Shinhan Financial Group Develops Korea's First Financial Asset Carbon Emission Measurement System

Jo Yong-byeong "Data Management Will Lead to Financial Group's Climate Change Response Capability"

[Asia Economy Reporter Yoo Je-hoon] Shinhan Financial Group announced on the 3rd that it has developed the 'Financial Emissions Measurement System,' the first of its kind among domestic financial groups, to efficiently manage the carbon emissions of financial assets.

The Financial Emissions Measurement System is a system that precisely calculates customers' carbon emissions based on the group's financial assets such as loan and investment amounts, following the guidelines of the Partnership for Carbon Accounting Financials (PCAF).

Through this system, Shinhan Financial measured the carbon emissions of approximately KRW 230 trillion in financial assets across six industry sectors, the broadest scope among domestic financial institutions, and enabled measurement of carbon emissions by industry, customer, asset, and contract maturity.

Additionally, it has accumulated high-quality data related to carbon emissions and allows monitoring from various perspectives. In the future, it will also be able to automatically calculate changes in carbon emissions according to fluctuations in asset portfolios.

Based on this system, Shinhan Financial plans to set carbon reduction targets for each group company and measure performance. Furthermore, by establishing and promoting business strategies that consider climate risks, it aims to strengthen the execution of the group's mid- to long-term carbon-neutral finance strategy, 'Zero Carbon Drive.'

Yong-byeong Cho, Chairman of Shinhan Financial Group, stated, "Data management such as financial emissions measurement will directly translate into a financial group's capability to respond to climate change," and added, "Shinhan Financial will focus the group's capabilities and do its best to achieve net-zero carbon emissions through the expansion of eco-friendly finance."

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