Banks Collaborate with Overseas Organizations and Universities Due to ESG...

Promotion of Eco-friendly Business and Support for Technology Development
Professional Consultation to Enhance ESG Capabilities for Small and Medium Enterprises

[Asia Economy Reporter Minwoo Lee] Banks are putting effort into ESG (Environmental, Social, and Governance) management. While actively partnering with overseas organizations and universities to focus on eco-friendly ESG projects, they are also actively hiring personnel related to ESG consulting.

According to the financial industry on the 24th, Shinhan Bank held a regular board meeting the day before and resolved to establish an ESG Committee under the board of directors, the first among domestic commercial banks. This is to more strongly implement the bank's sustainable growth and ESG management. The committee is composed entirely of outside directors, including the CEO, and the chairman is Park Wonsik, an outside director and the chairman of the board. In the future, the committee will be responsible for resolving and reporting Shinhan Bank's core strategies and execution systems.

In early last month, Shinhan Bank signed an ESG-related business agreement with the Green Guarantee Company (GGC), the first in the domestic financial sector. GGC is an international guarantee institution funded by the UK government and the Green Climate Fund. It is scheduled to be established in June to support climate change-related efforts in developing countries. Utilizing guarantees issued by GGC, Shinhan Bank plans to provide ESG-related funding to companies in developing countries, discover and operate eco-friendly bonds (Green Bonds) in emerging markets, and invest in ESG-related companies.

Shinhan Bank is not the only one partnering with overseas organizations. Woori Financial Group signed a business agreement with the World Wide Fund for Nature (WWF) on the 16th to promote eco-friendly projects. Chairman Sohn Tae-seung personally attended the signing ceremony, showing great interest. In January, Woori became the first domestic company to join the global environmental consortium 'TNFD (Taskforce on Nature-related Financial Disclosures).' Starting this month, it is the only domestic company participating in the circular economy working group of the United Nations Environment Programme Finance Initiative (UNEP FI).

Hana Bank recently emphasized ESG by signing a '2050 Carbon Neutrality ESG Future Strategy Business Agreement' with the Korea Advanced Institute of Science and Technology (KAIST), committing to support about 20 billion KRW. Vice Chairman Ham Young-joo, who has been appointed as the next chairman of the group and previously oversaw the group's ESG management strategy, is expected to continue strengthening efforts in the ESG field.

Banks are also competing to secure ESG-related personnel. Three banks?Kookmin, Shinhan, and Woori?are promoting the recruitment of 'ESG consulting specialists' by the end of this month. Hana Bank is conducting internal training. Anticipating growth in the ESG management consulting market and related loan market for companies, they have rushed into the talent acquisition competition. This is interpreted as a strategy to focus on small and medium-sized enterprises and mid-sized companies whose ESG management implementation levels are still insufficient. A financial industry official explained, "Companies that do not meet ESG-related standards are increasingly facing difficulties in raising funds," adding, "Accordingly, it seems to be a strategy to enhance funding competitiveness by providing ESG consulting to corporate clients."

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