Commercial Banks, This Year's MSCI ESG Evaluation Report Card

Hana, Woori, Shinhan AA Ratings

[Asia Economy Reporter Kwon Hyun-ji] Major commercial banks such as Hana, Woori, and Shinhan were classified in the 'Leader' group in the environmental, social, and governance (ESG) evaluation conducted by Morgan Stanley Capital International (MSCI) last year. This is interpreted as a result reflecting their strengthened ESG management policies.

MSCI's ESG evaluation assesses the ESG management levels of publicly listed companies worldwide every year and assigns ratings, which are internationally recognized for their credibility. The ratings are divided into seven categories: AAA, AA, A, BBB, BB, B, and CCC. Ratings of AA or higher correspond to Leader, A to BB correspond to Average, and B or lower correspond to Laggard.

According to MSCI on the 1st, Hana Financial Group received an AA rating in the 2022 ESG evaluation. The AA rating corresponds to the top 39% among 197 financial companies evaluated. This is a one-step improvement compared to the previous year (A rating). In particular, it achieved good results in human resource development and data security categories. Hana Financial explained that it was recognized for excellence in talent development through strengthening employee training programs in areas such as digital and asset management. However, it received a Laggard rating in the financial consumer protection category.

Woori Financial Group also recorded an AA rating for two consecutive years. It received a good evaluation in the data security category and had no categories rated as Laggard. Woori Financial has been on an upward trend, receiving a BB rating in 2018 and BBB ratings in 2019-2020. They stated, “Although ESG management was delayed compared to other financial groups, Chairman Sohn Tae-seung declared 2021 as the inaugural year of ESG management and began full-scale ESG management activities, achieving the remarkable feat of being a global ESG leader for two consecutive years.”

Shinhan Financial Group, which also received an AA rating, was highly rated in eco-friendly and financial service accessibility categories. However, it received a Laggard rating in the corporate behavior category, which includes management ethics. Shinhan Financial has maintained an AA rating for four consecutive years from 2019 to last year.