8-10. Trends in Sustainable Finance and EHS Investment

Sustainable finance is rapidly expanding globally as a financial mechanism that supports sustainable economic activities by considering environmental, social, and governance (ESG) factors. Within this field, investment in EHS (Environment, Health, and Safety) is a critical trend that simultaneously achieves risk management and enhances corporate value.

First, green bonds and sustainability-linked loans are central instruments of sustainable finance. These mechanisms allocate funds to EHS-related projects, such as reducing environmental impact and enhancing workplace safety, with investors scrutinizing the company's efforts through ESG evaluations. While this offers companies the benefits of lower financing costs and a broader investor base, transparent EHS information disclosure is a prerequisite.

Next, a notable trend in EHS investment is "proactive investment." Historically, the common approach was "reactive," responding to accidents or environmental issues after they occurred. However, there's now a shift toward a "preventive" model, focusing on preventing workplace accidents and adapting to climate change risks. This allows companies to reduce risks while also showcasing their contribution to sustainability.

Furthermore, financial institutions and investors are placing a strong emphasis on whether EHS is integrated into a company's business strategy. For example, companies that set science-based greenhouse gas reduction targets and regularly disclose their progress are more likely to receive high ratings. Similarly, strengthening workplace safety education and promoting health-focused management have also become factors that influence investment decisions.

In the future, advancements in digital technology will further improve the collection and analysis of EHS data, demanding more transparent reporting to investors. Additionally, the development of international regulations and standards (such as the EU Taxonomy and ISSB standards) is expected to accelerate the trend of EHS investment.

In this way, sustainable finance and EHS investment are closely linked. For companies, this is not just a means of securing funding but a crucial strategic element that supports sustainable growth.