Woori wins global approval for net-zero target in shortest period

Woori Financial Group's promotional poster celebrating the approval of its carbon reduction target (Woori Financial Group)

South Korean financial conglomerate Woori Financial Group announced Thursday that it obtained approval for its carbon reduction target from a global climate science organization earlier this month, saying that it took the shortest period among other domestic companies in the industry.

The Science Based Targets initiative or SBTi, is a global organization which was jointly founded in 2015 by the Carbon Disclosure Project, the United Nations Global Compact, and the World Wide Fund for Nature.

Complying with the latest SBTi recommendation and criteria, Woori set 2022 as a reference year for comparison and assessment. Under the road map, it aims to curb total carbon emissions from its business operations by 42 percent, and emissions resulting from financial assets by 27 percent by 2030, in a bid to achieve the net-zero target by 2050.

“In addition to goal setting, consistent implementation of the plan and transparent disclosure of the data is crucial in effectively responding to the global climate crisis and realizing carbon neutrality in the industry,” Woori Financial Group CEO and Chairman Yim Jong-yong said in a released statement.

The financial giant pursued the widest scope and boundaries for carbon emission measurement and target validation among domestic financial companies, while also applying the latest SBTi reduction methodologies.

The SBTi aims to promote the global transition to a net-zero economy by defining and providing science-based international standards for the verification of carbon emission targets in businesses worldwide. Currently, about 6,000 companies are participating globally.

The Korean financial group fulfilled all the criteria demanded by SBTi, which contributed to securing the validation for its emission target in just two months after submitting its application, the shortest period among domestic rivals, the company said.

Additionally, the group plans to apply the latest environmental and social risk management policies to carbon-intensive sectors that are deemed to inflict hazardous impacts on society and the environment. It also seeks to actively promote investment in green finances and expand support for the transition to a low-carbon economy.

“By continuously sharing our progress with the public, we will strive to combat 'greenwashing' (deceptive green marketing) in the industry to become a trusted company with a genuine commitment to (ESG) management," Woori's chairman said.

By Song Jung-hyun(junghyun792@heraldcorp.com)