Second-Party Opinion Download

Sustainalytics is of the opinion that the Shinhan Financial Group Sustainable Development Goals Financing Framework is credible and impactful, and aligns with the Sustainability Bond Guidelines 2018 and the Green Loan Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds – (i) Renewable Energy, (ii) Energy Efficiency, (iii) Pollution Prevention and Control, (iv) Green Buildings (v) Clean Transportation (vi) Access to Essential Services and (vii) Affordable Housing are aligned with those recognized by both the Green Bond Principles, Social Bond Principles and the Green Loan Principles. Sustainalytics considers the eligible Green and Social projects will contribute to the reduction of South Korea’s environmental footprint and support access to finance and healthcare and affordable housing. Sustainalytics views that the eligible Green and Social Projects will advance the UN Sustainable Development Goals 7, 8, 9, 10, 11, 12

PROJECT EVALUATION/SELECTION

Shinhan Financial Group’s (SFG) project evaluation and selection process will be managed by a dedicated SFG Financing Working Group (“SFWG”) consisting of members from various corporate departments, after an initial preselection performed by relevant departments within SFG and its subsidiaries. A separate Corporate Social and Responsibility Committee (CSRC) comprised of members of the Board of Directors and independent Directors will work closely with the SFWG to review all Eligible Sustainable Financing Projects selected. This process is aligned with market practices.

MANAGEMENT OF PROCEEDS

Proceeds from the sustainability transactions will be managed by SFG and the Eligible Subsidiaries through their internal tracking systems. SFG has access to all Eligible Subsidiaries’ tracking systems. Pending full allocation, the unallocated proceeds will be invested in cash or cash equivalent following SFG’s liquidity management policy. Sustainalytics views this process to be aligned with market practices.

REPORTING

SFG may disclose annual allocation and impact reporting. The (i) allocation report will provide the amount allocated to each project, the share of financing and refinancing, and the amount allocated to each individual Eligible Subsidiary and the corresponding share. (ii) SFG states that it may report on relevant Environmental and Social impact metrics, where feasible, for their issuances. Sustainalytics considers the SFG’s reporting to be in line with market practice.