Global Initiatives
UNEP FI
The United Nations Environment Programme Finance Initiative (UNEP FI) was formed based on partnership between the UNEP and global financial sector. Shinhan Financial Group joined the UNEP FI in January 2008 and has been active in supporting and executing relevant activities. As a result of these efforts, we were chosen as UNEP FI Global Steering Committee Asia Pacific Banking Sector Representative in 2020. Going forward, we will make continuous efforts to contribute to the facilitation of sustainable finance of financial institutions in the market.
PRB (Principles for Responsible Banking)
The UN PRB refers to principles that the banking sector should pursue to implement the Paris Agreement and UN SDGs. Shinhan Financial Group became the first in Korea to join the UN PRB in September 2019, and is serving as a Core Group. In the first half of 2021, we completed the Self-Assessment Template and is striving to fulfill the PRB Principles.
PSI (Principles for Sustainable Insurance)
The PSI is a global initiative that has combined business activities’ sustainability-related factors, including operation strategy, risk management, and product and service development. Shinhan Financial Group became the first in the Korean life insurance industry to join PSI in February 2020.
NZBA (Net Zero Banking Alliance)
The NZBA is aimed at achieving the goals of the Paris Agreement and is participated by 43 global banks. It provides a framework and guidelines to participating financial institutions to accelerate the shift to net zero. Shinhan Financial Group joined the NZBA on April 21, 2021 as a founding signatory, and will execute related activities.
6 PRB Principles
| Alignment | Align strategy with initiatives |
|---|---|
| Impact & Target Setting |
Assess social/environmental impact and set targets |
| Clients & Customers |
Encourage sustainable trade practices |
| Stakeholders | Maintain partnerships to fulfill social responsibilities |
| Governance & Culture |
Build an effective governance and a culture of responsible banking |
| Transparency & Accountability |
Disclose whether the principles are implemented and the status |
4 PSI Principles
| We will embed in our decisionmaking environmental, social and governance issues relevant to our insurance business. |
Apply to business, such as company strategy, risk management, product and service development, claims management, marketing, and investment management |
|---|---|
| We will work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions. |
Manage ESG risks through collaboration with customers and suppliers as well as the insured and insurance policy holders |
| We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues. |
Manage risks through collaboration with key stakeholders, including government, regulatory bodies, and legislative bodies |
| We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles. |
Make regular public announcements on the assessment, measurement, and monitoring process of a company that manages ESG issues |
Guidelines for Climate Target Setting
| Guideline 1 | Banks shall set and publicly disclose long-term and intermediate targets to support meeting the temperature goals of the Paris Agreement |
|---|---|
| Guideline 2 | Banks shall establish an emissions baseline and annually measure and report the emissions profile of their lending portfolios and investment activities. |
| Guideline 3 | Banks shall use widely accepted science-based decarbonisation scenarios to set both long-term and intermediate targets that are aligned with the temperature goals of the Paris Agreement. |
| Guideline 4 | Banks shall regularly review targets to ensure consistency with current climate science. |