April 19, 2024

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Hana Financial Group Chairman Kim Jung-tai (center) pedals a stationary bicycle linked to a dynamo at a ceremony held to announce the group's new ESG financing goals in Seoul on Thursday.(Hana Financial Group)

South Korea’s Hana Financial Group announced on April 22 it has set a goal to pour 60 trillion won ($53.7 billion) into its long-term environmental, social and governance finance plan.

Under its ESG financing blueprint, the group will issue relevant bonds worth 25 trillion won, loans worth 25 trillion won, fund management worth 2 trillion won and other related investments worth 10 trillion won by 2030.

In line with its ESG financing goals, Hana aims to achieve carbon neutrality in its intracompany management and project financing by 2050. Financing for coal-powered projects will be completely halted by the deadline as well, Hana said.

The nation’s third-largest banking group by market capitalization chose to pursue low-carbon economy system, more social contribution via finance and improvement of transparency in ESG management as its three pillars behind ESG management.

It has also decided to launch a special committee for sustainable management within its board of directors, which will make key decisions tied to establishment of ESG strategies and policymaking.

“We plan to mark 2021 as the beginning of Hana’s ESG management drive and take a step forward toward a sustainable future,” Hana Financial Group Chairman Kim Jung-tai said.

Korea’s financial sector has been integrating ESG values into its long-term management goals, following President Moon Jae-in’s vows last year to push the society toward carbon neutrality by 2050. Korea is one of the world’s most fossil-fuel reliant economies, with coal accounting for 40 percent of the nation’s electricity mix.

Earlier last year, Moon announced an 8 trillion-won Green New Deal policy focused on economic recovery and job creation through green policies.

By Jung Min-kyung (mkjung@heraldcorp.com)