DGB Financial ESG Management Seminar
Participation by Kim Sang-hyeop, Chairman of the Carbon Neutral Green Growth Committee, and Others
Kim Sang-hyup, Chairman of the Presidential 2050 Carbon Neutral Green Growth Committee, stated that ESG (Environmental, Social, and Governance) management alone cannot overcome the climate crisis. He suggested that the financial sector must actively promote transition finance and companies must respond to climate disclosure in order to resolve the climate crisis.
On the 14th, Chairman Kim made these remarks at the ESG management seminar "Challenges and Opportunities for Finance in the Era of Climate Crisis," hosted by DGB Financial Group at the iM Financial Center in Jung-gu, Seoul. He said that climate change is approaching at a speed humanity has never experienced before. He added, "There is a global consensus that the most important risk at this time is the climate crisis."
He noted that the development of artificial intelligence (AI) is progressing at a similar pace, which inevitably draws attention to clean energy. Chairman Kim explained, "AI consumes enormous amounts of electricity from data collection to processing, and to respond to the climate crisis, this electricity must be supplied by clean energy rather than conventional energy."
He said that capital is essential in the process of attracting attention to green industries, including clean energy, and that the issue cannot be solved by government finances alone. Chairman Kim stated, "For carbon neutrality, although it varies by research institution, McKinsey estimates that $200 trillion (approximately 27,180 trillion KRW) will be needed by 2050," emphasizing the inevitable role of financial institutions.
On the 14th, at the iM Financial Center in Seoul, panelists including Kim Sang-hyeop, Chairman of the Presidential Committee on Carbon Neutrality and Green Growth 2050 (third from the left), Hwang Byung-woo, Chairman of DGB Financial Group (fourth from the left), and Cho Yong-byeong, Chairman of the Korea Federation of Banks (fifth from the left), posed for a commemorative photo at the ESG management seminar "Challenges and Opportunities for Finance in the Era of Climate Crisis" hosted by DGB Financial Group. Photo by DGB Financial Group
He particularly stressed that financial institutions must take the lead in transition finance beyond merely supplying funds. He explained, "Transition finance means providing and utilizing financial products and services to support counterparties in meeting ESG standards," and added, "If financial institutions assess whether companies have clear industrial transition plans and supply funds accordingly, finance itself can lead the industrial transition."
He also mentioned the need to prepare for corporate climate disclosure (mandatory disclosure of greenhouse gas emissions) scheduled to begin in 2026. He said, "Strategists and policymakers in Europe and the United States view climate disclosure as a way to gain leadership in new industries, finance, and security," and added, "Korea’s infrastructure is insufficient, so it is necessary to approach this from a security strategy perspective beyond merely showing financial information and prepare accordingly."
During the panel discussion, opinions were expressed that policy support is needed as corporate ESG evaluations become more emphasized. Lee Sam-young, Head of Evaluation Business at NICE Information Service, said, "Large companies are increasingly demanding evaluations of their partner companies," but added, "For small and medium-sized enterprises to keep pace, steady government policy support is needed to ensure green finance, such as expanding loan support." Additionally, Lim Dae-woong, Korea Representative of the UN Environment Programme Finance Initiative, suggested that support projects to discover a green economy based on the Korean Green Taxonomy (K-Taxonomy) are necessary, and if many discoveries are made, financial institutions will be able to provide active support.
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