Case study: How Hana Securities works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

A key principle of sustainable finance is maintaining ongoing communication with stakeholders. Hana Securities seeks to create a system that continuously identifies the various needs of its stakeholders and incorporates them into its decision-making processes. Hana Securities recognizes its primary stakeholders as customers, shareholders/investors, employees, government bodies/institutions, and local communities. Hana Securities has developed specialized communication channels for each group to enhance engagement and actively consider their feedback when shaping its business direction. Hana Securities promptly integrates stakeholders’ views and opinions at both the departmental and project levels, while addressing strategic issues with its senior committees to ensure these insights are woven into business strategies and activities. Specifically, Hana Securities conducts customer satisfaction surveys and operates a Voice of Customer (VOC) system to enhance customer satisfaction and incorporate customer feedback. This system allows Hana Securities to manage customer complaints and analyze areas that require attention and action. When appropriate, Hana Securities aims to incorporate insights gathered from various communication channels, including stakeholder surveys, into its operations. Hana Securities also carries out surveys involving both internal and external stakeholders to identify key material issues, such as sustainable finance and enhancing climate change responses, and it discloses the results of these materiality assessments in its sustainability reports.

How did Hana Securities work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 Sustainability Report Hana Securities reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

1. Financial Consumer Protection

As a comprehensive asset management firm dedicated to meeting customer expectations, Hana Securities places a high priority on customer interests. To achieve this, Hana Securities has established the Internal Control Committee, Consumer Risk Management Committee, and Consumer Risk Management Department to create systems and processes aimed at safeguarding financial consumers. Hana Securities also ensures the security of customer financial transactions through mechanisms related to complete sales and incomplete contracts. Additionally, Hana Securities has appointed a Chief Information Security Officer (CISO) to strengthen consumer protection and complaint management, as well as to safeguard customers’ personal data. Hana Securities operates an Information Protection Department and an Information Protection Committee to support these efforts. Hana Securities’ voice-of-the-customer (VOC) system allows it to continuously monitor customer satisfaction and dissatisfaction while building trust with customers by offering financial information and education to financially vulnerable groups.

2. ESG Bond Forward

As a comprehensive asset management company, Hana Securities fosters customer engagement in sustainable finance by introducing a variety of ESG products. In March 2024, Hana Securities launched Korea’s first ESG bond forward, allowing customers to participate in climate change initiatives by reducing greenhouse gas emissions. Additionally, Hana Securities rolled out the iSelect-WG Carbon Neutral ESG ETN Product and the Overseas Equity Donation Lab to further encourage ESG involvement among customers.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), ISEP Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Hana Securities, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.hanaw.com/download/bbs/pdf/2023_ManagementReportEng.pdf

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