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Krungthai Bank has set a new standard for Thai commercial banks by introducing "Green Deposits" in Thai Baht and US Dollar denominations under the Green Financing Framework, with ISS Corporate Solutions (ISS-ESG) as the external reviewer to ensure compliance with international standards for green financing principles. The bank has fortified its status as a leader in ESG financial solution providers by partnering with PTT and PTTEP to introduce Thailand's first "Green and ESG-linked Investment Program" which addresses the companies' investment management needs for diverse investment products and optimal returns while supporting their efforts toward sustainable growth. Under this program, green deposits from the PTT and PTTEP will be earmarked for financing projects with positive environmental impacts, such as those involving renewable energy, clean transportation, and green building development. Additionally, ESG indicators are set, and the bank will give additional returns or carbon credits if PTT and PTTEP achieve their ESG targets. This partnership reaffirms the commitment of all three organizations to achieving long-term sustainability goals across all sectors.
Auttapol Rerkpiboon, President and Chief Executive Officer of PTT Public Company Limited (PTT), said that PTT has increased the proportion of its investment in the environmentally friendly clean energy industry and aims to grow in sectors beyond energy. Moreover, it has implemented green principles in its financial management strategy to ensure synchronized growth in both areas. Recently, it has invested in the green deposit for PTT Group by Krungthai Bank, the funds from which will be directed toward financing environmentally friendly projects like renewable energy, clean transportation, and green buildings. Krungthai will also provide additional returns or high-quality carbon credits that meet the T-VER standard if PTT and PTTEP meet the ESG targets. This partnership integrates its business plans, which are aligned with a sustainable organization development approach, with their environmental, social, and governance (ESG) performance. Also, it reinforces its commitment to transitioning toward a more environmentally friendly business model. Through investments in low-carbon industries, PTT Group aims to strengthen its business, contribute to Thailand's economic growth, and achieve carbon neutrality by 2040 and net zero emissions by 2050. Ultimately, these efforts will contribute to driving Thailand toward a low-carbon society and sustainably improving the quality of life for Thai people in the future.
Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), stated that PTTEP is pursuing sustainable growth as outlined in its strategic plan by focusing on our core businesses?petroleum exploration and production?to ensure energy security and decarbonization. We are also investing in low-carbon petroleum exploration and production projects, developing emission reduction technologies such as carbon capture and storage technology, and offsetting carbon emissions by reforestation of both mangrove and terrestrial forests. Investment in the clean energy industry is another key focus to support energy transition and pursue the company's 2050 Net Zero Greenhouse Gas Emissions goal. In addition to enhancing the company's financial management efficiency, this investment program for liquidity management aligns with PTTEP's ESG policies while addressing the United Nations Sustainable Development Goals (SDGs), which are directly related to the company's business. It is a collaborative effort to promote sustainable growth.
Payong Srivanich, Chief Executive Officer of Krungthai Bank, said that as a leading commercial bank in Thailand, Krungthai Bank is committed to leveraging innovation and technology to develop financial products and services that cater to the needs of all customer segments, support environmentally friendly business practices, address climate change, and drive the country to achieve its net-zero emissions goal. Krungthai Bank is conducting its business with the guiding theme "Reshaping Client Value Proposition and Promoting Sustainability with Innovation," prioritizing environmental, social, and governance issues as well as addressing the United Nations Sustainable Development Goals. Recently, the bank introduced a green financing framework that aligns with international green financing standards. The framework will serve as a comprehensive guideline for issuing green products and set a standard for all green finance services, including deposits, loans, and other financial solutions, to ensure alignment with international standards. These products will contribute to promoting the sustainability of the economy and society.
"The bank receives support from PTT and PTTEP through this investment program for liquidity management, which features green deposits and is linked to ESG indicators. Providing that PTT and PTTEP achieve their ESG goals, the bank will support additional returns or high-quality carbon credits certified by the widely recognized Verra and T-VER standards. This collaboration represents a pivotal milestone for the three organizations' endeavor to introduce new financial products for the Thai financial and capital markets following the success of the first carbon credit-linked FX derivatives and the first ESG-linked derivatives with PTT and PTTEP. We focus on driving positive environmental changes through investments and prioritizing socially responsible business practices and good governance. All this is to achieve sustainable financial outcomes and drive positive changes for Thailand," Payong said.