Hana Financial Group, Inc.

RATING

SECTOR

Banking

WEBSITE

CONTACT

Contact

66 Eulji-ro, Jung-gu
Seoul , Seoul, 04538
Republic Of Korea

Tel:+82-82220021110

STOCK EXCHANGE

LISTING

  • Forbes World’s Best Employers 2020 – #185
  • Forbes Global 2000 2020 – #420
  • BrandFinance Global Banking 500 (100) – By Brand Finance 2021 – #93
  • BrandFinance Global Banking 500 (100) – By Brand Finance 2019 – #93

EMPLOYEES

20,859

CHIEF SUSTAINABILITY OFFICER

Ham Young-joo

AWARDS

  • Jan 16, 2020 Awarded the Prize of Best Trade Finance Bank in Korea (for the 19th time) – Global Finance
  • Nov 28, 2019 Awarded the Prize of Best Bank in Korea (5th time) – The Banker
  • Nov 19, 2019 Awarded the Prize of Best Foreign Exchange Provider in Korea (19 consecutive years) – Global Finance
  • Oct 21, 2019 Awarded the Prize of Best Private Bank in South Korea – Global Finance
  • Oct 21, 2019 Awarded the Gold Prize in the field of Offering Innovation at the Financial Innovation Awards 2019 Efma-Accenture CIG
  • Oct 2, 2019 Awarded the Prize of Best Trust Bank in Korea (11th time) – Global Finance
  • May31, 2019 Awarded the Prize of Innovation utilizing social media (3 consecutive years) – Stevie Awards
  • Mar 21, 2019 Awarded the Prize of Best AI Chatbot Service – Asian Banker
  • Feb 27, 2019 Awarded the Prize from the President of the Financial Supervisory Service for ‘1 Company School Financial Education’ (4 consecutive years) – Financial Supervisory Service
  • Feb 21, 2019 Awarded the Prize of Best PB Bank in Korea (12th time)
  • Feb 5, 2019 Awarded the Prize of Global Best PB Bank (3 consecutive years) – Global Finance
  • Nov 26, 2019  2019 Korea Securities Awards (Excellence in Asset Management) – Seoul Economic Daily
  • Nov 25, 2019 2019 Newsis Korea Securities/IR Awards (Korea Stock Exchange Chairman Award for Social Contribution) – Newsis
  • Sep 27, 2019 2019 Financial Awards (Best Product Award for Hana OnlyOne Research Lab) – Asia Today
  • Apr 18, 2019 EDAILY Financial Investment Awards (Excellence in Overseas Stock) – EDAILY
  • Feb 26, 2019 2019 Korean Wealth Management Awards (Derivatives Linked Securities, PB Center of the Year: CLUB1 WM Center) – The Bell
  • Jan 30, 2019 2018 Korea Best Report (Excellence Award) – Money Today
  • Feb 27, 2019 2019 Award for Social Responsibility Contribution at Adding Happiness Social Contribution Campaign (Vice-President/Ministry of Economy and Finance’s Minister prize) – Association of Korean Journalists
  • Dec 23, 2019 Commendation for meritorious government award for 2019 Job Creation – Ministry of Employment and Labor
  • Dec 16, 2019 Awarded the Minister’s Prize at the day of industry leaders devoted to electronic documents – Korea Internet & Security Agency (KISA)
  • Jul 29, 2019 Selected as Korean Best Job Company by Ministry of Employment and Labor Ministry of Employment and Labor
  • Jun 12, 2019 Awarded the Grand Prize in the IT section in National-Class Brand Awards (2 consecutive years) – Maekyung Media Group

CONTENT SOURCE

FURTHER READING

Report created by Kavita Kripalani

Hana Financial Group, Inc.

SECTIONS :  Sustainability •  Targets   Evaluation  •  Key Points  •  Overview

Company Activity

Hana Financial Group, Inc. engages in the support for control or management of companies or financial businesses related to ownership of shares. Through its subsidiaries, it operates Banking, Financial Investment Business, Credit Card Business, Installment Financing and Facility Lending, Saving Banks, Life Insurance, and Asset Trusts and Operations Business. The company was founded on December 1, 2005 and is headquartered in Seoul, South Korea.

 

Company Sustainability Activity

Hana Financial Group is a corporation that consistently strives to create more economic value by improving its products and services. It never forgets that it is an important member of civil society as a corporate economic entity. 

A corporation should fulfill its responsibilities and obligations as a member of society while also playing a role as a financially sound economic player. Recognizing this, Hana Financial Group has enthusiastically and consistently engaged in social contribution activities. These activities of the Group are based on the concept of corporate citizenship and aim to address the needs of communities and solve the problems they face. Furthermore, the Group is dedicated to nurturing the pride of its employees, promoting its corporate image, and ultimately improving its business performance, thereby creating a virtuous cycle.

 

Highlights

  • 12,616 employees in ethical management training
  • Zero violations of Electronic Financial Transactions Act in 2019 
  • 109,530 employees in anti-money laundering training
  • 1,424 employees in the internal control training
  • Commendation from the Financial Services Commission. – 13th Annual Anti-Money Laundering Day
  • 26,585 beneficiaries of financial education in 2019 (24,738 in 2018)
  • Selected an athlete with a disability as a brand model
  • Awarded by the Financial Supervisory Service – One-company One-school financial education for the 4th consecutive year
  • KRW 140.8 billion – Total investment in social contribution
  • 68,957 tCO2-eq – Greenhouse gas (GHG) emissions
  • KRW 91.9 billion – Investments in domestic eco-friendly funds (KRW 74.5 billion in 2018)

Targets

Hana Financial Group is setting company-wide reduction targets to pursue national GHG emissions reduction goals (37% reduction compared to BAU by 2030)

They plan to reduce investment and loans for carbon emissions and expand investment in eco-friendly businesses and technologies.

Greenhouse Gas Emissions 2020 Goals:

  • Direct emissions (Scope 1): 8, 485
  • Indirect emissions (Scope 2): 57,023
  • Other indirect emissions (Scope 3): 7,478
  • Total emissions (Scope1, 2): 65,509

Established to realize the Group’s ideal of ‘Happy Finance,” the social contribution mission of Hana Financial Group is “Growing Together, Sharing Happiness.” Its main goals are to secure the happiness and prosperity of employees, customers, and society at large and build happy communities by giving back the profits earned from customers and communities through employee volunteer activities. 

Progress

  • Hana Financial Group has adopted the Korean Stewardship Code to enable institutional investors to voice their opinions on corporate decisions in response to the trends for responsible investment.
    • The Stewardship Code is a voluntary standard in which major investors are led to proactively execute their shareholder roles with investment target companies through communication and voting rights.
    • For the increase in profit for customers and the enhancement of mid-to long-term corporate value, Hana Bank, Hana Financial Investment, Hana Life, Hana Alternative Asset Management, and Hana Ventures implemented the Code in 2019.
  • Hana Financial Group is building a sustainable management environment and strengthening its risk management.
    • In recognition of its efforts, Hana Financial Group was included in the global sustainable management index of DJSI Asia Pacific in October of 2019 for the 4th consecutive year.
    • Each year, DJSI evaluates top 2,500 global companies based on market capitalization to evaluate their overall management activities and selects outstanding companies in the sustainability management sector.
    • Moving forward, Hana Financial Group will continue to create social value to achieve a stronger DJSI Assessment.
  • In order to systematically manage environmental indices and increase energy efficiency, Hana Financial Group introduced an environmental management system for both Hana Financial Holdings and Hana Bank (headquarters) in 2018.
    • With this, they are continuously pursuing the minimization of GHG emissions and establishing and executing reduction plans each year to contribute to the national reduction of GHG emissions.
    • In 2019, they launched the “Let’s Create a Healthy Planet” Campaign for energy conservation so that their employees can learn eco-friendly work and lifestyle habits and participate in the Group’s GHG emission reduction goals.
  • Hana Financial Group is leading the way to solve the national problem of a low birth rate.
    • They want to put gender equality into practice by pursuing a balance between work and social life, alleviating female employees’ career breaks and creating job opportunities.
    • Therefore, they are supporting businesses for childcare facilities.
    • In 2019, they opened four workplace daycare centers in Myeongdong and Yeouido in Seoul, Busan, and Gwangju as well as five public daycare centers in Geoje, Hongseong, Gangbuk-gu, and Cheongsong.
    • Hana Financial Group is striving to construct 90 public daycare centers and 10 workplace daycare centers, with the aim of establishing 100 daycare centers by 2020.

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty

  • 1.3 Implement nationally appropriate social protection systems and measures for all, including substantial coverage of the poor and the vulnerable
  • 1.4 Ensure that all men and women have equal rights to economic resources, as they’ll have access to basic services, natural resources, appropriate new technology and financial services, including microfinance
  • 1.5 Build resilience and reduce exposure and vulnerability to climaterelated extreme events and other economic, social and environmental shocks and disasters

SDG 3: Good Health and Well-Being

  • 3.7 Ensure universal access to sexual and reproductive health care services, and the integration of reproductive health into national strategies and programs

SDG 4: Quality Education

  • 4.4 Substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship
  • 4.7 Ensure that all learners acquire the knowledge and skills needed to promote sustainable development

SDG 5: Gender Equality

  • 5.4 Recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies, and the promotion of shared responsibility within the household and the family

SDG 8: Decent Work and Economic Growth

  • 8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labor-intensive sectors
  • 8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation
  • 8.3 Promote development- oriented policies that support productive activities, decent
  • job creation, entrepreneurship, creativity and innovation, and encourage the growth of small- and medium-sized enterprises
  • 8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all

SDG 9: Industry, Innovation and Infrastructure

  • 9.3 Increase the access of small-scale industrial and other enterprises, in particular those in developing countries, to financial services, including affordable credit, and their integration into value chains and markets
  • 9.5 Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including encouraging innovation and substantially increasing the number of research and development workers and public and private R&D spending

SDG 10: Reduced Inequalities

  • 10.4 Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality

SDG 13: Climate Action

  • 13.1 Strengthen adaptation competencies and flexibility to natural disasters and climate- related risks
  • 13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

SDG 16: Peace, Justice and Strong Institutions

  • 16.3 Promote the rule of law at the national and international level, and ensure equal access to justice for all
  • 16.5 Substantially reduce corruption and bribery in all forms
  • 16.6 Develop effective, accountable and transparent institutions at all levels

SDG 17: Partnerships for the Goals

  • 17.8 Fully operationalize a technology bank and science, technology and innovation capacity-building mechanism for least developed countries, while enhancing the use of enabling technology, in particular, information and communications technology
 

Evaluation

Hana Financial is doing a good job incorporating sustainability into its business practices. They have some strong certificates, have earned great awards, and align themselves with various UN SDGs in a purposeful manner. What’s more impressive is their identification of metrics and use of numerical data to display their progress toward sustainability. 

More specifically, the firm is setting emission reduction targets and is committed to pursuing social responsibility throughout its operations. Even more so, the bank is dedicated to building a sustainable management environment and strengthening its risk management.

They achieved a CDP Rating of  “A” for 2020 and are a member of Dow Jones Sustainability Indices. They have also incorporated several sustainability frameworks into their practices, such as the UN’s Principles for Responsible Banking and the Task Force on Climate-related Financial Disclosure. 

The company has demonstrated that they prioritize sustainability. 

Therefore, this company has been rated a B. 

Analyst Outlook: Neutral

Hana should continue obtaining relevant certificates, garnering accolades, and using detailed metrics to support their objectives and progress. 

Key Points

  • CDP Rating of  “A” for 2020
  • Member of Dow Jones Sustainability Indices
  • UN PRB (Principles for Responsible Banking)
  • The UN’s PRB (Principles for Responsible Banking) was launched in September 2019 with the cooperation of 30 global financial institutions, including Hana Financial Group
  • In order to reach the common goals of mankind, Hana Financial Group is implementing the UN PRB alongside 167 financial institutions in 49 countries worldwide.
  • The Financial Stability Board, an international financial organization, has established the TCFD (Task Force on Climate-related Financial Disclosure) to suggest a global standard
  • As of January 2019, 580 companies worldwide (including 318 financial institutions) expressed their support for TCFD recommendation
  • Hana Bank’s Sustainability Bonds: On January 30, 2019, Hana Bank successfully issued sustainability bonds (maturity of 3 years/5 years, dual-tranche) valued at USD 600 million in order to secure optimal financing opportunities and provide diversification to investors via ESG investments.
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