Thailand’s KBank has issued U$546m in sustainable financing

It shared plans to replace its cards with EVs or shift to using biofuel.

Thailand’s KASIKORNBANK (KBank) has issued over US$546m (THB19.4b) in sustainable financing and investment.

In the announcement, KBank CEO Kattiya Indaravijaya highlighted the need to help businesses embrace sustainability measures, especially with Thailand facing environment-related challenges in the coming years.

“The El Nino phenomenon in 2023 is expected to cause over 48 billion baht in damage to Thai farmers. This is an echo of the ongoing environmental crisis that is impacting the economy and people’s lives,” Indaravijaya said. 

Authorities globally are also adapting new guidelines which banks and businesses must adhere to. In Thailand, authorities have introduced a taxonomy for categorizing environmentally friendly economic activities. The European Union's CBAM (Carbon Border Adjustment Mechanism) will also require businesses to report their greenhouse gas emissions for goods imported into the EU starting in October 2023. 

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For its part, KBank has incorporated 175 electric vehicles in its fleet, with the remainder to be replaced with EVs on or before 2030. Remaining fuel consumption will also be switched to biofuel.

The bank has also installed solar panels in seven main buildings and several branch offices. KBank outlined plans to equip solar rooftops in all its 278 branches over the next two years.

“Green materials have been used in every aspect, while work processes and service provision have been digitized to a greater extent. Standards have been adopted for large-scale activities of KBank to be organized as carbon-neutral events,” the bank said in a press release.

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KBank added that it aims to reach its “Zero-Waste-to-Landfull” goal for its four main buildings within 2023. Six types of waste bins have been installed for six different types of garbage, and KBank shared that each comes with a specific end-to-end waste management system.

(US$1 = THB35.52)