รายงานความยั่งยืน

Financial Support for ESG Businesses
       The Bank put an emphasis on environmental and social issues, including human rights and responding to challenges from climate change. If environmental impacts were found in the projects or businesses that the Bank has supported, the Bank would deliberately consider loans based on the environmental standards through setting conditions to disclose evidences and documents verified by a skilled inspector on the environmental standards such as Environmental Impact Assessment (EIA) and Environmental Health Impact Assessment (EHIA). In addition, it had raised operations under the principles of sustainable banking, especially on responsible lending and green lending in order to appropriately manage risks and reduce social and environmental impacts that may arise from lending. The framework for lending with consideration to environmental risk factors was established as follows:

These are examples of projects in 2020 that the Bank complied with the ESG framework.
Solar Energy
The Bank provided financial support for a 5MW power plant in Lopburi province that uses clean and renewable solar energy instead of hydrocarbon-based to produce electricity for communities and businesses in the local geographical areas. The project was both environmental friendly as well as benefited local people.

Biomass Energy
The Bank has supported an ethanol producer in Saraburi province that use molasses as raw materials with a production capacity of 270,000 liters/day. With the advanced production technology, this helps create higher value from biomass waste and benefit to both environment as well as sugar cane farmers.

Upcycle and Recycle Business
The Bank provided financial support to build a factory in Rayong province to produce plastic granules from recycled plastic waste. This supports the circular economy whereby it helps replace new plastic production with recycled ones with production capacity of 100 tons/day and also reduce plastic waste disposed to the environment.

ESG (Environment Social & Governance) risk management
Responsible Lending Strategy policy
Responsible Lending Strategy policy
Compliance
Compliance
Information Disclosure
Information Disclosure
Responsible Lending Strategy policy:
establishing a guideline on managing credit portfolios with ESG risks by adhering to analyzing both positive and negative impacts or the impacts on stakeholders that will arise from the lending or from the Bank's customers. All aspects of ESG issues must be considered, including the aspects beyond those required by the law as there are some issues that are not applicable by any legal measures. In addition, the Bank shall specify certain industries to focus on or provide support to with the purpose of encouraging ESG operation.
Compliance:
Strictly complying with Responsible Lending Strategy, credit policy, and lending process.
Information Disclosure
The Bank has disclosed information regarding the commitment of the Board of Directors and the President to support implementation of Sustainable Banking Guidelines in the Annual Report, Sustainability Report or on the Bank's website. Other key information to be disclosed includes information related to loan policy and process regarding ESG criteria. In addition, the Bank shall communicate the Responsible Lending Strategy to both internal and external stakeholders. However, the internal communication will mainly focus on providing knowledge to both executives and employees relating to ESG concepts in a wide range to ensure practicality.

Exclusion list of businesses that may have negative impacts on the environment and society or businesses lacking good governance which the Bank will not lend or provide financial support

       The Bank attaches great importance to environmental and social issues. It is cautious in providing financial support to businesses that can cause significant environmental and social impacts. The Bank will not provide financial services to the following businesses in the exclusion list.
  1. Businesses that are at risk of damaging the environment and natural resources, including projects that invade, destroy or change the condition of mangrove areas.
  2. Businesses that are at risk of causing social impacts are:
    • Illegal businesses or businesses those are contrary to morals or good customs, such as gambling/casino businesses or pornography businesses
    • Hoarding businesses or businesses behaving in the way of hoarding products to corner the market
    • Arms and armaments businesses or business related to weapons of war (except for Thai government agencies or for distribution to Thai government agencies)