Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Woori to spend W100 tril. on ESG projects
Woori Financial Group Chairman Son Tae-seung, center, poses after announcing the group's medium- to long-term environmental, social and corporate governance (ESG) vision during its management strategy meeting in Seoul, Friday. From left are Woori Bank CEO Kwon Kwang-seok, Son and Woori Card CEO Kim Jung-ki. Courtesy of Woori Financial Group
By Lee Min-hyung
By Lee Min-hyung
Woori Financial Group shared Monday its vision of making available 100 trillion won ($87.19 billion) for financing environmental, social and corporate governance (ESG) projects by 2030.
Under the medium- to long-term ESG vision, the company pledged to step up ESG investments by providing loans to eco-friendly and socially responsible businesses. It also plans to keep issuing ESG bonds and launching a series of financial products in the area for the group's sustainable growth, Woori said.
On the environmental front, the financial holding company promised to achieve zero carbon emissions by 2050. It also underlined that it would bring all assets in its portfolio down to zero carbon emissions in accordance with the timeline, not to mention the group's own businesses.
The company will also keep making efforts for establishing a much more transparent corporate disclosure system in the ESG sector, to offer practical financial support for ESG-active companies and businesses, according to Woori Financial Group.
Woori set “Good Finance for the Next” as its new ESG slogan during a management strategy workshop last Friday when it shared the future direction to focus more on fulfilling ESG criteria.
“Woori will achieve carbon neutrality under the new ESG vision,” Woori Financial Group Chairman Son Tae-seung said. “We will also stand at the forefront of helping build a more sustainable society where the present and future generations can prosper together.”
ESG emerged as a key management goal for most financial firms here after the COVID-19 pandemic forced most banking groups to reshape their future business directions. Major global investment firms are also raising their voices that only those embracing the new ESG-driven paradigm can survive in the post-coronavirus era.
As part of Woori's efforts to jump on the global ESG bandwagon, it established an ESG management committee from the group's board of directors in February. The financial holding firm also set its own ESG finance principle in April to proactively fulfill its environmental and social responsibility and minimize any potential risks if it fails to abide by the ESG criteria, Woori said.
“We are going to enhance monitoring of our asset portfolio's carbon emissions and keep taking appropriate measures to cut the amount throughout this year,” an official from Woori said. “Woori will also develop our ESG-related risk management systems to become a more trustworthy financial firm.”