Social Aspect

Social Aspect

Established the ‘Human Rights Disclosure Statement’ in 2018 that reads ‘Krungsri recognizes respect for human rights as an important issue to be addressed in our business management to realize our Corporate Mission as a member of the world’ s most trusted financial group in serving society through sustainable growth. We aim to fulfill our responsibility to respect human rights across all of our operations.

This Policy applies to Bank of Ayudhya Public Company Limited (“the Bank”) and the companies under the Bank’s financial business group where the Bank holds more than 50% shares, directly or indirectly, or the Bank has a substantial control (“Subsidiaries”). Subsidiaries shall acknowledge this Policy, and either approve this Policy as their own Policy or use this Policy as a guideline to establish an equivalent policy to comply with this Policy.

Basic framework for human rights

Krungsri Group adheres to and places importance on the protection of and respect for human rights as well as fair treatment of all employees and stakeholder groups, taking into account individual equality and non-discrimination, while focusing on appropriate human rights management in compliance with international regulatory requirements and principles regarding labor and human rights, e.g., Universal Declaration of Human Rights (UDHR), ILO Declaration on Fundamental Principles and Rights at Work adopted by International Labour Organization (ILO), United Nations Guiding Principles on Business and Human Rights (UNGP), etc., in order to prevent and avoid actions that may violate human rights. These actions could result from the Bank’s business operations or business activities of related stakeholders, such as customers, suppliers, business partners, etc. Guidelines are as follows:

Ensure treatment of all stakeholder groups in accordance with the human rights principles at the domestic and international levels based on equality and non-discrimination
Refrain from any actions that violate human rights through human rights risk management, human rights due diligence, and remedies and reparation upon human rights violations
Support and encourage the protection of and respect for human rights through communication and dissemination of knowledge, and stipulate guidelines for monitoring and providing support to stakeholders in the business value chain

1. Guidelines for treatment of stakeholders

Krungsri Group commits to establishing the basic framework for human rights that covers all stakeholder groups, while also consulting about and communicating this basic framework for human rights to all stakeholder groups to promote respect for human rights among them.

Employees

Krungsri Group is committed to complying with all laws pertaining to fair treatment of employees, fair employment, and respect for human rights, e.g., freedom of association, privacy, working time, wages and working hours, employment discrimination, while not accepting and tolerating sexual harassment, abuse of power through coercion and threats, forced labor, and child labor
Make employment decisions in compliance with related laws and based on job qualifications (e.g., education and experience) and merit (an individual’s skills, performance, values, leadership and other job-related criteria) regardless of race, nationality, color, religion, national origin, gender (including pregnancy), sexual orientation, age, disability, etc., to support and promote diversity and embrace differences with equality
Provide a work environment free of improper harassment and bullying, which could lead to human rights violations
Respect employees’ rights and privacy, while instilling and promoting the spirit of respect for others’ rights
Promote and give opportunities to employees for freedom of association and collective bargaining for employees’ best interest in compliance with related laws

Customers

Treat customers fairly and equally regardless of gender, age, race, nationality, skin color, faith, religion, ethnic origin, social status, national origin, disability, etc.
Comply with the market conduct guideline stipulated in accordance with regulatory requirements and the Bank’s internal regulations, covering processes related to the provision of products and services which must not violate customers’ privacy or abuse superior bargaining power to force customers to conduct transactions
Protect and safeguard customers’ personal data while taking into account customers’ privacy and respect for human rights, including strict compliance with related regulatory requirements
Add human rights as one of the credit underwriting criteria for the business sector as specified in the Policy for Credit Risk Management, wherein the Bank will not support transactions related to violations of human rights, child labor or illegal workers, community relations and community rights, etc.

Suppliers

Support and encourage suppliers to comply with principles of human rights and fair treatment of workers as specified in the Bank’s Supplier Code of Conduct, while expecting suppliers to apply the principles to their business operations
Stipulate a fair supplier selection process and offer equal opportunities to all suppliers, while setting human rights as one of the supplier selection criteria
Protect suppliers’ personal data, avoid violating their personal data protection, and respect their human rights

Business partners

Set human rights as one of the criteria for jointly investing with the Bank’s business partners, e.g., business acquisition, joint venture, investment portfolio allocation, etc.
Support and encourage business partners to comply with principles of human rights and fair treatment of workers

2. Human rights due diligence

Krungsri Group has stipulated the complete human rights due diligence process as follows:

Integrate human rights into the Bank’s risk assessment system, by assessing actual or potential risks and impacts of human rights violations which could be caused by operations of the Bank or stakeholders related to the Bank
Integrate the Human Rights Policy into internal and external control mechanisms, e.g., stipulating impacted stakeholders, declaring human rights disclosure statement and policy by adding human rights to existing policies
Plan and stipulate preventive measures and solutions to cope with human rights violations
Provide relevant remedies and reparation as deemed appropriate by the Bank
Monitor and report results to related executives and committees

3. Receiving complaints

Krungsri Group has established basic principles for whistleblowing pertaining to human rights and labor rights via the Bank’s whistleblowing channels by encouraging the reporting of staff’s or related parties’ actions that may violate human rights laws, policies, procedures. In addition, whistleblowers and related parties are protected accordingly. Related facts will be monitored and verified, while progress and results are reported to whistleblowers and related committees for acknowledgement.

Krungsri continues to act with the spirit and responsibilities of a Domestic Systemically Important Bank (D-SIB) serving as a financial intermediary in fundraising and financial resource allocation for supporting commercial and retail customers, including the socio-economic system, the undertakings of which may create both direct and indirect impacts on society and the environment.

In this light, Krungsri place great importance on the provision of financial products and services that take into account environmental, social, and governance (ESG) dimensions parallel to the economic dimension, in alignment with responsible lending principles. In addition, the Bank aims to create positive outcomes through supporting businesses or transactions that create value for and benefit society and the environment over the long term, thus boosting employment and leading to income generation, and socio-economic development, including development of innovations and technologies. We are also committed to promoting a low-carbon economy and society by supporting businesses that are environmentally-friendly.

In addition, adhering to responsible lending principles with ESG consideration will not only help prevent financial, operational, reputational, and regulatory risks, but also support businesses and society toward sustainable development and growth.

Management Approaches

Become an official signatory of the ‘Principles for Responsible Banking’ (PRB) of the United Nations Environment Programme Financial Initiative (UNEP FI), reflecting Krungsri’s unwavering determination in following sustainable banking guidelines
Adhere to sustainable banking guidelines by focusing on best practices of ‘Responsible Lending’, under which credit underwriting takes into account of ESG dimensions in parallel with the economic dimension
Establish the ‘Policy for Credit Risk Management’ which serves as the criteria and guidelines for managing credit risks. It is communicated to the Bank’s operating officers for acknowledgement and full compliance with emphasis on raising awareness of ESG risks among the parties related to the credit underwriting process. In this regard, the policy is applicable to the Bank, our branches nationwide, and domestic and overseas representative offices. The policy shall be reviewed annually or upon any significant change to ensure that the Bank’s credit underwriting is in line with the ever-changing business environment. Taking into consideration ESG dimensions as follows:
- Environmental dimension: Greenhouse gas (GHG) emissions and climate change, deforestation and biodiversity loss, water stewardship, air/soil pollution and contamination, impact on ocean health, hazardous material and waste management;
- Social dimension: Human rights, labor rights, occupational health and safety, community relations and community rights, excessive household debt, stakeholder engagement;
- Governance dimension: Corporate ethics and integrity, business conduct, anti-corruption, risk management, monitoring, reporting and transparency
Establish the ‘Policy for Sustainability Lending’ to serve as a basic framework for Sustainability Lending with emphasis on Environmental Social and Governance Risk (“ESG Risk”) arising from lending activities. Aiming for promoting sustainability in lending business and positive impact to the society as a whole.

Policy for Sustainability Lending

Policy for Sustainability Lending

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Social Aspect

Social Aspect

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