Founded in 1982, Shinhan Financial Group became the first-ever financial holding company in Korea in 2001. It provides financial services, including retail banking, corporate banking, international banking, credit card services, securities brokerage services, life insurance services and asset management services. Headquartered in Seoul, Shinhan Financial Group consists of 17 direct and 32 indirect subsidiaries and has approximately 30,000 employees. By the end of 2021, its consolidated assets amounted to KRW 648.15 billion.
In terms of senior leadership accountability, the responsibility for sustainability issues within Shinhan Financial Group lies with the Board. The financial institution identified and prioritised its impacts through a materiality assessment process which included feedback from external stakeholders. It also discloses a target to %45 on gender balance for full-time employees by 2030.
As a member of Net Zero Asset Managers Initiative, Net Zero Banking Alliance and Net Zero Insurance Alliance, Shinhan Financial Group has set a target of net-zero financed emissions by 2050. The financial institution discloses the companies it has identified as priorities to engage with on climate change, and the rationale for choosing these priorities. Also, it discloses that alignment with the Paris Agreement is one of its engagement topics. Shinhan Financial Group discloses time-bound targets for its climate solutions and aims to finance KRW 30 trillion in these solutions by 2030. Furthermore, it discloses absolute financed emissions and the underlying data quality and coverage of its financed emissions.
Shinhan Financial Group discloses the proportion of its total direct operations workforce for each employee category by age group and the proportion of women in its total direct operations workforce for each employee category. It has a grievance mechanism accessible to all workers, external individuals, stakeholders and communities to raise complaints or concerns regarding human rights or bribery and corruption. Shinhan Financial Group has a policy prohibiting bribery and corruption and also describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations. Additionally, it discloses categories of stakeholders whose human rights have been or may be affected by its activities. Besides, the financial institution discloses a global tax strategy.
In terms of its approach to senior leadership accountability, Shinhan Financial Group has an opportunity to link the remuneration of its executive and management team to sustainability performance criteria. In terms of female representation in leadership positions, women are underrepresented on the board of directors where only one out of 14 board members are women. It could disclose the ratio of basic salary and remuneration of women to men in its total direct operations workforce for each employee category. There is no evidence that Shinhan Financial Group takes action to address any pay gaps at the group level. It has an opportunity to describe its engagement approach on sustainability themes and impact topics with clients.
Shinhan Financial Group could disclose interim emissions reduction targets at the group level, such as a 45% reduction in financed emissions by 2030. There is no evidence that the financial institution discloses that it collectively engages with and requires companies to which it provides financial services on the topic of strategic alignment with the Paris Agreement. Although the financial institution discloses the aggregate amount of finance it devotes to climate solutions, it has an opportunity to disclose what these climate solutions involve and align them with internationally recognised frameworks. It could disclose progress against the targets it has set for its 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.
There is no evidence that Shinhan Financial Group has a publicly available policy statement committing it to respect human rights laid out in the UN Guiding Principles and the ILO declaration on fundamental rights at work. Therefore, it has an opportunity to describe describes the process for identifying its human rights risks and impacts through its relevant financing activities. To provide transparency on financial inclusivity, Shinhan Financial Group could disclose the amount of finance directed towards low-income developing countries.
More about the company
Republic of Korea
Net income: KRW 5.95 trillion; Total assets: KRW 648.15 trillion