FSC Korea Highlights Increasing ESG Focus in Korean Financial Sector
FSC Korea notified that the Green Finance Task Force held its meeting in August 2020. The task force discussed that it will work to establish a monitoring system for financial risks emanating from climate change, boost investment in green industries, and consider the possibility of joining international networks on green finance. The Vice Chairman of FSC Korea, Sohn Byungdoo, presided over the meeting and shared his remarks on climate change risks and green investment.
Mr. Sohn Byungdoo mentioned that climate change can threaten the stability of the financial system in many different ways and the government will strengthen its efforts to monitor and identify climate change risks to maintain stability in the financial system. He suggested that financial institutions should consider taking into account the environmental, social, and governance factors, alongside the traditional risk factors such as credit or liquidity risks for their asset management. In this regard, the government will work to lay foundations to encourage investors to consider environmental risks when making investment decisions.
Building a sustainable future amid climate change requires efforts of both adaptation and mitigation. Mr. Byungdoo highlighted that the government will lead the public-private joint efforts to boost investment in green industries. The "green new deal" is a part of the Korean new deal initiative introduced on July 14 aimed at laying foundations for a sustainable growth. Finance will play a significant role in this respect. The government will also work to prevent greenwashing and minimize market confusions by specifying the scope of green industries, while providing new investment opportunities through enhanced liquidity in the market. To strengthen international cooperation, the government will review the possibility of joining international networks, such as the Network for Greening the Financial System (NGFS) and the FSB Task Force on Climate-related Financial Disclosures (TCFD).
Related Link: Press Release (PDF)
Keywords: Asia Pacific, Korea, Banking, Securities, Climate Change Risk, ESG, Sustainable Finance, NGFS, FSC
Previous Article
APRA Consults on Standard for Reporting of COVID-19 LoansRelated Articles
EBA Proposes Guidelines for Establishing Intermediate Parent Entities
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA Issues Erratum for Technical Package on Reporting Framework 3.0
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA Publishes Risk Dashboard for Third Quarter of 2020
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB Finalizes Guide on Supervisory Approach to Bank Consolidation
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
