The First REC Purchase Agreement Between Shinhan Bank and Korea East-West Power in the Domestic Financial Sector
Shinhan Financial Group announced on the 30th that it will promote the 'Shinhan Digital RE100,' which procures 100% of the electricity used by the Shinhan Financial Data Center located in Yongin, Gyeonggi-do, from renewable energy sources.
The reason Shinhan Financial prepared this implementation plan is based on the judgment that the increasing electricity consumption of the group's data centers, driven by the recent expansion of digital and mobile finance, is the biggest cause of increased carbon emissions.
Under the Shinhan Digital RE100, Shinhan Financial plans to reduce approximately 20,000 tons of carbon emissions annually, equivalent to 20% of the entire group. To achieve this, they plan to comprehensively utilize Renewable Energy Certificates (REC), green premiums, Power Purchase Agreements (PPA), and self-generation to cover the data center's electricity consumption.
To this end, Shinhan Bank signed a REC purchase agreement with Korea East-West Power Co. the day before yesterday to receive renewable energy supply for five years. This is the first such agreement among domestic banks. Additionally, major group companies such as card, securities, and life insurance will continue contracts within the first half of the year.
Shinhan Financial plans to eliminate concerns about greenwashing and communicate transparently with stakeholders by verifying the annual renewable energy usage by June of the following year and continuing external disclosures through the group's annual ESG report, thereby fulfilling compliance requirements.
Chairman Jin Ok-dong stated, “To create a carbon-neutral society, we will explore various practical methods, including promoting Shinhan Digital RE100,” and added, “Shinhan Financial will continue sincere ESG practices to share the value of sustainable growth with all stakeholders.”
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