Hana Financial Group

The financial institution does not make political contributions and discloses its lobbying expenditures. Decision-making and oversight for its sustainability strategy are assigned to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets. Responsibility for implementing the sustainability strategy is delegated to various functions, teams, or committees.

It transparently identifies nature-related impacts associated with its products, services, and capital, prioritising sectors with the highest impact. The institution discloses the monetary amount or share of its provision linked to these priority sectors and areas, as well as the amount provided to usually excluded groups, as defined by itself. Additionally, it provides a breakdown of clients and beneficiaries by company size and discloses the monetary amount or share of products, services, and capital provided to small and medium-sized enterprises. Finally, it discloses its operations by country, including metrics such as the number of employees or revenue.

The financial institution has a publicly available policy statement pledging to respect specific workers’ rights, yet it could enhance this by referencing all the ILO fundamental rights at work. The institution conducts a double materiality assessment and shares the results, but it should expand this assessment to cover the entire value chain. Additionally, it could provide more details on the process and the objective criteria and supportable evidence used for impact identification and prioritization.

The financial institution has a stewardship code policy for its major subsidiaries that support environmental and social best practices in line with its sustainability strategy. However, this policy should be extended to encompass the entire group. While the financial institution states that it sponsors politically neutral associations for the public interest and discloses its contributions to trade associations, it could go further by publishing a complete list of the trade associations it is a member of. Although the financial institution claims it is not using its lobbying and political engagement power to cause adverse sustainability impacts, it has not made a firm commitment. The institution discloses information about the amount and/or share of its products, services, and capital linked to fossil fuel sectors, but this could be presented more transparently at an aggregate level.

Furthermore, the financial institution has set time-bound and measurable targets for ESG financing but it could specify the share dedicated to climate solutions. It has a plan to monitor nature-related indicators in key risk areas but has the opportunity to further explain how it would adjust its offerings to reduce negative impacts and enhance positive ones. It is recommended that the financial institution discloses the breakdown of its clients and/or beneficiaries by income group and the processes for identifying social risks associated with its products, services, and capital in relation to the net zero transition.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.