Nonghyup Bank Establishes Green Loan Management System

Systematizing the Entire Green Loan Process
Preventing Greenwashing and Enhancing Competitiveness in Green Finance

NH Nonghyup Bank announced on October 29 that it has newly established and officially launched its "Green Loan Management System" in response to the financial authorities' "Green Loan Management Guidelines."

The newly established system streamlines the process of assessing conformity with the Korean Green Taxonomy (K-Taxonomy), enabling reviewers to quickly and consistently evaluate green loan criteria such as activity standards, eligibility standards, exclusion standards, and safeguard standards. By minimizing subjective judgment and implementing an objective system, the bank aims to prevent potential greenwashing by companies in advance. Additionally, the system enhances the efficiency of assessing green loan eligibility through a recommendation feature based on companies' industry and product information.

The system also strengthens post-management functions, allowing for the review of fund allocation by purpose and environmental benefits (contribution effects) of green loans, while thoroughly reflecting internal control requirements to ensure compliance with the "Green Loan Management Guidelines." This systematic support for monitoring green loan performance and calculating the green asset ratio is designed to enhance both the reliability and management standards of green loans.

Nonghyup Bank plans to continue promoting the expansion of green loans. In particular, the bank will expand corporate finance in green and transition finance sectors such as renewable energy and low-carbon industrial transformation, and will strengthen its ESG financial execution capabilities in line with government green transition policies.

Kang Taeyoung, President of Nonghyup Bank, stated, "Based on the Green Loan Management System, we will pursue both qualitative and quantitative growth in green finance, and take the lead in responding to the climate crisis and establishing a foundation for sustainable growth through the core functions of finance in the financial market."