KBank again selected for inclusion in global sustainability indices, reinforcing its commitment to becoming ESG leader among banks in Southeast Asia
KASIKORNBANK (KBank) is determined to become an ESG leader among banks in Southeast Asia. Leveraging its technological strength and business partnerships, the Bank aims to empower its customers while also leading the society at large and the nation towards sustainable growthใ
In the latest development, KBank has been selected for inclusion in the Dow Jones Sustainability Indices (DJSI) 2022 for the seventh consecutive year, with the Top 5% S&P Global ESG Score 2022 in the banking category. KBank also earned the CDP A List (Leadership Level) from the Carbon Disclosure Project (CDP) 2022, making it the first and only bank in Thailand and Southeast Asia to achieve this rating, while also being included as a member of the 2023 Bloomberg Gender-Equality Index (GEI) for the fifth consecutive year – the first and only bank in Thailand.
Kattiya Indaravijaya, KBank Chief Executive Officer, said, “KBank conducts our business in accordance with the principles of a Bank of Sustainability with the aim of fostering balanced growth in environmental, social and governance (ESG) aspects. The Bank’s business strategy focuses on systematic operations, evaluation of results and transparent data disclosure. KBank has shown determination in our sustainability operations, which are in conformity with the United Nations Sustainable Development Goals (SDGs). As evidenced, the Bank has been recognized by leading organizations in sustainability standards both in Thailand and worldwide. We have also contributed to the global effort to transition to net zero emissions in alignment with the Paris Agreement goals.”
Given numerous challenges from economic uncertainty, the COVID-19 pandemic, changing consumer behaviors and multiple forms of competition, KBank is determined to operate its business to ensure a balance across all dimensions in order to support business growth and advance the Thai economy towards sustainability with tangible results.
With regard to the environment, KBank announced its Net Zero Commitment in 2021, targeting achievement of net zero in its own operations by 2030. Guided by this aspiration, KBank has pursued the reduction of Scope 1 and 2 emissions from operations by gradually replacing its gas-engine vehicle fleet with electric vehicles, adopting energy-saving equipment and installing solar rooftop panels, as well as managing resources with enhanced efficiency. As for Scope 3 emissions, KBank’s efforts, undertaken in line with Thailand’s goals, include the formulation of a sector decarbonization strategy and development of beyond financial solutions to promote ease of customer access to a green lifestyle. In 2022, KBank’s lending and investment for sustainability amounted to more than Baht 26 billion, with the aim of allocating a total of Baht 100-200 billion to such lending and investment within 2030.
As concerns the social aspect, KBank and its partners have worked together to employ advanced technologies in offering the Thai people more extensive access to banking services in order to promote financial inclusion. In addition, knowledge on financial issues, including financial and cyber literacy, has been provided for such customers, while emphasis has been placed on equitable treatment of employees, and respect for human rights and diversity. As for the governance side, 100 percent of project finance and commercial loans for medium and large business, which totaled Baht 514,652 million in 2022, were subject to the ESG risk assessment processes.
Thanks to our determination to advance business operations based on the principles of a Bank of Sustainability, KBank was recently selected to be a member of three international sustainability indices, as follows:
The Dow Jones Sustainability Index (DJSI) family for both the DJSI World and Emerging Markets Indices, for the seventh year running in 2022, with the Top 5% S&P Global ESG Score 2022 in the banking category. Based on the assessment of an organization’s sustainable management in environmental, social and governance/economic (ESG) dimensions, KBank earned the second-highest score among all banks across the globe, and the world’s highest score in the governance/economic dimension in the banking category.
The Carbon Disclosure Project (CDP) in 2022, with the highest score at A List (Leadership Level) in climate change management. KBank is the first and only bank in Thailand and Southeast Asia to make it onto the A List, reflecting that KBank’s climate change management and disclosure standards are in line with international criteria.
The 2023 Bloomberg Gender-Equality Index (GEI) for the fifth consecutive year. It is the first and only bank in Thailand to be chosen for the index, reflecting KBank’s commitment to reporting transparency in gender equity.
Kattiya said, “With KBank’s aspiration of becoming the leader in ESG among banks in Southeast Asia, we are striving to improve our standards and foster technological synergy with our partners in the ecosystem, with the aim of encouraging all sectors to take concrete action in driving the economy, society and country towards sustainable growth together.”