Shinhan Financial chief calls for joint efforts to achieve carbon neutrality at COP 26

Shinhan Financial Group Chairman Cho Yong-byoung speaks during a presentation at the 2021 United Nations Climate Change Conference (COP26) in Glasgow, Scotland. Courtesy of Shinhan Financial Group

By Lee Kyung-min

Shinhan Financial Group Chairman Cho Yong-byoung stressed the importance of the financial industry playing a bigger role together to advance green initiatives to meet the government's goal of achieving carbon neutrality by 2050.

Cho, the first figure in the private sector invited to speak at the 2021 United Nations Climate Change Conference (COP26) in Glasgow, Scotland, gave a presentation on the group's measures put in place to reduce carbon emissions, Nov. 9 (local time).

Cho introduced the “Zero Carbon Drive,” the first concrete de-carbonization strategy outlined among financial services firms in East Asia, including ways to measure carbon emissions caused by investment activities among firms in its asset portfolios.

The drive announced last November maps out the group's investment strategies, including the revision of lending rules to offer greater financial assistance to companies relying on carbon-heavy business models that seek to revise their growth plans to achieve sustainability.

The group said it would provider larger loans to firms with green growth business models and reduce carbon emissions by 46 percent by 2030, while increasing the target level to 88 percent by 2040. The group's asset portfolio is being restructured to promote a reduction in carbon emissions.

Also announced at the Nov. 9 presentation was the group's green strategy for the “New Southern Countries,” including Vietnam and Indonesia, where Shinhan Financial is seeking to boost its presence.

“The role of finance in carbon neutrality is to accelerate the transition to the green economy,” Cho said during the conference. “Despite difficulties in the initial stages of implementing the carbon neutrality drive, we will be able to achieve success sooner if we join forces for a common goal.” The speech was delivered at a promotion booth set up to bolster the country's public relations efforts with overseas investors and stakeholders. High-ranking government officials and civic group activists gave presentations on Korea's plan to reduce carbon emissions.

Cho's speech is in line with an earlier one he gave during the Marrakech Partnership event at COP26 on Nov. 3, where he pledged to support financing for industries seeking to shift to low-carbon business models. They include power companies, steelmakers, refiners and chemicals and cement manufacturers. The partnership is a global wave among governments and businesses to further the implementation of the Paris Agreement signed in 2016 for the United Nations Framework Convention on Climate Change, dealing with greenhouse-gas-emissions mitigation, adaptation and finance.

“It is a great honor for me to attend this meaningful event where financial industries around the world as a representative of Korea. We will do our best to reflect more deeply on the role of finance for carbon neutrality,” he said.

After the climate change conference, Cho plans to visit New York, Paris and London through Nov. 13 to meet with global investors.