Toward Sustainable Banking

Toward Sustainable Banking

Krungsri, as a Domestic Systemically Important Bank (D-SIB), has been well aware that serving as an ‘intermediary’ in facilitating capital funds to the business sector, society, and retail customers, is the key mechanism that helps drive the economic system for continual and steady growth. Therefore, for ultimate benefits of overall economy, society, and communities, Krungsri’s focus has been on the development and presentation of financial product and service innovations, based on our considerations for economic, social, environmental, and governance issues, while responding to expectation of all groups of stakeholders.

To achieve aforementioned commitment, Krungsri strives to operate in accordance with good corporate governance, while strictly and earnestly adhering to sustainable banking with responsible lending.

2019 saw the key turning point for the Thai banking industry in shifting to the sustainable development journey. Krungsri joined force the Thai Bankers’ Association and other 14 commercial banks to sign the memorandum of understanding on ‘Sustainable Banking Guidelines – Responsible Lending’—reflecting a common goal of the country’s banking sector in achieving the sustainable development aspiration, particular the urgent issue like household debt.

In 2021, Krungsri significantly advanced in implementing sustainable banking practices by signing the statement of intent to adopt the Principles for Responsible Banking (PRB) of the United Nations Environmental Program Finance Initiative (UNEP FI) together with top executives of 12 other commercial banks in the Sustainable Thailand 2021 webinar, organized by the Ministry of Finance, the Government Pension Fund (GPF), in collaboration with the United Nations as well as vital public and private entities.

Also at the event, Krungsri Asset Management Company Limited, together with 24 other asset management firms, signed the statement of intent to adopt the Principles for Responsible Investment (PRI), in alignment with international standards for sustainable investment.

Krungsri Group’s intention to adopt the above-stated PRB and PRI reflects our determination to conduct business following sustainable banking guidelines while also contributing to raising the operating standards of financial institutions in Thailand to the global level in alignment with the Sustainable Development Goals (SDGs) of the United Nations.
 

In 2022, Krungsri becomes an official Signatory of the UN Principles for Responsible Banking – a single framework for a sustainable banking industry developed through a partnership between banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI).

The Principles are the leading framework for ensuring that banks’ strategy and practice align with the vision society has set out for its future in the UN Sustainable Development Goals and the Paris Climate Agreement.  Joining almost 300 banks worldwide in signing the Principles, Krungsri commits to be ambitious in its sustainability strategies, working to mainstream and embed sustainability into the heart of business, while allowing them to sustain at the cutting-edge of the Bank’s social and sustainable finance facility (SSF). 

Under the Principles, signatory banks measure the environmental and social impact resulting from their business activities, set and implement targets where they have the most significant impact, and regularly report publicly on their progress. The Principles provide a framework for banks to systematically understand the risks and seize the opportunities arising from the transition to more sustainable economies. This aligns with Krungsri’s belief that banks, indispensable to the economy, have a shared responsibility to support the country’s smooth transition toward achieving the UN sustainable development goals and a low-carbon economy.

Underpinning Krungsri’s tenet on banking with purpose, the Bank boldly declared Krungsri Carbon Neutrality Vision in 2021, under which Krungsri’s Race to Net Zero Action Plan was introduced in 2022. Achievements demonstrating Krungsri’s firm commitment of doing better business for society include the issuance of gender bond, the Certification of Green Office, and greenhouse gas reduction targets and the provision of ESG financial products and services to support customers (such as the issuance and underwriting of green bond, sustainability bond, sustainability-linked bond, and sustainability-linked loan.) Krungsri is also a subsidiary of Mitsubishi UFJ Financial Group (MUFG), one of the world’s largest financial groups, that has also committed to the same vision of Carbon Neutrality.