Established in 1971 as Korea Investment & Finance, followed by its conversion to a commercial bank in 1991 and financial holding company in 2005, Hana Financial Group is headquartered in Seoul, South Korea. It offers a wide variety of financial services and product, employs more than 22,000 people and has total assets of KRW 502 trillion.
In terms of senior leadership accountability, Hana Financial Group assigns responsibility for sustainability to the board of directors. Furthermore, the financial institution identified and prioritised its impacts through a materiality assessment process which included feedback from external stakeholders.
As a member of the Net- Zero Banking Alliance, Hana Financial Group has set a target of net-zero financed emissions by 2050. The financial institution discloses the aggregate amount finance it devotes to climate solutions while specifying what these solutions are. Furthermore, the bank discloses time-bound targets for its climate solutions and aims to finance KRW 83 trillion in climate solutions by 2025.
Hana Financial Group has a grievance mechanism accessible to all workers to raise human rights complaints or concerns. The financial institution also provides a case study describing how it has acted on a salient human rights risk issue and it discloses categories of stakeholders whose human rights have been or may be affected by its activities. Furthermore, the financial institution has a publicly available policy statement which shows it is committed to respecting the health and safety of workers and discloses its lobbying expenditures.
In terms of its approach to senior leadership accountability, there is no evidence that Hana Financial Group links the remuneration of its executive or management teams to sustainability performance criteria. No evidence was found that the financial institution is committed to gender equality and women’s empowerment and it has an opportunity to disclose the proportion of women in senior leadership roles as well as how it addresses any gender pay gaps. Additionally, the bank has an opportunity to describe its engagement approach on sustainability themes and impact topics with clients and investees.
Hana Financial Group could disclose interim emissions reduction targets at the group level, such as a 45% reduction in financed emissions by 2030. The financial institution has an opportunity to disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on the alignment with the Paris Agreement. While Hana Bank has a sustainable financing framework in line with green bond principles it does not disclose similar evidence for all its financing activities devoted to climate solutions. Regarding nature and biodiversity, no evidence was found that the financial institution is committed to minimising its negative impacts or financing regenerative solutions.
Hana Financial Group has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. The financial institution also has an opportunity to disclose the proportion of its total direct operations workforce for each employee category by age group, gender or another indicator of diversity. Additionally, to provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of finance directed towards, for example, women-owned businesses, small- and medium-sized enterprises (SMEs) or low-income developing countries.
More about the company
Republic of Korea
Net income: KRW 3.5 trillion; Total assets: KRW 502 trillion