NH Nonghyup Financial has completed the establishment of a framework for 'transition finance' to support corporate low-carbon transitions and is now expanding climate finance across its subsidiaries.
On September 16, NH Nonghyup Financial Group held an 'ESG Promotion Council' meeting to discuss the results of the transition finance project and plans for expanding climate finance among its subsidiaries.
Transition finance refers to the funding provided for equipment investments and business restructuring necessary for industries or companies with high carbon emissions to transition to environmentally friendly, low-carbon structures. Unlike green finance, which supports projects already classified as environmentally friendly, transition finance specifically aids the reduction process of currently high-emission companies.
Through this project, NH Nonghyup Financial has established a system to identify and support the financial needs for corporate low-carbon business transitions and equipment investments.
In the future, the company plans to focus on early implementation of transition finance within its subsidiaries. To achieve this, it will incorporate transition finance into each subsidiary's business plans and key performance indicators (KPIs) and establish execution systems, including organizational and personnel structures. Training at headquarters and branches will also enhance related expertise.
At the group level, NH Nonghyup Financial will continuously refine regulations and operational manuals related to transition finance and expand the sharing of know-how among subsidiaries. Each subsidiary plans to leverage its strengths in areas such as corporate finance and investment to expand climate finance initiatives, including both green finance and transition finance.
Im Do-gon, head of the Growth Strategy Division at NH Nonghyup Financial, stated, 'Through this project, we have secured the business potential and implementation experience of transition finance. We will lead the new corporate finance market by expanding climate finance that supports the practical low-carbon transition of companies.'
* This article has been translated by AI.
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