JB Financial pledges to speed up carbon emission reduction for ESG goals

The headquarters of Jeonbuk Bank, the flagship affiliate of JB Financial Group, is seen in Jeonju, North Jeolla Province in this undated file photo. The banking group is making a push to cut carbon emissions from its offices and those of affiliates by 67 percent by 2030. Korea Times file

By Yi Whan-woo

JB Financial Group said Monday it will push to slash greenhouse gases emitted from its offices and also those of its affiliates by 67 percent from the current level by 2030, as part of efforts for an accelerated transition to net zero by 2035.

The holding group of regional Jeonbuk Bank and Kwangju Bank also said it will work with corporate customers accordingly to reduce their carbon emissions by 30 percent combined by 2025.

The pledges come in accordance with JB Financial Group's environmental, sustainable and corporate governance (ESG) goals announced in July 2021. JB Financial Group is one of the leading retail finance groups in Korea and offers a variety of financial services to its customers.

For financial services companies, reducing the carbon footprint associated with their loans, investments, underwriting and other business activities remains a key to reach their ESG goals. The so-called “financed emissions” are more than 700 times higher, on average, than their direct emissions and therefore can dwarf their green campaign.

“We will enhance our system in tracking our carbon footprint, to fulfill responsibilities and duties as a leading banking group in ESG business management,” JB Financial Group said in a statement.

It further stated its current direct carbon emissions amounted to 20,000 tons with financed emissions totaled at 980,000 tons.

The firm explained it came up with intermediary targets for both direct and financed emissions, by observing the criteria outlined by the Science Based Targets initiative (SBTi) and the Partnership for Carbon Accounting Financials (PCAF).

Launched in 2015, the SBTi is a U.N.-convened alliance of global banks that have developed a science-based setting for businesses to efficiently reach decarbonization while maintaining profits and enhancing competiveness.

Headquartered in the Netherlands, the PCAF is a group of more than 200 financial institutions worldwide committed to facilitation, transparency, and accountability of the 2015 Paris Climate Agreement. The members have aligned their business portfolios in a corresponding manner.

JB Financial Group joined both the SBTi and the PCAF in December 2021.

Headquartered in Jeonju, North Jeolla Province, JB Financial Group has multiple subsidiaries in and outside Korea.

The subsidiaries include JB Woori Capital and JB Asset Management and Southeast Asian units ― Phnom Penh Commercial Bank, JB Capital Myanmar, JB Securities Vietnam and JB Phnom Penh Asset Management.