Shinhan Financial Group Co Ltd

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## ESG Management

* Environmental
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The ESG Strategy Committee and Risk Management Committee deliberate and make final decisions on important agenda for the transition to a low-carbon economy and strategic direction to counter climate change. In 2015, Shinhan became the first financial company in Korea to establish the CSR Committee (currently ESG Strategy Committee). The Committee oversees all major decision making related to ESG and climate change strategies. The Risk Management Committee identifies, measures, monitors, and controls risks that arise from various transactions in a timely manner, and comprehensively manages them. By creating the ESG Implementation Committee in 2021 that is participated in by all Group subsidiary CEOs, Shinhan Financial Group built a driving system for unified ESG and climate change strategy implementation at the Group level, along with the Group ESG CSSO Council and Group Risk Council. In addition, the GCSSO and GCRO, who are officials in charge of executing work, are respectively in charge of the overall ESG driving system and climate risk management, and report major matters to the ESG Strategy Committee and Risk Management Committee. In 2022, Shinhan's major subsidiaries, including Shinhan Bank, Shinhan Card, Shinhan Securities, and Shinhan Life, strengthened their commitment to environmental, social, and governance (ESG) standards by establishing new ESG-focused committees and executive bodies within their respective boards of directors. Four committee meetings were held throughout the year, particularly the ESG Strategy Committee meetings in May, August, and November, where key metrics such as Green financial performance, financed emissions, and intensity were carefully evaluated. In particular, the ESG Strategy Committee meeting in August focused on discussing concrete tasks to become an industry leader in driving the net-zero transition through the medium-term ESG strategic plan. The Risk Management Committee continued identifying, measuring, monitoring, and controlling various risks arising from transactions and discussed key climate risk factors. The committee held eight meetings in 2022.

Shinhan Financial Group has built a ESG governance to ensure organic cooperation among the BOD, management, and working-level employees, thereby preemptively identifying and managing relevant risk and opportunity factors. In addition, a council per level participated in the CEO, CSSO, CRO, and working-level employee of each Group subsidiary is operated regularly to strengthen climate change response capabilities of the Group. [...] In 2019, Shinhan Financial Group became the first financial company to appoint a Chief Strategy & Sustainability Officer (CSSO), who is an executive in charge of strategies and sustainability, at all Group subsidiaries, and also designated working-level ESG officials and operated councils. In 2021, it launched the ESG Implementation Committee, participated by CEOs of all Group subsidiaries, to regularly review the status of executing sustainability/ESG strategies, and to ensure detailed monitoring.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]ESG-related working-level organizations report to the upper consultative body regularly a month and to the ESG Strategy Committee, a committee within the BOD, 4 to 6 times a year. Through this ESG governance, the group's climate change strategy is consistently applied.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes