To add value to the long-termpartnership withMitr Phol, the bank issued a sustainability-linked loan to Mitr Phol in 2020. The interest expense charged toMitr Phol under this loan is tied toMitr Phol’s performance at green cane harvesting without burning. Burning of sugar cane is a global issue for the sugar cane industry that produces greenhouse gas and pollution, impacting the health and safety of people. In addition to the regulations and penalties enforced by the regulators, the bank is helping drive sustainable sugar cane production by introducing a sustainability-linked loan for Mitr Phol as positive reinforcement. The collaboration helps both parties to simultaneously tackle financial inclusion, financial well-being and climate change issues. SME Loan with Positive E&S Impacts The bank has issued over 318 million Baht of SME loans with positive environmental and social impacts. The proceeds are used to support doctors (e.g., general practitioners, dentists and vets, etc.) seeking financial support for the establishing or upgrading of 126 medical clinics and services for local communities in 47 Provinces across Thailand.For a large proportion of Thai society, the high cost of private hospitals and insufficient public healthcare resources limit their access to affordable medical services. In response, the bank wants to eliminate the financial challenges that doctors in rural areas are facing, so that they can successfully establish practices that serve their communities. Commercial Loan with Positive E&S Impacts 107 million Baht in sustainability-linked loans to Mitr Phol Sustainability-Linked Loan 126 medical clinics in 47 Provinces across Thailand have been established/ upgraded from SME loans with positive environmental and social impacts. TMB supports PTT Global Chemical Public Company Limited (GC) 1,650 million Baht of commercial loan for the construction of plastic recycling plant for high-quality recycling plastic resins, namely rPET and rHDPE, in 2020 which will commence commercial production in 2021. The project supports GC’s long-term objective to optimize the use of resources, reduce waste generation, and reduce impacts to the environment according to GC Circular Living concept. The project is also in linewith TMB’s sustainable finance strategywhere the bank actively promotes lending that creates positive impacts to the environment and society. 1,650 million Baht for the construction of plastic recycling plant 32 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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