NongHyup Financial Group announced on June 1 that it held a meeting of the Social Value and Green Finance Council, an ESG management council chaired by NongHyup Financial Group Chairman Lee Seok-jun and attended by executives in charge of ESG from the group and its affiliates.
The meeting began with an external lecture on ESG trends and the roles of financial institutions by Professor Jung Tae-yong at the Yonsei Graduate School of International Studies. Jung is a world-renowned climate and economics expert.
Jung’s lecture was followed by a report on the balanced ESG development of NongHyup Financial Group and a debate.
In particular, the meeting focused on group-wide measures for sustainable management in the era of disruptions, such as climate change, that Chairman Lee Seok-jun brought up in his inaugural speech in January of this year.
In accordance with the Balanced ESG Development Plan, NongHyup Financial Group will systematically implement companywide ESG management, commercialize ESG from a business perspective, and sincerely play its social roles.
The Balanced ESG Development Plan reorganizes NongHyup Financial Group’s ESG strategy framework and comprehensively formulate a development plan for each sector of ESG.
The main content includes creating an ecosystem in the environmental field through green finance and new businesses, advocating human rights-oriented management, enhancing social value by increasing human capital, and improving governance based on external evaluation results.
In the environment sector, NongHyup Financial Group plans to create a carbon finance ecosystem by expanding investment in climate and technology companies, operating a green solution lab, and collaborating with forestry and biochar companies.
NongHyup Financial Group Chairman Lee Seok-jun emphasized a need for ESG management and the financial group’s role, saying, “Companies must fulfill their responsibilities for environmental and social issues, and it is important for NongHyup Financial Group to promote specialized ESG for agriculture and rural and farming communities.”
“Let’s connect ESG to business opportunities at a crucial turning point through the specification and implementation of balanced development tasks,” Lee said, referring to work and business expansion with ESG as a top priority. Lee called on employees to have a more active attitude about ESG, as well.
In the meantime, NH NongHyup Financial Group announced that it held a Risk Management Workshop for the first half of 2023 at the NH Human Resources Development Center in Goyang, Gyeonggi Province on June 2.
More than 50 CROs and risk management managers from NongHyup Financial Group affiliates were in attendance.
The Risk Management Workshop was organized to strengthen preemptive response capabilities in the event of a complex crisis, such as financial market volatility and economic instability through information sharing, and an in-depth discussion on risk management at NH NongHyup Financial Group.
In particular, Hwang Tae-sik, a partner at F1 Consulting and former deputy director of the Financial Supervisory Service (FSS) gave a special lecture under the title of “Risk Factors and Risk Management Directions for Financial Companies in the Second Half of 2023.”
After the lecture, participants discussed management plans for the second half of this year in response to key risk factors at each affiliate, centered on asset soundness management.
“As the macroeconomic environment remains uncertain including sluggish exports, and the high interest rate is continuing, we may face risks in vulnerable sectors such as real estate risk,” said Kang Shin-no, vice president of risk management at NongHyup Financial Group, emphasizing that each affiliate should promote financial soundness management as a top priority.
On the other hand, NongHyup Financial Group said that it plans to respond to risk factors in the second half of the year by continuing to monitor vulnerable assets such as real estate PFs and marginal companies, strengthening liquidity risk management in preparation for market volatility, and expanding its loss absorption capacity.
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