UN recognizes Shinhan's sustainable finance efforts

Shinhan Financial Group Chief Sustainability Officer Park Sung-hyun

By Park Jae-hyuk

The global community has recognized Shinhan Financial Group's efforts to pursue sustainable finance.

The nation's leading banking group said Sunday its Chief Sustainability Officer Park Sung-hyun was appointed to lead the Asia-Pacific Banking sector of the United Nations Environment Programme Finance Initiative's (UNEP FI) Global Steering Committee (GSC).

This is the first time for a Korean financial company executive to take the post.

The UNEP FI is a global partnership established between the UNEP and the financial sector. About 300 financial companies worldwide are voluntarily joining this partnership for environmental, social and corporate governance (ESG) principles.

The GSC sets the UNEP FI's strategic goals and approves its annual management plans, so as to help more financial institutions worldwide pursue sustainable development.

Starting next year, Park will represent 57 Asian banks in the international body until 2023.

During a previous interview with The Korea Times, he said his company would reduce its investment in the coal industry and adopt the risk management framework of other financial institutions for determining, assessing and managing environmental risks in project financing.

“We will enhance our climate-related risk management system, reviewing the impact of large-scale development projects on the environment and society,” he said at that time. “We will manage the financial impact of climate change, so we expect our investments in the coal industry will decline gradually.”

Shinhan said it will contribute more to helping the environment and make every effort to carry out sustainable management with its customers and various partners.