The Bank of Korea has announced its participation in the BIS Climate Response Corporate Bond Fund, investing a portion of its foreign assets to support climate crisis responses and low-carbon economic transitions.
The Bank of Korea has revealed its investment in the newly launched 'BIS Climate Response Corporate Bond Fund', which was established on the 26th of last month. This fund aims to address the climate crisis and assist the transition to a low-carbon economy and was created following discussions in an advisory group consisting of central banks from major countries, including the Bank of Korea among 14 participating central banks. The management of the fund is entrusted to the asset management division of the Bank for International Settlements (BIS). The fund will focus on corporate bonds with good credit ratings, with a greater weight assigned to companies making significant efforts towards low-carbon transitions and other climate-responsive measures.
Since announcing its ESG (Environmental, Social, and Governance) investment strategy for foreign assets in 2021, the Bank of Korea has been gradually increasing its related investments. By the end of 2024, it expects the scale of its ESG-related assets to reach approximately $20.38 billion according to the recent announcement. This move signifies the Bank of Korea's commitment to not only economic stability but also to promoting sustainable investment practices in line with global climate initiatives.
