Bangkok–(THAI BUSINESS NEWS)–Mar. 31, 2020
Determined to conduct business on the foundation of a Bank of Sustainability, KASIKORNBANK (KBank) has become a signatory to the UN Principles for Responsible Banking of the United Nations Environmental Program Finance Initiative, or UNEP FI. It is the first and only Thai bank to join more than 170 banks worldwide in signing the Principles, which provide the framework for a sustainable banking system and align the banking industry with society’s goals as expressed in the UN Sustainable Development Goals and the Paris Agreement on Climate Change.
Mr. Banthoon Lamsam, KBank Chairman of the Board and Chief Executive Officer, said that KBank has conducted business on the foundation of a Bank of Sustainability, with good corporate governance principles and appropriate risk and cost management. We balance three key dimensions, namely the economy, society and environment, in order to create sustainability for all stakeholders and be consistent with the United Nations’ Sustainable Development Goals (SDGs).
KBank is aware of its role as a financial intermediary for society, aiming to promote and support rising wealth and a better quality of life, respect human rights and equality, conserve the natural environment and mitigate impacts from climate change to ensure that customers and the Bank can together achieve sustainable growth. To reinforce its commitment to conducting business with sustainable development practices on par with international standards, KBank has signed the UN Principles for Responsible Banking of UNEP FI, becoming the first and only Thai bank to join more than 170 banks worldwide to embrace the six Principles, which are as follows:
1. Alignment: We will align our business strategy to be consistent with and contribute to individuals’ needs and society’s goals, as expressed in the Sustainable Development Goals, the Paris Climate Agreement and relevant national and regional frameworks.
2. Impact & Target Setting: We will continuously increase our positive impacts while reducing the negative impacts on, and managing the risks to, people and environment resulting from our activities, products and services. To this end, we will set and publish targets where we can have the most significant impacts.
3. Clients & Customers: We will work responsibly with our clients and our customers to encourage sustainable practices and enable economic activities that create shared prosperity for current and future generations.
4. Stakeholders: We will proactively and responsibly consult, engage and partner with relevant stakeholders to achieve society’s goals.
5. Governance & Culture: We will implement our commitment to these Principles through effective governance and a culture of responsible banking.
6. Transparency & Accountability: We will periodically review our individual and collective implementation of these Principles and be transparent about and accountable for our positive and negative impacts and our contribution to society’s goals.
KBank has formulated credit policies, targets and processes that account for ESG Credit Policy in a concrete manner. We have established an exclusion list and sector-specific guidelines to ensure that all projects under our support are committed to effective management of environmental and social impacts in order to ensure their stable growth and create sustainable returns for all stakeholders. These practices have been undertaken continuously, and all project finances are required to fully pass the ESG criteria. With our commitment to the UN Principles for Responsible Banking, KBank will be able to align our business operation with international standards.
Mr. Banthoon added that the philosophy of sustainable development is instilled in all our operations as part of our Green DNA, ensuring maximum benefit for all stakeholders and paving the way for sustainable growth. KBank has conducted business as a decent citizen and has a social imperative to ignite changes that are significant to society and the environment. The issue of climate change impacts our living conditions and business operations, now and in the future. Cooperation to ensure that we can pass on a clean world to the next generations is essential. KBank has created a goal to reduce greenhouse gas emissions to do our part in the transformation to a low-carbon society, with the aim of helping to usher in a zero-carbon society in the long-term.