| Addressing Climate Change | Climate Change | Topics

Climate Change and
the Bank of Korea

"Addressing climate change is essential to preparing for the post-pandemic new normal." Governor Rhee, Chang Yong
Speech at the International Conference on Green Finance, June 2023

Journey toward Sustainable Growth

2020.6 Bank of Korea's Mid- to Long-Term Development Strategic Plan: BOK 2030
BOK 2030 The Bank of Korea's mid- to long-term development strategy, BOK 2030, was announced to commemorate the 70th anniversary of its foundation and declared the Bank’s determination to take the lead in presenting effective policy measures based on in-depth research and analyses of major tasks that have a wide impact on our economy and society, including climate change.
2021. 10 Climate Change Response Strategy
Climate Change Response Strategy The Bank of Korea released "Climate Change and the Bank of Korea's Response Strategy" which comprehensively reviews and analyzes the role of a central bank in addressing climate change. This report outlines the Bank's objectives and the methods it plans to employ for implementation.
2021.12 Transition Risk Analysis
Climate Change Transition Risk and Financial Stability The Bank of Korea conducted an analysis of the impact that transition risks—stemming from both domestic and international environmental regulations, as well as the shift towards a low-carbon economy—have on the Korean economy and financial system.
2022.4 Designation as an institution under the GHG Target Management Scheme
Designation as an institution under the GHG Target Management Scheme The Bank of Korea has been designated as a public institution subject to the Ministry of Environment's GHG Target Management Scheme and is striving to gradually reduce its GHG emissions by 2030 to 37% of its 2018 levels.
2023.12 Physical Risk Analysis
Analyzing the Impact of Physical Risks from Domestic Climate Change on the Real Economy The Bank of Korea assessed the impact of climate change-related physical risks on the real economy, industrial output, and the stability of the financial sector.
2024.2 Establishment of the Office of Sustainable Growth
Establishment of the Office of Sustainable Growth The Office of Sustainable Growth was established by merging existing climate change-related units and to unify climate change initiatives across the Bank's policies and operations.

Central Banks and
Climate Change

Tackling climate change can help achieve price stability and financial stability. Climate change is the greatest threat facing the world and a critical challenge for the international community. As global efforts intensify to reduce greenhouse gas emissions and achieve carbon neutrality by 2050, these efforts present real risks to households, businesses, and nations alike—but they also offer opportunities for future growth. The Bank of Korea assesses how climate risks and the transition to a net-zero society will impact the Korean economy in the long term and will recommend effective policy measures. View More

Strategic Objectives and
Core Agendas for Tackling Climate Change

기후변화 대응을 위한 전략목표 기후변화가 초래하는 금융리스크의 경제적 영향 평가 저탄소 경제로의 전환을 지원하는 금융의 역할 강화 기후변화 관련 사회·제도 변화촉진을 위해 지식·경험 공유

Units for Sustainable Growth

2022.01 The Bank of Korea established the Climate Risk Research Section within its Financial Stability Department to analyze financial risks associated with climate change.
2023.01 The Bank of Korea established the Sustainable Growth Committee, supervised by the Senior Deputy Governor, to oversee climate change response strategies. Additionally a working group was formed within the Strategy & Coordination Department.
2024.02 To unify climate change response efforts across the Bank's policies and management, the Office of Sustainable Growth was established to consolidate and merge existing climate-related units.

Roadmap for Climate Change
Response

Activities		2024	2025 and after
Climate Risk Analysis	1Economic Assessment	Analyse the impact of the transition to a low-carbon economy. Analyse the impact of climate risk on financial stability and monetary policy.
	2Climate Model	Continuously expand climate models, for example, through the improvement of transition risk stress test models and the development of physical risk models.
	3Climate Matrics	Examine and explore climate-related statistics and risk indicators.
Supporting the Green Transition	4Green Finance	Conduct research into financial instruments and systems to facilitate green finance for small and medium-sized enterprises.
	5Monetary Policy Measures	Perform research into monetary policy measures to respond to climate change.
	6ESG Investment	Integrate ESG elements into foreign reserve management goals.	Review and promoting the expansion of ESG information disclosure.
		Strengthen the monitoring of climate risk indicators.
		Establish an internal negative screening process.	Expand investment in green sectors. Introduce ESG Integration.
Global Cooperation	7Global Cooperation	Contribute to global climate change response efforts by actively participating in international organizations (including the NGFS, the BCBS TFCR, the G20 SFWG, and other bodies).
	8Domestic Cooperation	Promote green finance by proactively cooperating with the 2050 Carbon Neutrality and Green Growth Commission and other financial authorities, and helping to ensure the transition to a low-carbon economy that will serve as an opportunity for economic growth.
	9Conferences & Seminars	Host joint conferences and seminars on climate change with the government, international organizations, economic associations.
A Sustainable BOK	10Governance	Establish a framework that takes into account climate change as a long-term initiative in the Bank’s business operations.
	11Transparency	Add a climate change section to the BOK website.	Publish a sustainable report.
	12Carbon emission	Monitor GHG emissions.	Set GHG reduction targets.
	12Carbon emission	Review and implement carbon emission reduction measures across all aspects of the Bank's operations.

Addressing Climate Change

내가 본 콘텐츠