Krungthai and Khon Kaen Sugar Industry join forces to reduce PM2.5 during sugarcane harvest season in an advancement toward carbon neutrality and net zero emissions

Krungthai Bank has partnered with Khon Kaen Sugar Industry Group to advance toward carbon neutrality and net zero emission goals and to address the problem of sugarcane burning and reduce PM2.5 during the sugarcane harvest season. This initiative involves purchasing sugarcane harvesters and related machinery with funds from the transition loan pilot program. It aims to reduce PM2.5 and other air pollutants such as nitrogen dioxide (NO2), which are significant environmental concerns in the sugarcane and sugar industry that society pays attention to. This initiative aligns with the Bank of Thailand’s policies and the Ministry of Industry’s guidelines.

Chalush Chinthammit, Chief Executive Officer and President of Khon Kaen Sugar Industry Public Company Limited, stated that as a major sugar producer and distributor in Thailand for over 79 years, the company is committed to efficiently promoting environmental and social sustainability as well as sustainable growth. It adheres to good governance principles within the ESG framework, focusing on three dimensions: environmental, social, and governance. In addition, it prioritizes reducing PM2.5 from sugarcane harvesting by collaborating with the Sugarcane Planters Association to minimize burning. Khon Kaen Sugar Industry PCL aims to achieve carbon neutrality by 20245 and net zero greenhouse gas emissions by 2060. Support from Krungthai Bank will significantly contribute to the company’s meeting its sustainability goals.

Suratun Kongton, Chief Wholesale Banking Officer of Krungthai Bank, said that the bank is highly committed to developing financial products and services that address customer needs in all aspects, with a strong emphasis on the environment, society, and governance (ESG). Underpinned by the guiding theme of “Reshaping Client Value Proposition and Promoting Sustainability with Innovation,” the bank supports businesses in adopting environmentally friendly practices to ensure sustainable growth. Krungthai Bank has joined hands with Khon Kaen Sugar Industry Public Company Limited to address PM2.5 issue during the sugarcane harvest season by offering a transition loan designed for the sugarcane and sugar industry to Khon Kaen Sugar Industry Public Company Limited. This loan will enable the company to acquire efficient agricultural machinery, such as sugarcane harvesters and related machinery. This will help reduce the burning of sugarcane during the harvest season, which causes PM2.5 dust problem, and support the company in achieving its carbon neutrality and net zero emission targets.

This collaboration stems from a commitment to ESG objectives through the pilot scheme supporting the reduction of PM2.5 dust caused by the sugarcane and sugar industry according to the Bank of Thailand’s policy. It is also a response to the Ministry of Industry’s policy to transition industries into sustainable and environmentally friendly industries. The bank has linked the loan to sustainability performance targets, an approach aligned with its Responsible Lending Guideline, to advance businesses toward sustainability as in its vision statement “Growing Together for Sustainability” and to strengthen its position as a sustainable bank. This aligns with the United Nations’ Sustainable Development Goal 13: Climate Action.