Shinhan Bank has published its inaugural Transition Bond Framework, establishing a financing structure to support decarbonisation in South Korea's most emissions-intensive industrial sectors, including chemicals and heavy manufacturing. The framework is backed by an external second-party opinion.
TARGETING HARD-TO-ABATE SECTORS
The framework is designed to channel lending towards businesses in chemicals and manufacturing that are pursuing credible pathways to lower emissions but cannot yet qualify for standard green finance products. Shinhan has formally adopted a goal of net-zero financed emissions by 2050.
As of the end of 2024, Shinhan Financial Group had provided a cumulative KRW 18.7 trillion in green finance since 2020. The transition bond framework creates a distinct product category with its own eligibility criteria, use-of-proceeds rules, and reporting obligations, all reviewed in the second-party opinion process.
KRW 30 TRILLION TARGET BY 2030
Shinhan Financial Group has set a target of KRW 30 trillion in cumulative green finance by 2030, up from KRW 18.7 trillion at the close of 2024.
Investor reporting and impact disclosure are intended to give bondholders ongoing visibility into how the proceeds are deployed and what emissions reductions are being achieved across the financed portfolio.