Driving Business for Sustainability
Sustainable Banking
With the tenet of “banking with purpose” and the accountability of a Domestic Systemically Important Bank (D-SIB), Krungsri strives to operate in accordance with good corporate governance based on the
sustainable banking guidelines by incorporating ESG dimensions in the Bank’s processes that go hand in hand with prudent and rigorous ESG risk management. At the same time, we explore opportunities ideal for operating as a responsible financial service provider, taking into account the positive social and environmental impact, which is consistent with the
“responsible lending” guidelines in the best interests of all groups of stakeholders, while also enhancing our capabilities to address the Sustainable Development Goals (SDGs) both at the national and international levels.
UN Principles for Responsible Banking
Krungsri leveraged operations by becoming
a member of the United Nation Environment Programme Finance Initiative (UNEP FI) and becoming an official signatory of
the UN Principles for Responsible Banking in 2022, which were major steps for Krungsri in following the sustainable banking guidelines.
The Principles for Responsible Banking (PRB) are the global framework developed through a partnership between banks worldwide and the UNEP FI. Krungsri’s signing of the PRB reflects our determination to conduct business following the sustainable banking guidelines, enabling the Bank to establish strategies and practices in line with the vision society has set out to achieve global targets, namely the UN SDGs and the Paris Agreement which, in turn, will help hone Krungsri’s competitive edge in developing social, environmental, and sustainable finance facilities. Furthermore, adoption of the PRB elevates the operating standards of Thai financial institutions to the international level for greater stability.
ESG Declaration
Krungsri reaffirmed our commitment to sustainable banking by collectively launching the
ESG Declaration with 14 member banks under the Thai Bankers’ Association to drive change in financial institution business operations with transparency and flexibility. The ESG Declaration sets the banking industry’s clear common direction under a “comply or explain” principle by proactively addressing key ESG issues, e.g. climate change, diversity and human rights, financial inclusion, and reduced inequalities, while also advocating sustainability awareness among stakeholders and supporting Thailand’s smooth transition to achieving the UN SDGs and the Paris Agreement.
Internalizing Environmental and Climate Change Aspects into Financial Institution Business for Banks
Krungsri and other Thai commercial banks under the Thai Bankers’ Association jointly developed Thailand’s
“Industry Handbook: Internalizing Environmental and Climate Change Aspects into Financial Institution Business for Banks” in 2023, stipulating environmental and climate change management guidelines in conformity with the Bank of Thailand’s “Directional Paper on Transitioning towards Environmental Sustainability under the New Thai Financial Landscape” and “Policy Statement: Internalizing Environmental and Climate Change Aspects into Financial Institution Business”. The Industry Handbook reflects the commercial banks’ determination to place emphasis on environmental and climate change management as an urgent national and international agenda as well as a core mission of the banking sector as financial intermediaries that help drive the real sector’s shift to a low-carbon, eco-friendly society.
The Industry Handbook aims to assist commercial banks, including foreign commercial banks’ branches or subsidiaries in Thailand, to embody environmental and climate change matters in business operations, and appropriately adopt the key actions stipulated in the Industry Handbook according to the expectations of regulators.
Not only does the Industry Handbook help financial institutions improve their systems, processes, data, and employee capabilities appropriate to the organization’s context, it can also be used to develop financial products and services that aid the sustainable transition of the business sector to achieve targets as stipulated in the aforesaid ESG Declaration.