Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Fair HR system
• Social contribution
• Improve customer satisfaction
• Expand equal opportunities and diversity
• Social economy
• Compliance
• Employee welfare (work-life balance)
• Digital transformation
• Ethics and integrity

Environmental Achievements

• Reduced paper consumption per employee by around 40% compared with the amount before relocation
• Dramatically reduced the consumption of city gas, electricity, steam, and water by relocating the head office to the IFC Seoul in May 2019
• Invested in renewable energy projects worth over KRW 20 billion

Social Achievements

• Recruitment rate of female talents increased to 33% in 2019 from 26% in 2017
• Meritz Daycare Center obtained “Excellent” grade in all sectors at the evaluation by the Ministry of Health and Welfare
• Ranked 3rd in total and 1st in branch mystery shopping sector at the fund company evaluation hosted by Korea Financial Investors Protection Foundation
• Won the best seller prize at the 11th Asia Fund Awards
• Invested KRW 114.4 billion in 49 technologies in 2018 and KRW 121.5 billion in 59 technologies in 2019
• Time spent on social contribution 2018: 1,332 hours, 2019: 1,524 hours

Governance Achievements

• Won the “2018 Compliance Award” hosted by the KRX
• Maintained the shareholder-friendly policy through high dividend propensity
• Won the Gold Prize in the IB sector at the 2020 Maekyung Securities Award
• Strengthened financial consumer protection by building a complete selling process
• Successfully retrieved investments of the New Technology Investment Association

Climate Goals & Targets

Environmental Challenges

• Recently, the financial business is facing growing uncertainties and tough environment at home and abroad and it’s not easy to stably create long-term profits.
• Demand for sustainable finance aimed at creating social and environmental values beyond economic value is growing across the globe.
• Business ethics and compliance are essential for corporate survival and growth in the era of global competition.
• Generally, financial business is a representative sector which needs work-life balance due to intense workload and frequent overtime.
• In the era of the 4th Industrial Revolution, the competitiveness of a financial firm will be dependent on how well it utilizes digital technologies such as blockchain, big data, and AI.
• The importance of ethics management is being emphasized globally.

Mitigation Strategies

• Promote business diversification through alternative investments in real estate, vessel, aircraft, and overseas M&A financing
• Prevent gender-based wage discrimination by setting a position-specific salary table
• Operate the performance evaluation objection system
• Operate the “New Technology Financing Team” dedicated to investments in ventures, startups, and SMEs
• Investments in ventures, startups, and SMEs with new technologies
• Host the Compliance Day event every quarter
• Check the compliance checklist by each business stage when developing products
• Install the corruption report center
• Operate flex-time work, selective working hours, flexible working systems
• Introduce the visible ARS service and offer identification card verification service for online overseas stock, futures, and option trading as well as simulated stock trading
• Enact the Code of Ethics
• Operate ethics guidelines in business
• Assess the level of money laundering by adopting the CDD (Customer Due Diligence) and EDD (Enhanced Due Diligence)
• Operate the STR (Suspicious Transaction Report) system to detect potential risk of money laundering

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core Option)

Certifications: ISMS (Information security Management System)

Third-party Assurance: Korea Management Registrar Inc. (KMA)

UN Sustainable Development Goals

• Goal 1
• Goal 5
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 16

Awards & Recognition

• BEST Securities Analyst Award
• 23rd Hankyung Star Wars Awards
• 2018 Maekyung Economy Best Analyst Award
• Yonhap Infomax Finance Awards
• BEST ANALYST AWARDS
• 2018 Maekying Securities Awards
• BEST Securities Analyst Award
• Treasury Bond Market Development Forum and Excellent PD
• 16th Money Today IR Awards
• 2019 Maekyung Economy Best Analyst Award
• 8th Yonhap Infomax Finance Awards
• BEST Analyst Award
• KRX 2018 Compliance Awards
• 7th NEWSPIM Capital Market Awards
• 2019 e-Daily Financial Investment Awards
• 2019 Capital Market Awards
• 10th Korea Analyst Awards
• 25th Hankyung Star Wars Awards
• BEST Securities Analyst Award
• Korea’s Best Report Awards
• 2019 Seoul Economic Daily Securities Awards
• Hankyung Star Wars Awards
• 2019 Best Report Awards
• 9th Yonhap Infomax Finance Awards
• 11th Asia Fund Awards
• 2020 Maekyung Securities Awards
• NEWSPIM Capital Market Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social

Environmental Achievements

• Established Net Zero 2050 target and strategy
• Achieved 237% of the 2023 greenhouse gas reduction target (compared to the previous year)
• Acquired ISO 14001 certification for environmental management system

Social Achievements

• Launched group ESG management council
• 4,355 hours of volunteer service
• Contributed ₩28.27 billion to social contribution

Governance Achievements

• Completed 100% subsidiary structure through comprehensive stock exchange of Meritz Fire & Marine Insurance and Meritz Securities
• Achieved 51.2% shareholder return rate
• Established One Meritz management system

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainty due to inflation and high interest rates

Mitigation Strategies

• Value management and thorough risk management

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Industry Standards

Certifications: ISO 14001

Third-party Assurance: Korean Management Certification Institute (AA1000AS Type II)

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 16

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Eco-friendly car insurance products
• Climate change insurance products
• ESG funds

Awards & Recognition

• Money Today IR Award (Finance Sector)
• Korea Corporate Governance Award (Economics Sector)
• Korea Exchange Public Disclosure Excellent Corporation Award
• Hankyung Fintech Award (Service/Insurance Sector)
• Herald Insurance Award (Product Development Sector)