Koramco Strengthens ESG... Public Declaration of Support for TCFD

Koramco Asset Trust announced on the 27th that it has joined and publicly endorsed the ESG initiative ‘TCFD (Task Force on Climate Related Financial Disclosures)’ to implement ESG policies in line with global standards.

TCFD is a global consortium for climate-related financial disclosures established in 2015 by the Financial Stability Board (FSB) of the G20 Finance Ministers and Central Bank Governors. TCFD recommends that companies transparently disclose climate-related information (governance, strategy, risk management, target management, etc.) and proactively identify related financial risks to integrate ESG throughout management.

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Recently, major global asset managers such as BlackRock have been requiring investee companies to comply with TCFD recommendations, increasing the influence of this initiative. As of the end of last year, over 4,000 institutions and companies from 95 countries worldwide support TCFD. In Korea, government agencies such as the Ministry of Environment and Korea Exchange, financial holding companies including KB, Hana, and Woori Financial Group, as well as general corporations like Hyundai Motor and SK, have declared their support.

Koramco is Korea’s leading comprehensive real estate finance company managing approximately KRW 28 trillion in real estate assets through REITs and real estate funds. Prior to this endorsement, Koramco was recognized as a representative ESG leader in the real estate investment industry, receiving the highest rating of ‘5 Stars’ from GRESB (Global Real Estate Sustainability Benchmark), the world’s most prestigious ESG evaluation organization, and being named ‘Asia Sector Leader.’

Koramco is currently monitoring data on energy and renewable energy usage, water consumption, and waste emissions across all real estate physical assets under management, and is establishing and implementing carbon emission reduction plans for each asset. The main objectives are to enhance asset value and improve investor returns through ESG integration, with plans to expand overseas capital attraction based on ESG-specialized asset management capabilities.

Joonho Jung, CEO of Koramco Asset Trust, stated, “Koramco’s ESG was designed from the initial stage to meet global standards and is gradually being expanded throughout our management. Going forward, we will contribute to raising the domestic ESG level by spreading our ESG know-how across the entire real estate finance industry.”

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