Concluded a business agreement for climate risk management and development of Mohyeon

Hana Financial Group (CEO Ham Young-joo) announced on the 8th that it has signed a business agreement with the Financial Supervisory Service, the UK (embassy), Ewha Womans University and major domestic companies to develop an advanced 'climate risk management model'.

At the business agreement ceremony held at the British Embassy in Jeong-dong, Seoul, Financial Supervisory Service Governor Lee Bok-hyeon, British Ambassador to Korea Colin Crooks, Ewha Womans University President Kim Eun-mi and Hana Financial Group Chairman Ham Young-joo attended the ceremony. The CEOs of six companies representing the domestic financial and industrial worlds attended, and the public, government, and academics decided to join forces to preemptively respond to climate change risks.<

This business agreement is a research project jointly promoted by the Financial Supervisory Service, academia and companies to develop 'Frontier-1.5D', an advanced climate risk management model. 'Frontier -1.5D' has the meaning of 'leading the achievement of international agreement' to limit global warming to within 1.5 degrees compared to pre-industrial levels.

The Financial Supervisory Service Through the agreement, it plays the role of a coordinator based on the role of the financial authorities suggested by the BIS (International Settlement Bank), and private companies including Hana Financial Group conduct climate risk-related data analysis and research and development cooperation by industry, and Ewha Womans University conducts research The United Kingdom (embassy) will act as an advisor for methodology and research model development. It is expected to contribute to the development of a climate risk management model to prepare for 'physical risks' that cause losses in loans and 'transition risks', which are financial losses that occur in the process of transitioning to a low-carbon society.<

Hahm Young-joo, Chairman of Hana Financial Group, said, “As the importance of climate risk management is recently increasing worldwide, it is very meaningful to participate in this joint research project in which the public and private sectors cooperate.” As we have been making various efforts for climate risk analysis since 2020, we will actively contribute to developing a practical model based on our results and know-how.” In order to contribute to responding to climate change and transitioning to a low-carbon economy, which is being promoted worldwide, the financial group decided on the 'group's plan to achieve carbon neutrality by 2050' at the Sustainability Management Committee under the board of directors held in April.

Through this, based on the scientific goal management system, which is established as an international standard, we set carbon reduction targets not only for business sites but also for asset portfolios along the path to achieve carbon neutrality, and on October 6, science-based Obtained official certification from the Science-Based Target initiative (SBTi).
In particular, in order to achieve the goal of reducing financial emissions (carbon emissions of asset portfolios), Hana Financial Group's sustainable finance industry policy guide is applied to high-carbon emission industries to manage assets in ESG-restricted and significant industries.< /span>

Continued efforts to strengthen climate risk management capabilities, such as actively participating in the 'Climate Scenario Joint Working Group' organized by the Financial Supervisory Service to promote stress tests on climate risks in the financial sector.

Hana Financial Group focuses on preemptively managing climate change risk factors, and from 2023, a Korean-style green classification system ( K-Taxonomy) will be actively reflected in the business field to focus on ESG financial support and investment expansion.