KB Financial Group Inc

To respond to climate change issues, KB Financial Group operates the ESG Committee, Audit Committee, and Risk Management Committee, with the Board at the center as the Group's top decision-making body. With the Group CEO at the center, the Group CSO and executive in charge of ESG manage the Group's climate change response strategy area, while the Group CRO analyzes the risks that climate change causes to KB Financial Group and establishes management strategies. Each subsidiary has an ESG Committee and ESG-dedicated team, thus taking part in responding to climate change. BOD Level To respond to climate change, KB Financial Group has a decision-making system in place, with the Board at the center. The Board establishes Group-level climate change response strategies and goals, and reviews and manages the activities of committees under the Board that were formed to implement the strategies and goals. KB Financial Group provides training that raises Board members' awareness of ESG and strengthens their relevant capabilities to increase expertise when making decisions that concern climate change response. Topics including climate change-related global trends, supervisory and regulatory trends, directions of response within the financial industry, and changes in the disclosure system are being covered in special lectures from outside experts. KB Research provides quarterly research reports on ESG trends at home and abroad, including climate change, to the Board. In 2022~2023, we provided an overview of the Group's ESG strategies and implementation status to newly appointed non- executive directors and training on overall ESG. Furthermore, we provided ESG training that included climate change issues, such as sustainability reporting standard response strategies, to all non-executive directors, thus helping the Board make the right decisions. [ESG Committee] KB Financial Group became the first in the financial industry to create an ESG Committee in 2020. The ESG Committee is the only committee within the BOD to have all directors as its members, including non-executive directors and executive director. In this way, ESG management leads to actual practice through harmony between the Board and executive management. In particular, the ESG Committee identifies risks and opportunities related to the Group's climate change response and regularly manages and supervises major tasks and execution matters for KB Financial Group's climate change response. Main content includes the implementation status of ESG tasks, operation status of ESG products, investments, and loans, as well as the status of ESG global initiative activities. [ KB ESG Win-Win Council ] To effectively respond to win-win agenda and systematically support win-win financing, KB Financial Group has set in place the "KB ESG Win-Win Council," which is operated separately at the Group level and at each subsidiary. The holding company's Head of ESG Division oversees the council while the management in charge of ESG at each subsidiary participates in the council to ensure connection between the Group's strategic direction and each subsidiary's win-win financing execution measures. The Win-Win Council at the Group level is attended by the top management and working-level department head of the organization in charge of ESG at the holding company and each subsidiary. The Win-Win Council at each subsidiary is a working- level win-win financing council that consists of business departments in the subsidiary. It comprises team leaders in charge and team members of relevant departments, and establishes a mutually seamless cooperation system between the department in charge of ESG and relevant departments.

### Climate Change Response Governance

To respond to climate change issues, KB Financial Group operates the ESG Committee, Audit Committee, and Risk Management Committee, with the Board at the center as the Group's top decision-making body. With the Group CEO at the center, the Group CSO and executive in charge of ESG manage the Group's climate change response strategy area, while the Group CRO analyzes the risks that climate change causes to KB Financial Group and establishes management strategies. Each subsidiary has an ESG Committee and ESG-dedicated team, thus taking part in responding to climate change.

### BOD Level

To respond to climate change, KB Financial Group has a decision-making system in place, with the Board at the center. The Board establishes Group-level climate change response strategies and goals, and reviews and manages the activities of committees under the Board that were formed to implement the strategies and goals.

KB Financial Group provides training that raises Board members' awareness of ESG and strengthens their relevant capabilities to increase expertise when making decisions that concern climate change response. Topics including climate change-related global trends, supervisory and regulatory trends, directions of response within the financial industry, and changes in the disclosure system are being covered in special lectures from outside experts. KB Research provides quarterly research reports on ESG trends at home and abroad, including climate change, to the Board. In 2022, we provided an overview of the Group's ESG strategies and implementation status to newly-appointed non-executive directors and training on overall ESG. Furthermore, we provided ESG training that included climate change issues, such as sustainability reporting standard response strategies, to all non-executive directors, thus helping

##### ESG Committee

KB Financial Group became the first in the financial industry to create an ESG Committee in 2020. The ESG Committee is the only committee within the BOD to have all directors as its members, including non-executive directors and executive director. In this way, ESG management leads to actual practice through harmony between the Board and executive management. In particular, the ESG Committee identifies risks and opportunities related to the Group's climate change response and regularly manages and supervises major tasks and execution matters for KB Financial Group's climate change response. Main content includes the implementation status of ESG tasks, operation status of ESG products, investments, and loans, as well as the status of ESG global initiative activities.

**Key Resolutions by and Reporting to the ESG Committee**
**(climate-related)**

**Category** **Resolutions and Reports**

- ESG execution performance in the first half of
1[st] meeting
Report 2022 and implementation direction (plan) for
the second half of the year

- Group's major ESG execution plans for 2023

2[nd] meeting - Execution status of the net zero target
Report
in 2022 - Status of ESG financial products

- Global initiative activities

- ESG execution performance in the first half of
2023 and implementation direction (plan) for
the second half of the year

1[st] meeting
Report - Execution status of the net zero target
in 2023

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]KBFG endeavors to overcome the climate
crisis by leveraging Group-wide capability. Robust governance is a basis for effective response and proper decisionmaking related to climate issues.
Our governance structure for climate response is composed of the Board, the group management, and subsidiaries. We manage climate issues according to each committee's roles, with the highest-level decision-making body, the Board at the center.
The Board oversees theGroup's climate response strategies and goals and manages the activities of each committee under the Board. The ESG Committee, the Audit Committee and the Risk Management Committee maintain organic cooperative relationship according to each committee's role.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]KBFG endeavors to overcome the climate crisis by leveraging Group-wide capability. Robust governance is a basis for effective response and proper decision making related to climate issues. Our governance for climate change response is composed of the Board, the group management, and subsidiaries. We manage climate issues according to each committee's roles, with the highest-level decision-making body, the Board at the center. The Board oversees the Group's climate response strategies and goals and manages the activities of each committee under the Board. The ESG Committee, which oversees the climate response sector, maintains an organic partnership based on each committee's role.