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KB Financial outlines blind fund ESG standards
KB Financial Group headquarters in Seoul / Courtesy of KB Financial Group
By Lee Kyung-min
KB Financial Group has established a set of environmental, social and corporate governance (ESG) standards for blind fund investments, an overarching principle applied throughout the stages of selecting, financing, managing and operation of an investment, the group said Tuesday. Blind funds initially raise cash for investment without a stated goal.
The standards will be applied throughout the entire process, including pre-investment evaluation, due diligence and post-investment monitoring.
The group has also established a checklist of ESG integration competency, whereby investments will be assessed regularly for policy implementation, reviews, reports submitted and follow-up management mechanisms.
The group’s asset management and investment subsidiaries will select the list of entities eligible for investment by sector and industry.
Its bank, insurance and capital subsidiaries will review the list and decide whether to push forward with the investment based on their ESG capabilities.
“The blind fund ESG investment standards will create a healthy capital market,” a KB Financial official said.
“They will serve as a foundation for effective and efficient expansion of ESG practices, creating a positive cycle for the finance industry as a whole. KB Financial is committed to taking the lead in bolstering the diversified investment portfolios and strengthening support for companies that operate with ESG considerations in mind.”