7 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 During the COVID-19 crisis, we, as a bank, also have a responsibility to help our customers overcome the financial difficulties they face. At the onset of the pandemics, our immediate attention was directed to supporting customers by providing debt relief programs consisting of two phases. Both phases were comprised of measures designed to alleviate financial hardship in the form of repayment deferrals of both principal and/or interest payments, the reduction of interest, extension of installment periods, and soft loan facilities. Our programs have helped more than 750,000 customers across all segments, which is equivalent to approximately 40% of our total lending portfolio. By the end of 2020, most of our customers had resumed normal payments and exited the program, leaving only 15% remaining in the program. The pandemic has only confirmed our belief that the financial journey of all our customers should be transformed for the better. Our mission for the merged bank is to improve customer’s financial well-being, to allow them to comfortably meet their current commitments and to have financial resilience for the future. To deliver on this commitment, we have defined four foundational pillars for financial well-being – mindful spending and maximized savings, healthy borrowing, investing for the future, and sufficient protection. Internally, these pillars underpin the way we work and are embedded in how we design new products and services. Externally, they represent a long-term journey for us to uplift financial literacy among millions of Thai consumers, equip them with appropriate uses of financial tools and ultimately transform their mindsets and behaviors towards prudent financial management. As lending is an important part of the business, it is our responsibility to assess the ramifications of unsustainable activities that are linked to environmental and social risks and will, over time, threaten socioeconomic and financial systems. Our Environmental and Social Responsibility Policy has been updated to strengthen and establish a clear objective and more stringent guidelines for indirect environmental and social risk assessments and impacts from our banking activities. Key elements of this updated policy include five sector specific guidelines (Defense/ weapons, Alcoholic beverages, Tobacco, Natural resources/energy/ chemicals, and Radioactive materials,) and an exclusion list of 27 business activities that pose high risk to the environment and society. The bank has also committed to no longer financing coal-fired power plants due to climate change. Moreover, we continue to offer customers of all segment sustainable financial solutions to meet customers’ needs where we integrate environmental, social and governance factors in our product and services. We also proactively engage with clients to support them in reducing negative impacts and improving their businesses to become more sustainable. This builds long-term partnerships and creates win-win solutions that benefit customers, the environment and society without compromising the bank’s bottom line. For instance, TMB ALL FREE offers free protection including basic accidents and life insurance with just a minimum saving of 5,000 Baht. This product addresses a gap in the society where 9 out of 10 Thais do not have protection, a necessity for life stability. Another product is TMB Smart Port, a full-service investment portfolio management. A service which was previously exclusive only to private banking customers, is now available for mainstream customers. The primary objective is to promote smart investment and financial inclusion. Moreover, SME loans with positive social impacts – valued at over 319 million Baht, compared to a target of 220 million Baht – have been approved to allow doctors to either establish or upgrade 126 medical clinics in 47 Provinces across Thailand. This has allowed people in remote areas to have access tomedical services. The bank also expanded green financing by providing 1.5 billion Baht of long-term project financing to a renewable electricity firm. The deal represents one of our key transactions in renewable energy and one of the largest C&I deals in the ASEAN region in 2020. Through a continuous effort, our overall sustainability performance based on both national and global benchmarking has continued to improve. The bank has retained first place in the Fair Finance Thailand ranking for two consecutive years, a proof that we are leading Thai financial institutions towards sustainable banking, while we have been selected to be in SET’s Thailand Sustainability Investment (THSI) for three consecutive years. Lastly, we are extremely proud of our employees, who have shown the utmost dedication, risen up to support our customers and the broader community amid the pandemic. While it has been a challenging and arduous year, we all demonstrated perseverance and unity. As we go forward on this path of sustainable banking and become the recommended bank of choice, it is imperative for us to always strive to deliver the best-deal personalized solutions relevant to customers’ life stage or event to uplift the customers’ financial well-being and ultimately become their trusted advisor. Above all, we are committed to making REAL Changes and continuing to do better by all our stakeholders to truly create long-term value for a sustainable future.
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