Case study: How Krungsri works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Krungsri has joined various organizations to promote greenhouse gas emissions reduction and support a low-carbon society in alignment with Thailand’s Nationally Determined Contribution (NDC) and the Paris Agreement, as part of the United Nations Framework Convention on Climate Change (UNFCCC). This initiative is in accordance with the United Nations Sustainable Development Goal 13: Climate Action.

The networks and organizations that Krungsri collaborates with include:

• Thailand Carbon Neutral Network (TCNN): As a member of the Climate Action Leading Organization (CALO), Krungsri demonstrates its leadership in managing greenhouse gas emissions and commits to reducing them at the organizational level to achieve carbon neutrality. Clear operational plans have been set to lower emissions and assist customers in transitioning to green and low-carbon operations and investments. Additionally, Krungsri is part of the “Climate Finance Subcommittee,” which promotes access to various funding sources and supports members both domestically and internationally. This includes knowledge dissemination, participation in related activities, gathering input on climate finance practices, and advising the government on related measures.
• Thai Renewable Energy (RE100) Association: In collaboration with other leading organizations across various industries, Krungsri works to address climate change challenges. The aim is to motivate Thailand’s industrial sector to target 100 percent renewable energy use and support the transition to the New S-Curve by emphasizing clean energy utilization.
• Carbon Markets Club: As a founding member, Krungsri collaborates with other leading organizations to promote the establishment of a carbon credit exchange system—the first of its kind in Thailand—facilitating the country’s move toward a low-carbon society.

Furthermore, Krungsri has actively contributed to the Thai Bankers’ Association (TBA) in launching the “ESG Declaration.” This serves as a framework and guideline for climate-related financial disclosures, aiming to establish common standards for the climate and environmental financial landscape in the country, or an “Industry Handbook,” to guide commercial banks in incorporating environmental and climate change considerations into their operations.

Additionally, Krungsri is a participant in the Thailand Taxonomy Working Group, providing recommendations for the development of the Thailand Taxonomy (Phase I) in collaboration with the Bank of Thailand, the Securities and Exchange Commission of Thailand, and the Thai Bankers’ Association (TBA).

How did Krungsri work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 PRB Reporting and Self-Assessment Template Krungsri reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Krungsri Group embraces its core value of “Customer Centricity,” recognizing that its customers are a key stakeholder group essential to Krungsri’s success. As such, Krungsri prioritizes comprehensive analysis to understand its customers’ needs, expectations, and challenges. Krungsri also actively seeks their feedback and suggestions through various communication channels tailored to different customer segments, enabling it to improve its services and provide the best customer experience. Krungsri’s financial products and service innovations are designed to meet the specific demands of each customer segment, including corporate, SME, and retail clients. Customer experiences are integrated across Krungsri’s online platforms to ensure seamless access to Krungsri’s products and services, anytime and anywhere.

Additionally, Krungsri has set an ambitious goal to decarbonize its portfolio and achieve Net Zero Emissions by 2050. Hence, Krungsri is committed to assisting its customers in transitioning to more environmentally and socially responsible practices by financing impactful social and sustainability projects, such as green loans, renewable energy financing, social financing, sustainability-linked loans, and more. This proactive approach aims to facilitate the gradual shift of Thai businesses and society toward a low-carbon future. Krungsri recognizes that it cannot achieve decarbonization of its financial portfolio without the active support of its customers, making engagement with them in developing their transition plans critically important.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), IEMA Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Krungsri, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.krungsri.com/getmedia/51a0345b-2ff7-4380-81cd-9c9fbd4e73cb/prb-reports-2023.pdf.aspx

Note to Krungsri: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.