Hana, Shinhan join anti-coal campaign

Shinhan Financial Group headquarters in Seoul

By Kim Hyun-bin

More financial institutions are joining carbon-neutrality and anti-coal campaigns in order to help companies shift to renewable energy.

Hana Financial Group, which has vowed to become carbon neutral by 2050, joined the anti-coal campaign as part of its “Next 2030 Management Principles” goal as well as supporting the government's carbon-free initiatives.

The Korean government aims to become carbon neutral by 2050 to transition in a green economy and maximize the utilization of renewable energy sources.

Hana Financial Group will halt investing and financing the construction of coal power plants as well as acquiring related bonds.

The lender also plans to establish an Environmental and Social Risks Management (ESRM) program in the first half of this year and restrict financial aid for businesses that harm the environment or commit human rights abuses.

Hana aims to become a member of the Equator Principles pact within this year and plans to expand transparency in its environmental, social and corporate governance (ESG) management.

Hana is also establishing an internal set of investment guidelines that strictly adhere to global financial standards as well as abiding by the Financial Services Commission's “K-Taxonomy” model which is used to gauge the eco-friendliness of business projects. Within this year, the new guidelines will be implemented in Hana Bank's operating systems which will aid the lender's screening process and rule out investments in projects that pose environmental risks.

The lender also plans to publish a report in June according to guidelines presented by the Task Force on Climate-related Financial Disclosures, which is expected to analyze climate change risks as well as sectors of high environmental risk.

Shinhan Bank anti-coal efforts

Shinhan Bank vowed to join the anti-coal campaign that will halt financing for the construction of coal-fired plants as well as purchasing coal-related bonds.

Shinhan Bank announced its anti-coal efforts during the Korea Sustainability Investing Forum held earlier this week.

Last September, the lender became a member of the Equator Principles pact and plans to implement the rules at its Vietnamese affiliate starting this year.

To better enforce ESG management, a new team was established within the lender to be in charge of purchasing 30 electric commercial vehicles and implementing other eco-friendly measures. Shinhan plans to further expand the application of it Equator Principles ideology throughout its institutions.

In addition, as part of its “Zero Carbon Drive,” the lender has implemented a carbon emission management system to reduce emissions from the burning of fossil fuels.