Establishment of NH Green Growth Index, NH Nonghyup Bank's In-House Non-Financial Evaluation Rating
[Asia Economy Reporter Sunmi Park] NH Nonghyup Bank announced on the 29th that it has launched the 'NH Agricultural Food Green Growth Loan,' which offers preferential loans to outstanding innovative companies in the green sector, represented by the Green New Deal.
The NH Agricultural Food Green Growth Loan provides working capital and facility funds to companies engaged in agricultural and food-related industries. If the status of eco-friendly or social enterprise certification and adoption is confirmed, additional preferential treatment on loan limits and interest rates can be received according to the 'NH Green Growth Index' rating.
The NH Green Growth Index, newly introduced with this product, is a non-financial evaluation rating system developed independently by NH Nonghyup Bank. It evaluates companies' certification and adoption status in the ESG (Environment, Society, Growth) fields, rating from the highest Grade 1 to the lowest Grade 3. A distinctive feature is replacing the 'G' in the existing ESG (Environment, Society, Governance) category with the Growth sector.
In the Environment (E) sector, preferential treatment targets include companies certified for eco-friendly agricultural and livestock products, GAP (Good Agricultural Practices) certification, green management companies with environmental evaluation of Grade A or higher, companies adopting renewable energy facilities, and smart farm households. Companies certified as (preliminary) social enterprises can receive preferential treatment in the Society (S) sector. Additionally, companies with HACCP certification or venture company certification from the Korea Technology Finance Corporation can receive preferential treatment in the Growth (G) sector.
Ham Yong-moon, Head of Marketing Division at NH Nonghyup Bank, said, “This loan product was launched to lead changes in agricultural and food consumption trends such as the spread of eco-friendly value consumption and to support innovative agricultural and food companies responding to the climate crisis related to the Green New Deal.” He added, “Going forward, Nonghyup Bank will fulfill its role as an agricultural specialized bank through cooperation with various certification bodies and participate in social value changes.”
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