Climate Change Data

Hana Financial Group

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:67,570 tCO2eq (Scope 1+2)
Scope 1 Emissions:7,687 tCO2eq
Scope 2 Emissions:59,883 tCO2eq
Renewable Energy Share:3.2% (Cheongna Data Center)

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Sustainable Finance
  • Consumer Protection
  • Social Contribution

Environmental Achievements

  • Reduced greenhouse gas emissions by 1.93% year-on-year.
  • Issued KRW 1.1 trillion in ESG bonds in 2022.
  • Generated 85,883 kWh of solar power and 21,129 kWh of geothermal power at Cheongna Integrated Data Center.
  • Converted two business vehicles to electric vehicles, saving approximately 1,441 liters of gasoline.

Social Achievements

  • Launched Hana Power On program, supporting 502 young entrepreneurs and providing internships to 205 people.
  • Donated KRW 3 billion to support victims of heavy rainfall.
  • Opened the first Hana Mom Care Center, providing childcare support.
  • Expanded financial inclusion initiatives, including services for seniors, disabled people, and foreigners.

Governance Achievements

  • Established the Consumer Risk Management Committee, the first of its kind in the financial sector.
  • Achieved 100% BOD attendance rate.
  • Implemented a multi-faceted employee evaluation system.
  • Obtained ISO 19600 (now ISO 37301) and ISO 37001 certifications for compliance and anti-corruption.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Achieve zero GHG emissions from business sites and zero coal project financing by 2050.
Short-term Goals:
  • Achieve KRW 60 trillion in green and sustainable finance by 2030.

Environmental Challenges

  • Climate change risks, including physical risks from extreme weather and transition risks from regulatory changes.
  • Biodiversity loss impacting supply chains.
  • Geopolitical risks affecting global operations.
  • Maintaining high standards of consumer protection in a rapidly changing digital environment.
Mitigation Strategies
  • Established a 2050 carbon neutrality roadmap and 2030 ESG financing targets.
  • Joined TNFD and PBAF to address biodiversity risks.
  • Developed a climate risk management model for assessing physical and transition risks.
  • Strengthened consumer risk management systems and implemented proactive consumer protection measures.

Supply Chain Management

Responsible Procurement
  • Supplier Integrity and Ethics Practice Pledge System.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards (Core Option), TCFD, SASB

Certifications: ISO 37301, ISO 37001, ISMS

Third-party Assurance: An assurance agency specializing in sustainability reports (assurance opinion on p.141)

Sustainable Products & Innovation

  • AI Wealth service
  • Digital Physical Gold Trust
  • Hana EcoPlus auto insurance

Awards & Recognition

  • Ranked #1 in the world in banking Sustainability Yearbook Member in 2023
  • 2022 CDP Korea Awards
  • 2022 Dow Jones Sustainability Index (DJSI) No. 1 in global banking industry
  • 2022 Best Content Awards for Financial Consumer Protection
  • 2022 Korea Consumer Protection Index (KCPI) Outstanding Company

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Climate Change Mitigation
  • Financial Health & Inclusion
  • Sustainable Finance
  • Consumer Protection
  • Social Contribution

Environmental Achievements

  • Set carbon neutrality targets for business sites (Scope 1 & 2) and financed emissions by 2050, aligned with SBTi.
  • Provided KRW 60 trillion in loans, investments, and financing for green and sustainable sectors by 2030.

Social Achievements

  • Expanded financial services for diverse, underserved groups (elderly, foreigners, disabled).
  • Implemented SME Shared Growth Support Connected in Hana Program, providing KRW 230 billion in financial support.

Governance Achievements

  • Established an ESG management organization with a Sustainable Management Committee under the BOD.
  • Implemented ESG Finance Handling Standards and ESG Finance Evaluation System.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050 for business sites and financed emissions.
Medium-term Goals:
  • Reduce greenhouse gas emissions by 32.8% in 2030 compared to 2020 (SDA).
  • Achieve Scope 1 and 2 emissions ratings of 1.75°C by 2040 (Temperature Ratings method).
Short-term Goals:
  • Reduce carbon emissions at business sites by 42% by 2030 and 75.4% by 2040.

Environmental Challenges

  • Conducting an impact analysis
  • Customer engagement
  • Stakeholder engagement
  • Data availability
  • Data quality
  • Access to resources
  • Reporting
  • Assurance
  • Prioritizing actions internally
Mitigation Strategies
  • Utilizing information from 2022 and 2023 Sustainability Reports.
  • Obtaining Independent Assurance Report from Korean Foundation for Quality (KFQ).
  • Employing GRI, SASB, CDP, TCFD reporting frameworks.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGP, UNGC/WEPs, CDP

Third-party Assurance: Korean Foundation for Quality (KFQ)

UN Sustainable Development Goals

  • SDG 1
  • SDG 4
  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 10
  • SDG 12
  • SDG 13
  • SDG 16
  • SDG 17

Initiatives aligned with SDGs through ESG vision "Big Step for Tomorrow" and three strategies.

Sustainable Products & Innovation

  • ESG bonds
  • Green finance products
  • Inclusive financial products