Hana Financial Group Declares Carbon Neutrality and Coal Phase-Out... Contributing to the Expansion of the Renewable Energy Market

[Asia Economy Reporter Kiho Sung] Hana Financial Group has declared a 'coal phase-out finance' policy to achieve 'carbon neutrality' by 2050 and to completely halt new project financing (PF) for the construction of domestic and overseas coal-fired power plants.

On the 10th, Hana Financial announced that it declared carbon neutrality, aiming to apply it to all group affiliates by 2050, to continuously practice the group mission of 'financial services that grow together and share happiness' along with the 'Next 2030 Management Principles.' This decision by Hana Financial is to actively participate in the government's '2050 Carbon Neutrality' goal and contribute to the expansion of the renewable energy market through the transition to a low-carbon economy.

To this end, Hana Financial has declared coal phase-out finance, completely stopping new project financing and bond underwriting for the construction of domestic and overseas coal-fired power plants. Additionally, it plans to complete the establishment of the 'Environmental and Social Risk Management System (ESRM)' within the first half of the year to selectively suppress financial support for projects involving environmental destruction and human rights violations, aiming to join the Equator Principles within the year based on this system.

Hana Financial will also strengthen various processes to enhance transparency in practicing ESG (Environmental, Social, and Governance) management. First, it is developing the 'Hana Financial Group Sustainable Finance Framework,' which strictly reflects the Financial Services Commission's green classification system and global standards. This framework will be prioritized for implementation in Hana Bank's IT system within this year, transparently managing ESG finance performance through measures such as ▲reflecting environmental risks in credit screening and ▲applying environmental system product codes.

Furthermore, a TCFD report reflecting the guidelines of the Task Force on Climate-related Financial Disclosures (TCFD) will be published in June. Hana Financial previously disclosed the group's climate change risk response status reflecting TCFD guidelines in the '2019 Sustainability Management Report.' The newly published report will include a detailed analysis of climate change risks, ▲identification of high-risk sectors that the group should focus on managing in the future, and ▲plans to develop risk management scenarios accordingly.

Hana Financial Group will focus on internalizing ESG management by conducting various education programs and events for employees to improve understanding and encourage practical participation. Starting this month, ESG education targeting all employees, including new hires, managers, and executives, will be planned and implemented to enhance overall group understanding of ESG and foster practical work capabilities that can be applied in daily operations.

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