KASIKORNBANK (KBank) has been selected as a member of the Dow Jones Sustainability Index (DJSI) family for 2023, in both the DJSI World and Emerging Markets Indices, for the eighth year running – the first bank in Thailand to achieve this. In 2022-2023, KBank has invested approximately 53 billion Baht in sustainable initiatives. The Bank is also gearing up for connecting with key stakeholders within the ecosystem in contributing to long-term sustainability for the nation's economy and society.
Ms. Kattiya Indaravijaya, KBank Chief Executive Officer, said, “KBank is committed to advancing our business on ESG principles. We have formulated a strategy that prioritizes systematic work with performance-based measurement while developing our operations in accordance with international principles and standards. The Bank aims to become an ESG leader among banks in Southeast Asia, helping our customers and Thai businesses to achieve a shared goal as we move towards a sustainable economic system. These endeavors have continually benefited our ESG performance in a concrete manner. In 2023, KBank has been selected for inclusion in the internationally recognized Dow Jones Sustainability Indices (DJSI) 2023, both in the DJSI World and DJSI Emerging Markets Indices. This is the eighth consecutive year (2016-2023) that KBank has been included in the DJSI, making it the first Thai bank to do so."
The DJSI provides benchmarks for sustainable business practices, in terms of the environmental, social, governance and economic dimensions. In 2023, KBank is one of 27 banks to be selected as members of the DJSI World Index and one of 16 banks in the DJSI Emerging Markets Index, given its notable operations based on ESG principles, as follows:
Environment – Following the announcement of its Net Zero Commitment in 2021, KBank has continually acted in the environmental space in a bid to achieve net zero in its own operations (Scope 1 and 2) by 2030. In 2023, a total of 175 internal combustion engine (ICE) cars in its fleet were replaced by electric vehicles, with the aim of gradually replacing the entire ICE fleet before 2030. KBank has shifted to consumption of biofuels and has installed solar panels at its main buildings and branch offices, with the aim of completing such installations at 278 branches overall within the next two years. Environmentally friendly materials have been used in all aspects, while work processes and services have been further digitized. In addition, KBank aims to reach the “zero-waste-to-landfill" goal for its four main buildings within this year.
Meanwhile, the net zero goal in our financed portfolio (Scope 3) is in alignment with Thailand's aspirations. To this end, KBank has implemented a sector decarbonization strategy for four industries, namely power generation, oil and gas, coal and cement, and has closely worked with more businesses within these industries to help them devise business plans with tools and solutions that meet their specific needs. To promote the business sector in adjusting to ESG measures and seizing the opportunities they present, a series of seminars have been organized for business operators and startups on a regular basis.
To help customers gain easier access to green lifestyles, KBank has further developed several projects that go beyond financial solutions through collaboration with various sectors. These include the creation of a green ecosystem, with the aim of promoting the use of solar energy within the residential sector through the “Solar Plus" project, the development of the “Punfai" application, and the promotion of the EV bike ecosystem through the “WATT's Up" project, which is an e-marketplace platform for one-stop rental of EV bikes, while there are battery swapping stations available in communities throughout Bangkok to promote the extensive use of clean energy.
Additionally, KBank aims to provide sustainable financing (loan) and investment worth 100-200 billion Baht by 2030. Between 2022 and 2023, KBank has already extended approximately 53 billion Baht in sustainable financing, including green loans for customers in Thailand and the AEC+3 region, as well as energy-saving loans, and sustainable investment. Beacon VC also invested through the Beacon Impact Fund, with emphasis placed on direct investment in startups or through venture capital funds worldwide to support the development of solutions that generate positive impacts with the potential for future expansion.
In the social realm, KBank focuses on human rights, along with the promotion of financial inclusion and literacy. Aside from diversity management in the workplace, KBank also attaches importance to fair treatment of employees and customer relationship management by leveraging technological advancements through collaboration with numerous partners. These endeavors have been undertaken concurrently with the provision of financial and cyber literacy. Moreover, KBank has expanded the accessibility of banking services for Thais while offering non-monetary support and promoting financial well-being among the underprivileged. KBank has also implemented the AFTERKLASS project to meet the younger generation's need for enhanced financial, professional, and educational skills.
Governance and Economic Dimension: KBank's operations focus on business ethics. This is evidenced by its standardized performance in information security management along with the development of a cyber hygiene culture, and prioritization of material issues for business operations and possible impacts on stakeholders within the business value chain. Additionally, ESG risk assessment is undertaken for 100 percent of the Bank's potential project financing and commercial credit for medium and larger enterprises.
Ms. Kattiya added that KBank, serving as an upstream player in the economic system, is determined to operate its business based on the principles of a Bank of Sustainability to deliver long-term returns to all stakeholders. Recognizing that sustainability operations require collaborative efforts, KBank is ready to act as an intermediary connecting major sectors within the ecosystem to drive development undertakings in the environmental, social, governance and economic aspects and thus create positive impacts at large. This will support customers and the general public in the transition to a net zero economy, while elevating the quality of life and society. These endeavors are achieved through efficient work processes under international standards to mitigate risks and create new opportunities, fostering long-term sustainability for the country's economy and society.