Saneun Conducts '2021 Consigned Asset Management ESG Investment Implementation Check'

7 Excellent Asset Management Firms Selected Among 50 Entrusted Management Companies

[Asia Economy Reporter Jin-ho Kim] Korea Development Bank announced on the 12th that it conducted an ESG investment implementation review to advance the private equity market and expand the base of Environmental, Social, and Governance (ESG) investments. This implementation review was conducted on 50 entrusted asset management companies of funds invested by KDB, and seven asset management companies with excellent investment capabilities were finally selected.

In August last year, based on the research results from the Korea Corporate Governance Service, KDB established the 'Entrusted Asset Manager ESG Investment Implementation Review Model' considering global ESG investment initiatives (such as UN PRI) and cases from major overseas investors.

To ensure fairness, an external professional evaluation agency was appointed to conduct the implementation review of entrusted asset managers. The results showed that, as ESG investment is in its early stages, the ESG investment design level of many asset managers was average, but the execution level was still insufficient.

KDB plans to give preferential treatment during the document review process of KDB's investment projects to seven excellent asset managers confirmed to have properly established ESG investment systems and to execute ESG investments in compliance with regulations and processes.

A KDB official explained, "We plan to operate the ESG investment implementation review for entrusted asset managers and the preferential system for excellent asset managers regularly every year, and we will continue to contribute to the activation of ESG investments in the domestic market."

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