Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer Focus
• Employee Well-being
• Sustainable Green Financing
• Sustainable Digital Value
• Community Engagement
• Governance

Environmental Achievements

• Achieved a 3% reduction in greenhouse gas emissions (Scope 1+2, headquarters building)
• Installed solar panels on Hanwha Life Campus, saving approximately 5.5 million KRW in electricity costs and reducing emissions by approximately 15 tons of CO2e.
• Recycled approximately 79.8% of waste (headquarters building).
• Reduced paper usage by implementing paperless insurance contracts (approximately 25% of customers received policies digitally).

Social Achievements

• Launched 'WELL100' brand for easy-to-underwrite health insurance, targeting customers with pre-existing conditions.
• Expanded customer service department to improve customer experience.
• Conducted 'Digital Vulnerable Groups Service Idea Contest' to improve services for the digitally disadvantaged.
• Developed customer-centric products, including insurance for personal mobility and small businesses.
• Conducted 'Crisis Escape Safety Education' program, winning the 2021 Mecenat Award for Creativity.
• Implemented various employee well-being initiatives, including mental health support and flexible work arrangements.

Governance Achievements

• Established an ESG committee within the board of directors.
• Established ESG task forces and working groups.
• Appointed a new female outside director in 2022.
• Developed an AI-based underwriting system ('Alpha Underwriting').
• Implemented a robust anti-corruption training program for all employees.
• Received the Prime Minister's Award for Anti-Money Laundering efforts.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events
• Increased risk of cyberattacks and data breaches in a digital environment
• Managing risks associated with the transition to a low-carbon economy
• Addressing the needs of digitally vulnerable customers.

Mitigation Strategies

• Developed alternative sourcing strategies
• Strengthened IT security systems and employee training
• Implemented ESG factors into investment decisions and asset management processes
• Launched 'Digital Vulnerable Groups Service Idea Contest'.

Supply Chain Management

Supplier Audits: 57 (2021)

Responsible Procurement

• Information security consulting for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods
• Earthquakes

Transition Risks

• Carbon border tax
• Climate-related litigation
• Changes in capital markets and insurance markets

Opportunities

• Development of climate-related insurance products
• Expansion of green investments

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD, UN SDGs

Certifications: ISO 14001

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

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

Hanwha General Insurance's initiatives contribute to these goals through various ESG activities.

Sustainable Products & Innovation

• WELL100 health insurance
• Climate-related insurance products

Awards & Recognition

• Prime Minister's Award for Anti-Money Laundering (2021)
• Mecenat Award for Creativity (2021)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Declaration of support for "climate finance" and TCFD to jointly achieve carbon neutrality by 2050 with domestic financial institutions
• Declaration of coal-free finance (prohibition on financing the construction of new coal power plants at home and abroad, expansion of investment in ecofriendly projects related to new renewable energy, etc.)
• Acquired ISO 14001, a global standard for environmental management
• Established a resource circulation system called "Empty for All, ESG Sharing" through the implementation of E-circular governance and business agreements (2023)
• Paper savings from the paperless policy increased by approximately 281% (YoY)

Social Achievements

• Expansion of digital services for financially vulnerable groups
• Established the first-ever female-specialized "LIFEPLUS Femtech Research Center" in the financial industry
• Introduced an electronic notification discount program for all products to encourage participation in activities designed to promote environmental values and provide benefits in return, such as less paper use.
• Developed pet insurance
• Offers special conditions for voluntarily surrendering driver's licenses

Governance Achievements

• Established an ESG (Environmental, Social, Governance) management system
• Established an ESG Committee within the board of directors
• Established an ESG Consultative Group and Working-Level Consultative Group
• Enacted Corporate Governance Charter
• Expanded the Board’s diversity

Climate Goals & Targets

Environmental Challenges

• Unpredictable customer and societal demand or market dominance by competitors
• Increased insurance claims due to social structural changes
• Temporary reduction in the availability of capital due to the prohibition of new investments in carbon-related activities such as coal power generation
• Occurrence of stranded assets and decline in corporate asset value due to asset reassessment
• Short-term cost incurred due to the establishment of digital infrastructure and development of specialized personnel
• Increased threat of technology and customer information security risks in the digital environment

Mitigation Strategies

• Strengthening business competitiveness through the development of products and services that meet customer and societal needs
• Expanding sales through diversified customer channels
• Securing new markets and seeking a better corporate reputation by actively participating in ESG investment
• Increasing revenue through the development of new products and solutions for climate change response
• Managing costs and revenues associated with operating environmentally friendly insurance products and new asset management products
• Continuously developing environmentally friendly products across auto, general, and long-term insurance segments, considering climate risks and opportunities.

Supply Chain Management

Responsible Procurement

• Expanding the purchase of eco-friendly products

Climate-Related Risks & Opportunities

Physical Risks

• Acute and chronic risks arising from abnormal weather conditions and natural disasters

Transition Risks

• Increased costs associated with legal and policy compliance operations
• Market Changes in the capital and insurance market related to climate change

Opportunities

• Increased needs for the development of new insurance and financial products in response to climate change

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, SASB, K-ESG, UN SDGs

Certifications: ISO 14001

Third-party Assurance: Korea Management Registrar (KMR)

Sustainable Products & Innovation

• Climate change response products
• Eco-friendly products

Awards & Recognition

• Minister of Health and Welfare Prize, 'Ontact Social Contribution Program'
• 2021 Corporate Mecenat Creative Award, 'Crisis Escape Safety Education’
• The Prime Minister Prize on the 15th Anti-Money Laundering Day
• The Prime Minister Prize on the 16th Anti-Money Laundering Day
• 'Angel of Corporate Contributions Award,’ Corporate Sector (2022)
• Selected as the first case of ‘Collaborative and Cooperative Financial New Products’

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Prosperity
• Governance

Environmental Achievements

• Reduced carbon emissions by 3,326 tCO2eq in 2023
• Achieved 96.2% waste recycling rate in 2023
• Introduced a paperless work system, expanding to 62.5% in 2023
• Developed and launched various climate change response products

Social Achievements

• Launched LIFEPLUS Femtech Research Institute in June 2023 to develop women-specific products and services
• Exceeded 10 billion won in sales of women-specific insurance products in 2023
• Expanded social contribution programs with a focus on women and vulnerable groups
• Achieved 100% of the legally mandated employment rate for people with disabilities in 2023
• Hanwha Signature Women's Health Insurance 2.0 launched (obtained exclusive usage rights)

Governance Achievements

• Established an ESG committee within the board of directors in June 2021
• Established a corporate governance charter in 2022
• Introduced an interim dividend system
• Implemented a shareholder return policy with a target of increasing dividends by approximately 10% annually for three years until 2026
• Achieved 100% board attendance rate in 2023
• Consistently received an A rating from the Korea ESG Standards Institute for three consecutive years

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (transition and physical risks)
• Demographic changes (low birth rate and aging population)
• Cybersecurity threats and digital financial regulations
• Supply chain disruptions

Mitigation Strategies

• Developed a carbon neutrality roadmap with a target of achieving net-zero emissions by 2050
• Established a climate change risk management system aligned with TCFD recommendations
• Developed alternative sourcing strategies
• Strengthened cybersecurity measures
• Established an ESG management system for suppliers

Supply Chain Management

Responsible Procurement

• ESG management system for suppliers
• ESG education and training for suppliers
• Supplier code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods)
• Increased frequency and intensity of natural disasters

Transition Risks

• Regulatory changes (carbon pricing, emission reduction targets)
• Market shifts (consumer demand for sustainable products)
• Increased cost of renewable energy

Opportunities

• Development of climate-related insurance products
• Expansion of green finance and sustainable investments

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD, ISSB IFRS S1 & S2, AA1000AS v3, K-ESG Guidelines

Certifications: ISO 14001

Third-party Assurance: Korea Productivity Center QA (KPCQA)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Women's health insurance
• Electric vehicle insurance
• Eco-mileage special clause
• Flood insurance

Awards & Recognition

• CCM (Consumer Centered Management) certification for 9 consecutive years
• Minister of Health and Welfare Award for 'Ontact Social Contribution Program'
• Creative Award at the Korea Mecenat Association
• Prime Minister's Award for Anti-Money Laundering
• Financial Services Commission Award for Anti-Money Laundering
• Corporate Activity Angel Award from Beautiful Store
• Excellent Case of Symbiotic and Cooperative Financial New Products from the Financial Supervisory Service
• Family-Friendly Company Certification from the Ministry of Gender Equality and Family
• Minister of Gender Equality and Family Award at the 7th Future Happiness Awards
• Financial Supervisory Service Commissioner's Award at the 28th Herald Insurance Awards
• Prime Minister's Award at the 3rd Korea Good Donor Awards