Seoul, Republic of Korea, May 18, 2021—Incorporating Environmental, Social, and Governance (ESG) factors in business decisions will allow Korean institutions to explore new opportunities while helping the developing world recover sustainably, said experts at an investment workshop organized by IFC today.
The event—Scaling Up Sustainable Investing in Emerging Markets— brought together thought leaders from over 40 leading Korean institutions and showcased some of their pioneering and sustainable work on hydrogen and e-mobility as well as IFC's innovative financial instrument, blue finance. The workshop is part of IFC's ongoing efforts to support the government of Korea and Korean firms to expand private sector solutions in developing markets.
"The Korean government has been implementing the Green New Deal and the 2050 Carbon Neutrality Strategy with an aim to support the leap in to a green, inclusive and fair economy," said Taesik Yoon, Deputy Minister for International Affairs, Ministry of Economy and Finance of the Republic of Korea. "I am pleased that today's workshop offers a venue to explore solutions for sustainable growth and to share strategies that promote ESG practices."
Even before the COVID-19 pandemic, trillions of dollars were needed in investments to help developing countries achieve their Sustainable Development Goals. The post-pandemic recovery is spurring green and sustainability-related projects, including renewable energy, green urban infrastructure, and climate-smart agriculture. IFC estimates that investment opportunities in emerging markets could generate over $10 trillion by 2030 and create over 200 million jobs in green sectors.
"It is an opportune time for Korean institutions to strengthen their ESG strategies and explore innovative solutions that drive sustainable growth in and outside of Korea," said Alfonso Garcia Mora, IFC's Regional Vice President for Asia Pacific. "In IFC's experience, while incorporating ESG considerations in business decisions can be challenging, it certainly helps strengthen one's market position and attract new partners. We are ready to utilize our expertise and network to support our Korean partners, enabling the country's smooth transition to a low-carbon economy."
In 2003, IFC helped launch the Equator Principles, which were based on IFC's Performance Standards. The principles provide a framework for financial institutions to manage environmental and social risk in projects. The principles have been adopted by over 100 financial institutions from 38 countries including three from Korea.
Over the past six decades, IFC has invested in clean energy, sustainable cities, climate-smart agriculture, green buildings, green finance as well as in socially responsible projects including health care and microfinance. In Korea, since re-establishing its presence in 2014, IFC has provided financing worth over $6.5 billion of long-term commitments for projects involving Korean partners and banks.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
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