KB Financial Group Takes Off as Global ESG-Leading Financial Group

Chairman Yoon Jong-kyu of KB Financial Group. (Photos: KB Financial Group)

KB Financial Group proved that KB Financial Group’s ESG management was once again at the world’s highest level as it was selected as the first Korean financial institution to claim the No. 1 spot in the global banking industry in the 2021 Dow Jones Sustainability Index (DJSI), released by the U.S. S&P Global on November 13.

The DJSI Index is one of the world’s most prestigious ESG evaluation indexes that evaluates companies’ ESG management performances, such as economy, governance, environment, and society.

This year, it listed only 24 financial companies around the world, including KB Financial Group (Korea), Santander (Spain), BNP Paribas (France), Montreal Bank (Canada), and National Australia Bank (Australia).

KB Financial Group has entered the World Index, the highest rating of the DJSI program for the sixth consecutive year. In 2021, the financial group ranked first in the banking industry sector and was recognized worldwide for its high ESG management level.

In particular, it reached the top level in “personal information protection,” “prevention of money laundering,” “sustainable finance,” “social contribution,” “financial inclusion,” and “human resources development.”

As a result, KB Financial Group has become the only one in the financial sector ranking first in the banking industry after winning an A+ rating in all sectors, for the second consecutive year, in the Korea Corporate Governance Service’s ESG evaluation in October.

KB Financial Group’s ESG management received good reviews from domestic and foreign evaluation agencies. It is leading the global ESG world by joining the financial group’s first global renewable energy promotion campaign “RE100” and obtaining “Science Based Targets initiative (SBTi)” approval for its carbon reduction goal among Asian financial companies.

In addition, based on its corporate governance at the nation’s highest level, it is striving to spread sustainable value by promoting shared growth with stakeholders, such as spreading gender equality culture and carrying out activities for the disabled and multicultural families.

Meanwhile, KB Financial Group has been recognized at home and abroad for its ESG management activities and performances including winning the Honors Title in the Carbon Information Disclosure Project (CDP) Sector for the fourth consecutive year and becoming the first Korean company to enter the Bloomberg Gender Equality Index for the third consecutive year.

In a related development, KB Financial Group Chairman Yoon Jong-kyu attended the “High-Level Meeting of Caring for Climate,” an official event of the 26th Conference of the Parties (COP26) in Glasgow of the United Kingdom on November 10 (Korea Standard Time).

Hosted by the United Nations and held in an online and offline hybrid manner, the meeting for climate change response was held to gather global leaders from various fields to discuss ways to overcome the climate crisis, and to explain efforts and a mandate for a transition into a low-carbon society to the world.

The UN invited Chairman Yoon as the representative of the financial sector in responding to climate change, since KB Financial Group is leading ESG management in various fields, including the first approval of the SBTi in the financial sector and acting as the Asia-Pacific representative bank of the Net Zero Banking Alliance (NZBA).

“KB Financial Group’s portfolio strategy for responding to climate change, one of the first financial companies approved by the SBTi with regard to science-based carbon neutrality goals,” at the meeting.

At the meeting, Yoon was asked about KB Financial Group’s portfolio strategy for responding to climate change the SBTi with regard to SBTi’s goals as it is one of the first financial companies approved by the SBTi.

“Negative strategy can achieve net zero of financial companies, but cannot realize net zero of society as a whole,” Yoon answered.

“Therefore, KB Financial Group will promote positive strategy to actively support companies doing eco-friendly business and expand investment in green industries.”

KB Financial Group will begin the era of its integrated new headquarters in Yeouido, Seoul in December. KB Financial Group's new headquarters building.