Jeong Eun-bo, Financial Supervisory Service Chief: "The ESG Trend in Finance and Corporates Is Irreversible"

Jeong Eun-bo, Governor of the Financial Supervisory Service, attended the National Assembly's inspection of the Financial Supervisory Service held by the National Assembly's Political Affairs Committee on the 7th and is responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jin-ho Kim] Jung Eun-bo, Governor of the Financial Supervisory Service (FSS), emphasized on the 26th that the green transition required to respond to climate change is irreversible in terms of the ESG (Environmental, Social, and Governance) trends in finance and business.

At the opening remarks of the ESG and Green Finance International Conference held jointly with Ewha Womans University on the same day, Governor Jung stated, "The green transition centered on responding to climate change is a matter directly related to the survival of humanity."

Governor Jung said, "In the wake of COVID-19, responding to climate change has moved beyond academic warnings or government regulations to become a demand from investors and consumers," adding, "Considering ESG in future corporate strategies is essential."

He also explained the Korean government and financial sector’s responses to the climate change crisis. The government submitted the '2030 National Greenhouse Gas Reduction Target' and the '2050 Long-term Low Carbon Development Strategy' to the UN last December, and further legislated the 'Carbon Neutrality Basic Act' in September this year to legally and concretely establish the procedures for implementing carbon neutrality.

Governor Jung elaborated on the efforts of financial institutions as well. He explained, "Financial institutions are actively launching new financial products that favor ESG excellent companies or invest in eco-friendly and low-carbon industries," and added, "The FSS is supervising financial companies’ climate risks and making efforts to expand corporate climate-related information disclosure."

The FSS is currently working on advancing the climate stress test model developed last year. It also plans to promote the systematization and institutionalization of ESG disclosure for listed companies and others in line with global standards related to disclosure.

Governor Jung also actively urged for 'international solidarity' and 'dedicated corporate participation' in responding to climate change.

He emphasized, "International cooperation, such as financial support to developing countries with limited transition capacity, is very important," and added, "Along with the supervisory authorities’ efforts to improve the disclosure system, companies should more actively reflect ESG information in their business strategy formulation and investor information disclosure."

Meanwhile, at the international conference held that day, representatives from Microsoft, the IPCC (Intergovernmental Panel on Climate Change), the Bank of England, the Financial Supervisory Service, and KB Financial Group introduced the impacts of climate change and responses, as well as cases of ESG and green finance innovation. This was followed by a recruitment briefing session for young people featuring CJ OliveNetworks, Samsung Life Insurance, KB Financial Group, SK Innovation, and the FSS.