NongHyup Bank, 10 Trillion More This Year... Kwon Jun-hak Strengthens ESG Efforts

As of late November, 60.7512 trillion invested
Similar to other commercial banks' 2030 targets
Carbon neutrality policies to be strengthened next year
Plans to reflect corporate client credit reviews

[Asia Economy Reporter Kiho Sung] NH Nonghyup Bank has invested over 10 trillion KRW this year through ESG (Environmental, Social, and Governance) management. This reflects the determination of NH Nonghyup Bank President Kwon Junhak, who actively pursued ESG management, a hot topic in the financial sector, under the goal of "Nonghyup is ESG." President Kwon has set a goal to further strengthen ESG management by concretizing next year's carbon neutrality strategy and enhancing implementation plans.

According to the financial sector on the 30th, as of the end of November this year, Nonghyup Bank invested a total of 60.7512 trillion KRW in ESG management. This is an increase of 9.5708 trillion KRW compared to the end of last year (51.1804 trillion KRW). Considering the industry trend of more active ESG management investments toward the end of the year, it is estimated that Nonghyup Bank's ESG management investment scale will exceed 10 trillion KRW this year.

It invested 7.937 trillion KRW in green finance (E) and 52.8142 trillion KRW in social responsibility (S), which increased by 1.0159 trillion KRW and 8.5549 trillion KRW respectively compared to the previous year-end. Investing 60 trillion KRW annually in ESG management is similar to the 2030 targets of other major commercial banks.

Nonghyup Bank plans to prioritize ESG management again next year. Financially, it plans to invest more than the 10 trillion KRW invested this year. A Nonghyup Bank official said, "The entire industry is continuously increasing related investment amounts every year in ESG management," adding, "Nonghyup Bank will also continue to expand related investments."

Along with this, it will actively prepare policies for carbon neutrality. It has begun establishing concrete plans for implementing carbon neutrality on its own. Next year, it will measure carbon emissions of held assets such as corporate loans, corporate bonds, and stocks according to the Partnership for Carbon Accounting Financials (PCAF) and Science Based Targets initiative (SBTi) standards. Based on this, it will set specific and phased goals aiming to achieve carbon neutrality by 2040. This is because Nonghyup Financial Group is scheduled to disclose climate-related financial information following its support declaration for the Task Force on Climate-related Financial Disclosures (TCFD) in October.

Once internal carbon emission measurement and carbon neutrality strategy preparation are completed, Nonghyup Bank plans to reflect corporate customers' carbon emissions in credit policies and reviews.

This direction also aligns with government policy. The government announced in October this year that 2030 will be the inaugural year for implementing the Nationally Determined Contribution (NDC) for greenhouse gas reduction. To fulfill this, starting next year, companies with total assets of 2 trillion KRW will be targeted, and by 2030, all KOSPI-listed companies will be required to disclose environmental information. In particular, it was decided to increase the linkage of such disclosures with financial disclosures.

President Kwon stated, "Nonghyup Bank, which possesses ESG DNA, supported ESG loans worth 10 trillion KRW this year to vulnerable groups, small business owners, and agro-food companies struggling due to COVID-19," adding, "Next year, along with internal growth, we will actively respond to government policies by setting concrete carbon neutrality goals and fulfill our role as a leading ESG bank."

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