A5 Embraces ESG Principles, Securing Transition Loan from Krungthai Bank

A5 is set to revolutionize its business according to ESG principles with support from Krungthai Bank’s transition loan, accelerating its sustainability endeavor. The company aims to develop quality, environmentally friendly residential projects and create social value to become a leader in sustainable real estate in Thailand.

Supachoke Panchasap, Chief Executive Officer of Asset Five Group PCL (A5), announced that the company has secured a transition loan from Krungthai Bank PCL to fund real estate developments aligned with sustainable business practices. This loan reflects the confidence in A5's potential and readiness to drive the organization towards sustainable development from a leading financial institution with policies that support business transformation.

Today, businesses worldwide are increasingly focusing on ESG, which emphasizes environmental responsibility, social impact, and transparent governance. A5 recognizes the importance of ESG and has integrated these principles into its operations, resulting in positive impacts for both the company and society.

A5's implementation of ESG principles is not merely a response to trends but a strategic transformation of its business model, aligning with the growing consumer demand for environmentally and socially responsible companies. A5 focuses on three key areas:

• Environmental A5 is committed to reducing environmental impacts from business operations through initiatives such as renewable energy usage, greenhouse gas emission reduction, and efficient pollution and waste management. This also includes designing environmentally friendly developments by incorporating solar energy to reduce electricity dependence and greenhouse gas emissions, as well as using standardized construction materials that help save energy during construction, reducing costs and long-term environmental impact.
• Social A5 prioritizes the creation of social value by supporting the community in improving living conditions, creating jobs, enhancing residents' quality of life, promoting cultural diversity, supplying educational materials, and maintaining school facilities. The company also prioritizes community and employee safety with comprehensive accident prevention measures and welfare benefits.
• Governance A5 adheres to good management principles with transparency, careful strategic business planning, and effective risk management to lead the business toward long-term sustainability.

"The support from this transition loan will enable A5 to accelerate its transition to green business efficiently and add long-term value. Our collaboration with Krungthai Bank highlights the strong partnership between the private sector and financial institutions in driving sustainable development in Thailand. A5 is committed to creating quality housing that meets customer needs and contributes to a better society,” said Supachok.

Suratun Kongton, Chief Wholesale Banking Officer of Krungthai Bank, stated that Krungthai Bank, as a leading commercial bank in Thailand, is committed to leveraging innovation and technology to develop financial products and services that address the needs of all customers and support environmentally friendly business practices to support businesses and the country in achieving net-zero emission goals. The bank prioritizes environment, society, and governance in its operations and addresses the United Nations Sustainable Development Goals. To this end, the bank has recently partnered with A5 to drive real estate business transition towards environmental sustainability by providing transition loan support, designed to help businesses transition from traditional (brown) to environmentally friendly (less brown) and green businesses effectively. This enables businesses to invest in technology and infrastructure, enhance business capabilities, and create long-term positive impacts on society and the environment.

Through this collaboration, Krungthai Bank aims to support tangible environmental sustainability transitions, enabling A5 to develop efficient real estate projects that align with the demand for eco-friendly housing while contributing to a better society and promoting sustainable growth. The bank recognizes A5's readiness and capability to reduce environmental impacts through comprehensive business operations, implementing ESG concepts that align with the bank's approach to creating balance between environment, society, and community, improving Thai people's quality of life. This reflects Krungthai Bank’s commitment to sustainable banking and its guiding theme of “Reshaping Client Value Proposition and Promoting Sustainability with Innovation.”