KB Financial Group, First Financial Company to Disclose 'Asset Portfolio Emissions'

Declaration of Mid-to-Long-Term Carbon Neutrality Strategy 'KB Net Zero S.T.A.R.'
Chairman Yoon Jong-kyu: "We Will Join Hands with Customers and Companies to Advance the Path to Carbon Neutrality"

[Asia Economy Reporter Sunmi Park] KB Financial Group announced on the 27th that it held an ESG Committee meeting and declared its mid- to long-term carbon neutrality strategy, ‘KB Net Zero S.T.A.R.’

‘KB Net Zero S.T.A.R.’ is a strategy aimed at accelerating the transition to a low-carbon economy by fostering and supporting eco-friendly companies and restoring the environment through active implementation of the Paris Agreement. KB Financial applied the methodologies of PCAF (Partnership for Carbon Accounting Financials) and SBTi (Science Based Targets initiative), which provide global standards for measuring carbon emissions. The asset portfolio emissions calculated through this approach were disclosed to be approximately 26.76 million tons (tCO2eq).

Worldwide, only 36 financial companies, including ABN AMRO and APG, have disclosed their asset portfolio emissions. KB Financial places significance on being the first domestic financial company to transparently disclose carbon emissions generated through investments and loans to companies.

Following the SBTi methodology, KB Financial established reduction targets for ‘asset portfolio emissions’ based on the 2.0℃ scenario, aiming to reduce emissions by 33.3% by 2030 and 61.0% by 2040, with the goal of achieving carbon neutrality by 2050. Additionally, emissions generated internally within the group are targeted for carbon neutrality by 2040, aligned with the 1.5℃ scenario.

KB Financial plans to obtain approval for the established targets through SBTi’s official verification process and will flexibly respond to changes in global standards by regularly revising targets according to initiative recommendations. The group also intends to continuously keep pace with advanced overseas financial institutions. Alongside this, KB Financial plans to expand ESG products, investments, and loans to 50 trillion KRW by 2030, focusing 25 trillion KRW of that on eco-friendly sectors such as renewable energy.

Yoon Jong-kyu, Chairman of KB Financial, stated, “As the saying goes, ‘If we go together, we can go far.’ We will do our utmost to actively support walking the path toward carbon neutrality together with our customers and companies for future generations.”