IBK Industrial Bank, Joins 4 Major International ESG Standards and Initiatives

Accelerating Global ESG Management through Membership in Major International Standards and Initiatives

[Asia Economy Reporter Park Sun-mi] IBK Industrial Bank announced on the 20th that it has joined four major international standards and initiatives to acquire advanced ESG (Environmental, Social, and Governance) management techniques and build networking with global ESG leading banks.

Along with joining the United Nations Environment Programme Finance Initiative (UNEP FI), IBK Industrial Bank also became a signatory institution of the United Nations Principles for Responsible Banking (UN PRB). At the same time, it completed membership in the Partnership for Carbon Accounting Financials (PCAF) and the Science Based Targets initiative (SBTi).

Going forward, IBK Industrial Bank plans to comply with the six principles recommended by the Principles for Responsible Banking. These principles are guidelines that banks should pursue to achieve the Sustainable Development Goals and the targets set by the Paris Climate Agreement, securing a sustainable future.

The detailed contents include ▲ aligning business strategies with the Paris Climate Agreement and the United Nations (UN) Sustainable Development Goals ▲ reducing negative impacts and expanding positive impacts of financial products and services ▲ encouraging sustainable practices among clients and customers ▲ partnerships with stakeholders to achieve social goals ▲ implementing principles through effective governance systems and a culture of responsible banking ▲ regular reviews and ensuring transparency regarding the performance of principle implementation.

Additionally, by adopting the greenhouse gas emission measurement standards, target setting, and reduction performance evaluation methods of the Partnership for Carbon Accounting Financials and the Science Based Targets initiative, IBK plans to start applying these from project financing (PF) and gradually expand the scope to cover all assets in the future.

Meanwhile, earlier this year, IBK Industrial Bank established a dedicated ESG team and participated in various domestic ESG activities, including declaring support for climate finance to achieve carbon neutrality and joining the UN Global Compact anti-corruption declaration. An IBK Industrial Bank official stated, “Based on joining these global initiatives, we will fulfill our responsibility as a policy bank to ensure that ESG management, the fundamental duty of corporations, takes root not only in banks but also in small and medium-sized enterprises.”