- Stakeholder Engagement
- Materiality Issues
- Sustainable Development Goals
- Participation for Driving Sustainability
Guidelines for Sustainable Business
Businesses today face challenges related to environmental, social and governance (ESG) aspects and these affect growth opportunities and competitiveness. However incorporating ESG into businesses helps the organizations to be able to adapt and turn challenge into opportunity. We recognize that stakeholders expect us to follow sustainable development practices while government and regulatory authorities encourage all businesses to be responsible for the environment and society under the principles of good corporate governance. Therefore, we have developed a clear systematic sustainability framework by establishing a sustainability policy and strategy that aligns with the Bank’s business direction. We have also incorporated materiality issues derived from the stakeholder engagement process as a baseline for strategy formulation while identifying commitments, key performance indicators, short-term and long-term targets for each materiality issue, so that the Bank’s sustainability business practices are systematic and have a clear direction that enables us to tackle challenges promptly and effectively.
We have established our sustainability policy as a guideline for driving sustainable banking while supporting Thailand’s sustainable development. It is based on four key pillars as follows:
- Prudent and Comprehensive Risk Management covering significant issues in both the short and long term while keeping abreast of situations and assessing business opportunities resulting from changing economic, social and environmental conditions,
- Human Resource Management that treats employees equally and fairly without discrimination, provides for their occupational health and safety, and continually develops their knowledge and skills,
- Good Corporate Governance, and
- Sustainable Value Creation for Society and Environment through socially and environmentally responsible business conduct, financial education and inclusion that promotes access to financial services, participation in social services and supplier encouragement to conduct their businesses in a sustainable manner.
To ensure effective policy implementation, we place importance on building the fundamentals of sustainability governance, stakeholder communication and engagement, and capability building for directors, executives and employees at all levels.
Engagement of both internal and external stakeholders is pivotal to the Bank’s sustainable business conduct as it enables the Bank to better understand the expectations, needs and issues of its stakeholders. This understanding will lead to close collaboration for a better response to challenges and the mutually beneficial pursuit of new business opportunities. These actions, in turn, will enhance the development of our products and services to serve the needs of each group of stakeholders while preventing and mitigating any potential risks and negative impacts from carrying out our business. Through stakeholder engagement, the Bank will be able to create value and strengthen good relationships, laying a strong foundation for the Bank’s long-term sustainability. The Bank has classified its stakeholders into 7 groups as adapted from the Stakeholders Engagement Standard AA1000SES: 1. Shareholders and Investors, 2. Employees, 3. Customers (Business and Individual), 4. Counterparties (Suppliers, Service Providers and Contractors), 5. Creditors, 6. Industry Peers, and 7. Community, Society and Environment (including Regulatory Authorities, Public Sector and Mass Media).
Approaches to Stakeholder Engagement
- Materiality Issues
- Stakeholder Inclusivity
- Response to Stakeholder Expectations
The Bank reviewed the existing materiality issues which had been in use since 2018 to update them to be line with and appropriate for the current situation and the next few years. In so doing, the Bank provided an opportunity to all stakeholders to express their opinions on all material aspects that are significant to the Bank, as well as to share their expectations, perspectives and suggestions on the Bank’s operations, in order to underscore the importance of creating value together with stakeholders. The Bank has applied various methodologies to gather information and feedback from stakeholders, such as questionnaires and in-depth interviews, in order to identify materiality issues.
Steps of Materiality Issues Assessment
- Screening and Examination
Materiality Issues Year 2020-2023
The Bank implements sustainability policies, guidelines and activities that promote the UN Sustainable Development Goals (UNSDGs). The Bank established five sustainability guidelines that are aligned with 15 materiality issues, each of which has been incorporated as a part of the Bank’s strategy to meet the expectations of all stakeholders and to jointly create value for the economy, society and the environment and to support the sustainable growth of the Bank.
In addition, The Bank participates as a member of both governmental and private organizations to create value for stakeholders including society and the environment. Furthermore, our executives also serve as directors in organizations or agencies related to business development, financial institution development and sustainable development as listed below. During 2022, the Bank became a member of the Sustainability Disclosure Community founded by Thaipat Institute and we were selected to receive the Sustainability Disclosure Award for our annual sustainability disclosure. The aim of the Sustainability Disclosure Community is to encourage listed companies to realize the importance of the disclosure of ESG undertakings that are beneficial to stakeholders and to help lead organizations to sustainability in the long run as well as achieving Target 12.6 of the United Nations Sustainable Development Goals (SDGs). The Bank has continued to promote partnerships with various organizations and networks including government agencies, private organizations, associations, boards of trade and educational institutions through financial support in the form of membership fees and donations for activities that help strengthen the economy and society.
- Corporate Governance Policy
- Board Diversity Policy
- Code of Conduct and Business Ethics
- Supplier Code of Conduct
- Tax Policy
- Anti-Corruption Policy
- Anti-Money Laundering and Counter Terrorism Financing (AML/CFT) Policy
- Whistle Blowing Policy and Procedures
- Corporate Social Responsibility Policy
- Human Rights Policy
- Sustainability Policy
- Responsible Lending Policy
- Environmental and Energy Conservation Policy