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), ISEP 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.

What are the material issues the company has identified?

In its 2021 Sustainability Report Krungsri identified a range of material issues, such as responsible lending and ESG consideration, risk and crisis management, cybersecurity, good governance and anti-corruption, customer experience and market conduct. Among these, creating economic value for its stakeholders stands out as a key material issue for Krungsri.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Krungsri engages with:

Stakeholder Group	Method of engagement
Executives and staff members	·      New employee orientation ·      Town Hall Meeting held once a year ·      Krungsri Leadership Meeting held once a year ·      Meetings for discussion among executives and staff members in the same and different divisions on a regular basis ·      Monthly message from the President and Chief Executive Officer ·      Internal communications via diverse channels, e.g., the intranet ‘One Krungsri Portal’, e-magazine ‘Krungsri Life’, e-newsletter ‘Around Krungsri’, e-mails of ‘ESG Simple to Share’ or ‘ESG Flash’, announcements via a public address (PA) system, etc. ·      Year-round communications among the Human Resources Management Division, executives and employees through diverse activities and/or channels, such as the ‘HR Inspires’ e-mail, the ‘Humans of Krungsri’ Line account, ‘KarE’ Application, etc. ·      Activities to promote organisational culture and core values ·      Engagement activities of the Bank, executives and employees in diverse opportunities, e.g., New Year parties, the Songkran Festival, retirement parties, and team building or engagement activities, all of which have been adjusted to comply with the COVID-19 preventive measures for ultimate safety ·      Employee opinion surveys ·      Regular meetings with representatives of Bank of Ayudhya’s labour union ·      View sharing between external experts and the Bank’s executives and employees
Customers (Retail, SME, and Corporate)	·      Provision of officials to facilitate customer convenience and to socialise with customers, including customer visits as appropriate and needed, such as relationship managers (RMs) ·      Annual customer satisfaction survey conducted at least once a year ·      Communication about product and service information via diverse channels including the website ‘Krungsri.com’, online and social media accounts of ‘Krungsri Simple’, leaflets, brochures, marketing activities, etc. ·      Year-round activities to build strong relationships with customers, e.g. seminars, business matching activities, which have been adjusted to comply with the COVID-19 preventive measures for ultimate safety ·      Customer visit activities on an as-needed basis, including communication activities that convey information of sustainability performance, ESG trends, e.g., ESG knowledge sharing activities for JPC/MNC customers, etc. ·      Krungsri Call Center 1572 ·      Communication about assistance measures for customers impacted by the COVID-19 crisis via the Bank’s branches, website, and social media channels
Shareholders	·      Annual and/or extraordinary general meeting of shareholders (at least once a year), of which process has been adjusted in compliance with COVID-19 preventive measures for utmost safety ·      Dissemination of the 56-1 One Report and the Sustainability Report (once a year) ·      Information dissemination through the website www. krungsri.com ·      Information disclosure through the SET Portal Straight Through system of the Stock Exchange of Thailand
Suppliers or vendors	·      Regular news updates via e-mail, e.g., Krungsri Group’s The Spirit and The Letter, environmental and human rights disclosure statement ·      Meetings between the Bank and suppliers or vendors ·      Disclosure of suppliers’ and vendors’ codes of conduct via the website www.Krungsri.com ·      Communication of the Thai Private Sector collective Action Against Corruption (CAC) via e-mail ·      Notification of the gift and entertainment policy at least once a year particularly during the New Year festival via e-mails ·      Supplier or vendor site visits
Creditors	·      Company visits ·      Meetings for view sharing and taking advice on diverse occasions
Regulators supervising commercial banks and listed companies	·      Regular meetings and cooperation with, and reporting to regulators ·      Meetings in important occasions for view sharing and taking advice ·      Transparent performance disclosure via the Bank’s channels
Investors and analysts	·      Regular meetings with investors and analysts ·      Teleconferences ·      Holding year-round meetings and roadshows at home and abroad ·      Holding securities analyst meetings ·      Holding meetings with credit rating agencies which rate Krungsri and its subsidiaries ·      Organising company visits at Krungsri Group’s subsidiaries ·      Holding press conferences on performance, business expansion, and key developments ·      Preparing press releases presenting Krungsri Group’s financial status ·      Reporting quarterly operating and financial results through the Stock Exchange of Thailand and the website www. Krungsri.com ·      Notifying news about the Bank’s key developments via e-mail on a year-round basis
Other commercial banks and financial institutions	·      Regular meetings with member banks, at least once a month, through the Thai Bankers’ Association (TBA), as well as meetings with the Payment System Office (PSO), the Thailand Banking Sector Computer Emergency Response Team (TB-CERT), and the Thai Banking Academy (TBAC) under TBA’s supervision ·      Meetings with member banks through the TBA’s clubs including the CSR Club, and Compliance Club ·      Year-round communications among member banks through the TBA’s clubs ·      Regular meetings and communications among member banks of the Association of International Banks (AIB)
Communities and society	·      Provision of financial products and services that respond to community and society needs ·      Organising corporate social responsibility (CSR) activities with CSR staff joining local communities in participating in the activities ·      Creating value for communities and society using the organisation’s expertise to organise financial literacy projects that help develop and promote the economic strength of communities and social enterprises, such as signing memorandum of understanding with the Social Enterprise Thailand (SETH) ·      Discussion and cooperation with local units to promote activities that help enhance communities’ quality of life

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Krungsri engaged with its stakeholders through meetings, seminars, interviews, and materiality surveys.

What actions were taken by Krungsri to create economic value for its stakeholders?

In its 2021 Sustainability Report Krungsri reports that it took the following actions for creating economic value for its stakeholders:

• Creating economic value for employees
• In 2021, Krungsri paid 26,717 million baht in employee expenses (salaries, wages, overtime pay, bonuses, cost of living subsidies, employee benefits, the Bank’s contribution to provident funds, welfares and other benefits e.g., health insurance, annual health check-up).

• Creating economic value for providers of capital
• In 2021, Krungsri paid 27,341 million baht to providers of capital (dividends paid to shareholders and interest expenses).

• Creating economic value for the government
• In 2021, Krungsri paid 8,010 million baht in duty tax and income tax, excluding deferred tax income/ expenses.

• Creating economic value for society
• In 2021, Krungsri paid70 million baht in donations to charitable organisations, donations for education support, service activities and disaster reliefs.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

• Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
• Targets: 8.1, 8.2
• Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
• Targets: 9.1, 9.4, 9.5

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
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/277eaba5-ea8f-47d5-9eba-70813be17bb6/sustainability-report-2021-en.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.