In sharing the exciting news, Siam Commercial Bank CEO and Chairman of the Executive Committee Arthid Nanthawithaya said, "SCB is convinced that the banking and financial sector is critical to the development of a sustainable society and environment. As a result, the Bank has worked to promote sustainability through its 'Our Presence Contributes to the Better Future for All' mission and SCB's Three Pillar Strategic Framework, which includes Sustainable Finance, Creating Social Impact, and Better Environmental Future, steered by good corporate governance and the well-being of its employees."
SCB's decision to join the Equator Principles Association is another significant step in the Bank's commitment to promoting "sustainable finance" rather than just "responsible lending." To promote the Sustainable Development Goals (SDGs) and the Paris Agreement on Climate Change, the Bank undertakes to embrace the internationally recognized EPs in its policy formulation and to incorporate environmental and social factors into risk management processes for credit approval of project financing.
"Implementing the Equator Principles will assist the Bank in managing business risks in a more inclusive manner, allowing the Bank and its clients to collaborate on assessing and formulating guidelines for mitigating environmental and social risks, all while adhering to world-class standards and procedures. This is a collaborative effort to improve the standard of Thai banking while also pushing Thailand toward becoming a significant player in the ASEAN green business market. SCB is ready to act as a link between all sectors of growth and sustainable development, resulting in shared values and beneficial change for society and the planet," added Arthid.
After the Board of Directors approved SCB's direction to be a signatory to the Equator Principles in April 2021, SCB has made adjustment and improvement of credit policies and processes in line with the EPs. Executives and relevant personnel have received working guidelines, tools, and training to ensure that they have the necessary knowledge and capabilities necessary to incorporate the EPs into their work.
The Equator Principles (EPs) is a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects and is primarily intended to provide a minimum standard for due diligence and monitoring to support responsible risk decision-making. Currently, the EPs have been adopted by 129 financial institutions in 39 countries throughout the world.
Source: Siam Commercial Bank
