Siam Commercial Bank collaborates with PTT and PTTEP in groundbreaking ESG-Linked Forward Contracts initiative

In a significant move toward sustainable financial practices, Mr. Tanapot Parksuwan, Senior Executive Vice President and Chief Wholesale Banking Officer at Siam Commercial Bank, Ms. Pannalin Mahawongtikul, Chief Financial Officer at PTT Public Company Limited, and Mr. Sumrid Sumneing, Executive Vice President, Finance and Accounting Group at PTTEP Public Company Limited, have officially signed a memorandum of understanding. This collaborative effort aims to establish a strategic partnership for the implementation of ESG-Linked Forward Contracts, an innovative financial derivative designed to hedge exchange rate risk in natural gas trading transactions for PTT and PTTEP. The ESG-Linked Forward Contracts incorporate a unique cost structure tied to environmental, social, and governance (ESG) performance, aligned with sustainable organizational development guidelines and principles of good corporate governance. The contract also seeks to contribute to the reduction of greenhouse gas emissions, in line with predefined targets.