RESPONSIBLE LENDING We promote responsible and sustainable financing by assessing clients’ long-term environmental, social and governance impacts. Doing this increases our clients’ understanding of the bank’s standards and positions while onboarding them in terms of the ESG issues specific to their industry. Following the launch of The Thai Bankers Association’s Sustainable Banking Guidelines – Responsible Lending in 2019, our Environmental and Social Responsibility (ESR) Policy has been updated significantly so that it not only aligns with national guidelines, but also adheres to internationally accepted guidelines, frameworks and standards that enhance our lending criteria and promote sustainable businesses. These inputs are necessary for the bank as we look to shape and finance a sustainable future in which we meet society’s changing needs and demands, as well as global commitments such as theSustainableDevelopment Goals and theParis Agreement. The revised ESR Policy better reflects our role to facilitate and finance responsibly for the benefit of society and environment by establishing clear objectives and guidelines for assessing environmental and social risks and impacts fromour lending activities. Depending on the risk level of the credit application, the endorsement wi l l be required from different parties including Relationship Manager (RM), ESR Officer, Commercial Credi t Risk Management , Credi t Underwr i t ing Committee, and Credit Committee. • Alcoholic beverages • Defense/weapons • Radioactive materials • Tobacco • Natural resources, energy, and chemicals Exclusion list includes 27business activities Specific guidance for 5 sectors General questionnaire Sector specific questionnaire New Applications 1,300 86 Applications That Underwent Annual Review 3,169 411 Finance Government Foods Electricity and water supply Healthcare Transportation and logistics Chemical Construction material Auto wholesalers and parts Real estate rental commercial 1% Other 37% Corporate 7% Small SME 55% Retail Share of Lending by Customer Segment 100% of commercial lending is in line with ESR policy The bank will not finance any new coal-fired power plant projects The bank will exit from the tobacco industry by 2023* * This does not apply to the entire tobacco value chain, specifically parties that are not fully dedicated to tobacco (i.e., retailers that sell tobacco products, or companies engaged in transportation and packaging) 29 Su s t a i n a b i l i t y Re po r t 2 0 2 0 I n t r odu c t i o n Cu s t ome r s En v i r o nme n t a l & So c i a l I mp a c t s Pe op l e Go v e r n a n c e App e nd i x
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