Climate Change Data

Environmental Metrics

ESG Focus Areas

• Protecting Financial Consumers
• Developing Sustainable Society through Finance
• Leading Digital Finance
• Sound Governance System
• Ethical Management
• Risk Management
• Human Resources Management
• Social Contributions
• Environmental Management

Environmental Achievements

• Reduced GHG emissions intensity to 3.81 tonCO2eq/FTE

Social Achievements

• Launched online and mobile trading systems in Vietnam and Brazil
• Obtained derivatives sales license and expanded limited partnership (LP) business in Hong Kong
• Gained approval for establishing a subsidiary in India and executed establishment capital (USD 300 million)
• Secured prime investment asset
• Discovered and invested in companies with new growth potential in the era of Industry 4.0
• Formed a partnership with NAVER for the Fourth Industrial Revolution
• Improved customer convenience and established a base for online customer management
• Became the first in the industry to achieve KRW 10 trillion in pension assets
• Increased accessibility to finance for the disabled and senior
• Provided education programs to prevent people with poor accessibility to information from financial fraud
• Increased accessibility to the company's website for the visually impaired
• Offered fee discounts for the visually impaired
• Provided financial education for financial minorities
• Launched the Mirae Asset New Growth Venture Investment Association Trust
• Developed ESG-related financial products
• Developed products for aging society
• Provided financial products customized for SMEs and small giants

Governance Achievements

• Established a sound and transparent corporate governance structure
• Improved transparency in management and built a robust framework for responsible business management
• Strengthened qualification requirements of non-executive directors
• Established five subcommittees under the BOD
• Established various ethics and compliance reporting channels
• Operated various channels through which customers report matters related to any employee financial irregularities and corruption
• Amended the Code of Ethics and enacted Code of Conduct
• Appointed a Compliance Officer to independently supervise corporate-wide ethics and compliance
• Established an integrated risk management system
• Established an integrated crisis management system
• Developed a Business Continuity Plan (BCP)

Climate Goals & Targets

Environmental Challenges

• Inappropriate sales practices of financial institutions
• Various investment risks against eco-friendly investment
• Intensifying competition in digital finance
• Deteriorating trust level in the financial industry
• Insufficient role of brokerage
• Lack of healthy competition in the market
• Financial market fluctuation
• Rapidly aging population
• Increasing uncertainties in the global investment environment

Mitigation Strategies

• Established a stringent internal control system
• Operated an IT system to prevent customer data leakage and hacking attacks
• Proactively rolled out campaign activities to eliminate mis-selling
• Made eco-friendly investments in new and renewable energy
• Developed products and services to deal with the aging population
• Provided funding for small medium enterprises (SMEs)
• Developed and served digital based platforms
• Fostered talents with digital expertise
• Implemented three execution strategies to fulfill the vision of becoming the leading player in the digital finance market
• Established a digital finance unit
• Signed an agreement to collaborate with Korea University in running a Digital Finance Talent Development Program
• Focused on enhancing customer trust and expanding their rights and interests
• Consolidated the complaints management system
• Implemented a complete selling process for financial investment products
• Established a system to protect financial consumers
• Strengthened the risk management system
• Established an integrated crisis management system
• Developed a Business Continuity Plan (BCP)
• Diversified profit structure
• Enhanced employee capabilities
• Developed innovative products and services

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, IIRC framework, UN Global Compact

Certifications: ISO 27001, ISMS

Third-party Assurance: DNV GL

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 13
• Goal 16

Awards & Recognition

• iF Design Award
• Excellence Award at the ‘5th Best MTS Awards’,
• FSS Governor Award

Environmental Metrics

ESG Focus Areas

• Digital Finance
• Sustainable Finance
• Client Satisfaction
• Talent Development
• Socially Responsible Investment (SRI)
• Financial Consumer Protection
• Social Contribution

Environmental Achievements

• Reduced energy consumption (LNG, electricity)
• Implemented greywater and rainwater reuse system
• Reduced paper use through electronic reporting

Social Achievements

• Launched m.Club, an online financial service platform with 300,000 users (May 2020)
• Provided financial education to 81,545 students through "One Company, One School" program
• Launched HopeChain Volunteer Corp with 1,287 employee participants in 2019

Governance Achievements

• Established a sound and transparent corporate governance structure with a majority of independent directors
• Established the Financial Consumer Protection Department and appointed a Chief Customer Officer (CCO)
• Implemented an electronic voting system ("Platform V")

Climate Goals & Targets

Environmental Challenges

• Changes in population structure and diverse client requirements
• Stricter financial consumer protection policies
• Increasing cybercrimes with the growth of digital technology
• Digital inequalities with the demographic change

Mitigation Strategies

• Developed client-centric products and services
• Overhauled regulation, institutional, and system to preemptively respond to strengthening financial consumer protection policies
• Strengthened information protection activities by advancing measures to prevent hacking and intrusion
• Provided trainings to those financially vulnerable including seniors on the use of finance platforms for financial services

Supply Chain Management

Responsible Procurement

• Agreement to have partner companies conduct personal information protection training

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option), IIRC framework, UN Global Compact

Certifications: ISO 27001 (Information Security Management System), ISMS (Information Security Management System)

Third-party Assurance: KPMG Samjong Accounting Corp. and Korea Sustainability Investing Forum (KoSIF)

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 13

Activities related to education, gender equality, energy, economic growth, infrastructure, inequality, and climate change

Awards & Recognition

• Excellence Award in the securities category at the “6th Korea Retirement Pension Award”, Grand Prize in the retirement pension category at the “2019 Asia Capital Investment Awards”, Excellence Award in the securities category (Global Retirement Pension Asset Allocation Wrap) at the “8th 100-Year-Old-Era Finance Awards”, Presidential award at the 26th Corporate Innovation Awards

Environmental Metrics

ESG Focus Areas

• Governance & Accountability
• Climate Engagement
• Inclusive Growth

Environmental Achievements

• Achieved a significant milestone by becoming the first domestic financial institution to sign a long-term renewable energy certificate (REC) purchase agreement in February 2023.
• Reduced a total of 2,001 tons of emissions per year through forest care activities.
• Reduced GHG emissions by 16.2% year-on-year (Scope 1 & 2).

Social Achievements

• Selected as an excellent educational donation institution for two consecutive years by the Ministry of Education and the Korea Foundation for the Advancement of Science and Creativity.
• Supported the ‘Youth Hope Project’ with a donation totaling KRW 260 million.
• Launched a new MTS called M-STOCK, which combines three applications that were previously divided by function, officially launched its service in June 2022.

Governance Achievements

• Selected for the ‘S&P Dow Jones Sustainability World Index’ for 11 consecutive years.
• Awarded A by Korea Institute of Corporate Governance and Sustainability and Sustinvest.
• Recognized for achieving, as the first Korean securities company, the leadership rank for Carbon Disclosure Project (CDP) evaluation.

Climate Goals & Targets

Environmental Challenges

• Increased purchase price of RECs for greenhouse gas reduction.
• Increased legal costs for customer and investor lawsuits related to greenwashing.
• Additional costs due to various regulations such as the implementation of the Carbon Border Adjustment Mechanism (CBAM).
• Potential shift in the monetary policy stance of the Bank of Korea towards interest rate hikes.
• Potential risk of deteriorating credit quality for certain vulnerable companies.

Mitigation Strategies

• Formulating a conservative investment strategy.
• Strengthening internal controls.
• Expanding synergies with overseas subsidiaries.
• Entering into two energy purchase agreements with photovoltaic plants in the first quarter of 2023.
• Developing step-by-step action plans for liquidity crises.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Purchase of ESG products increased by 45% compared to the previous year.

Climate-Related Risks & Opportunities

Physical Risks

• Decrease in commission-based income due to damage to business sites.
• Depreciation and damage to real estate.
• Decrease in operating profit due to devaluation of products.

Transition Risks

• Increase in the purchase price of RECs.
• Increased legal costs for greenwashing.
• Additional costs due to regulations such as CBAM and UFLPA.

Opportunities

• Expansion of eco-friendly transportation and infrastructure development.
• Increase in the use of low-carbon energy.
• Expansion of ESG financial product development.

Reporting Standards

Frameworks Used: GRI Standards, TCFD, PCAF, SBTi

Certifications: ISO 14064-1:2018, ISO 14064-3:2019, ISO 27001, ISMS-P, ISO 45001

Third-party Assurance: DNV Business Assurance Korea Ltd, BSI Group Korea

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 16

Not disclosed

Sustainable Products & Innovation

• ESG-themed funds and ETFs

Awards & Recognition

• Minister of Science and ICT Award