Shinhan Financial Group Created Social Value of 2.0132 Trillion KRW Last Year

Shinhan Financial Group announced on the 12th that it created a total social value of 2.0132 trillion KRW last year by analyzing the overall performance of its environmental, social, and governance (ESG) activities and measuring them in monetary terms.

Social value refers to quantifying the non-financial ESG activity outcomes of a company into monetary value for the efficient use and management of limited resources.

The 'Shinhan ESG Value Index' (formerly the Shinhan Social Value Measurement Model), developed by Shinhan Financial in collaboration with Yonsei University’s ESG and Corporate Ethics Center, is a model that measures social value generated by ESG management activities considering the unique characteristics of the financial industry.

The Shinhan ESG Value Index categorizes Shinhan Financial’s ESG activities into three stages: ▲ input resources (cost savings), ▲ added value, and ▲ outcomes, measuring the total amount of socially positive effects in monetary terms. Since developing the model, Shinhan Financial has been refining the measurement of social value by continuously expanding the scope of measurement targets and proxy indicators for comparison purposes.

The social value measured by the Shinhan ESG Value Index last year amounted to 2.0132 trillion KRW, created through 244 ESG programs. This represents an increase of 158% and 163%, respectively, compared to 780 billion KRW and 93 programs in 2019 when measurement began.

In particular, 125 programs related to eco-friendly, innovative, and inclusive growth generated a total social value of 1.7 trillion KRW. Additionally, 34 programs aimed at protecting financial consumers, such as preventing voice phishing, financial education, and pursuing social diversity, achieved business effects worth 172.8 billion KRW.

Meanwhile, Shinhan Financial joined the Value Balancing Alliance (VBA) last year, participating in the development of measurement standards alongside global companies. Starting in the second half of this year, it plans to begin developing financial industry measurement standards with Deutsche Bank, BNP Paribas, and others.

Cho Yong-byeong, Chairman of Shinhan Financial Group, stated, "Creating social value for customers and local communities, along with meticulous measurement and analysis, will be an important barometer of ESG management. As a leading ESG company, Shinhan Financial will do its best to spread social value and achieve sustainable growth."

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