Government Savings Bank" moves forward with NET ZERO in 2050, reducing greenhouse gas emissions by 1.72 million tons, clearly announcing a ban on granting new loans to coal-fired power plants, promoting a strict plan to "abstain - avoid" financial support for businesses that are not friendly to environment Ready to compete in the green loan market
Mr. Withai Rattanakorn, Director of the Government Savings Bank, revealed that a meeting of the Government Savings Bank Board of Directors approved a plan to reduce greenhouse gas emissions to net zero or the Net Zero Emissions Roadmap by 2050, which can reduce greenhouse gas emissions by approximately 1.72 million tons, along with setting up a reduction plan. greenhouse gas emissions by more than 50% by 2030. Take action both internally to reduce oil use and use solar energy. Solar Rooftop Promoting the planting of 50,000 rai of forests to continuously absorb carbon. and help develop the community, create careers, and increase income for the surrounding community. and use customer transition policies with special interest loans for customers and investments
More than 97% of greenhouse gas emissions in the Government Savings Bank's business operations come from lending to customers and investments (Scope 3), which are collected and calculated using standard methods. International Science-Based Target Initiative, going forward The Bank has set a plan to refrain from granting loans to coal and coal related businesses (No Coal and Coal Related Business) and has started using ESG Score to evaluate the ESG qualities of customers with credit lines of 500 million baht or more. The results of the ESG Score will be taken into consideration for loan approval. The bank is ready to offer interest discounts and/or approve special credit limit increases. In order to promote and support good and environmentally friendly businesses. Government Savings Bank is considered to be the first bank in the country to initiate the use of ESG Score in considering granting loans with special conditions.
The bank has divided businesses that will support loans and investments into 3 groups:
1. Exclusion List or businesses that do not support Because it is a business that creates a high impact on the environment. that is, they will not grant new loans to coal-fired power plant
2. Negative List or businesses that require special consideration. By avoiding lending to businesses with very low ESG Scores. The bank will engage in positive engagement with customers to help. and provide advice on improving sustainability operations Including climate change. This will help promote sustainable development of the entire system.
3. Positive List or businesses that provide special support Through specifying benefits for environmentally friendly businesses, such as businesses in industries that promote BCG, EV and supply chain businesses, or companies with high ESG Score scores, etc.
“Overall, Government Savings Bank currently has a total loan portfolio of 2.2 trillion baht and has 1 large coal customer according to the said plan. It will support both old and new customers to transition to reducing greenhouse gas emissions. Starting in 2030, the ESG loan portfolio will have a proportion of clean energy power plants. Installation of solar rooftops, electric vehicles (EVs) and supply chains 35 percent, and promoting credit to listed company customers (companies) must have a plan to reduce greenhouse gas emissions, with a proportion of customers This is 40 percent,” Mr. Withai said.
Mr. Withai said that Government Savings Bank has now gradually installed solar rooftops. Whole head office and branch offices throughout the country, it is expected that by 2025 there will be 900 branches. In addition, the use of corporate cars will be changed to electric cars and the creation of charging points as well. Within Bangkok, there will be a 100% change within the next 3 years and in other provinces within 5 years.
Mr. Withai also said that the policy responds to the country's plan to reach Net Zero by 2065, which he believes the new government will support this plan. At the same time to reduce the risk of inappropriate lending. The bank has a plan to operate according to the clean energy lending framework. , Customer-focused loans Companies with ESG business plans ,Infrastructure customers by these groups It will be in the form of a loan contract with many financial institutions as joint creditors (Syndicated loan). The plan will lend to these large customers. It will bring profits. Going to be a part of helping retail customers To continue to have low costs.
Source: Thai News Agency