Woori Financial Group Chairman Sohn Tae-seung (center), Woori Bank CEO Kwon Kwang-seok (left) and Woori Card CEO Kim Jeong-ki unveil slogan for the banking group’s new ESG vision “Good Finance for the Next,” on Friday, at its headquarters in Seoul. (Woori Financial Group)
Responding to rising demand for sustainability in corporate management, Woori Financial Group has decided to invest 100 trillion won ($87.3 billion) in financial products associated with environmental, social and governance, or ESG factors, including credit loans and bonds, by 2030, the banking giant said Monday.
The envisioned plan is part of the group’s mid-and long-term ESG strategies to promote sustainable growth under a new company vision titled “Good Finance for the Next.”
“Under the new ESG vision, (Woori Financial) will ramp up efforts to take a lead in creating a sustainable society, where the current generation and future generations can live together in harmony,” said Woori Financial Group Chairman Sohn Tae-seung.
Along with massive investments in the ESG-oriented financial programs, the group will reduce carbon emissions and prioritize energy efficiency to aid the government achieve its goal of a carbon neutral society by 2050.
President Moon Jae-in unveiled its carbon neutrality goal to reduce reliance on fossil fuels and nurture eco-friendly industries in December last year.
The recent move came as the ESG business management trend continues to gain traction in the local banking sector, led by investors‘ tendency to incorporate non-financial factors in their investment process in the wake of the prolonged COVID-19 crisis.
Meanwhile, the group launched its intraboard ESG committee in February to implement a decision making system to operate businesses focused on ESG standards and to monitor ESG risks.
Also, the company set up the so-called “ESG financing principles,” in April, which defines the purpose of ESG finance and demonstrates ways of integrating ESG values when making business decisions.
By Choi Jae-hee (firstname.lastname@example.org