Krungsri announces "GO Sustainable with krungsri" theme, reaffirming its leadership in driving Thailand's financial sector towards sustainability

Mr. Pairote Cheunkrut, Krungsri Chief Strategy Officer, said "Under the strategy for driving towards the aspiration to be "The Leading Sustainable and Regional Bank" according to the current Medium-Term Business Plan (MTBP), Krungsri puts priorities on driving for sustainability in two main areas. The first area is Sustainable Core Business which focuses on bringing in digital technology to enhance operational efficiency, while emphasizing cooperation with strategic partners and building an ecosystem for businesses within the country and across ASEAN. The second area is Sustainable Society by supporting customers in navigating the transition towards a sustainable future and placing importance on creating positive outcomes for Thailand's society and economy as a whole. Krungsri will pursue all these efforts under the theme of "GO Sustainable with krungsri" in order to move forward on the path of sustainability together."

In driving for sustainable society, a variety of projects have been continuously implemented by Krungsri and are currently in progress. A number of new initiatives have also been launched especially in the environmental dimension which is the main issue gaining global attention and urgently addressed by relevant parties to cope with the impacts of climate change. At Krungsri, we have declared "Krungsri Net Zero Vision" in 2021 committing to decarbonizing our own operations by 2030 and financial services by 2050. Krungsri has prioritized the following two main focuses to achieve such vision.

The first focus is our own operations. We have endeavored to reduce carbon dioxide emissions in our own business processes, embed "Krungsri Sustainability DNA" in our organization to ensure engagement of everyone in the workplace from management to employees, change and learn about use of energy in a wise and efficient manner, and encourage waste reduction, aiming at achieving the target of decarbonization of own operations by 2030 and moving towards becoming a net-zero organization eventually. In this connection, Krungsri has initiated and implemented various projects on a continual basis at its headquarters and other office buildings including branch offices, such as change of chiller plants, installation of solar panels, replacement of bank cars and the motorcycles used for messenger service with electric vehicles, waste management, and so on.

The second focus is sustainable finance. Krungsri aims to support customers in their transition to sustainability by working closely with MUFG, a global leading financial institution with extensive experience and expertise, to develop and launch sustainability-linked financial solutions that are recognized by international standards and cater for the needs of domestic customers. Krungsri is currently a leader of Thailand's sustainable capital and loan markets. It captures about 20% share of ESG bond underwriting and is the first Thai commercial bank that continuously releases new sustainable financial products to the market such as sustainable loans, sustainability-linked bonds and sustainable deposits.

Krungsri commits to growing the Social and Sustainable Finance (SSF) portfolio to 100,000 million baht by 2023. As of 30 June 2024, Krungsri's SSF, accumulated since 2021, amounted to over 76,000 million baht which is close to the target increase of 100,000 million baht. Accordingly, Krungsri is considering raising the target proportional to its capability and in line with the rising market demand.

"Krungsri is well aware that, to be a leading sustainable bank, the ability to adapt and create changes within the organization and support customers in the aspect of sustainable finance is not sufficient. The key to becoming a truly sustainable bank is building a strong foundation for sustainability. Currently, Krungsri is undergoing a change in operational process to align with the international standards of TCFD (Task Force on Climate-related Financial Disclosures) through the working group on environment and climate change (IECC) of the Bank and formulates the Transition Plan to support Thailand's transition towards the net zero goal. Furthermore, Krungsri is one of the major banks that work under the Thai Bankers Association (TBA) to help the banking sector accelerate the development of Transition Plan for other industrial sectors."

"With the theme of "GO Sustainable with krungsri", we are firmly committed to becoming a Market Shaper that creates change in the financial sector and drives the country towards sustainability. Our knowledge, expertise and innovative financial solutions empower us to provide support to customers, strategic partners and all stakeholders in the society in moving towards sustainability together in order that they will become the major cogs that push the economic machine forward and create a better Thai society," Mr. Pairote concluded.