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Consortium headed by SK and Shinhan lead investment into global carbon market player ecosecurities

Updated: Dec 10, 2023

London, 10 December 2023 – ecosecurities Holdings SA (“ecosecurities”) is proud to announce that it is partnering with a consortium led by two Korean corporations—SK Group (“SK”) and Shinhan Group (“Shinhan”). SK is a global conglomerate with a wide range of manufacturing and technology businesses, Shinhan is one of Korea’s leading financial institutions, and ecosecurities is a global carbon project developer. The three companies are pleased to announce a partnership for sourcing and developing carbon credits and a strategic investment into ecosecurities.

SK_Shinah_ecosecurities

  • Transaction marks SK and Shinhan’s largest investment to date in the international carbon markets and underpins both companies’ expansion into Nature-based Solutions (NBS) and Technology-based Solutions (TBS).

  • Investment will help cement ecosecurities’ leadership in carbon reduction and removal project development while growing their decarbonization technology and advisory services – working with governments, landowners and NGOs.

  • The additional investment will be utilized to accelerate capital mobilization for decarbonizing economies across the globe, especially in the Global South, and building trust and integrity in the market by delivering high-quality projects.

  • ecosecurities will also see its operations expand to focus on regenerative agriculture, conservation, biochar, enhanced weathering projects and other CDR technologies.

The world needs to rapidly mobilize capital (both public and private) at scale to decarbonize economies and reach net zero. The latest State of Climate Action report by the World Resources Institute (WRI) calls for an increase in global private climate finance flows to $2.6–3.9 trillion per year by 2030 in order to meet targets, an increase of more than 10x current levels. Finance flows must increase by nearly half a trillion dollars each year through this decade to get on track. This partnership will catalyse capital mobilization towards net zero strategies and will support countries and communities to achieve their Paris Agreement pledges.


Carbon markets are crucial for mobilizing climate finance at scale, decarbonizing sectors and economies and fostering a sustainable future. In recent years, there has been significant growth in carbon markets globally as investors, corporations, governments and project developers actively contribute to the expansion and implementation of new technologies necessary for achieving net zero emissions.


Moohwan Kim, EVP of SK’s Green Investment Center, who joins the Board of Directors of ecosecurities, said of the investment, “SK is committed to leading the transition to net zero and enabling a more sustainable energy complex. Our strategic investment in ecosecurities reflects our ambition to help scale global carbon markets and support the growth of technology-based solutions worldwide.”


Joontai Kim, Deputy CEO of Shinhan Securities said, “At Shinhan, one of our mottos is ‘building a better world through finance’. Through our partnership with ecosecurities, we make solid progress on our Zero Carbon Drive targets and facilitate our commitment to expanding green finance.”


SK and Shinhan join existing institutional shareholders Sustainable Investment Management (SIM) and Hartree Partners (who invested in ecosecurities in March 2022 through its wholly-owned subsidiary Vertree Partners).


Pedro Moura Costa, CEO of SIM and original founder of ecosecurities, said, “We are delighted to welcome both SK and Shinhan as shareholders in ecosecurities. Since I founded ecosecurities over 25 years ago, our mission of connecting purpose-driven capital with high-integrity environmental projects has never been more important. With our new partners, we will be able to continue on this mission even stronger than before.”


Ariel Perez, Managing Partner at Vertree commented, “By combining the strength of SK in technology and energy, Shinhan’s extensive financing capabilities, and Hartree’s international carbon sales and trading platform, ecosecurities is well-positioned to further establish themselves as a leading global climate solutions provider”.


Pablo Fernandez, CEO of ecosecurities, further commented, “We are thrilled to welcome our new partners, SK and Shinhan. For over 25 years, ecosecurities has been at the forefront of driving high -impact, positive climate action. With this announcement today, it paves the way for us to continue doing so by combining nature and community-based solutions with technology-based decarbonization strategies.”


SK and Shinhan join as minority shareholders. Terms of the deal are not disclosed.


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Media contacts:

ecosecurities | Ben Lynch | ben.lynch@ecosecurities.com | +44 7809 292 676

SIM | Lucy Cox | info@sim.finance | +44 7943 952 661 Hartree | Lucy Haines | LHaines@hartreepartners.com | +44 7580 392 781 SK | Lee Soo-jung | +82 1041 308 106

Shinhan | Jae-woo Kim | +82 1037 777 151



 

Notes to Editors


About SK Group SK Group, South Korea’s second-largest conglomerate, is a collection of global industry-leading companies driving innovations in semiconductors, sustainable energy, telecommunications and life sciences. Based in Seoul, SK invests in building businesses around the world with a shared commitment to reducing global greenhouse gas emissions and increasing the use of renewable energy.

SK companies combined have $139 billion in global annual revenue and employ more than 100,000 people worldwide. SK companies are investing billions of dollars in expanding their U.S. presence with business operations or partnerships in hydrogen energy and fuel cells, EV battery manufacturing and technology, energy storage solutions, pharmaceutical manufacturing and development, semiconductors, and advanced materials. For more information, visit sk.com.


About Shinhan

Shinhan Financial Group is a South Korean financial holding company that provides a full range of financial services, including banking, securities, life insurance, and investment banking. It was founded on September 1, 2001, and is headquartered in Seoul, South Korea. Shinhan Financial Group is one of the Big Five financial groups in Korea and has 17 direct subsidiaries, including Shinhan Bank, Shinhan Securities, and Shinhan Asset Management.


About SIM Sustainable Investment Management Ltd (SIM) is an environmental finance advisory firm. Our objective is to promote the financing of activities that result in positive environmental impacts worldwide. SIM coordinates the blending and integration of sources of finance, services and activities related to its investments. SIM uses a combination of:

  • Sophisticated financial mechanisms.

  • Advanced technology tools (including remote sensing and blockchain technology).

  • An experienced team of experts and associates in environmental finance, carbon trading, commercial law, and environmental sciences.

About Hartree & Vertree

Hartree Partners, founded in 1997, is a leading energy and commodities trading company headquartered in New York with offices in many financial and energy trading hubs worldwide. They provide a wide range of services to a substantial and diversified customer base that includes corporations, financial institutions and governments. Founded in 2020, Vertree enables leading companies and institutions to invest in both nature and innovative climate technologies to assist them in reaching their decarbonisation goals.


About ecosecurities

ecosecurities has over two decades of experience in developing and financing carbon projects with the highest level of integrity, quality and innovation. Around the world, we deliver energy & technology projects, nature-based solutions and community programs to facilitate meaningful climate action. We offer technical and financial services to organisations and governments, providing innovative solutions for mobilizing climate finance.


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