Kasikornbank PCL

The Sustainable Development Sub-Committee's duty is to drive KBank's operations in alignment with the sustainable development policy and to ensure the efficiency of such operations towards achievement of the established targets, based on the strategy of a "Bank of Sustainability". The Sustainable Development Sub-Committee is chaired by the Chief Executive Officer and holds at least one meeting each quarter. [...] Business Unit Risks and opportunities associated with climate change involve many business divisions. Thus, KBank has established a Climate Pillar Working Group, consisting of members from all divisions concerned so they can work together in driving the Bank to implement its climate commitment. Supervised and chaired by KBank President, the Working Group is responsible for designating strategies, targets, and action plans as concern climate change. It also monitors, supervises, and supports actions as targeted. In addition, the Internal Audit Department, which is an independent unit, has conducted audit based on risk-based assessment. The audit scope included significant risks and matters related to the Bank's environmental, social, and governance (ESG) topics and the significant audit result was reported to the Audit Committee. [...] The Board of Directors oversees KBank's overall operations, with independence in decision-making for the maximum benefit of KBank and stakeholders. The Board approves business strategies, goals, and policies of KASIKORNBANK FINANCIAL CONGLOMERATE, which incorporate sustainable development operations, and approves risk management policies and frameworks, and acceptable risk limits and scopes that include risks and opportunities related to the environmental, society and governance (ESG), as well as impacts of Climate-related risks. The Board approves annual business plans and budgets and supervises and monitors Management's operations in accordance with the established policies, strategies and business plans, related regulations, and the Sustainable Development Goals (SDGs) of the United Nations and Paris Agreement. [...] The Bank has established a management system for collaborating with or supporting external organizations as follows: • Initiating collaboration, support, or membership in external organizations or associations related to climate change management is initially considered by the relevant line management. If the activity may significantly impact the Bank, it is presented to the Sustainable Development Sub-committee for approval. The key factors for consideration include alignment with the Paris Agreement, Thailand's goals, and the Bank's objectives. • Relevant departments continuously monitor the outcomes of the collaboration, support, or membership in external organizations or associations to evaluate results and focus on continuous improvement. If it is found that the related activities do not align with the Paris Agreement, Thailand's goals, or the Bank's objectives, the relevant departments will attempt to adjust or drive the activities to ensure alignment and achieve the goals. If changes cannot be made, the Bank will consider ceasing the collaboration, support, or membership to ensure the effectiveness and efficiency of the Bank's climate change mitigation efforts. • Significant activities related to collaboration, support, or membership in external organizations or associations are reported periodically to the Sustainable Development Sub-committee for appropriate oversight.

The Credit Risk Management Sub-Committee is responsible for determining KBank's credit management directions and strategies, and establishing and revising credit policies and processes, taking into consideration ESG risks and climate-related risks, in order to specify portfolio management strategies, lending targets and frameworks in accordance with the business types with the aim of efficiently minimizing greenhouse gas emissions in KBank's portfolio, in conformity with the responsible lending guidelines. The Credit Risk Management Sub-Committee holds meetings on a monthly basis. [...] The Sustainable Development Sub-Committee's duty is to drive KBank's operations in alignment with the sustainable development policy and to ensure the efficiency of such operations towards achievement of the established targets, based on the strategy of a "Bank of Sustainability". The Sustainable Development Sub-Committee is chaired by the Chief Executive Officer and holds at least one meeting each quarter. [...] The Board of Directors approves business strategies, targets and policies that embrace sustainable development operations. The Board also approves risk management policies and frameworks, and acceptable risk limits and scopes that include risks and opportunities related to the environment, society and governance (ESG), as well as impacts of climate-related risks, which are subject to annual review. The Board of Directors has assigned to the Chief Executive Officer the role of Chief Environment Officer, based on KBank's goal of being an environmental stewardship to create Net Zero society, and setting targets of sustainability operations for the Chief Executive Officer, top management, and operating level to ensure that the goal will be achieved. [...] The Risk Oversight Committee is responsible for providing advice to the Board of Directors with respect to KASIKORNBANK FINANCIAL CONGLOMERATE's risk supervision framework, overseeing high-ranking executives and heads of risk management units to comply with risk management policies and strategies, and reviewing the adequacy of risk management policies and strategies to ensure that they encompass all types of risks and emerging risks, as well as ESG risks and climate-related risks. The Risk Oversight Committee meets at least once a quarter and reports to the Board of Directors. [...] The Corporate Governance Committee oversees sustainable development operations in the aspects of environment, society and governance, and reviews and advises for appropriate improvements for reporting to the Board of Directors. The Committee also provides recommendations for consideration of projects related to the environment and society to ensure KBank's proper management of environmental and social risks, and monitors the progress of the projects on a regular basis. The Corporate Governance Committee holds at least four meetings each year.

In our sustainable development structure, KBank's Board of Directors has assigned the Corporate Governance Committee to supervise sustainable development operations; the Committee holds a meeting to determine operational guidelines, monitor and report to the Board of Directors. We established the Sustainable Development Sub-committee, chaired by the Chief Executive Officer, to be responsible for driving environmental, social, and governance operations under the Sustainable Development Policy framework. Our mission is to establish a Sustainable Development framework and action plan, as well as overseeing, monitoring and assessing sustainable development performance to be in conformity with sustainable development principles, requirements, and both national and international standards. [...] The Corporate Governance Committee oversees sustainable development operations in all aspects of environment, society and governance, and reviews and advises for appropriate improvements for reporting to the Board of Directors. The Committee also provides recommendations with respect of operations towards net zero emission and consideration of projects related to the environment and society to ensure KBank's proper management of environmental and social risks, and monitors the progress of the projects on a regular basis. The Corporate Governance Committee holds at least four meetings each year. [...] The Sustainable Development Sub-Committee is responsible to drive KBank's operations in alignment with the sustainable development policy and to ensure the efficiency of such operations towards achievement of the established targets, based on the strategy of a "Bank of Sustainability".The Sustainable Development Sub-Committee is chaired by the Chief Executive Officer and holds at least one meeting each quarter. [...] In addition, the Internal Audit Department, which is an independent unit, has conducted audit based on risk-based assessment. The audit scopes include significant risks and climate-related issues. The Matters related to the Bank's environmental, social, and governance (ESG) topics and the significant audit result was reported to the Audit Committee.

KBank has assigned the Corporate Governance Committee to supervise sustainable development operations; the Committee holds quarterly meetings to determine operational guidelines, monitor and report to the Board of Directors. We established the Sustainable Development Sub-committee, chaired by the Chief Executive Officer, to be responsible for driving environmental, social, governance and economic (ESG) operations as guided by the Sustainable Development Policy framework. Our mission is to establish a Sustainable Development framework and action plans, as well as overseeing, monitoring and assessing sustainable development performance. [...] Meanwhile, the Corporate Sustainability Integration Department of the Corporate Secretariat Division provides support for and collaborates with the Sustainable Development Working Group, which comprises representatives of KBank departments, and pursues the Board of Directors' instructions to ensure consistency within all operational processes, thus leading to the achievement of targets and responding to stakeholders' expectation."
"The Corporate Sustainability Integration Department of the Corporate Secretariat Division is the center for supervising the quality of report preparation to ensure the correctness and completeness of the report. The unit is responsible for compiling and verifying related information in compliance with the guidelines. All operational directions and processes have been reported to KBank's Sustainable Development Sub-committee and Corporate Governance Committee." [...] "KBank has implemented an Exclusion List, outlining projects ineligible for KBank credits, and Sector-Specific guidelines. Additionally, intensive risk management measures are applied for high-risk customers to ensure that supported projects have no adverse effects on the environment, society, or KBank's overall image and operations. These measures contribute to the long-term stability of business advancement and sustainable returns for all stakeholders. In line with our commitment to ESG considerations, KBank has set a target that mandates 100% of Project Finance and medium enterprises (and above) requests to undergo the Environmental, Social, and Governance (ESG) assessment procedure. This proactive approach ensures that environmental and social impacts are systematically assessed and managed in our lending and investment decisions.

KBank has assigned the Corporate Governance Committee to supervise sustainable development operations; the Committee holds at least four meetings a year to determine operational guidelines, monitor and report to the Board of Directors. We established the Sustainable Development Sub-committee, chaired by the Chief Executive Officer, to be responsible for driving environmental, social, and governance operations as guided by the Sustainable Development Policy framework. Our mission is to establish a Sustainable Development framework and action plans, as well as overseeing, monitoring and assessing sustainable development performance. Meanwhile, the Corporate Sustainability Integration Department of the Corporate Secretariat Division provides support for and collaborates with the Sustainable Development Working Group, which comprises representatives of KBank departments, and pursues the Board of Directors' instructions to ensure consistency within all operational processes, thus leading to the achievement of targets and responding to stakeholders' needs. [...] The Corporate Governance Committee oversees sustainable development operations in the aspects of environment, society and governance, and reviews and advises for appropriate improvements for reporting to the Board of Directors. The Committee also provides recommendations for consideration of projects related to the environment and society to ensure KBank's proper management of environmental and social risks, and monitors the progress of the projects on a regular basis. The Corporate Governance Committee holds at least four meetings each year. [...] The Sustainable Development Sub-committee's duty is to drive KBank's operations in alignment with the sustainable development policy and to ensure the efficiency of such operations towards achievement of the established targets, based on the strategy of a "Bank of Sustainability". The Sustainable Development Sub-committee is chaired by the Chief Executive Officer and holds at least one meeting each quarter. [...] Business Units Risks and opportunities associated with climate change involves many business divisions. Thus, KBank has established a Climate Pillar Working Group, consisting of members from all divisions concerned so they can work together in driving the whole bank to achieve our Net Zero Commitment. Supervised and chaired by KBank President, the Working Group is responsible for designating strategies, targets and action plans as concern climate change. It also monitors, supervises and supports actions as targeted. The Audit Division is responsible for auditing actions to ensure efficiency, transparency and consistency with the Bank's directions.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]To Drive K-Strategy on ESG, the K-Strategy aims to foster a sustainable bank. KBank focuses on development of competitive capabilities in a technology-driven business world and ESG. KBank has always been working closely with trade associations, whose role is to influence public policy, while enabling improved sustainable development and ESG performance for long-term growth, which is in line with the K-Strategy. In addition, KBank has joined with Thai Bankers' Association (TBA) as a lead facilitator to develop TBA's ESG declaration and measurement tools to enhance ESG practices in banking sector for sustainable growth. We also work closely with Bank of Thailand (BOT) as working team in developing Thailand Taxonomy and Handbook on Implementing Environmental Risk Management. Moreover, KBank has participated as a UNEP FI member. We aim to enhance our ESG practices to be aligned with the international principles of responsible banking.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]To Drive K-Strategy on ESG, the K-Strategy aims to foster a sustainable bank. KBank focuses on development of competitive capabilities in a technology-driven business world and ESG. KBank has always been working closely with trade associations, whose role is to influence public policy, while enabling improved sustainable development and ESG performance for long-term growth, which is in line with the K-Strategy. In addition, KBank has joined with Thai Bankers' Association (TBA) as a lead facilitator to develop TBA's ESG declaration and measurement tools to enhance ESG practices in banking sector for sustainable growth. KBank joined a working group for the determination and classification of projects or activities in the sustainable economic sector, or Thailand Taxonomy, of the Bank of Thailand to offer recommendations for specifying economic activities under the Thailand Taxonomy, which is in line with Thailand's context, regional standards (ASEAN Taxonomy) and international standards, and which will serve as a reference in the path towards achieving the sustainability target of Thailand. KBank joined the meeting, "A Multi-Stakeholder Consultation on Formulating a Risk-Informed Financing Strategy within the Integrated National Financing Framework (INFF) for Thailand", hosted by the United Nations Development Programme (UNDP), and expressed our views with respect to related problems, obstacles and necessary support measures for use in preparation of INFF, which will be presented to the Thai government. As a participant in the Asia Transition Study Group, KBank attended the meetings to share viewpoints and experiences with respect to study cases or issues found in credit consideration for use in preparation of the Draft Asia Transition Finance Guidelines for financial institutions in Asia. Moreover, KBank has participated as a UNEP FI member. We aim to enhance our ESG practices to be aligned with the international principles of responsible banking.