Case study: How Suhyup Bank identifies and works on strategic business opportunities to increase positive and reduce negative impacts

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.

Suhyup Bank engages with a diverse range of stakeholders, including customers, employees, shareholders and investors, suppliers, local communities, and the general public. The bank develops customized communication channels for each group to collect a wide array of feedback. This input is then reported to management to ensure that stakeholder expectations are met and to integrate their perspectives and needs into Suhyup Bank’s business operations.

[Social Contribution]
As a cooperative bank, Suhyup Bank collaborates with external organizations to advance ESG initiatives that focus on supporting fishermen, protecting the marine ecosystem, and enhancing community welfare. The bank’s activities include participating in plogging coastal clean-up events and providing supplies to vulnerable fishermen and communities. By engaging in various social initiatives related to education, culture, and sports, Suhyup Bank offers support to local communities and assists during natural disasters.

[ESG Public Finance Agreement]
Since 2021, Suhyup Bank has partnered with public institutions and private companies through the ESG Public Finance Agreement to promote joint efforts in marine environment conservation and ESG-driven shared growth. Under this agreement, the bank is involved in initiatives such as marine environment protection, developing ESG funds, reducing carbon emissions, and conducting ocean clean-up activities in collaboration with its partners. Moving forward, Suhyup Bank aims to expand this cooperative framework to include more organizations, furthering joint ESG initiatives and advancing sustainable finance practices.

How did Suhyup Bank identify and work on strategic business opportunities to increase positive and reduce negative impacts?

In its 2024 PRB Reporting and Self-Assessment Template Suhyup Bank reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:

[Sh Marine Plastic Zero! Deposit & Installment Savings]
Suhyup Bank has launched a public-interest product called ‘Sh Marine Plastic Zero! Deposit & Installment Savings’ and ‘Sh Marine Plastic Zero! Corporate Deposit’ to raise awareness about the urgent issue of marine plastic pollution and support the goal of cleaner oceans. Any private company can open these accounts. Suhyup Bank contributes 0.05% of the average annual balance to fund activities aimed at reducing marine pollution. These products encourage individuals and businesses to participate in waste reduction efforts, fostering collective responsibility for environmental preservation. By holding these accounts, account holders can indirectly contribute to environmental protection through waste reduction initiatives, helping to combat the growing problem of marine plastic pollution.

[Loans for Companies with Outstanding ESG Performance]
To uphold its social responsibility through ESG management and promote sustainable business growth, Suhyup Bank has introduced and actively promotes the ‘Sh Excellent ESG Performer Loan’ as a public-interest product. This loan is available to companies that meet specific criteria, including those with an environmental rating of BBB or higher from the Korea Environmental Industry and Technology Institute; companies certified under the Green Company program or ISO 14001 environmental management system; businesses supported as eco-friendly enterprises; companies issued social economy enterprise credit guarantees by the Korea Credit Guarantee Fund, Korea Technology Finance Corporation, or regional branches of the Korea Credit Guarantee Fund; and private business owners or companies with a governance rating of B+ or higher from the Korea Corporate Governance Service. Companies meeting these requirements are eligible for prime rate benefits, reflecting Suhyup Bank’s commitment to advancing ESG finance and fulfilling its corporate social responsibility.

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:

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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 Suhyup 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:

https://biz.suhyup-bank.com/ib20/mnu/CBM00970?num=5554&boardGroup=0&boardTable=0

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