Krungthai supports Buriram Sugar Group in responding to government policies to resolve PM2.5 problems during harvest season

Krungthai Bank has provided an ESG loan to Buriram Sugar Group for the purchase of sugarcane harvesters and related machinery. This initiative aims to tackle sugarcane burning and reduce PM 2.5 pollution during the harvest season. This pilot project aligns with the Bank of Thailand's policies promoting sustainable business practices and the Ministry of Industry's push for industry transitions. It offers a tangible solution for PM2.5 reductions in the sugarcane and sugar industry.

Jirawan Pongpichitkul, Executive Director and Deputy Chief Executive Officer of Raw Material Supply (Sugarcane) at Buriram Sugar Public Company Limited, said that as a major producer of sugar and related products, Buriram Sugar has always believed that modern businesses should focus not only on profit but also on social and environmental responsibility. The company is also committed to sustainability, and their numerous sustainability awards stand as a testament to this dedication to conducting business with an aim to achieve sustainability goals, taking into consideration all stakeholders and environmental, social, and governance (ESG) aspects.

Currently, burning sugarcane and its leaves releases 4 times more greenhouse gasses than non-burning harvesting methods, and open burning also releases other greenhouse gasses and pollutants like nitrogen dioxide (NO2), sulfur dioxide (SO2), exacerbating the PM2.5 problems. Therefore, reducing PM2.5 is a critical societal concern. Buriram Sugar is committed to being part of the solution to reduce PM2.5 from sugarcane harvesting and collaborates with the Sugarcane Planters Association to address the issue. It also has a policy to purchase fresh sugarcane and offers loans for planters to acquire agricultural equipment that facilitates the harvesting of sugarcane to supply to the factory. This aims to reduce sugarcane burning, which is a cause of PM2.5. Krungthai Bank's support is crucial to achieving environmental and social sustainability goals.

Sujira Kittidusadeekul, Executive Vice President of Krungthai Bank, said Krungthai Bank is dedicated to developing financial products and services to meet customer needs in all aspects. The bank also places emphasis on environmental, social, and governance (ESG) principles. It aims to drive the country’s economy toward collective sustainable growth with the theme of “Reshaping Client Value Proposition and Promoting Sustainability with Innovation." The bank has designed transition loans for business operators in the sugarcane and sugar industry to enable them to purchase efficient agricultural machinery, such as sugarcane harvesters and sugarcane leave balers, at a reduced interest rate. The purpose of the loan is to support the business sector in adopting sustainable business practices that promote sustainable growth. Recently, it has joined hands with Buriram Sugar Public Company Limited to reduce PM2.5 during the sugarcane harvest season by offering long-term loans for buying sugarcane harvesters and related agricultural machinery. This will help reduce sugarcane leaf burning, which causes PM2.5 problems in the nearby areas. It will also support Buriram Sugar Group in advancing toward its sustainability goals, which is key to the company’s progress toward sustainability.

This collaboration is part of the ESG missions of both organizations and aligns with the Bank of Thailand’s pilot program to reduce PM2.5 in the sugarcane and sugar industry, which is aimed at encouraging businesses to adapt and move toward environmental sustainability in a tangible manner. It also supports the Ministry of Industry’s policy to transition industries into sustainable and environmentally friendly industries. To this end, the bank has linked sustainability performance targets which are in line with its responsible lending guidelines. Doing so fortifies the bank’s position as a sustainable bank. This initiative aligns with the United Nations’ Sustainable Development Goal 13: Climate Action, thereby driving both businesses and Thai economy toward sustainable growth, as reflected in the bank’s vision statement, “Growing Together for Sustainability.”