Responsible Lending and ESG Considerations

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