ESG Initiative

Sustainable Management Initiative

UNEP FI(United Nations Environment Programme Finance Initiative) The United nations Environment Programme Finance Initiative (UNEP FI) is a public-private partnership between the UNEP and financial institutions. SFMI has been part of the effort since 2010 to promote sustainable finance together with the international community.
PSI( Principles for Sustainable Insurance) The Principles for Sustainable Insurance (PSI) is a global framework and initiative aimed at promoting the sustainability management of insurers. After becoming the first Korean insurer to join the framework in 2015, SFMI has been making efforts to promote the sustainability of the insurance industry.
CDP(Carbon Disclosure Project) The CDP is a consultative organization that evaluates GHG emission reduction activities of major listed companies in the world and provides relevant reports to investors. SFMI has been participating in carbon information disclosure as an institutional investor and information provider since 2010.
UN SDGs(SDGs:Sustainable Development Goals) The UN SDGs (Sustainable Development Goals) consist of 17 goals and 169 targets that all stakeholders, including governments, businesses, and civil society, should achieve to enable the sustainable development of all countries. As a global corporate citizen, SFMI is committed to accomplishing the UN SDGs by aligning the goals with its sustainability management activities.
TCFD(Task Force on Climate-Related Financial Disclosures) Established by the Financial Stability Board (FSB), the Task Force on Climate-Related Financial Disclosures (TCFD) recommends that companies disclose climate-related information in the categories of corporate governance, strategy, risk management, and goals and indicators. Starting with the disclosure recommended by the TCFD, SFMI intends to improve the business integration of climate change risks and opportunities.
RE100(Renewable Electricity 100%) The RE100 is a global campaign to convert 100% of a company's enterprise power into renewable electricity. Samsung Fire & Marine Insurance is participating in global efforts to procure 100% renewable electricity at its workplace.
PCAF(Partnership for Carbon Accounting Financial) The PCAF is an initiative that provides a unified carbon accounting standard to measure and disclose greenhouse gas emissions from investment/financial transactions by financial institutions. Samsung Fire & Marine Insurance calculates and discloses financial emissions according to PCAF standards.
TNFD(Taskforce on Nature-related Financial Disclosures) TNFD is a global initiative which is established to provide companies with a framework to quantify and disclose financial risks, and financial opportunities that relate to nature. SFMI joined TNFD in August 2023 and will disclose natural capital on biodiversity in accordance with TNFD's recommendations.

PSI(Principles for Sustainable Insurance) Report

In January 2015, SFMI signed the PSI of UNEP FI (United Nations Environment Programme Financial Initiative) and announced its commitment to promoting sustainability in the insurance industry, together with global insurers. We at SFMI will work towards fulfilling our social responsibility as a global corporate citizen and carry out sustainability management, taking the environment, society and governance into consideration from a long– term perspective. In this regard, SFMI reports its ESG-related activities annually according to PSI’s four principles.

Principle1. We will embed in our decision-making environmental, social, and governance issues relevant to our insurance business.

Operating the ESG Committee

SFMI has established the ESG Committee under the Board of Directors. Consisting of two non-executive directors and the CEO, the Committee serves as the highest decision-making body that develops ESG strategies and discusses and resolves matters related to ESG activities.

Operating the Sustainability Management Committee

In 2012, SFMI established the Sustainability Management Committee, in which executives participate, to build a sustainability management system that fits global top-tier insurers and accelerates sustainability activities. The Committee consists of seven members: the CEO, CFO, Director of the Planning Office, Director of the CPC Strategy Office, Head of HR Team, Chief Compliance Officer, and Head of Planning Team 1. In 2020, the Committee discussed major issues, including sustainability management status and achievements, recent sustainability management trends, and future directions and tasks. We also operate the ESG Working Group that consists of the heads and managers of ESG-related departments to oversee and respond to sustainability management goals of each sector.

Social Responsibility Management Regulation

In 2013, SFMI established the social responsibility management regulation, which has been implemented to reflect the ESG initiative in all decision-making processes and activities. In 2020, the regulation was upgraded to reflect our effort to mitigate and respond to climate change, with the addition of the “Coal Phase-out Principle,” stating that all new investments, loans, and underwriting of construction insurance related to coal-fired power generation will stop. SFMI is making concerted efforts to contribute to the build-up of trust among insurance consumers and sustainable development of the society by faithfully carrying out social responsibilities regarding consumer protection, fair competition, improvement of labor quality, human rights protection, community participation and development, and eco-friendly management.

Principle2. We will work together with our clients and business partners to raise awareness of environmental, social, and governance issues, manage risk and develop solutions.

Environmental & Social Insurance Products and Services

SFMI provides a wide variety of insurance products and services that consider environmental impacts of activities such as climate change response and mitigation. We also engage in support activities in many fields so that the socially vulnerable and financially underprivileged such as low- income groups, persons with disabilities, and foreigners, can be prepared against various risks.

Paperless Insurance Contracts

SFMI has been promoting eco-friendly sales process innovation by having sales partners or RCs (Risk Consultants) use mobile devices. We have been continuing our efforts to provide eco-friendly insurance contracts by going paperless and using digital counseling data and e-signatures.

Research on Climate Change Risks

SFMI’s GLCC (Global Loss Control Center) supports customers and communities in managing climate change risks by conducting a diverse range of R&D in relation to climate change.

Social Responsibility Code of Conduct for Employees and Partners

SFMI established the Social Responsibility Code of Conduct for each stakeholder to encourage employees and partners to practice socially responsible management and induce change. We are also strengthening risk monitoring and support activities in sustainability management regarding human rights, safety, environment, and ethics to secure sustainable competitiveness.

Principle3. We will work together with governments, regulators, and other key stakeholders to promote widespread action across society on environmental, social, and governance issues.

Partnership with the Government and Civic Groups

SFMI engages in various social contribution activities in collaboration with the government and civic groups to resolve social issues.

Partnership with the Government and Civic Groups
Category	Activities	Cooperating Agency
Social Welfare	Surpport for the underprivileged	national Police agency, national Fire agency
Social Welfare	Improving disability awareness	Ministry of Education, Korea national Institute for Special Education, Seoul national School for the Blind, Disabled Persons First ampaign Center
Research and Education	Educational donation, scholarship, etc.	Ministry of Education, Kids & Future Foundation, Child Fund Korea, Safe Kids Korea

Operating Samsung Traffic Safety Research Institute

Established in 2001, Samsung Traffic Research Institute is the country’s first private research organization specializing in traffic safety. Its goal is to establish an advanced traffic culture and creating a society with zero traffic accidents. as a drive to prevent traffic accidents, the Institute conducts scientific and systematic research on the traffic safety of roads, vehicles, and drivers, while offering press releases, policy proposals, and traffic safety campaigns. Samsung Traffic Safety Research Institute Website | http://www.stm.or.kr/main.html

Principle4. We will demonstrate accountability and transparency through regular disclosure of our progress in implementing the Principles.

SFMI systematically manages issues related to the environment, society, and governance and discloses them transparently to the public by publishing the integrated report, annual report on corporate governance and remuneration, and business report each year.