UNEP Finance Initiative
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, Shinhan Financial Group CEO Cho Yong-byoung attended the first UNEP FI Leadership Council as a representative of Asia’s financial sector and shared his opinions with world-leading financial group presidents on climate change response and sustainability of the overall financial industry. Going forward, we will make continuous efforts to contribute to the facilitation of sustainable finance of financial institutions in the market.
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.
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.
Shinhan Financial Group is a founding signatory of the Net-Zero Banking Alliance (NZBA) launched by 43 banks from around the world on April 21, 2021, aimed at achieving the Paris Agreement goals. We have been since then strengthening participation in initiatives under GFANZ. We joined the Net Zero Asset Managers Initiative (NZAMI) in July 2021, and the Net-Zero Insurance Alliance (NZIA) in October 2021, both first in Korea.
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 |
GFANZ Initiatives
| NZBA | Made an agreement to align the participants’ lending and investment portfolios with pathways to net-zero by 2050 |
|---|---|
| NZAMI | Set interim targets to achieve net-zero of assets under management by 2050 manage them step-by-step |
| NZIA | Move forward with achieving net-zero of carbon emissions included in insurance companies’ investment and insurance underwriting portfolio by 2050 |