Fair Finance Thailand publishes the results of the 5th year of the Thai Bank Assessment, indicating that the coalition has succeeded in building a competitive culture in sustainability policy. It can be seen from the competition to compete for rating ranks. through improvements and disclosure of new policies of each bank
7 April 2023 Fair Finance Thailand Coalition consisting of Pa Sala Co., Ltd. Foundation for Consumers The Environmental Law Foundation (EnLaw), the Ecological Restoration Foundation (EARTH), and International Rivers have been conducting continuous assessments of Thai banks’ policies since 2018, using the Fair Finance Guide International’s benchmark criteria. ) to drive the Thai financial and banking sector towards the concepts and practices of truly ‘sustainable banking’
The Fair Finance Guide International benchmark is an index and a tool for consumers and civil society to negotiate, advocate, promote and engage with governments and financial institutions. To promote social and environmental responsibility of financial institutions It was evaluated from the content of investment policies and practices and financial services of financial institutions. publicly available of each bank Compare with relevant international sustainability standards.
There are 13 categories used in the assessment: 1. Climate change 2. Corruption 3. Gender equality 4. Health 5. Human rights 6. Labor rights 7. Nature 8. Taxes 9. Weapons 10. Consumer Protection 11. Expansion of Financial Services 12. Compensation and 13. Transparency and Accountability
Sarinee Archawanantakul, head of the research team The Fair Finance Thailand Coalition (Fair Finance Thailand) said that for the 2022 banking assessment results, the top 5 banks that received the highest score were TMB Thanachart Bank (42.6%), Kasikorn Bank (34.0%), Krung Thai Bank (33.4%). ) Siam Commercial Bank (32.0%) and Bank of Ayudhya (29.7%) respectively.
by the research team Considered awarding the year 2022, consisting of the highest score award for the year 2022 to Thanachart Military Bank, the highest development award of the year 2022 in the commercial banking category to Siam Commercial Bank, the award The highest development of the year 2022 in the category of Specialized Financial Institutions for the Small and Medium Enterprise Development Bank of Thailand and the highest development award for 5 years, 2018-2022, to Thanachart Military Bank
Sarinee remarked on the banking policy for the year 2022 that many commercial banks have improved their credit policies and the exclusion list of businesses that the bank will not provide financial support, which is clearer than last year. In particular, more emphasis is placed on businesses that have a significant impact on climate change, such as TMB Thanachart Bank. Siam Commercial Bank Bank of Ayudhya Announced not to provide financial support to coal-fired power generation and coal mining businesses. While Kasikorn Bank has announced a goal to gradually reduce loans for existing coal-fired power plants and coal mines to zero by 2030 (2030), or the Siam Commercial Bank has set an assessment. Climate change risks in the credit approval process for high-risk large-scale projects
Sarinee mentioned interesting developments from banks in which the state is a major shareholder and specialized financial institutions such as Krung Thai Bank announced as a policy that Bank business clients must not be directly or indirectly involved in lobbying activities. aimed at weakening the country’s climate change policies. Including being the only bank that announced a policy that Bank customers are required not only to comply with labor standards in accordance with labor laws. But there must be a clear management system to follow up and make corrections in accordance with labor laws. While the Government Savings Bank received a higher score in the gender equality category. Announcing a zero tolerance policy in the workplace and revealing the gender pay gap for the first time in a year.
“We create a competitive culture in sustainability policy. 5 large commercial banks compete for scores to win the rating. Transparent assessment process and continuous listening to the opinions of the bank. make the coalition It drives the Bank to improve and disclose at least 20 new policies, including the exclusion list of loans,” said Sarinee, referring to the success of the project. “Fair Finance Thailand” (Fair Finance Thailand) in the first 5 years
Sarinee said that the coalition also pushed for sustainable banking in a concrete way. Through the preparation and ongoing case study campaigns, for example, a case study of the situation and needs of retail debtors affected by COVID-19, the coalition has made policy recommendations to open up debt rehabilitation channels for debtors. small which has been included as a policy of the Bank of Thailand and the draft amendment to the Bankruptcy Act passed the first term in the House of Commons Or on the issue of responsible lending, the coalition has prepared a case study of the Luang Prabang dam project on the Mekong mainstream. which pointed out the social and environmental risks of such projects As a result, large commercial banks review their project credit screening processes. Through training on related issues such as climate strategy, taxonomy, which have been well received by financial institutions and regulators. with more than 200 participants between 2019 – 2022
Incidentally, on April 18, 2023, the alliance will organize a public forum on “Opening the 5th year of Thai Bank’s ESG scores, how to move forward to be sustainable and fair” at the meeting room @BOT, 5th floor, Learning Center. Bank of Thailand to announce the results of the 2022 Bank Assessment, along with awarding prizes to award-winning banks
There were also 2 discussions from the perspectives of those involved in both sectors: a panel discussion on “The Future of Thai Banking ESG” by representatives from the Bank of Thailand; Thanachart Bank Public Company Limited, Small and Medium Enterprise Development Bank of Thailand and The Siam Commercial Bank Public Company Limited and a discussion on the topic “The Future of ESG Thai Banks from the Perspective of Stakeholders” from member organizations of the coalition as well.
Those interested can register to attend the event at
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