Hanwha Financial Affiliates Declare 'Coal Phase-Out Finance'... Accelerating ESG Management

Hanwha Life Insurance, Non-Life Insurance, Securities, Asset Management, Savings Banks, Carrot Non-Life Insurance, etc.
Suspension of Participation in Coal Power Plant PF Projects and Bond Underwriting

On the 5th, Yeoseungju, CEO of Hanwha Life, held a non-face-to-face video conference with Kim Seong-il, CEO of Hanwha Savings Bank, Kim Yong-hyun, CEO of Hanwha Asset Management, Kang Seong-su, CEO of Hanwha General Insurance, Kwon Hee-baek, CEO of Hanwha Investment & Securities, and Jeong Young-ho, CEO of Carrot General Insurance, and resolved to pursue coal phase-out finance.

[Asia Economy Reporter Oh Hyung-gil] On the 5th, six financial companies of Hanwha Group, including Hanwha Life Insurance, announced their declaration of 'coal phase-out finance' and stated that they will not participate in project financing (PF) for the construction of coal power plants domestically and internationally in the future.

On the same day, Hanwha Life Insurance CEO Yeo Seung-joo, along with Kim Sung-il, CEO of Hanwha Savings Bank, Kim Yong-hyun, CEO of Hanwha Asset Management, Kang Sung-soo, CEO of Hanwha General Insurance, Kwon Hee-baek, CEO of Hanwha Investment & Securities, and Jung Young-ho, CEO of Carrot General Insurance, resolved to pursue coal phase-out finance during a non-face-to-face video conference.

They decided not to underwrite bonds issued by special purpose companies (SPCs) for the construction of coal power plants, as well as project financing for coal power plants both domestically and abroad. Even for general bonds, if it is clear that the proceeds will be used for the construction of coal power plants, they will not underwrite such bonds. On the other hand, they plan to continuously expand investments in eco-friendly assets such as renewable energy.

Hanwha Group Chairman Kim Seung-yeon stated in this year's New Year's address, "Environmental, Social, and Governance (ESG) has established itself as a core management principle for global companies," and urged, "As a global leader in the renewable energy sector, we will actively respond to climate change and accelerate environmental management to lead the carbon-zero era."

Strengthening ESG Management to Solve Social and Environmental Issues

Hanwha Group's financial affiliates are already strengthening ESG management across various sectors to provide fundamental solutions to social and environmental problems and to continue sustainable development in the future.

Hanwha Life Insurance is managing its business with a focus on realizing low-carbon, eco-friendly, and safe workplaces, emphasizing the realization of low-carbon workplaces and energy efficiency. Through the establishment of Green Offices, it systematically manages various data, including energy and greenhouse gas emissions used and emitted at workplaces, and is expanding the introduction of renewable energy.

As of November last year, Hanwha Life Insurance has invested 8.5 trillion KRW in renewable energy and social overhead capital (SOC) infrastructure. This amount has increased by more than 1 trillion KRW compared to 2018 and continues to expand.

Hanwha General Insurance is making efforts to minimize paper usage by installing solar panels on the Suanbo Life Campus training center building and introducing and promoting an electronic subscription system in sales sites.

Hanwha Investment & Securities decided not to participate in additional refinancing, judging that some loans related to midstream port facilities intended for Australian coal exports may have some association.

Hanwha Asset Management launched Korea's first climate finance investment fund, the 'Hanwha Green Hero Fund,' this year and is providing climate finance solutions as a member of the Asia Investor Group on Climate Change (AIGCC). The Green Hero, launched in October, is a product that invests in global stocks related to climate risk mitigation industries and climate crisis adaptation industries, and it has gained popularity by surpassing 10 billion KRW in assets under management within about a month of its launch.

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