Events Recap

PCAF-KOREA Working Group: Future and Strategy of Sustainable Finance

On August 27, 2024, the Korea Sustainability Investing Forum (KoSIF) hosted a PCAF-KOREA Working Group seminar at the KB Financial Group New Building. Marking the second event held since the launch of PCAF-KOREA, the seminar focused on the theme "Future and Strategy of Sustainable Finance." The gathering provided a platform for key working-level representatives from domestic PCAF-KOREA member institutions to explore future outlooks for sustainable finance, enhance market competitiveness, and strengthen networking among participating financial institutions.

[Photo] Executive Director Chun Seung Yang of the Korea Sustainability Investing Forum delivers opening remarks.

The event commenced with opening remarks from Chun Seung Yang, Executive Director of KoSIF, the co-host and organizer. He emphasized that adopting standardized methodologies for financial institutions to measure and disclose financed emissions is critical to exploring actionable pathways for reducing carbon emissions and creating positive climate impacts.

[Photo] Managing Director Kyung Nam Kim of KB Financial Group delivers opening remarks.

Next, Kyung Nam Kim, Managing Director at KB Financial Group, the chairing entity of PCAF-KOREA and event sponsor, delivered opening remarks. Highlighting the growing domestic and international importance of measuring and managing financed emissions driven by mandatory global ESG disclosure regimes such as the SEC and ISSB, she encouraged active participation from financial institutions, expressing hope that PCAF-KOREA will play a key role in South Korea’s transition to a low-carbon economy and exert a positive influence across Asian financial markets.

In a video address, Madeline Schneider, Director of Operations at PCAF, shared that over 510 financial institutions worldwide are currently participating in PCAF and expressed high expectations for growth in South Korea. She stated that PCAF would closely examine the challenges Korean financial institutions face in calculating financed emissions and seek ways to further advance the implementation of PCAF standards.

[Photo] Senior Researcher Nam Young Park of the Korea Sustainability Investing Forum presents on “Introduction to PCAF Trends.”

In the first official session, Nam Young Park, Senior Researcher at KoSIF, presented on “Introduction to PCAF Trends,” sharing recent updates and newly released programs from PCAF. The audience showed particular interest in the PCAF Academy, which enhances professional credibility regarding financed emissions standards, and the PCAF Disclosure Checklist (DCL) scheduled for implementation next year. The DCL was created to provide support and evaluations from the Technical Assistance Team so signatory institutions can prepare and disclose reports in accordance with PCAF standards; following a pilot period in 2024, it will become a mandatory requirement for report disclosures on the PCAF website in 2025.

[Photo] Senior Researcher Tae Han Kim of the Korea Sustainability Investing Forum presents on “Financial Institutions’ Biodiversity Risk Management.”

Subsequently, Tae Han Kim, Senior Researcher at KoSIF, delivered a presentation on “Financial Institutions’ Biodiversity Risk Management.” Beginning with terminology clarifications to build a baseline understanding of biodiversity, he reviewed major international biodiversity conventions. Focusing on what and how financial institutions should manage regarding biodiversity risks, Kim emphasized the necessity of proper assessments through a list of 25 potential environmental and social issues that should be addressed in E&S assessment documents, such as “protection and conservation of biodiversity (including disturbed habitats, endangered species in natural and critical habitats, and sensitive ecosystems) and identification of legally protected areas” and “impacts on Indigenous Peoples and their unique cultural institutions and values (including impacts on lands and natural resources subject to traditional ownership or customary use by Indigenous Peoples).”

[Photo] Manager Ko Eun Cho of DGB Financial Group presents on “Case Study of Financed Emissions Management Using PCAF.”

Finally, Ko Eun Cho, Manager at DGB Financial Group, presented a case study titled “DGB Financial Group’s Financed Emissions Management Using PCAF.” She captured the attention of attending practitioners by demonstrating concrete examples of how DGB Financial Group determined the scope of financed emissions measurement and managed emissions based on PCAF standards and SBTi guidelines. Cho emphasized that while absolute financed emissions naturally tend to increase as measurement scopes broaden and business scales expand, the role of financial institutions is to reduce intensity-based emissions and amplify positive impacts through continuous engagement and green finance activation. To maintain this trajectory, she added that the group will establish internal frameworks to drive behavioral changes among employees while continuously identifying incentives for external stakeholders.

[Photo] Attendees had a meaningful time-sharing diverse opinions and insights among financial institution representatives.

The event provided a meaningful occasion for financial institution representatives to share diverse opinions and insights, particularly regarding the shared challenges and opportunities domestic financial institutions face in calculating and disclosing financed emissions. Throughout the process, KoSIF, as PCAF's partner in South Korea, deeply felt the necessity to actively support domestic financial institutions in systematically managing climate risks and realizing sustainable finance through disclosures that align with international standards. We invite your continued interest and participation in shaping the future of sustainable finance alongside PCAF signatory institutions in South Korea.