South Korea’s KB Kookmin Bank on Thursday said it has adopted a global environmental, social and governance-related risk-management framework, known as the Equator Principles, to better uphold its environmental responsibilities.

By complying with the international convention adopted by financial institutions around the world, KB Kookmin hopes to bolster its ESG standards in its decision-making process.

Project financing over $10 million and corporate loans of over $50 million are subject to the Equator Principles, the bank said, indicating that it would make efforts to curb its lending and commitment to sectors contributing to climate change and social imbalance.

The announcement comes as major banking groups here have been pressing ahead with ESG values, in recent years, by floating ESG-related bonds and making vows to cut back lending to thermal coal-mining related projects.

The movement gained further traction after President Moon Jae-in last year announced his administration’s goal to achieve carbon neutrality by 2050.

KB Kookmin Bank first announced its plan to adopt the Equator Principles in August 2020, then proceeded to carry out necessary procedures, including research, to develop specific guidelines that could aid the firm in better understanding the framework.

So far, 115 global financial institutions in 37 countries have adopted the Equator Principles.

“KB Kookmin Bank will actively participate in responding to climate change as a genuine and responsible corporate citizen, and do our best in creating shared value through societal change as an ESG-leading financial institution,” a KB Kookmin official said in a statement.

By Jung Min-kyung (mkjung@heraldcorp.com)