Materiality Assessment
Krungthai Bank conducted the Sustainability Materiality Assessment in alignment with the Double Materiality Assessment Approach through the Global Reporting Initiative (GRI) Standards 2021. The framework considers the Bank’s Impact Materiality, which is the impact of the Bank’s operations on the economy, environment, and society, as through conducting the group of stakeholders of the bank surveys, together with Financial Materiality which is the financial implications resulting from external sustainability factors to the Bank’s value, assessment and inputs provided by the Risk Cluster and the Marketing Activation team (Sustainability and CSR/CSV). Therefore, the analysis comprehensively reveals impacting sustainability factors, risks, and opportunities. In addition, this assists in the prioritization and strategic planning of risk management and the Bank’s business development to align with the sustainability principles emphasized by the Bank in the dimensions of economy, society, and environment and respond to the needs of stakeholders in accordance with human rights principles. Process of Materiality Assessment consists of 4 key steps, as follows:
Materiality Identification
The identification of sustainability materiality involves a comprehensive examination of topics across the Bank’s value chain. This process considers both internal and external factors, including industry sustainability trends, international standard reporting frameworks reporting frameworks, benchmarking against peer, and stakeholders’ needs and expectations. A total of 13 materiality topics were identified, covering the governance, environmental, and social dimension.
Impact Identification
Identify impacts, risks, and opportunities regarding sustainability opinion surveys and interviews with internal and external stakeholders for listen to stakeholder feedback regarding the sustainability impacts of the Bank’s operations and the impact of the sustainability issues on the Bank’s value.
Impact Assessment
The Bank considers all perspectives on sustainability and assesses the impact of each issue identified by stakeholders, adhering to GRI standards. The impact assessment evaluates actual or potential effects, whether positive or negative, in the short or long term. Additionally, it takes into account correctability, severity (size, scope, and potential for resolution), the likelihood of both positive and negative impacts, risks and opportunities, and financial implications—all in accordance with the Bank's risk management process. The Bank utilizes a comprehensive analysis to prioritize and address significant sustainability issues within its business operations. The findings are then incorporated into the development of a materiality matrix.
Prioritization Analysis and Reporting
After creating the materiality matrix based on the impact assessment data, the Bank processes this data to identify material topics. The results show sustainability topics with impact materiality, reflecting the impact of the Bank’s operations on the economy, environment, and society, as well as topics regarding financial materiality, or the impact of external sustainability factors on the Bank’s finances, and prioritize sustainability issues for data reporting, reviewed and endorsed by the Sustainability Management Committee, comprising senior management (N-1) responsible for driving and monitoring corporate sustainability performances.
Materiality Assessment Results
After assessing the materiality of sustainability topics by taking into consideration industry sustainability trends, international standards, peer benchmarks, and stakeholder expectations and prioritizing impacts on the economy, environment, and society as well as financial impact on the Bank, minor changes in the Bank’s material topics were found. The Bank’s material sustainability topics in 2023 are as follows:
