Shinhan Bank Applies 'Equator Principles' to All Transactions Subject to Equator Principles Review

Establishing an 'Equator Principles Screening Process' for Environmental and Social Risk Management

[Asia Economy Reporter Kangwook Cho] Shinhan Bank announced on the 17th that it has established an 'Equator Principles Screening Process' to fulfill the environmental and social responsibilities of financial institutions and will conduct financial transactions in accordance with environmental risk management principles. Earlier, on the 9th, Shinhan Bank became the first domestic commercial bank to join the 'Equator Principles'.

Shinhan Bank's Global and Group Investment Bank (GIB) reviews the applicability of the Equator Principles for all transactions subject to review and adds the environmental and social risk management standards jointly adopted by global financial institutions worldwide as evaluation criteria when assessing new projects.

In fact, at the time of adopting the Equator Principles, Shinhan Bank GIB is reviewing and assessing whether projects in progress, such as the European data center project under review, fall under the scope of application according to the 'Equator Principles Screening Process', despite tight schedules.

Compliance with the Equator Principles means classifying risks associated with loans based on regulations commonly applied to all member financial institutions, and borrowers are responsible for proving compliance with agreed guidelines and standards. For projects with risk ratings of medium or higher, agreements include requirements for borrowers to comply with action plans to mitigate risks, and Shinhan Bank continuously monitors compliance.

A Shinhan Bank official stated, "Although there may be some inconvenience in procedures such as conducting environmental and social impact assessments when proceeding with new transactions due to joining the Equator Principles, we expect to enhance our capabilities to manage environmental and social risks in the future."

This content was produced with the assistance of AI translation services.