Woori Financial Group

The financial institution has a publicly available policy statement that commits it to respect human rights and discloses the results of its human rights risk assessments along with its lobbying expenditures. Also, it conducts third-party assurance or verification of target reporting and assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body, with implementation responsibility assigned to specific functions, teams, or committees.

The institution discloses the monetary amount or share of its products, services, and capital linked to high-emitting and fossil fuel sectors, and has a time-bound strategy to phase out support for existing fossil fuel projects and clients lacking a well-defined strategy aligned with a 1.5°C trajectory. Also, it monitors its scope 1-2 emissions and emissions from associated financing activities (scope 3 category 15), as well as other scope 3 categories. Lastly, it discloses the monetary amount or share of products, services, and capital provided to usually excluded groups and to small- and medium-sized enterprises.

The financial institution has a publicly available policy committing to respect specific workers’ rights but could strengthen this by referencing all ILO fundamental rights at work. It also has an opportunity to disclose its method for determining a living wage in the regions where it operates and to include anti-bribery and anti-corruption clauses in its contracts with business relationships. While the institution states that political contributions are made only after internal approval, it could clarify whether these contributions are made by exception and provide criteria for their approval.

Furthermore, the institution could disclose its risk assessment process, including risks related to ILO fundamental rights and social risks associated with the net-zero transition. It could also demonstrate its process for mitigating these risks and provide specific examples of actions taken in response to human rights issues in the past three years.

Although the institution identifies material sustainability impacts across its value chain, it could provide more detail on the process and evidence used to prioritize these impacts. It is recommended that the institution link senior executive remuneration to specific sustainability targets. Additionally, while the institution lists some trade associations focused on sustainability, it could provide a more comprehensive list and transparently explain its methodology for calculating its footprint.

The institution is encouraged to disclose the breakdown of clients or beneficiaries by income group and outline its processes to prevent unintended divestment from low-income and lower-middle-income countries as a result of its sustainability strategies. It could also disclose that its risk assessment process includes risks related to ILO fundamental rights at work for those impacted by its products, services, and capital, along with a process for mitigating these risks.

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.