The Bank acknowledges of the risks and impacts of climate change and that a transition is required for the society to shift towards a low-carbon economy. As a financial institution, the Bank can influence and help transform businesses to be more sustainable. Aiming to make finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. The Bank plans to apply TCFD framework by 2024.
The Bank works closely with Bank of Thailand (BOT) and Thai Bankers’ Association (TBA) to raise the standards for sustainable financing including climate actions for banks in Thailand e.g., defining taxonomy, etc. More than simply a financial facilitator and service provider, the bank plays a proactive role in supporting clients who are looking to develop sustainable business models. These models create benefits both for clients and society without compromising the bank’s bottom line. The bank offers ESG lending to customers in the form of green loans that promote financing to solar energy, biomass energy and waste management projects, as well as sustainability-linked loans with interest rates tied to the borrower’s sustainability performance, which is measured based on social or environmental criteria. Predetermined sustainability-related goals are set and companies that achieve these goals earn benefits such as reduced interest rates.
As a Thai financial institution and a private sector, ttb is the first Thai commercial Bank to issue green and blue bonds; the first green bond of USD 60 million issued in 2018, the second green bond of USD 100 million issued in 2022, and the first blue bond of USD 50 million issued in 2022. TTB’s move towards pioneering Green Bond in 2018 played a catalyzing role in developing the nascent green bond market in the country. Through green bonds, we focus on financing projects renewable energy and EVs and its ecosystem - a relative new asset class in the country, contributing towards achieving country’s Nationally Determined Contributions (NDCs) and one of Thailand’s priorities to establish a vibrant and leading EV industry in line with the government’s roadmap. For blue bond, the financing is focused on critical areas such as marine plastic recycling, water conservation, and wastewater treatment projects, which are key to the country's economy. With these innovative financial instruments, the bank establishes new asset classes in Thailand's debt market and leverages more financing/investments in the blue and green economy to support Thailand's sustainable development and address the country's key climate challenges. To ensure transparency and creditability of our bonds, TMBThanachart Green and Blue Bond Framework is established in alignment with the internationally accepted International Capital Market Association (ICMA)’s Green Bond Principles. The framework has obtained the Second Party Opinion by S&P Global Ratings.