UOB - Mitr Phol's Collaboration for Sustainable Development through THB1.5 billion sustainability-linked loan

Ms Panitsanee Tansavatdi, Head of Corporate Banking, UOB Thailand, said that "We are committed to helping businesses forge a sustainable future, where social inclusiveness, positive environmental impact, and economic progress can go hand in hand. Sustainability-linked loan is one avenue for businesses to advance responsibly.

Mitr Phol Sugar is currently ranked a top industry leader in the food products category according to S&P Global ESG Scores 2023, performing better than other global key players. Mitr Phol's strong position on sustainability corresponds well with UOB's sustainability direction."

A sustainability-linked loan (SLL) allows businesses to enjoy preferential financing terms subject to meeting pre-agreed specific key ESG (environmental, social, and governance) performance targets. For this SLL, Mitr Phol will need to achieve high S&P Global ESG Scores, which measures a company's performance on and management of ESG risks, opportunities, and impacts compared to their peers within the same industry.

According to S&P Global, Mitr Phol earned the ESG Score of 85 in 2023. As per the score breakdown, the company made 88 points in the environmental area, which is the industry's maximum score, compared to the industry's average of 28. In the social area, Mitr Phol obtained a score of 87, which is also the industry's maximum, compared to industry's mean of 30. In the governance and economic area, Mitr Phol's score is 80, compared to the industry's average of 28 and the industry's maximum of 83.

In terms of public disclosure required under the corporate sustainability assessment (CSA), S&P Global says Mitr Phol's disclosure rate is 98% and its data availability relative to peers is described as "very high".

Mr. Verajet Vongkusolkit, Mitr Phol Group's Chief Executive Officer - Thai Sugar, Energy and New Business, said that Mitr Phol is dedicated to sustainable business practices that foster economic and community empowerment, while ensuring social and environmental responsibility. The company has set a strong strategy for sustainability, with a clear roadmap and goal of achieving carbon neutrality by 2030 and net zero by 2050, pledged with the Science Based Target Initiative (SBTi).

Established in 1946 by the Vongkusolkit family, Mitr Phol is the world's fourth largest sugar producer, with approximately four million tons of annual production. The group received an "A" credit rating with a "stable" outlook by TRIS Rating in May 2024.

Besides the sugar business, Mitr Phol has diversified into renewable energy, wood-substitute, fertilizer, bio-based business and logistics services.