Woori Financial Group said Sunday it has established “ESG financing principles,” a framework for the incorporation of environmental, social and corporate governance factors into the group‘s business portfolios. 

The ESG finance principles introduce a definition and initial purpose of ESG finance, while stipulating how to integrate ESG values when making business decisions regarding various business models, including credit loans, project financing and wealth management, the group said in a statement. 

ESG financing generally refers to a financial company’s investments, which seek positive returns for the environment or society. 

With the framework, the banking giant will ramp up efforts to strengthen its sustainable management and disclose its ESG performance by the end of this year.

Meanwhile, Woori Financial’s intraboard ESG committee, launched in February to discuss ESG-related strategies, has decided to set up a special council convened by CEOs of the group’s affiliates, in order to implement a decision making system to conduct businesses centered on ESG values as well as to monitor corporate risks.

“It is meaningful that the ESG financing principles brought together various ESG values necessary for financial circles,” Woori Financial Group Chairman Sohn Tae-seung said in a statement. “(Woori Financial) will continue to create social values by taking the lead in promoting ESG management.”

By Choi Jae-hee (cjh@heraldcorp.com)