 billion KRW, and Hyundai Marine & Fire Insurance 609.7 billion KRW.

With the declaration of carbon neutrality by 2050, financial companies have been announcing coal divestment policies, and oil and natural gas have been gaining attention as alternative energy sources to coal. The problem is that oil and natural gas are the second largest sources of carbon dioxide emissions after coal. Globally, 33.8% of carbon dioxide emissions come from oil and 20.6% from gas, meaning nearly half of emissions originate from oil and natural gas.

Representative Min stated, “While coal has been largely phased out from the market due to civil society criticism, investment in oil and natural gas is ongoing. As global concerns about the greenhouse effects of oil and natural gas rise, it is only a matter of time before these assets become stranded, just like coal. Financial companies need to prepare in advance for declarations beyond coal divestment to include oil and natural gas divestment and establish exit strategies.”

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