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Hana Bank officially becomes an EPFI
Hana Bank announced that it has been approved to join the Equator Principles Association and has become an ‘Equator Principles Financial Institution (EPFI)’ on 23 August.
The Equator Principles (EPs) is a risk management framework adopted by financial institutions for determining, assessing and managing environmental and social risk in projects. It's primarily intended to provide a minimum standard for due diligence and monitoring to support responsible risk decision-making.
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In pursuit of ESG management missions, Hana Bank has prepared to become a member of the EP Association by benchmarking existing EP members, bringing out a set of items for process improvement, producing an internal manual for the EPs in cooperation with the departments concerned, making employee training materials and developing a computerized system that contains EP implementation process.
As an EPFI, Hana Bank plans to establish an environmental/social screening system to categorize projects that may fall under the Equator Principles based on their possible environmental and/or social risks, as well as set up a management process for each category to minimize the negative impacts of large development projects.
“Adoption of the EPs was a meaningful first step for us, and Hana Bank will proactively engage any environmental or social risk arising from imprudent development and further take a lead role in sustainable financing,” said a spokesperson for ESG Planning Section of Hana Bank.
In April this year, Hana Financial Group announced its mid- to longterm ESG implementation goals (2030 & 60) and (Zero & Zero) under the ESG vision of ‘Big Step for Tomorrow’ and pursuing finance for the sake of ‘Growing Together and Sharing Happiness.’
Moreover, the Group highlighted its commitment to the ‘Hana Financial Group Sustainable Finance Framework’ through the Sustainable Management Committee of the Board of Directors on July 22nd. As for the framework, the Group defined the meaning of sustainable finance and laid the groundwork for greater ESG finance and transparent performance disclosure by setting up Group standards related to the sector policy against carbon intensive industries, a sustainable finance classification system (HanaTaxonomy), an Environmental and Social Risk Management system and ESG integration for investment.
