16 Trillion Won for Eco-Friendly Initiatives... Joyoungbyeong-Style Social Responsibility Management Toward 'First-Class Shinhan' (Comprehensive)

Accelerating Eco-Friendly Financial Support Since 2017
Plan to Invest 20 Trillion KRW in Green Industries Over the Next Decade
Group Companies' Greenhouse Gas Reduction Achievements Also Highlighted

[Asia Economy Reporter Kim Hyo-jin] "We will build a world-class Shinhan based on eco-friendliness, coexistence, and trust."

Shinhan Financial Group Chairman Cho Yong-byeong's (photo) 'eco-management' is shining. Chairman Cho, who announced plans to invest and provide financial support worth 20 trillion won in the green industry by 2030, is receiving evaluations that his eco-friendly policies are showing external results.

According to the financial sector on the 14th, Shinhan Financial has implemented a total of 16.2 trillion won in eco-friendly financial support since 2017. Shinhan Financial's plan is to inject about 20 trillion won over 10 years until 2030 in the form of loans and investments in the low-carbon green industry sector.

These achievements originate from the management vision 'Eco Transformation 20·20,' which Chairman Cho declared in 2018, his second year in office, based on three principles: ▲leading the low-carbon financial market ▲spreading eco-friendly management ▲strengthening environmental leadership and partnerships. Accordingly, Shinhan Financial has accelerated financial support for industries and companies related to new renewable high-efficiency energy.

This year, until the first quarter, about 1.1 trillion won was invested in the eco-friendly sector, including 341.8 billion won through eco-friendly exclusive guarantees and loans, and 761 billion won through eco-friendly infrastructure project financing (PF).

Activating ESG funds, green bonds, and green building projects for eco-friendly buildings has also attracted attention in the financial sector. The holding company, Shinhan Bank, and Shinhan Card were the first domestic financial companies to issue green and ESG bonds. The cumulative issuance amount to date reaches 2.09 trillion won.

In the case of Shinhan Bank, it is building a 'paperless' work environment by promoting robot-based process automation (RPA) integrated with artificial intelligence (AI) technology for the first time among domestic banks. In addition, it has designated 12 sensitive industries that may cause environmental problems, such as mining, weapons and military supplies, oil refining, and coal processing, and strengthened monitoring when lending to companies in these sectors.

Companies engaged in activities that violate environmental regulations are designated as 'conditional financial support targets' and managed accordingly.

Shinhan Financial is also significantly reducing greenhouse gas emissions by strengthening eco-friendly facilities in its group office spaces. According to Shinhan Financial, the greenhouse gas emissions last year decreased by 19% compared to 2012, measured by multiplying the usage of electricity, gas, gasoline, etc., in group company buildings by the carbon dioxide conversion factor.

To promote the spread of eco-friendly management, Shinhan Financial has established and operates the Social Responsibility Management Committee, the Sustainable Management Council, and a dedicated group sustainable management organization, and has obtained ISO 14001 (Environmental Management System) certification, the international standard for environmental management systems.

Meanwhile, Shinhan Financial executed about 17.2 trillion won in investments and loans to innovative companies last year. Based on the 'Triple K' project launched at the end of last year for systematic support of innovative growth companies and platforms, Shinhan Financial plans to take the lead in building an innovation company growth ecosystem.

Furthermore, it plans to further expand the 'Hope Society Project' for social support and coexistence, including ▲support for low-credit recovery ▲customized local community job projects for socially marginalized and vulnerable groups. Shinhan Financial invested a total of 37.8 billion won in this area last year. According to Shinhan Financial's tally, about 284,000 people have benefited from this.

Chairman Cho said in the '2019 Shinhan Financial Group Social Responsibility Report' published yesterday, which contains these activities, "We will go down a path no one has taken before," and added, "We will fulfill the role of finance that supports positive changes for customers and society."