Hana Financial Group Inc

Hana Financial Group has established and operates an exclusive ESG management organization to make decisions based on transparency and responsible business. We have set up a Sustainable Management Committee under the BOD (Board of Directors) to approve its ESG strategies and policies. In addition, to strengthen the Group's ESG management capabilities and implementation, we operate a Sustainable Management Steering Committee, and a Sustainable Management Working Committee under it to build an efficient system. [...] Hana Financial Group has established group-wide low-carbon and eco-friendly goals to promote the transition to a low-carbon economy. [...] The group has set carbon neutrality targets for its business sites and asset portfolios, including greenhouse gas reduction targets based on these goals. [...] Hana Financial Group has established and is operating the "ESG Finance Handling Standards" applicable to all financial products and services. Additionally, industries which have a high proportion in the group's asset portfolio and with high greenhouse gas emissions such as oil refining, steel, and chemical industries are designated as ESG restricted industries and ESG cautionary industries to implement additional management. Furthermore, we transparently communicate industry-specific policies and standards to external stakeholders such as suppliers and customers, and we pay close attention to opinions raised regarding related risks.

Hana Financial Group recognizes the accelerating issue of climate change as a real crisis and is solidifying its climate change governance system to drive company-wide efforts for climate change mitigation and response. Our Board of Directors, as top management, and executive management manage and oversee climate change-related issues while the CEO oversees the overall climate change response strategy. In particular, to reflect the top management's commitment to sustainable management, the Sustainable Management Committee has been established within the holding company's BOD to receive regular reports on sustainability issues, including climate change, and to deliberate and make decisions on related issues. Additionally, we have established a system to respond to climate change issues in an integrated manner at the group level. Through the Sustainability Management Steering Committee, a consultative body comprising CEOs of each affiliate, and the Sustainable Management Working Committee, we share the current status and performance among affiliates, identify and evaluate common climate risks and opportunities, and establish relevant systems to systematically respond to climate change. Hana Financial Group aims to proactively respond to climate change through a transparent and rational climate change governance system and to faithfully fulfill its role as a leading institution in sustainable finance. [...] Hana Financial Group has established and operates a Sustainable Management Committee, a dedicated ESG management body within the Board of Directors. The Committee deliberates and resolves on the establishment of the Group's sustainability management strategy and policies for responding to climate change and creating social value as well as the implementation status of these initiatives through regular meetings* held at least once in a half year. Moreover, the Risk Management Committee within the Board of Directors reviews the Group's major risk management system and implementation status, including climate risk management policies. By receiving regular reports from the management on climate-related risk issues and reviewing them, the committee supports the Board of Directors' decision-making in consultation with the Sustainable Management Committee based on the level of risk. The Management Development & Compensation Committee determines executive compensation considering ESG management performance, including climate change. The Independent Director and Auditor Nomination Committee recommends experts to strengthen climate change and ESG management, involving them in the management process.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]One of our key principles outlined in our Sustainable Financing Framework is strengthening communication with stakeholders. ESG issues are continuously changing with time, location, and industry. This necessitates a system that continuously identifies stakeholders' needs and incorporates them into decision making. HFG has therefore created the Sustainable Management Committee as the highest decision making body within the Board, monitoring environmental and social issues through stakeholder management. The Sustainable Management Steering Committee (rebranded the CSV Committee) is directly responsible for both coordinating overall climate change strategy and leading the company's efforts to engage with policymakers on climate change issues. This helps to ensure that our policy engagement objectives are in alignment with our overall climate change strategy. Our direct and indirect policy engagement efforts are aimed at facilitating the stability of the carbon market as well as supporting the competitiveness of markets for low-carbon technologies. As part of Committee meetings, regular review is carried out to determine the consistency of government policies and the climate change strategy of HFG (reduction of greenhouse gases, social contribution activities related to climate change, etc.). Both the Sustainable Management Committee and Sustainable Management Steering Committee oversees all business divisions which ensures that any and all engagement objectives are applied to all of the group's affiliates. Because HFG's main operations are in Korea and we are directly subject to regulations by the Korean government, our engagement activities are focused on policy makers in Korea.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]One of our key principles outlined in our Sustainable Financing Framework is strengthening communication with stakeholders. ESG issues are continuously changing with time, location, and industry. This necessitates a system that continuously identifies stakeholders' needs and incorporates them into decision making. HFG has therefore created the Sustainable Management Committee as the highest decision making body within the Board, monitoring environmental and social issues through stakeholder management. The Sustainable Management Steering Committee (rebranded the CSV Committee) is directly responsible for both coordinating overall climate change strategy and leading the company's efforts to engage with policymakers on climate change issues. This helps to ensure that our policy engagement objectives are in alignment with our overall climate change strategy. Hana Financial Group's Sustainable Management Committee had been handling major ESG issues on a semi-annual basis, and in 2022, "Hana Financial Group 2050 Carbon Neutrality Promotion Plan," "Participating in the ESG Global Initiative," "ESG Priorities for 2023," and "ESG External Evaluation Results and Response Strategy" were covered and discussed on the committee's agenda. Not only do we strive to cultivate ESG management capabilities internally, but we also continuously engage in national policies, such as signing a business agreement with the Financial Supervisory Service to develop the K-Taxonomy Supporting System.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes