Active Movements in the Banking Sector Considering Eco-Friendly Practices

KB Kookmin Bank Eco-Friendly Campaign 'KB Green Wave'
Shinhan Bank First in Banking Sector to Join Equator Principles

[Asia Economy Reporter Park Sun-mi] The banking sector is experiencing a strong wave of eco-friendly management.

According to the financial industry on the 20th, KB Kookmin Bank will donate 100 million KRW saved through the 'KB Green Wave' eco-friendly campaign, amid KB Financial Group Chairman Yoon Jong-kyu's emphasis on Environment, Social, and Governance (ESG) across corporate activities. The 100 million KRW donation will be used via Happy Bean to clean up marine debris left by typhoons and to provide warm coats to children from low-income families.

Since June, Kookmin Bank has been conducting the KB Green Wave campaign with customers, practicing various eco-friendly activities such as reducing paper usage, electricity consumption, and disposable products. In the 'No Paper Passbook Issuance Event,' customers who opened new accounts without receiving a passbook or chose not to use paper passbooks were given prizes on a first-come, first-served basis. Due to high customer participation, additional events are planned.

Kookmin Bank employees reduced copy paper usage by 25% compared to the previous year through innovations in work methods such as electronic reporting and video conferencing, and also reduced electricity use by maintaining appropriate indoor temperatures and turning off unnecessary lights, thereby generating funds for this donation. The bank plans to continue the campaign and strive to fulfill its social responsibilities.

Shinhan Bank is conducting financial transactions in accordance with environmental risk management principles to fulfill the environmental and social responsibilities of financial institutions. On the 9th, Shinhan Bank became the first commercial bank to join the Equator Principles. The Equator Principles are a financial industry agreement not to lend to large development projects that cause environmental destruction or human rights violations.

Shinhan Bank's Global and Group Investment Banking (GIB) reviews the applicability of the Equator Principles for all transactions subject to review and incorporates environmental and social risk management standards adopted by global financial institutions worldwide as evaluation criteria when assessing new projects. A Shinhan Bank official stated, "Although joining the Equator Principles may cause some procedural inconvenience such as conducting environmental and social impact assessments when proceeding with new transactions, it is expected to enhance our capability to manage environmental and social risks in the future."

Woori Bank, which plays a leading role in issuing ESG bonds, recently obtained the international standard certification for environmental management systems, 'ISO14001,' from the Korea Productivity Center Certification Institute. ISO14001 is a global-level environmental management system certification that can be acquired after auditing business processes aimed at minimizing the environmental impact of corporate management activities. Woori Bank has established processes to systematically and efficiently operate environmental management, an element of ESG, and has decided to actively participate in the government's Green New Deal policy.