Hanwha Life

The financial institution clearly identifies and prioritizes its material sustainability impacts across its value chain using objective criteria and verifiable evidence. Decision-making and oversight for its sustainability strategy are entrusted to the highest governance body, while responsibility for implementation is delegated to specific functions, teams, or committees within the organization.

The institution also monitors emissions arising from its associated financing activities (Scope 3, Category 15).

Hanwha Life has a publicly available statement on ILO fundamental rights at work and expects its supplier to do the same but lacks a formal policy approved by its highest governance body. There is an opportunity to disclose how a living wage is determined and to provide a policy statement against bribery and corruption. Furthermore, it could link performance criteria for remuneration at the senior executive level to specific sustainability targets and disclose that it has a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy.

While a list of ESG initiatives is disclosed, there is no evidence of membership in trade associations. Information on financial ties to fossil fuel sectors is provided but could be more transparent. Although Hanwha Life has a coal-free policy, it could expand this to cover all types of fossil fuel. It is acknowledged that it publishes its Membership in the TNFD but engagement activities on biodiversity topics are unclear. Moreover, it could disclose that it has established a transition plan for its own operations, supply chain and portfolio.

It is recommended that the institution disclose the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Its risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks. Moreover, the institution could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to 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.