Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions in 2020 (from 2018)
• Reduced electricity and water consumption by using energy-efficient building materials
• Obtained 37,817 kWh of electricity from solar power

Social Achievements

• Launched electronic voting system for shareholders
• Total value of CSR activities of the New Spring Cultural Foundation in 2020: KRW 1,426.86 million
• Annual training hours per employee: 30.66 hours
• Proportion of female executives (as of Dec. 2020): 40.25%

Governance Achievements

• Proportion of outside directors in the Board of Directors: 62.5%
• Industry’s highest dividends (cumulative average in 3 years) and shareholder-friendly policies
• ESG grade assigned by the Korea Corporate Governance Service: B+

Climate Goals & Targets

Environmental Challenges

• Market uncertainty due to COVID-19 and increased liquidity
• Intensified competition among financial institutions
• Entry of online platform service providers

Mitigation Strategies

• Creating a new profit-generating model by collaborating with affiliates in finance and real estate
• Strengthening risk management
• Improving organizational efficiency
• Investing in new businesses with high potential for growth and profitability

Supply Chain Management

Responsible Procurement

• Introduction of ESG performance evaluation for suppliers and investments

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000

Third-party Assurance: ECONINE

Sustainable Products & Innovation

• Eco-friendly financial products and services

Awards & Recognition

• 2020 Korea Capital Markets thebell League Awards Innovative Equity House of The Year
• 2020 Red Dot Design Award MTS
• The 17th Korea IB Awards Top IPO Manager
• 2020 Asia Today Financial Awards Top Excellence Prize
• The 8th Newspim Capital Market Awards Best Research
• 2020 Asia Smart Finance Awards Top MTS Technology Award
• Morning Star Awards Korea Large Cap Equity
• The 8th Best MTS Awards Excellent Investment Information Award
• 2020 E-Daily Financial Investment Awards Top Excellence Prize
• 2020 Asia Capital Market Awards Top Retirement Pension (DB) Award
• 2020 Herald Capital Market Awards IB Award
• The 10th Market Leader of the Year Award Market Leader in MTS
• 2020 Korea Analyst Awards Research Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions from pre-pandemic levels due to changes in work practices (telecommuting, reduced travel)
• Daishin Finance Center, the head office, is a LEED Gold-certified green building.
• Increased transactions in financial products associated with low-carbon emissions and renewable energy.

Social Achievements

• Received Grade A in the ESG evaluation from the Korea Corporate Governance Service (KCGS)
• Established a new HR recruitment process to accurately evaluate performance and secure excellent human resources.
• Improved employee satisfaction and productivity by establishing an excellent organizational culture and revamped the compensation system.
• Increased the percentage of female managers with personnel management authority (38.12% as of March 2022).

Governance Achievements

• Formed the ESG Management Committee in 2021.
• Received Grade A in the comprehensive ESG evaluation and governance evaluation by the Korea Corporate Governance Service (KCGS) in 2021.
• Established a transparent governance model, based on an efficient and responsible board, with 62.5% of board members being outside directors.
• Implemented a shareholder-friendly dividend policy for 24 consecutive years.

Climate Goals & Targets

Environmental Challenges

• Economic uncertainties triggered by high inflation and other factors.
• Intensifying competition in the financial investment industry, particularly regarding customer data and digital platforms.
• Decreased bond issuance in 2022 due to global instability and market volatility.

Mitigation Strategies

• Focus on boosting equity capital for steady growth.
• Collaboration between financial and real estate affiliates to create a bigger success model.
• Strengthening risk management capabilities and maintaining a sustainable management system.
• Proposing the issuance of ESG bonds to lower issuance rates and attract investors.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000

Third-party Assurance: Korea Management Registrar (KMR)

Sustainable Products & Innovation

• REITs

Awards & Recognition

• Grade A in the ESG evaluation from the Korea Corporate Governance Service (KCGS)
• Grade A in the comprehensive ESG evaluation and governance evaluation by the Korea Corporate Governance Service (KCGS) in 2021

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Consumer Protection
• Community Investment

Environmental Achievements

• Introduced reusable cups in the company cafe, reducing CO2 emissions by 2,249kg and achieving the effect of planting 951 trees (including the effect of personal cup use) in 3 months.
• Daishin343 building has LEED Green Associate Gold certification.
• Utilized solar and geothermal energy.

Social Achievements

• Launched 'Daishin Academy' for employee skill development.
• Implemented ESG mandatory training for all employees.
• Maintained 100% return rate for employees after parental leave in 2022.
• Continued 'Love Offering' donations for 19 years, supporting vulnerable groups.

Governance Achievements

• Established a group ESG committee.
• Over 62.5% of the board of directors are independent directors.
• 25 consecutive years of cash dividends.
• Implemented deferred compensation system for executives and financial investment professionals.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Market volatility due to high interest rates and economic downturn
• Increased competition in the financial industry
• Potential for incomplete sales in the new visiting sales channel

Mitigation Strategies

• Diversification of business portfolio
• Strengthened risk management capabilities
• Agile management approach
• Limited visiting sales of high-risk products initially, with plans for gradual relaxation.
• Enhanced consumer protection measures for visiting sales.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB

Certifications: ISMS-P

Third-party Assurance: Korea Management Certification Institute (KMR)

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 9
• Goal 13
• Goal 16

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards listed in the report (details not quantified)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Financial Consumer Protection
• Risk Management
• Talent Development
• Ethical Business Practices
• Shareholder Value
• Digital Finance

Environmental Achievements

• Reduced carbon emissions by implementing energy-efficient measures in LEED Gold-certified headquarters and other facilities. Expanded environmental data management to include water consumption.
• Increased use of reusable cups (Habit Cups) in the headquarters cafe, reducing paper and plastic cup usage significantly.
• Production of over 30,000 eco-friendly tote bags annually.

Social Achievements

• Recruited over 7% of the workforce in 2023, with over half under 30 years old.
• Increased proportion of female executives with authority in human resources to 45%.
• Implemented a performance-based compensation system and biannual performance evaluations.
• Provided 90 days of maternity leave, 10 days of paternity leave, and reduced working hours during pregnancy and childcare.
• High return rates from maternity and paternity leave (91.2% in 2021, 100% in 2022, 94% in 2023).
• Offered various employee benefits, including tuition support, medical expense support, and housing assistance.
• Implemented measures to protect customer service representatives from harassment.
• Completed 12th ESOP program, distributing one million treasury stocks to employees.

Governance Achievements

• Appointed first female outside director.
• Majority of Board of Directors consists of independent outside directors (63.5%).
• Consistently paid cash dividends for 26 consecutive years.
• Implemented a deferred performance bonus program for executives and financial investment managers.
• Implemented an electronic voting system for shareholders.
• Updated dividend system to enhance shareholder value and transparency.
• Established and operated an integrated risk-management system.

Climate Goals & Targets

Environmental Challenges

• Volatile financial market conditions.
• Real estate market recession.
• Increased NPLs.
• Customer harassment of service representatives.
• Maintaining high credit rating and external credibility.

Mitigation Strategies

• Rigorous risk management and robust internal control system.
• Conservative credit management and building reserves.
• Diversification of profit streams and expansion of global business.
• Proactive measures to mitigate risks associated with ELS, CFDs, and PF.
• Stress tests and vigilant oversight of loan statuses.
• Measures to protect service representatives from harassment, including stress counseling and relocation.
• Strengthening internal control systems and organic risk response processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of eco-friendly materials for tote bags.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Investments in industries and businesses poised to benefit from the transition to a low-carbon economy.

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Global Compact Ten Principles

Certifications: ISMS, ISMS-P

Third-party Assurance: BSI

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 13 (Climate Action)
• Goal 16 (Peace, Justice, and Strong Institutions)

Various initiatives contribute to these goals as detailed in the report.

Sustainable Products & Innovation

• Online real estate fractional investment service
• Online-exclusive bond products

Awards & Recognition

• ESG Special Prize at the 2024 Korea Fund Awards
• Minister of Employment and Labor Prize at the 2023 ESOP Awards
• Numerous other awards listed in the report