Industrial Bank of Korea (First Year Implementation)

Incorporation of the Equator Principles in credit and risk management policies

IBK has established the “Environmental and Social Risk Management Guidelines” which are internal guidelines for applying the Equator Principles, so that the related office such as the IB department and credit review department, can appropriately carry out the work of applying the Equator Principles. Based on this, the front office identifies projects subject to the Equator Principles and communicates with clients. Based on environmental impact assessments from the front office and independent E&S consultants, the ESG management Department identifies E&S risks and reviews whether appropriate measures are in place to mitigate these risks.

Also, to preemptively identify E&S risks of planned projects, IBK follows domestic and international laws and regulations, as well as the performance standards of the International Finance Corporation (IFC) and the environmental, health, and safety guidelines of the World Bank Group. We developed an ecological and social impact survey questionnaire that reflects international standards that IBK adopted. IBK classifies the risk level of planned projects by comprehensively considering the environmental and social impact questionnaires and related issues. Based on this rating, we communicate with clients to devise measures to minimize negative impacts on the environment and society.