Case study: How Shinhan Bank works with its clients and customers to encourage sustainable practices
Headquartered in Seoul, South Korea, Shinhan Bank operates 721 domestic branches and 171 branches across 20 countries, including Japan, the U.S., Vietnam, and Indonesia. Shinhan Bank contributes to South Korea’s national economy and financial market stability through sound operations, efficient fund brokerage, customer protection, and maintaining credit order. Shinhan Bank is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, working with its clients and customers to encourage sustainable practices and enable sustainable economic activities. Tweet This!
This case study is based on the 2022 PRB Reporting and Self-Assessment Template by Shinhan Bank, prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Which Principles for Responsible Banking have been addressed?
The Principles for Responsible Banking addressed in this case are:
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- Principle 3: Clients and Customers
- Principle 4: Stakeholders
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- How Shinhan Bank proceeded with stakeholder identification and consultation, and
- How Shinhan Bank worked with its clients and customers to encourage sustainable practices and enable sustainable economic activities
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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.
Stakeholder Analysis and Engagement
Engaging stakeholders in managing material issues effectively enhances transparency and credibility while addressing potential risks faced by the company.
Additionally, it’s crucial to promptly identify each stakeholder group’s areas of interest and expectations stemming from risk exposure, and to develop proactive response strategies.
Shinhan Financial Group categorizes key stakeholder groups into employees, customers, shareholders and investors, partner companies, local communities, and the government. By actively communicating with these stakeholders, the Group identifies and manages issues of interest, reflecting them in its ESG activities.
How did Shinhan Bank work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2022 PRB Reporting and Self-Assessment Template Shinhan Bank reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
Propose ESG participation for small and medium-sized enterprises (SMEs) and support the establishment and implementation of mid- to long-term carbon emission reduction targets (first for a commercial bank in Korea).
- ESG engagement helps companies compete, go green, and achieve Net Zero by 2050.
Total care service support for the adoption of ESG management:
- Basic consulting (diagnosis/assessment) and in-depth consulting (strategy/implementation).
- Implementation status of ESG consulting, guided the use of ESG consulting services for employees, conducted ESG training and ESG proposal consulting through the ‘DIGILOG Expert Consulting Zone’, and promoted rewards for outstanding ESG companies and employees.
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
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- FBRH is a GRI Certified Training Partner (Global), IEMA 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.
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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 Shinhan Bank, 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:
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