NongHyup Financial Group

South Korea
Asia Pacific

http://eng.nhfngroup.com/

Industry:Banking
Date joined:26 May, 2021
Initiatives:Principles for Responsible Banking

Summary of sustainability strategy

NH Financial Group made 2021 the first year of eco-friendly management and implemented governance promptly, completing the ESG management system in early 2021. We will begin ESG management activities in earnest, based on a systematic decision-making system that encompasses the committee within the board of directors, the CEO council, and the ESG-dedicated organization of the group HQ and affiliates.

In terms of investment, we will expand the “Green New Deal” investment in connection with the government policy of the K-New Deal to KRW 14.9 trillion by 2025.
In particular, we plan to expand ESG investments and products specialized to NH. In the field of green finance (E), we will pursue a two-pronged strategy with “Green Impact Finance” and “Agricultural Impact Finance”. Green Impact Finance involves investment in eco-friendly infrastructure and new and renewable energy; whereas Agricultural Impact Finance promotes and supports eco-friendly agriculture tailored to NACF’s nature, and induces environmental improvement and provides new growth engines in the agricultural industry. Impact finance is a term that combines impact investment, which means an investment that pursues social value and financial return at the same time, and micro finance.

In addition, we will maximize social value creation by reinforcing social responsibility financing for the common people and small businesses suffering form COVID-19. Also, we will respond to increased ESG customer demand by launching ESG-related financial products and strengthening the lineup of existing products.

For affiliates’action plans, NH Bank joining Equator Principles and a K-RE100 targeting 100% renewable energy by 2040, and preparing to sign up for K-EV100, which aims to convert 100% of vehicles in possession into electric or hydrogen vehicles by 2030.

NHFG plans to enhance the momentum of implementation by establishing a performance evaluation system for affiliates, and actively support the systematic management and execution of ESG projects at the group level.