Ms. Kattiya Indaravijaya, KBank Chief Executive Officer, said, "The El Nino phenomenon in 2023 is expected to cause over 48 billion baht in damage to Thai farmers. This is an echo of the ongoing environmental crisis that is impacting the economy and people's lives. Meanwhile, the business sector must earnestly adapt to new measures, namely the Bank of Thailand's Thailand Taxonomy which establishes a common framework for categorizing environmentally friendly economic activities that will make it easier for businesses to access funding sources in their decarbonization efforts. The European Union's CBAM (Carbon Border Adjustment Mechanism) will also require businesses to report their greenhouse gas emissions for goods imported into the EU starting in October 2023. Meanwhile, the environmental transition presents new business opportunities. That said, these efforts require substantial support, especially in terms of large-scale investments from general investors, venture capital firms, banks and financial institutions."
KBank has made continual progress in its environment-related mission, in terms of adapting its own operations and providing support to the business sector. Key capabilities driving this endeavor include the creation of an efficient database system, enhancement of the ability of its staff and customers in helping to curb greenhouse gas emissions, and engagement in ongoing communications, as well as promotion of effective behaviors, both within and outside the organization, in achieving the net zero goal. Notable progress includes the following:
- Target of achieving net zero in its own operations (Scope 1 and 2) by 2030: KBank has been able to steadily reduce greenhouse gas emissions, as a result of the modification of its infrastructure and work processes, and promotion of environmentally friendly behaviors, for example:
- In 2023, KBank's fleet of internal combustion cars has been largely replaced with 175 electric vehicles, while the remainder of the fleet will be replaced before 2030, with any remaining fuel consumption being switched to biofuel. At present, solar panels have been installed at all seven main buildings and seven branch offices. All 278 branch offices located in the Bank's property are planned to be equipped with solar rooftops within the next two years.
- Green materials have been used in every aspect, while work processes and service provision have been digitized to a greater extent. Standards have been adopted for large-scale activities of KBank to be organized as carbon-neutral events.
- KBank aims to reach the "Zero-Waste-to-Landfill" goal for its four main buildings within 2023. To this end, six types of waste bins have been installed for six different types of garbage, with a specific end-to-end waste management system for each of them. Concurrently, knowledge has been disseminated to KBank employees and other parties in order to change their behaviors regarding systematic separation of waste before disposal so that most materials will be recycled, thus alleviating the need to manufacture new products that are a source of greenhouse gas emissions.
- Regarding the net zero greenhouse gas emission target in the portfolio (Scope 3) in alignment with Thailand's target, the Bank's operating performance during the first half of 2023 included the implementation of a sector decarbonization strategy for four industries, including power plants, oil and natural gas, coal and cement. Additionally, the Bank will work closely with more businesses within these industries, aiming to help them devise business plans. This endeavor will give them more opportunities through a diverse range of tools and solutions that meet their specific needs. To promote the business sector in adjusting to ESG measures and seizing opportunities during the current transition, a series of seminars will be organized for related business operators and startups on a regular basis.
- As for the sustainable financing (loan) and investment target, the Bank's operating performance during the first half of 2023 included the extension of more than 19.4 billion Baht in such funds, comprising green loans for customers at home and in the AEC+3, energy saving loans, and sustainable investment. Moreover, Beacon VC has invested via the Beacon Impact Fund, which focuses on direct investment in startups or through global venture capital funds, to support the development of solutions that can create positive impacts while also having the potential to expand the results in an extensive manner. The Bank aims to extend 25 billion Baht in sustainable financing (loan) and investment for 2023, and a long-term target has been set to extend a total of 100-200 billion Baht by 2030.
- Regarding development of Beyond Financial Solutions to support customers' greater access to a green lifestyle, the Bank has continually driven this in the first half of 2023. One focus is on solutions to promote the use of solar power in the residential sector. The Bank has worked with the Electricity Generating Authority of Thailand (EGAT) in developing the "Punfai" application - a smart assistant to help manage surplus energy, allowing users to get a more rapid return on investment. Additionally, the Bank has supported the EV Bike Ecosystem, allowing riders to rent an EV bike via the K+ Market app, while also offering battery swapping stations at KBank branches. These efforts promote the use of clean energy and create a comprehensive green ecosystem.
Ms. Kattiya noted in closing that KBank's environmental stewardship is one of the three dimensions of its business operations in accordance with the principles of a Bank of Sustainability, covering environmental, social and governance (ESG). To advance this effort, the Bank also aims to promote active participation and collaboration of all sectors, including the government, regulatory agencies, investors, businesses, consumers, and financial institutions. All the parties play a crucial role in this transition journey, and are thus urged to work together earnestly to achieve their shared goal. Success is not merely about addressing today's challenges, but also means embracing the opportunity for long-term growth and collectively creating a sustainable future.
Source: KASIKORNBANK
