Hana group sets out its ESG commitments

Finance

Published: 22 Apr. 2021, 16:59

Hana group sets out its ESG commitments

Hana Financial Group Chairman Kim Jung-tai, third from right in front, poses with group officials during an event held Thursday to announce the group's vision to achieve carbon neutrality by 2050 at H-Pulse, a lounge operated by Hana Bank for members of the group's loyalty program, Hana Members, in Mapo District, western Seoul. [HANA FINANCIAL GROUP]

The Hana Financial Group vowed to commit 60 trillion won ($53.7 billion) to environmental, social, and governance (ESG) related finance by 2030.

The group also said Thursday that by 2050, it won't be financing any coal projects.

The announcements were a follow-up to promises in March when Hana said it would no longer finance new coal projects and would achieve carbon neutrality by 2050.

Of the promised 60 trillion won in financing, 10 trillion won will be invested directly or indirectly in ESG-related projects and ESG investment funds.

The rest of the commitment will be made through the issuing of ESG bonds or through loans for projects related to the environment or social issues.

The group plans to issue 25 trillion won in ESG bonds over the next 10 years. Those bonds raise capital from investors with the promise that it will be used to finance projects with green benefits, social benefits or a combination.

Another 25 trillion won will be loans to ESG-related companies or projects.

"With this announcement, we plan to make the year 2021 the beginning of our group's ESG-focused management," said Hana Financial Group Chairman Kim Jung-tai in a statement Thursday.

This year, the group plans to adopt the Equator Principles, a risk framework developed for financial institutions for managing environmental and social risks in projects.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]