Responsible Finance

Commitment


To efficiently and effectively manage ESG risks in lending and promote sustainable finance in order to support the achievement of the Sustainable Development Goals and the goals of the Paris Agreement

Materiality


For many years, economic development has focused on promoting trade, investment, and consumption growth and driving high levels of expansion. But growth also impacts the environment and society which may create challenges for future development. Given that the Bank’s business opportunities are closely linked to economic growth, if the economy is not healthy in the long term, it will hinder our long-term performance. Therefore, we aim to promote sustainable development by practicing responsible finance which will support positive initiatives and reduce negative impacts of business on society and the environment. This includes considering Environmental, Social, and Governance (ESG) risks in the credit approval process, providing financial support for activities that add value to the environment and society to achieve the UN Sustainable Development Goals, the Paris Agreement on Climate Change and the sustainable goals of the Bank.
Management Approach
We are committed to adhering to sustainable banking practices and following the Memorandum of Understanding (MOU) on cooperation between member banks of the Thai Bankers’ Association and the Bank of Thailand. The Bank has established a responsible lending policy. This entails setting up an exclusion list of loan applicants or activities that the Bank does not provide credit support to, developing ESG risk management processes, and fostering effective ESG risk management in our lending process among executives and staff in relevant departments. In 2021, the Bank signed the Statement of Commitment to Sustainable Thailand 2021 at the Sustainable Thailand event. This is a commitment that the Bank will conduct its business aligned with the UN Sustainable Development Goals (SDGs) and the Paris Agreement GHG emission reduction targets, while building the capacity for and awareness of sustainability among the Bank’s personnel.

Responsible Lending Operations Structure


The Board of Directors has duties and responsibilities to formulate policies and strategies, and supervise and monitor responsible lending operations. The Corporate Governance Committee is assigned to support the work of the Board of Directors while executives and staff in related departments are responsible for implementing policies and driving the Bank’s strategic operations. Every year we review our policies, strategies and framework of responsible lending practices, and consult with external experts to ensure up-to-date, responsible, inclusive and sufficient management on lending to potential ESG risks. We have not only determined a responsible credit policy and exclusion list for lending but have also established a framework for the responsible lending consideration process concerning the risks and impacts of ESG, covering both business and personal loans. We have increased the details of the responsible lending approval process to be more precise. We have also developed an ESG risk and impact assessment tool that has been in use since the second quarter of 2021.
Key Activities

Financing and Investment Support to Achieve the Sustainable Development Goals


Loans for Renewable Energy

We support the production of electricity from renewable energy sources to create energy security and achieve Thailand’s greenhouse gas emission goal and the Paris Agreement’s target through continuous support of loans for investment in renewable energy for both domestic and international businesses. Projects include solar power plants, hydropower plants, and wind power plants.

Green Bonds

We play a significant role in supporting fundraising efforts to achieve the sustainability goals of leading private companies in Thailand as an underwriter for ESG bonds.

Mutual Funds for Sustainability

We place importance on supporting business operations with social and environmental responsibility by working with the group’s asset management company to consider, select and offer investment products with consistent ESG policies and sustainability practices.

Stakeholder Engagement


Management and Staff

To promote awareness and understanding of responsible lending include ESG risks management for Management and Staff of the Relevant Departments. They can learn through online training via the BBLearn platform and we also continuously present relevant articles through the Bank’s internal communication channels. In addition, we encourage employees to participate in meetings and training seminars organized by government agencies and the private sector to exchange ideas, enhance ESG knowledge, and apply the knowledge they gain to their work at the Bank.

Customers

We continuously endeavor to engage business and personal customers on issues related to the ESG opportunities and challenges. We hold seminars to educate and exchange ideas, while also providing knowledge and information through the Bank’s online communication channels, including Facebook, YouTube and the website. We also work with our subsidiaries to organize seminars in an online platform to provide knowledge about environmental trends and to recommend investment products that respond to environmental challenges.
Project Finance Loans
Due to credit approval process for project finance which have higher environmental and social risk levels than conventional loans, the Bank has applied the Equator Principles in accordance with Thailand context by requiring the projects to have Environmental and Social Due Diligence, GHG emission data for both SCOPE 1 and SCOPE 2, and environmental and social risks management to take into account when considering for credit approval.

The Bank has categorized projects according to the level of environmental and social risks and impacts into three categories:

  • Category A refers to projects that may have high environmental and social impacts.
  • Category B refers to projects that may have moderate environmental and social impacts.
  • Category C refers to projects that may have low or no environmental and social impacts.

Project Finance Results in 2021

Risk Category

Number of Projects

Category A

2

Category B

13

Category C

17

Total

32

Outcome

Number of Projects

Approved

32

Declined

0

TOOLS & ASSISTANCE

We are ready to help you.

TOOLS & ASSISTANCE

We are ready to help you.

You are now leaving Bangkok Bank's website