Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Finance
• Responsible Growth (Governance)
• Trustworthy Growth (Social)
• Partnered Growth (Environment)

Environmental Achievements

• Group Internal Carbon Outflow (Scope 1 & 2): Carbon Neutral by 2045
• Asset Portfolio Carbon Outflow (Scope 3): Carbon Neutral by 2050
• Utilize Electric Cars, Renewable Energy etc.
• Renewable Energy Loans ↑, Coal Industry Inv.↓, Invest in High ESG Corps. ↑

Social Achievements

• BSB & KNB ESG Bond Issuance (BSB 150.0 KRW bn, KNB 200.0 KRW bn)
• Financial Aid Project -BSB, KNB, Capital , and MSB will support up to 14.7 KRW tn financially within 3 years
• Customer-focused management increasing Financial Consumer trust

Governance Achievements

• Establish ESG Committee under BOD
• Join the CDP(Carbon Disclosure Project) & announce support for TCFD( Task Force on Climate Related Financial Disclosures)
• Announce ESG Management
• Korea Corporate Governance Services(KCGS) ESG Evaluation -Acquired A for 3 consecutive years for combined rating
• Join PCA(Partnership for Accounting), SBTi(Science Based Targets Initiative) & UN PRB
• Announce Group’s Carbon Neutral Targets &Plans

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Obtained certification for greenhouse gas reduction targets from the Science Based Target Initiative (SBTi) in April 2024.
• Achieved 101.3% achievement rate against the 2023 Scope 1+2 emissions reduction target.
• Established a financial emission measurement system for more accurate measurement and management in 2023.

Social Achievements

• Not disclosed

Governance Achievements

• Established a governance for response to climate change, consisting of the Board of Directors, management, BNK Financial Group, and relevant departments of its subsidiaries.
• Established the "Best Practices for Environmental and Social Risk Management" for 2024.

Climate Goals & Targets

Environmental Challenges

• Potential risks due to climate change, including decline in asset values due to extreme weather events and reduced repayment capacity of borrowers.
• Increase in financial emissions in 2023 due to increase in scale of energy assets and emissions from the fossil fuel sector.

Mitigation Strategies

• Set carbon neutrality targets for internal emissions (2045) and financial emissions (2050).
• Developed a financial emission measurement system and database.
• Established a four-step risk management process (identification, assessment, monitoring and reporting, and response and mitigation).
• Plans to reduce commitment limits for High-Carbon Industries and allocate them to industries with lower intensity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Damage to assets due to natural disasters, operational disruptions, decline in collateral value

Transition Risks

• Increased credit risk due to carbon pricing, stronger environmental disclosure enforcement, lawsuits, changes in corporate strategies, impact on investment earnings due to green technology development costs

Opportunities

• Resource efficiency improvements, expansion of renewable energy use, development of low-carbon products and services, entry into new green markets

Reporting Standards

Frameworks Used: TCFD

Certifications: SBTi

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed