Government Savings Bank (GSB) has issued green loans worth 27 billion baht, ranging from personal loans to business loans, says senior executive vice-president Noppawan Ratanawekin.
As of Oct 15, the bank had issued green loans to 8,000 customers via five lending streams. GSB For BCG Economy loans were launched last year, while another four schemes started this year, namely GSB Green Home, Go Green personal loans, GSB Green Biz and EV Supply Chain.
GSB previously partnered with JGS Synergy Power Co, a distributor of solar photovoltaic devices and EV chargers aimed at households and small and medium-sized enterprises (SMEs), supporting consumers in financing clean energy solutions.
The pair offered knowledge about the installation and maintenance of solar rooftop systems and electric vehicle chargers/charging stations.
This provided opportunities to access low-cost clean energy, helping families and SMEs to reduce their costs while contributing to a reduction in pollution, she said.
GSB is prioritising business concepts suitable for achieving long-term sustainability.
Environmental, social and governance (ESG) issues are taken into account when formulating the bank's policies, strategies and resource allocation to develop financial products and services that create a positive social impact, said Ms Noppawan.
She said the bank supports the country's transition to a low-carbon economy through its financial products, including GSB For BCG Economy loans, GSB Green Biz loans, GSB Green Home loans, and Go Green personal loans.
GSB is the market leader in government ESG bonds. The bank's ESG bonds are also in the top 10 of private sector debt instruments.
The issued ESG bonds are worth 20 billion baht, said Ms Noppawan.
The bank is installing solar rooftop systems at its branches and taking part in a reforestation project at its head office to reduce greenhouse gas emissions (GHG), she said.
GSB is also participating in the Community Waste Bank Prototype Project, a joint initiative with the UN Development Programme, and the Blue Crab Bank Project that aims to promote sustainable fishing.
Recently the bank started to use ESG scoring for its loan consideration process for large businesses with a credit limit of 500 million baht or more, making it the first Thai bank to do so, said Ms Noppawan.
This initiative aims to support businesses that create positive effects for the economy, society and the environment, she said.
The top score is 10 points, while a score of less than 2 points would result in a loan application being rejected.
A score of 8 points or more means the loan would be approved, with a reduced interest rate by 0.1-0.2%, said Ms Noppawan.
For applications that are rejected, the bank is ready to engage those businesses to help them improve their operations and achieve higher ESG scores in the future, she said.
GSB is preparing to announce its net-zero target, said Ms Noppawan.
The bank wants to reduce GHG by 50% by 2030, with an ultimate goal of reaching net-zero GHG by 2050, she said.