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TMBThanachart Bank is committed to achieving net-zero emissions within our operations and aligning our portfolio with Thailand’s net-zero commitment, all the while expediting this crucial journey whenever feasible. Our climate approach and actions are grounded in science and feasible technologies to ensure realistic and tangible results. With this commitment, the Bank adopts the global GHG accounting and reporting standards, the Greenhouse Gas Protocol, and the Partnership for Carbon Accounting Financials (PCAF) to assess our greenhouse gas emissions and align our goals with the Paris Agreement, aiming to limit global warming to 1.5 degrees Celsius. We also adhere to the financial sector's science-based target guidance from the Science Based Targets Initiative (SBTi). By taking these actions, ttb will contribute to the global effort to achieve net zero emissions by the year 2050, consistent with the targets established by the Paris Agreement.
Climate change is undeniably one of the most urgent challenges of our generation. The bank has both the responsibility and ability to create financial solutions that accelerate this transition. Thus, we aim to become a driving force in the ongoing endeavor to transition towards a net-zero economy by financing, advising, and supporting our clients’ transformation journeys. Our commitment extends beyond compliance as it is an integral part of our corporate identity and responsibility by ensuring the Bank’s pivotal role in fostering a sustainable future.
The Bank’s climate strategy consists of three strategic directions:
The Bank recognizes that climate change is one of the most challenging environmental issues. Although the nature of the impact is not immediate, the Bank seamlessly integrates climate risk management into its company-wide risk management processes and regular business operations, governed by the existing three lines of defense structure. The climate risk assessment addresses both transition risks and physical risks. It covers a wide range of risk types including regulatory, policy and legal risks, technology risks, market risks, reputational risks, and acute and chronic physical risks. The assessment enables us to identify the areas where potential impacts could occur, along with the expected time frames (short-, medium-, and long-term) in which these impacts may materialize, and put mitigation measures in place effectively.
Climate Risk Stress Test
In 2024, the Bank conducted a pilot climate risk stress test focused on physical risk under a 3-year flooding scenario based on RCP 4.5 or SSP2 4.5 covering both credit risk and operational risk. The assessment on credit risk included both commercial and retail portfolios and was performed based on the changes in Probability of Default (PD) and Loss Given Default (LGD) associated with the impacts from flooding. The analysis revealed that the commercial portfolio was well diversified across various industries and income sources. The impact on the retail portfolio did not yield a significant impact on the Bank’s overall portfolio. In addition, the Bank assessed the impact and damage from flooding on headquarters, cash operation center, branches and ATM and found that the Bank was able to well withstand the tested scenario.
Physical Climate Risk Adaptation
The Bank conducted a comprehensive analysis of a flooding scenario and potential risks to its branches and ATMs across all regions, covering 100% of its existing operations. The assessment identified high risk locations, for which the Bank has developed detailed action plans within the 5-year time frame, for example, flood barrier preparation, relocation to higher grounds, or branch closure, etc. In addition, all properties have been insured to mitigate financial exposure from climate-related events, ensuring that any damage or loss resulting from flooding is adequately covered under existing insurance policies.
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 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 (GBP) June 2021 and International Finance Corporation (IFC) Guidelines for Blue Finance. The framework has obtained the Second Party Opinion by S&P Global Ratings.
The Bank provided sustainable financing support to clients in different segments including corporate and retail clients. In 2024, the share of sustainable finance over total lending value for corporate segment was 13.5%, comprising THB11.5 billion of green and blue loans, and THB 25 million of SME-tailored financing out of THB 86 billion limit setup. The Bank provided sustainable loans to retail clients to support the purchase of electric vehicles amounting THB 8.2 billion or 18.6% of THB 44 billion of total consumer auto finance.
Fossil Fuel Financing and Investment
TMBThanachart is committed to a global phase-out of financing and investing in coal mining, coal infrastructure, and coal-fired power plants by 2028. Since 2021, the Bank has ceased financial support, including credit lines and lending, project financing, investment (active, passive, and third-party managed investments), and underwriting fixed income product activities towards new projects and the expansion of existing projects. For companies active in various types of businesses including coal companies, the Bank ensures that the financial support will not be used in activities related to the expansion of coal mining and coal infrastructure.
The Bank does not currently finance or invest in any unconventional oil and gases including oil sand (tar sand), shale oil and gas, artic oil and gas, Ultra-Deep-Water (UDW) oil and gas, and Liquified Natural Gas (LNG) derived from unconventional extractions. Since 2022, the Bank has implemented a 5% restriction on upstream oil and gas activities within its total portfolio.
TMBThanachart Bank is committed to achieving net-zero emissions within our operations and aligning our portfolio with Thailand’s net-zero commitment, all the while expediting this crucial journey whenever feasible. Our climate approach and actions are grounded in science and feasible technologies to ensure realistic and tangible results. With this commitment, the Bank adopts the global GHG accounting and reporting standards, the Greenhouse Gas Protocol, and the Partnership for Carbon Accounting Financials (PCAF) to assess our greenhouse gas emissions and align our goals with the Paris Agreement, aiming to limit global warming to 1.5 degrees Celsius. We also adhere to the financial sector's science-based target guidance from the Science Based Targets Initiative (SBTi). By taking these actions, ttb will contribute to the global effort to achieve net zero emissions by the year 2050, consistent with the targets established by the Paris Agreement.
Climate change is undeniably one of the most urgent challenges of our generation. The bank has both the responsibility and ability to create financial solutions that accelerate this transition. Thus, we aim to become a driving force in the ongoing endeavor to transition towards a net-zero economy by financing, advising, and supporting our clients’ transformation journeys. Our commitment extends beyond compliance as it is an integral part of our corporate identity and responsibility by ensuring the Bank’s pivotal role in fostering a sustainable future.
The Bank’s climate strategy consists of three strategic directions:
The Bank recognizes that climate change is one of the most challenging environmental issues. Although the nature of the impact is not immediate, the Bank seamlessly integrates climate risk management into its company-wide risk management processes and regular business operations, governed by the existing three lines of defense structure. The climate risk assessment addresses both transition risks and physical risks. It covers a wide range of risk types including regulatory, policy and legal risks, technology risks, market risks, reputational risks, and acute and chronic physical risks. The assessment enables us to identify the areas where potential impacts could occur, along with the expected time frames (short-, medium-, and long-term) in which these impacts may materialize, and put mitigation measures in place effectively.
Climate Risk Stress Test
In 2024, the Bank conducted a pilot climate risk stress test focused on physical risk under a 3-year flooding scenario based on RCP 4.5 or SSP2 4.5 covering both credit risk and operational risk. The assessment on credit risk included both commercial and retail portfolios and was performed based on the changes in Probability of Default (PD) and Loss Given Default (LGD) associated with the impacts from flooding. The analysis revealed that the commercial portfolio was well diversified across various industries and income sources. The impact on the retail portfolio did not yield a significant impact on the Bank’s overall portfolio. In addition, the Bank assessed the impact and damage from flooding on headquarters, cash operation center, branches and ATM and found that the Bank was able to well withstand the tested scenario.
Physical Climate Risk Adaptation
The Bank conducted a comprehensive analysis of a flooding scenario and potential risks to its branches and ATMs across all regions, covering 100% of its existing operations. The assessment identified high risk locations, for which the Bank has developed detailed action plans within the 5-year time frame, for example, flood barrier preparation, relocation to higher grounds, or branch closure, etc. In addition, all properties have been insured to mitigate financial exposure from climate-related events, ensuring that any damage or loss resulting from flooding is adequately covered under existing insurance policies.
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 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 (GBP) June 2021 and International Finance Corporation (IFC) Guidelines for Blue Finance. The framework has obtained the Second Party Opinion by S&P Global Ratings.
The Bank provided sustainable financing support to clients in different segments including corporate and retail clients. In 2024, the share of sustainable finance over total lending value for corporate segment was 13.5%, comprising THB11.5 billion of green and blue loans, and THB 25 million of SME-tailored financing out of THB 86 billion limit setup. The Bank provided sustainable loans to retail clients to support the purchase of electric vehicles amounting THB 8.2 billion or 18.6% of THB 44 billion of total consumer auto finance.
Fossil Fuel Financing and Investment
TMBThanachart is committed to a global phase-out of financing and investing in coal mining, coal infrastructure, and coal-fired power plants by 2028. Since 2021, the Bank has ceased financial support, including credit lines and lending, project financing, investment (active, passive, and third-party managed investments), and underwriting fixed income product activities towards new projects and the expansion of existing projects. For companies active in various types of businesses including coal companies, the Bank ensures that the financial support will not be used in activities related to the expansion of coal mining and coal infrastructure.
The Bank does not currently finance or invest in any unconventional oil and gases including oil sand (tar sand), shale oil and gas, artic oil and gas, Ultra-Deep-Water (UDW) oil and gas, and Liquified Natural Gas (LNG) derived from unconventional extractions. Since 2022, the Bank has implemented a 5% restriction on upstream oil and gas activities within its total portfolio.
TMBThanachart Bank is committed to achieving net-zero emissions within our operations and aligning our portfolio with Thailand’s net-zero commitment, all the while expediting this crucial journey whenever feasible. Our climate approach and actions are grounded in science and feasible technologies to ensure realistic and tangible results. With this commitment, the Bank adopts the global GHG accounting and reporting standards, the Greenhouse Gas Protocol, and the Partnership for Carbon Accounting Financials (PCAF) to assess our greenhouse gas emissions and align our goals with the Paris Agreement, aiming to limit global warming to 1.5 degrees Celsius. We also adhere to the financial sector's science-based target guidance from the Science Based Targets Initiative (SBTi). By taking these actions, ttb will contribute to the global effort to achieve net zero emissions by the year 2050, consistent with the targets established by the Paris Agreement.
Climate change is undeniably one of the most urgent challenges of our generation. The bank has both the responsibility and ability to create financial solutions that accelerate this transition. Thus, we aim to become a driving force in the ongoing endeavor to transition towards a net-zero economy by financing, advising, and supporting our clients’ transformation journeys. Our commitment extends beyond compliance as it is an integral part of our corporate identity and responsibility by ensuring the Bank’s pivotal role in fostering a sustainable future.
The Bank’s climate strategy consists of three strategic directions:
The Bank recognizes that climate change is one of the most challenging environmental issues. Although the nature of the impact is not immediate, the Bank seamlessly integrates climate risk management into its company-wide risk management processes and regular business operations, governed by the existing three lines of defense structure. The climate risk assessment addresses both transition risks and physical risks. It covers a wide range of risk types including regulatory, policy and legal risks, technology risks, market risks, reputational risks, and acute and chronic physical risks. The assessment enables us to identify the areas where potential impacts could occur, along with the expected time frames (short-, medium-, and long-term) in which these impacts may materialize, and put mitigation measures in place effectively.
Climate Risk Stress Test
In 2024, the Bank conducted a pilot climate risk stress test focused on physical risk under a 3-year flooding scenario based on RCP 4.5 or SSP2 4.5 covering both credit risk and operational risk. The assessment on credit risk included both commercial and retail portfolios and was performed based on the changes in Probability of Default (PD) and Loss Given Default (LGD) associated with the impacts from flooding. The analysis revealed that the commercial portfolio was well diversified across various industries and income sources. The impact on the retail portfolio did not yield a significant impact on the Bank’s overall portfolio. In addition, the Bank assessed the impact and damage from flooding on headquarters, cash operation center, branches and ATM and found that the Bank was able to well withstand the tested scenario.
Physical Climate Risk Adaptation
The Bank conducted a comprehensive analysis of a flooding scenario and potential risks to its branches and ATMs across all regions, covering 100% of its existing operations. The assessment identified high risk locations, for which the Bank has developed detailed action plans within the 5-year time frame, for example, flood barrier preparation, relocation to higher grounds, or branch closure, etc. In addition, all properties have been insured to mitigate financial exposure from climate-related events, ensuring that any damage or loss resulting from flooding is adequately covered under existing insurance policies.
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 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 (GBP) June 2021 and International Finance Corporation (IFC) Guidelines for Blue Finance. The framework has obtained the Second Party Opinion by S&P Global Ratings.
The Bank provided sustainable financing support to clients in different segments including corporate and retail clients. In 2024, the share of sustainable finance over total lending value for corporate segment was 13.5%, comprising THB11.5 billion of green and blue loans, and THB 25 million of SME-tailored financing out of THB 86 billion limit setup. The Bank provided sustainable loans to retail clients to support the purchase of electric vehicles amounting THB 8.2 billion or 18.6% of THB 44 billion of total consumer auto finance.
Fossil Fuel Financing and Investment
TMBThanachart is committed to a global phase-out of financing and investing in coal mining, coal infrastructure, and coal-fired power plants by 2028. Since 2021, the Bank has ceased financial support, including credit lines and lending, project financing, investment (active, passive, and third-party managed investments), and underwriting fixed income product activities towards new projects and the expansion of existing projects. For companies active in various types of businesses including coal companies, the Bank ensures that the financial support will not be used in activities related to the expansion of coal mining and coal infrastructure.
The Bank does not currently finance or invest in any unconventional oil and gases including oil sand (tar sand), shale oil and gas, artic oil and gas, Ultra-Deep-Water (UDW) oil and gas, and Liquified Natural Gas (LNG) derived from unconventional extractions. Since 2022, the Bank has implemented a 5% restriction on upstream oil and gas activities within its total portfolio.
