Financial Services Commission Holds Green Finance Promotion Meeting... "Advancing 12 Tasks Covering Public and Private Sectors"

Discussion on the 2021 Implementation Plan

[Asia Economy Reporter Park Sun-mi] On the 25th, the Financial Services Commission held the 3rd full meeting of the 'Green Finance Promotion TF' chaired by Vice Chairman Do Gyu-sang to discuss the 2021 promotion plan.

This year's green finance promotion plan is characterized by solidifying the green finance activation part within the 2050 carbon neutrality promotion strategy. It is summarized into 12 tasks across three areas: strengthening the role of the public sector, activating private finance, and improving green finance infrastructure. The FSC plans to continuously supplement the plan while observing intergovernmental discussions related to carbon neutrality.

First, in strengthening the role of the public sector, four tasks will be promoted: ▲establishing a strategy to expand funding support in the green sector ▲creating dedicated green finance organizations within policy financial institutions ▲establishing a Green Finance Council among policy financial institutions ▲reflecting green finance performance in the selection criteria for fund management companies.

Specifically, investment strategies will be prepared for each institution to expand the support ratio for the green sector by policy financial institutions from the current 6.5% to about 13% by 2030. In addition, to maximize synergy in policy financial support, a consultative body among policy financial institutions will be formed and operated to establish joint green support strategies and share information.

In the private finance activation sector, the following will be promoted: ▲establishing a green classification system ▲creating model guidelines for green finance in the financial sector ▲implementing a pilot project for green bond guidelines ▲establishing climate risk management and supervision plans for financial companies. Through expert consultations, a green classification system distinguishing green and non-green activities will be established, and model guidelines for green finance commonly applied across the financial sector will be created to foster a self-sustaining green ecosystem. Furthermore, based on the green bond guidelines announced last month, a pilot project for green bond issuance will be conducted through business agreements with financial companies and corporations.

In the final area of green finance infrastructure improvement, four tasks will be promoted: ▲gradual mandatory disclosure and publication of corporate environmental information ▲review of stewardship code revision ▲establishment of environmental standard evaluation system ▲construction of an information-sharing platform. Within the first quarter, a plan to gradually strengthen disclosure obligations on the exchange, expanding environmental information disclosure such as environmental risks, management systems, and response plans, will be established. Also, the direction to revise the stewardship code to include environmental and other ESG factors within the scope of institutional investors' fiduciary duties will be reviewed within the year.

The FSC stated that it will promote these 12 practical tasks within this year and conduct periodic inspections. Separately, efforts to discover new tasks will continue while monitoring international discussion trends. Meanwhile, the 3rd 'Green Finance Promotion TF' meeting held on this day was attended by representatives from government ministries including the Ministry of Environment, related organizations, policy financial institutions, private financial companies, and advisory groups from various sectors of the financial industry.