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Shinhan Recognized by DJSI World
Money Matters
Shinhan Recognized by DJSI World
  • By Jung Min-hee
  • September 22, 2015, 03:15
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Shinhan Bank's headquarters building in Namdaemun, Seoul.
Shinhan Bank's headquarters building in Namdaemun, Seoul.

 

Shinhan Financial Group, Korea’s largest financial holding firm by assets, has been listed on the 2015 Dow Jones Sustainability Index World (DJSI World). This is the third year in a row for Shinhan to be recognized by DJSI World, and the first time for a Korean bank to be consecutively listed on DJSI World.

Launched in 1999 and jointly managed by S&P Dow Jones Indices and RobecoSAM (Sustainable Asset Management), DJSI World evaluates the sustainability performance of the largest 2,500 companies listed on the Dow Jones Global Total Stock Market Index. They are the longest-running global sustainability benchmarks worldwide and the key reference point in sustainability investing for investors.

The criteria of evaluation is not merely limited to economic and financial issues, but covers social and environmental performances like corporate governance, risk management, climate change mitigation, supply chain standards and labor practices.

In the banking sector, 27 companies were listed on the index including Westpac, Standard Chartered PLC, Citigroup Inc. BNP Paribas, and Barclays. Shinhan is the only Korean banking group that has been listed on the index for three consecutive years. In Asia, only two financial groups ― Shinhan and E. Sun Financial Holding of Thailand ― are recognized by the index.

Shinhan said in a statement that the company had high scores this year in codes of conduct, corporate citizenship and philanthropy, financial stability, and brand management based on stable corporate governance.

Shinhan launched its Social Responsibility Management Committee this year for the first time as a Korean financial group. The company also has run programs to support the sustainability of its affiliates.

As a result, Shinhan received a grade of A+ by the Korea Corporate Governance Service in its 2015 ESG management evaluation report. ESG is a short form of environment, social responsibility, and governance. Shinhan was the only firm given the top grade among 828 companies listed on the KOSPI and KOSDAQ.

In addition, Shinhan joined the Carbon Disclosure Project (CDP) club, Korea's Carbon Management Club in 2014, as well as becoming one of 100 globally sustainable companies at the World Economic Forum this year.