Establishing New Strategies Following Achievement of Existing 'ESG Strategy' Goals
Sustainable Management, BNK's Unique Differentiation in 'Mid- to Long-Term ESG Strategy'
BNK Financial Group (Chairman Bin Dae-in) established the group’s “Mid-to-Long-Term ESG Strategy” for 2024 to 2026 on April 30, following the resolution of the BNK Financial Group ESG Committee and reporting to the board of directors.
This “Mid-to-Long-Term ESG Strategy” was promoted to establish a new mid-to-long-term strategy following the achievement of the existing BNK Financial Group’s “ESG Strategy” goals.
To develop the new strategy, from October last year to April this year, about 25 weeks, the departments in charge of the holding company and subsidiaries jointly participated in a bottom-up approach. Through the establishment process, many employees were engaged, providing an opportunity for executives and staff to understand and internalize ESG management.
The newly established “ESG Strategy” maintains consistency with the “Mid-to-Long-Term Management Strategy” announced last January and aims to advance the existing ESG management by deriving “27 strategic tasks” according to the “3 strategic directions” and “12 focus areas,” identifying mid-to-long-term tasks to improve the group’s ESG management shortcomings over three years.
The three “strategic directions” were set by selecting words that encapsulate BNK Financial Group’s pursuit of E (Environment), S (Social), and G (Governance) management as “Green Finance (Touch Our Planet, realizing green finance that protects the environment),” “Co-prosperity Finance (Touch Our Communities, expanding co-prosperity finance with local communities),” and “Right Finance (Touch Our Sustainability, establishing right finance for sustainability),” concretizing the “strategic directions” with English and Korean explanations using the slogan “Touch.”
The focus areas by division are as follows: for the “Green Finance” division ▲promotion of carbon neutrality goal achievement ▲establishment of eco-friendly financial product management system ▲advancement of eco-friendly management ▲participation in global environmental initiatives;
for the “Co-prosperity Finance” division ▲building the Southeast region ESG ecosystem ▲expanding co-prosperity and inclusive finance ▲strengthening protection of financial consumer rights ▲creating social value in local communities;
and for the “Right Finance” division ▲strengthening ESG risk management system ▲building ESG organizational culture ▲establishing ethical and compliance management system ▲developing an autonomous financial security system.
Kang Jong-hoon, Head of Group Management Strategy at BNK Financial Holding Company, stated, “BNK Financial Group reflected global ESG disclosure trends and the requirements of domestic and international evaluation agencies to prepare this mid-to-long-term ESG strategy. As a leader in ESG management in the Southeast region, we are also planning a mid-to-long-term strategy to build a Southeast region ESG ecosystem by providing the group’s ESG management know-how not only to customers but also to local companies.” He added, “We will become a BNK Financial Group that grows together with local companies struggling with ESG responses.”
BNK Financial Holding Company upgraded the “Regional Co-prosperity Development Committee,” which was previously a chairman-direct organization, to the “Regional Co-prosperity ESG Promotion Committee,” expanding its role from “establishing co-prosperity finance and regional mutual growth strategies” to “establishing ESG management strategies including co-prosperity finance and regional mutual growth.”
This committee, which includes CEOs of the holding company and subsidiaries, is expected to play a pivotal role in internalizing ESG management within the group going forward.
Moreover, as part of “Green Finance,” on April 29, BNK Financial Group’s subsidiary, Busan Bank, issued Korea’s first green bond in the form of a new type of capital securities worth 100 billion KRW at an interest rate of 4.37%.
BNK Financial Holding Company was upgraded from an A grade to an A+ grade in the S (Social) area of the KCGS (Korea Corporate Governance Service) evaluation last year due to strengthened human rights management, maintaining an overall A grade. Additionally, in the CDP (Carbon Disclosure Project) evaluation announced in February this year, it improved from “Management B” to “Leadership A-,” receiving ESG evaluations on par with major financial holding companies.
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