"Development of Climate Risk Management Model"…Hana Financial Joins FSC Project

Promotion of Public-Private-Academic Joint Project

On the afternoon of the 8th, at the British Embassy in Jeong-dong, Seoul, representatives from the Financial Supervisory Service, the British Embassy, Ewha Womans University, and major domestic companies signed a business agreement to develop an advanced climate risk management model and took a commemorative photo. (Provided by Hana Financial Group)

Front row from the left: Colin Crooks, British Ambassador to Korea; Lee Bok-hyun, Governor of the Financial Supervisory Service. Back row from the left: Kwon Hee-baek, CEO of Hanwha Investment & Securities; Nam Yi-hyun, CEO of Hanwha Solutions; Kim Eun-mi, President of Ewha Womans University; Ham Young-joo, Chairman of Hana Financial Group; Son Byung-hwan, Chairman of NH Nonghyup Financial Group; Pyeon Jeong-beom, CEO of Kyobo Life Insurance.

[Asia Economy Reporter Minwoo Lee] Hana Financial Group has joined a public-private-academic joint project involving the Financial Supervisory Service, the British Embassy, and Ewha Womans University to respond to climate change risks.

Hana Financial announced on the 8th that it signed a "Business Agreement for the Development of an Advanced Climate Risk Management Model" together with the Financial Supervisory Service and others.

This business agreement is a research project jointly promoted by the Financial Supervisory Service, academia, and companies to develop an advanced climate risk management model called ‘Frontier -1.5D’. The Financial Supervisory Service will act as the coordinator based on the role of financial authorities suggested by the Bank for International Settlements (BIS), and private companies including Hana Financial Group will collaborate on data analysis and research and development related to climate risks by industry. Ewha Womans University will develop research methodologies and models, and the British Embassy will serve as an advisory body.

Participating financial companies, including Hana Financial Group, are expected to contribute to the development of climate risk management models to prepare for ‘physical risks,’ which cause losses such as loan damages due to physical damage from climate change, and ‘transition risks,’ which are financial losses occurring during the transition to a low-carbon society.

Ham Young-joo, Chairman of Hana Financial Group, stated, "Since Hana Financial Group has been making various efforts for climate risk analysis since 2020, we will actively contribute to developing practical models based on the results and experiences accumulated so far."