Korea's top 3 banking groups included in Dow Jones Sustainability Indices

From left are the headquarters of KB, Shinhan and Hana Financial Group in Seoul. Yonhap

By Lee Min-hyung

Korea's three major financial holding firms ― KB, Shinhan and Hana financial groups ― have been included in the Dow Jones Sustainability Indices (DJSI) for their concerted efforts to fulfill environmental, social and corporate governance (ESG) principles, they said, Monday.

The three banking groups were recognized for their diverse achievements in ESG management. KB Financial Group was included on the DJSI's World Index for seven consecutive years since 2016, the lender said. Other overseas financial firms that were included in the same category are France's BNP Paribas and Banco Bilbao Vizcaya Argentaria of Spain.

“KB was rated highly in various areas ― such as taxation strategy, anti-money laundering, human rights and social contribution ― this year,” a spokesman from the financial company said.

KB also said the accomplishment was driven by its group-wide efforts to fulfill ESG management principles.

“For the environment, we have set up a specific corporate vision for carbon neutrality, and take proactive actions to deal with climate change,” the official said. “We are also drawing up a mid- to long-term strategy for expanding diversity in age and gender for our social contribution. For corporate governance, KB set up an ESG committee within its board of directors.”

Shinhan Financial Group also said Monday that it was included in the World Index due to its efforts towards sustainable and inclusive finance. The banking group has been included in the index for 10 consecutive years since 2013.

“Shinhan was globally recognized for its ESG commitment by being named in the index for a decade,” an official from the firm said. “We will continue putting effort into building a sustainable society and becoming Asia's leading financial firm dedicated to ESG.”

Hana Financial Group also won a title as the world's top-rated bank in DJSI's bank index. The financial firm received 87 points and became the leading financial firm in the category, as well as was included in the World Index, the financial holding firm said.

Hana was rated the best for its efforts in environmental reports, manpower development and customer management. The company was also highly spoken of in areas such as risk management, anti-money laundering efforts, human rights management and strategic personnel management, according to the company.

“The achievement is very meaningful in that Hana's ESG efforts have been globally recognized in about two years after we declared our group-wide vision for ESG management in 2021,” Hana Financial Group Chairman Ham Young-joo said. “We will continue undertaking sincere and socially responsible activities for ESG management.”