20, Sejong-Daero 9-Gil,
Seoul, South Korea
CHIEF SUSTAINABILITY OFFICER
The company does not disclose this information.
- “Best Global CSR Company” by Korea Government
- Medal for “Vietnamese banking career” awarded by the State Bank of Vietnam to recognize Shinhan Bank’s dedication to the course of building and developing the banking industry in Vietnam.
- “Excellent labor collective” awarded by the Governor of the State Bank of Vietnam
- Emulation flag awarded by the State Bank of Vietnam
- Merit certificate of the Prime Minister: recognition for Shinhan Bank’s excellent business achievements, contribution to the growth of Vietnam’s economy and the Bank’s efforts to strengthen the sustainable friendship and cooperation between Vietnam and Korea.
- “Best place to work in Asia” by HR Asia publication
- The “Global quality service 2018” award of Visa International
- “Leadership in payment volume growth 2019” by Visa International
- “Leadership in payment transaction volume 2019” by Visa International
- “Leadership in debit card activation rate 2019” by Visa International
Report created by Kavita Kripalani
Shinhan Financial Group Co., Ltd. engages in the provision of management and financial support services to its subsidiaries. The company was founded on September 1, 2001 and is headquartered in Seoul, South Korea.
Company Sustainability Activity
Shinhan Financial Group pursues ESG management; for instance, by adopting “FINANCE for IMPACT” as the principle of their ESG management.
- Announced Zero Carbon Drive
- Became the first financial group in North Asia to declare to be carbon neutral including its asset portfolio
- Shinhan Bank became the first commercial bank in Korea to adopt The Equator Principles
- The Group became the first in Korea to join Partnership for Carbon Accounting Financials (PCAF)
- Reduce CO2 emissions of the Group’s asset portfolio: Set a plan to achieve carbon neutrality by 2050 aligned with the 2℃ scenario in accordance with the Sectoral Decarbonization Approach (SDA) set by SBTi.
- Reduce CO2 emissions within the Group: Set a plan to achieve a linear annual reduction rate of 4.2% per year aligned with the 1.5℃ scenario set by SBTi.
- “0•10•100” coordinates for the destination of Shinhan’s ESG Way – Each coordinate signifies the goal Shinhan seeks for different groups of interest through “FINANCE for IMPACT”, sustainable finance. “0” refers to carbon zero for society and future generations, “10” means 10 unicorn companies leading the economic growth of Korea through innovation, and “100” percent satisfaction for all Shinhan stakeholders.
- Making the Group asset portfolio’s carbon emissions “zero” by 2050.
- Zero Carbon Drive goal for 2030:
- Reduce carbon emissions of the Group and the Group asset portfolio by 46.2% and 38.6%, respectively (compared to the figures in 2019).
- Expand green finance performance to reach KRW 30 trillion (cumulative figure from 2020 to 2030).
- Shinhan Financial Group developed the “Shinhan Social Value Measurement Framework (SVMF)”, in collaboration with the Center for Global Business Ethics and Responsibility of Yonsei University, in November 2019, and thus became the first financial company in Korea to develop a social value measurement model.
- In 2020, on its second implementation of Shinhan SVMF, Shinhan newly added “finance for green growth” and “financial consumer protection” areas. The bank consequently expanded the scope of its measured projects from 93 to 192 projects. Measurement results indicated that financial consumer protection, financial education, and job creation projects have high social value.
UN Sustainable Development Goals
UN SDGs Compliance
SDG 1: No Poverty
Support for the vulnerable
- Support for people with low credit to bounce back (Youth Debt Care, education allowance)
- Support programs for women whose career was interrupted and small business owners
SDG 4: Quality Education
- Financial consumer protection system
- Creation of the Consumer Protection Group, a system of financial product ESG examination, ombudsman system
- Establishment of an information security system
- Designation of a Chief Information Security Officer (CISO) for each Group subsidiary
- Customer, personal information processing policy
- Integrated Security Control Center
SDG 5: Gender Equality
- Establishment of a Group female leader training system
- Maternity protection and childcare support (Group daycare centers, reduced working hours, etc.)
- Inclusion in the Bloomberg Gender Equality Index
SDG 10: Reduced Inequalities
- Strengthening of BOD expertise: Mandatory appointment of outside directors with expertise – Reinforcement of sub-committee expertise
- BOD diversity: Establishment of the principle of diversity in terms of nationality, gender, and age.
Stability in leadership
- Creation of a fair management succession system
- Selection and fostering of CEO candidates
- Distribution of the authority to make director recommendations
- Establishment of ESG governance at the Group level
- ESG Strategy Committee (formerly Corporate Social Responsibility Committee)
- ESG Implementation Committee (CEOs of Group subsidiaries)
- Group ESG CSSO/Working Group
- Development of Shinhan Social Value Measurement Framework (SVMF)
Adoption of the Stewardship Code
- Development of Shinhan Social Value Measurement Framework (SVMF)
- Adoption of the Stewardship Code
- Group Compliance Officer Council, Internal Control Committee
- Code of Ethics, Standards of Conduct, Internal Reporting System
- Fair Trade Compliance Rules: Promotion of ethics/compliance education
- Anti-money laundering system
- Principles for shared development with partner companies and their Code of Conduct
- Establishment of a smart working environment
- Expansion of the smart and flexible working hours system
- Introduction of a PC shutdown system
- Protection of employees’ human rights
- Mental health checkups for employees, human rights declaration, etc.
SDG 8: Decent Work and Economic Growth
Support for Growth
- Job creation programs
- Support for youth’s overseas employment, vocational school, and youth/senior job placement
- Investment in social enterprise fund
- Education support program
- Financial education, Hope School software class, Shinhan Music Awards, scholarship programs, etc.
SDG 9: Industry, Innovation and Infrastructure
- Launch of the Innovative Finance Promotion Committee
- Execution of Triple K Project: Establishment of an ecosystem through S2 Bridge
- Shinhan Future’s Lab: A venture-nurturing program
- Inno-talk: A venture platform
SDG 11: Sustainable Cities and Communities
- Leading mid-interest rate loans for low-income households
- Success Do Dream Program (SOHO)
- All That Shopping: An exclusive platform for SMEs and small business owners
SDG 12: Responsible Consumption and Production
Human Resources Development
- Fostering of specialized experts
- Nurturing of digital talent
- Operation of a mobile in-house education platform
- Implementation of an in-house startup system
SDG 7: Affordable and Clean Energy
- Green finance exclusive and guaranteed loans, expansion of infrastructure PF
- Investment in energy and eco-friendly means
- Issuance of green bonds
- Promotion of eco-friendly consumption (Shinhan Card)
SDG 13: Climate Action
Environmental Risk System
- Establishment and operation of an environmental/ social risk management system
- Analysis of climate change-related impacts of the Group’s asset portfolio
- Adoption of the Equator Principles (Shinhan Bank)
- Declaration of Zero Carbon Drive: Transition from the previous ECO Transformation 20•20
- Establishment of the Group’s principles for climate change response
SDG 16: Peace, Justice and Strong Institutions
- Development/operation of a green management system
- Acquisition of the ISO 14001 certification (Shinhan Bank, Shinhan Card, Shinhan Investment, Shinhan Life Insurance, Shinhan Capital)
- Creation of a paperless environment
SDG 17: Partnerships for the Goals
- UNEP FI Principles for Responsible Banking and Sustainable Insurance
- UNEP FI Global Steering Committee
- Efforts to achieve zero carbon of the Group’s asset portfolio, including by joining SBTi and PCAF
Disclosure of Environmental Information
Shinhan Bank is dedicated to incorporating sustainability throughout their business model. The company has adopted several sustainability strategies, such as The Climate Pledge, issuing green bonds, and the Drive Sustainability initiative.
Despite having few certificates, awards and listings, the bank produces a comprehensive report with specific targets and goals for reducing their CO2 emissions, implementing an environmental risk system, green policies and finance, ESG governance, and human rights in alignment with the UN Sustainable Development Goals.
Shinhan Bank’s transparency is noteworthy. Shinhan Bank has made strides to promote sustainability.
Despite its commitment to sustainability, the bank has invested a total of $1.096 B, increasing its investments from 2018 to 2020.
Therefore, the Shinhan Bank has been rated a C.
Analyst Outlook: Negative
Shinhan Bank is pursuing sustainability. However, the bank will receive a lower rating should it continue to increase its investments in the fossil fuel industry. In addition, the lack of certifications and listings do not support the company’s initiatives and strategies.
- MSCI – Received AA grade for 5 consecutive years