KakaoBank highlights ESG achievements in annual report

The interior of KakaoBank's headquarters in Seongnam, Gyeonggi Province / Courtesy of KakaoBank

By Yi Whan-woo

KakaoBank highlighted its achievements in environmental, social and corporate governance (ESG)-focused management in its annual ESG report published this month, the company announced on Friday.

The internet banking arm of tech giant Kakao said the report also highlighted the other major achievements of its ESG practices in the last year.

They included: implementing and substantiating operation of environmental management systems, expanding human rights management, reinforcing integrity of the board of directors, creating economic and social value through inclusive finance and enhancing information security and customer data management.

The six achievements made since 2022 were among 17 topics addressed in the report published by KakaoBank.

The company is the first internet-only lender in Korea to publish a report on ESG management.

The report is aimed at sharing the firm's management strategies and outcomes in accordance with ESG principles under its long-term vision.

“KakaoBank's ESG-centered management and its principles will serve as a focal point for harmoniously connecting stakeholders." KakaoBank CEO Daniel Yun said.

He expressed hope that the company “will continue to dedicate its capabilities to foster innovation, promote healthy competition in the financial industry, and enhance the welfare of financial consumers."

In its self-evaluation of ESG practices, the company used the so-called “Double Materiality Assessment,” which is designed to quantify the interaction between the firm's corporate finance and both society and the environment.

The company became the first online lender in Korea to acquire ISO 14001, an international standard for environmental management systems.

The report shared the company's level of its mortgage-financed emissions for the first time. Mortgage-financed emissions are a measurement of the amount of greenhouse gases emitted from all homes that were purchased by those who took out mortgage loans from KakaoBank.

It also dealt with KakaoBank's inclusive financial products and services aimed at lessening the burden on financially vulnerable customers by increasing the supply of medium and low-credit loans.

The company plans to publish a sustainable management report every year to communicate with domestic and foreign stakeholders, including customers and investors.

“With our innovative technologies, we aim to ensure the safe financial life and sustainable financial growth of our customers,” it said. “We will make efforts to establish our own ESG management system to present ESG activities for innovation, inclusion and trust.”