KB Financial chairman attends high-level meeting at COP26

KB Financial Group Chairman Yoon Jong-kyoo speaks during the High-Level Meeting of Caring for Climate Change, an event held virtually as part of the 2021 United Nations Climate Change Conference (COP26) in Glasgow, Scotland, Nov. 10 (local time). Courtesy of KB Financial Group

By Lee Kyung-min

KB Financial Group Chairman Yoon Jong-kyoo attended a high-level meeting at the 2021 United Nations Climate Change Conference (COP26) in Glasgow, Scotland, Nov. 10 (local time) to discuss ways to overcome climate challenges.

During the “High-Level Meeting of Caring for Climate Change” event at the global conference, Yoon outlined his group's strategy to reorient its investment and growth portfolio to better navigate the climate crisis.

“The strategy to exclude financing for heavy-carbon businesses will not be an effective and desirable way to meet the net-zero emissions goal by 2050,” he said. “The approach of granting larger and more efficient financing opportunities for businesses seeking to transition to green and sustainable business models therefore is the right answer.”

The meeting, participated in by figures at the venue in Glasgow and also some online, was held to discuss ways to better transition to a low-carbon society.

U.N. Secretary-General Antonio Guterres and COP26 President Alok Sharma attended the meeting, alongside other U.N. representatives, AstraZeneca Chairman Leif Johansson and Greenpeace International Executive Director Jennifer Morgan.

Yoon noted that cooperation between the U.N.-convened Net-Zero Banking Alliance (NZBA) and stakeholders would be expedited to achieve carbon neutrality.

“Participating banks and other stakeholders will accelerate the implementation of decarbonization strategies, in recognition of growing importance of financial services firms expected to play a bigger role in advancing the net-zero drive in the real economy.”

KB Financial plans to become more active in expressing its opinions on ways to better resolve climate change issues and encourage its peers in the Asia-Pacific region to join the efforts.

“The meeting attended by Chairman Yoon is one of the most important COP26 events, as evidenced by attendance of global leaders including the U.N. secretary-general and the head of COP26. We are happy to be part of the meaningful global discussion,” a KB Financial Group official said.

The group was the first Korean firm to earn Science Based Targets initiative (SBTi) validation for adjusting its investment and lending portfolios to meet science-based targets.

In October, the SBTi announced the validation for the group alongside French bank La Banque Postale and Swedish private equity firm EQT.

The initiative is among global private partners that help companies set targets for reducing greenhouse gas emissions for implementation of the Paris Agreement, thereby defining and promoting best practices in emissions reductions and net-zero targets in line with climate science.