KBank eyes ESG-friendly strategy
Kasikornbank (KBank) is planning a decarbonisation strategy in line with the global environmental, social and governance (ESG) trend, with the bank stopping lending to the coal sector.
With a total loan portfolio of around 2 trillion baht, the bank's decarbonisation strategy will begin with industries such as coal, metals, construction materials, construction, hotels and restaurants, and furniture and wood, said chief executive Kattiya Indaravijaya.
The bank has been talking with business clients about its decarbonisation plan, Ms Kattiya said at a seminar on ESG hosted by Prachachart Turakit newspaper yesterday.
KBank, the country's second largest lender by total assets, has stopped providing finance to the coal business and aims to meet net zero carbon emission for the business sector in 2030.
The decarbonisation journey will take time, including a shift to green loans, because the pivot to net zero emissions is not possible in the short term. The bank needs a greater budget to reach net zero carbon emissions and help customers with their decarbonisation, said Ms Kattiya.
"We've set budget of around 200 billion baht going to net zero and attracting customers moving in the same direction under a commitment to reach net zero by 2030," she said.
The 200 billion baht is under the bank's "Go Green Together" campaign to build up green ecosystem under collaboration with all related parties, especially clients, business partners and communities. KBank has conducted several green financial campaigns promoting the green ecosystem and expanding the bank's green loan portfolio.
She said KBank is a pioneer of banking sector conducting a key role in ESG because the bank recognises that ESG is not a CSR campaign, but ESG is a disruptive factor as well. If the bank or other business operators ignore the global trend, it would impact business operations over the longer term.