Thaioil and Krungthai Bank have signed a Memorandum of Understanding (MOU) on FX Hedging transactions linking all three aspects of ESG: Environmental, Social, and Governance. This collaboration marks the first initiative in the refining industry to integrate all aspects of ESG with FX hedging to drive sustainable organization.
Wanida Boonpiraks, Executive Vice President?Finance and Accounting of Thai Oil Public Company Limited (Thaioil), emphasized the company's commitment to balancing financial management with sustainable organizational development. This initiative places importance on integrating all dimensions, from energy efficiency in refineries, community engagement, and adherence to the highest governance principles.
Thaioil has introduced an innovative approach to financial risk management by incorporating performance metrics linked to ESG strategy. This aligns with the company's vision of "Empowering Human Life through Sustainable Energy and Chemicals" with efficiency and social and environmental sustainability.
Rawin Boonyanusasna, Head of Global Markets Group of Krungthai Bank, stated that the bank is committed to developing innovations and financial services to meet customer needs in both financial management and sustainability objectives, as reflected by the bank's vision of "Growing Together for Sustainability" Most recently, the bank entered into a partnership with Thai Oil Public Company Limited, linking ESG objectives to FX hedging transactions. The bank will provide Thaioil with discounts on transactions if the company successfully meets its ESG goals in all three aspects, supporting ESG-driven business operations and ensuring sustainable growth alongside all sectors.
This collaboration sets a new benchmark for financial risk management on a par with global standards and reflects the commitment to effecting positive change to the economy and society by leveraging financial innovations to address both present and future challenges and lay a solid foundation for sustainable development in all areas. This initiative is also aligned with the United Nations Sustainable Development Goals (SDGs) in that it drives sustainable growth for the business and the country's economy.