Hana Bank Joins the 'Equator Principles' to Promote ESG Management Expansion

Official Application of the Equator Principles in Handling Large Project Finance

[Asia Economy Reporter Kwangho Lee] Hana Bank announced on the 23rd that it has joined the 'Equator Principles' to expand ESG (Environmental, Social, and Governance) management through the establishment of an environmental and social risk management system and fulfillment of responsibilities.

The Equator Principles are a voluntary global agreement among financial institutions not to provide financial support for large-scale development projects such as project finance (PF) if there are issues like environmental destruction or human rights violations, based on ten principles.

Hana Bank analyzed precedents set by financial institutions adhering to the Equator Principles, identified key improvement tasks, and completed the Equator Principles work manual through collaboration with operational departments. It has also prepared for joining the Equator Principles Association by developing IT systems for applying the Equator Principles process and producing educational materials.

With this membership, Hana Bank plans to establish its own environmental and social risk screening system and conduct rating classifications considering environmental and social risks when handling loans subject to the Equator Principles. Additionally, it will establish management processes according to the ratings to minimize the adverse effects of large-scale development projects on the environment and society.

A representative from Hana Bank's ESG Planning Section stated, "Through joining the Equator Principles, Hana Bank will take the lead in fulfilling its social role for sustainable finance by actively managing environmental and social risks caused by indiscriminate development."

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