Woori Financial Group’s
Environmental, Social and Governance (ESG) Financing Principles

 



As one of the country’s leading financial groups, we at Woori Financial Group have adopted the following ESG Financing Principles to fulfill our environmental and social responsibilities in our financial operations and to prevent ESG risks.

Article 1 (Purpose)

We aim to contribute to society's sustainable growth through financial operation and strive to prevent the spread of risks associated with environmental and social problems to the financial sector.

1. We aim to contribute to the country’s conversion to a low-carbon society and eco-friendly management activities.A. We shall strive to expand financial support to industrial sectors that contribute to invigorating the circular economy, such as the development of technologies that enable the efficient use of energy and reduce carbon emissions, the use of renewable energy, and the recycling and reuse of resources. B. We shall refrain from providing financial support to industrial sectors that have a negative impact on climate change due to carbon emissions. 2. We shall strive to promote the principles of financial inclusion and businesses’ fulfillment of their social responsibilities. A. We shall strive to extend the principle of financial inclusion by developing goods and services for the socially underprivileged and strengthening financial support for innovative businesses. B. We shall review the risks associated with businesses that arouse criticism due to human rights infringements, safety accidents or acts of corruption, and reflect the results in our evaluation of businesses.

Article 2 (Definitions of terms)

“ESG financing” refers to financial products, services and support that are designed to reduce environmental and social risks and contribute to society’s sustainable development.

 

Article 3 (Scope of application)

“ESG financing” refers to loans, deposits, bonds, investments & project financing, and asset operation.

 

Article 4 (Operating principles)

We shall strive to manage the status and results of ESG financing more systematically by specifying the principles of operation of ESG financing.

1. Loans : Evaluation of customers’ environmental/social risks at the time of loan review and credit rating A. We shall strive not to provide funding support for activities that are judged to be illegal or which run contrary to the public good in loan operation/investment. B. We shall reflect our customers’ ESG management results in our loan review and credit rating, and expand financial support for customers that perform well in terms of ESG. C. We shall communicate sincerely and positively with our customers concerning their ESG risk and opportunity factors so that they may improve their ESG results. 2. Deposits : Products and services associated with environmental/social contributions A. We shall strive to develop eco-friendly and inclusive financial products and services and provide them to customers on a continuous basis. B. We shall strive to communicate transparently with our customers and stakeholders concerning the results achieved with the relevant products and services. 3. Bonds : Issuance of green bonds/social bonds/sustainable bonds as defined by the International Capital Markets Association, and of green bonds as defined by the ME’s Guidelines on Green Bonds A. We shall operate our business according to the procedures established for management of the following matters at the time of issuance of bonds: usage of relevant funds, project evaluation, project selection procedure, fund control, follow-up reports, etc. B. We shall publish periodic follow-up reports that contain comprehensive information on the use status of funds and the environmental/social effects of our bonds. 4. Investments and Project financing : Subject to review of environmental/social risks based on the “Equator Principles” A. We shall establish and apply the procedure for reviewing environmental/social risks, to which the Equator Principles are applied mutatis mutandis, in our investments and project financing. B. We shall fully disclose the status of investments and project financing whose environmental/social risks have been reviewed and the results thereof. 5. Asset operation : Fixing of investment-related intentions based on evaluations of environmental/social risks associated with operating/entrusted assets A. We shall strengthen our trustees’ responsibilities and obligations concerning operating/entrusted assets and strive to reflect ESG factors, based on our responsible investment principles, in the process of investment analysis and decision-making. B. We shall strive to promote positive participation and the exercise of voting rights to improve investee businesses’(투자기업) ESG.

Article 5 (Decision making bodies)

We shall establish a decision-making system to ensure that ESG financing is operated in accordance with these principles.

1. The ESG Management Committee of Woori Financial Holdings’ Board of Directors shall review and approve the company’s ESG financing-related strategies and policies and the promotion thereof. 2. The Group’s Council, to be composed of the CEOs of the Holding Company and its subsidiaries, shall manage the subsidiaries’ ESG financing-related promotional activities according to these Principles.

Article 6 (Disclosure)

We shall disclose the status of ESG financing and its results to our shareholders in a transparent manner based on these Principles.

The foregoing Principles were adopted pursuant to review and approval by the ESG Management Committee of Woori Financial Holdings’ Board of Directors, and may be amended as and when required by the committee.

June 23, 2023

Woori Financial Group