Sustainability Development

Sustainability Development: SD

Under the Company’s vision “KTC is a membership company in payment and retail lending business with sustainability as key element.”, KTC introduced sustainability concept of economic, social, and environmental aspects as part of organizational development to become an AGILE ENTITY, to be prepared to meet market competition and changes within the business landscape through implementing Strategy, Structure, System and Technology that enable our people to deliver high quality of works. We strive to create balance in life by integrating sustainable development approaches in our process under the spirit “Courage to Choose What is Right”. We aim to have a board and deep understanding of economic, social and environmental dimensions to deliver value through products, services and platforms for KTC to be a brand that is in the heart of our members, ensuring that our stakeholders will grow together sustainably.

The board of directors plays a crucial role in making decisions for the best interest of the Company and the stakeholders, by approving visions, missions, and operational framework including monitoring and supervising to ensure the successful implementation of the framework set forth. The Audit, Environmental, Social Responsibilities and Corporate Governance Committee was assigned to oversee sustainability operations, covering economic, social, and environmental aspects. The Company’s CEO is the leader who steers the Company with determination. Furthermore, senior executives partake since the beginning in order to understand the importance of sustainability in business operation, as well as to provide support through the sustainability working teams, who were selected representatives from each line of work. These representatives jointly studied both national and international sustainability framework, exchanged views among departments, and emphasized on internal communication-including to educate and give examples of sustainability guidelines, to promote awareness and understanding for personnel not only to put into practice but to also implement and carry out a 360-degree sustainability operations. Everyone in the organization is involved in driving sustainability development to best benefit all interested parties.

1. Sustainability Key Issues and Operating Framework

The Company considered relevant sustainability issues at the industry, national, and international levels. These issues were presented for their views from CEO and executives to conclude 16 sustainability material topics. The Company undertook surveys, in 2019, targeting all 10 stakeholder groups for their views: shareholders, customers, creditors, business partners, business alliances, competitors, society and environment, Board of Directors and management, employees, and government sectors. Such opinions were applied to prioritize 16 sustainability topics important for business operation and stakeholders in the Materiality Matrix, to specify the 3 years action plans and the framework for sustainability operation that is consistent and support United Nation’s Sustainability Development Goals (SDGs). The 10 goals are:

1.1 Economic Dimension

KTC conducts businesses following good corporate governance principles and appropriate risk management. The Company develops varieties of products and services, and enhances digital technology as well as its safety to meet customer’s changing lifestyles. KTC had broadcasted 30 video clips under the concept “#CreditCardIsFor…” to convey the caring message that under any circumstances, KTC is ready to stand alongside customers by providing products, services, and benefits to improve convenience, ease burden, as well as offer good values. KTC has also been in full support of the Bank of Thailand’s measures to continuously assist customers affected by the COVID-19 outbreak by adopting responsible lending concept, and preserving good quality of receivables portfolio

1.2 Social Dimension

KTC has modified its business model by placing significance in car title loan and motorcycle title loan “KTC P Berm”, to expand market for retail lending. In addition, KTC emphasizes in increasing opportunities for customers in financial access, along with providing them with financial literacy to support their careers, earnings and financial disciplines, with the anticipation that these would create solid foundation for social stability in the long run. Besides, KTC has assisted customers affected by the COVID-19 pandemic in the form of double value “added benefits”, whether it is the delivery of medical support to further aid the society or the collaboration with the Wattana District Office to hand over “Happy Bag” to Wattana communities. Furthermore, in order to reduce broader impacts on both individual and societal level, KTC not only has no policy to lay off employees but also gives importance to employee health and wellbeing as well as respect for human rights and personnel development. KTC also integrates digital technology with working process to increase employee potentials so that they can effectively cope with any situations, hence strengthening the organization which in turn will further influence social sustainability.

1.3 Environmental Dimension

Even though KTC’s business operations do not materially impact the environment, the Company determines to efficiently develop products and services whilst conducting an environmentally friendly business. By enhancing “KTC Mobile” application with functions that meet users’ demands, members can set their own codes for ATM PIN without requiring ATM PIN Mailer, thus reducing paper usage. Same can also be said for member’s cooperation with their requests of e-statement which have been continuingly increased. Additionally, KTC encourages employees to incorporate in their daily operations, the ideas of environmental responsibility from the campaign “Every Day Say No to Plastic” to reduce single plastic use, and from the campaign “Sort Before Throw out” to sort out garbage from beginning to end to gain maximum benefits.

2. Honorable Awards

• KTC is also the first and only financial institution in Thailand to receive international standard certificates throughout the entire organization for ISO/IEC 27701:2019 Privacy Information Management System and in a 2-year streak for ISO/IEC 27001:2013 Information Security Management System.
• KTC received the “Thailand’s Top Corporate Brand” award for 4 consecutive years as it possessed highest brand value in Financial Sector in 2020 amounted to Baht 57,060 million. 
• KTC was selected to be on the list of Thailand Sustainability Investment (THSI) for 2 consecutive years. 
• KTC received “5-star” in the Corporate Governance Report of Thai Listed Companies 2020 survey for 5 consecutive years. 
• KTC was one of the registered companies with outstanding Environmental, Social and Governance Performance and selected for ESG 100 (since 2016). 
• KTC’s membership of the Thai Private Sector Collective Action Coalition against Corruption (CAC) has been renewed and extended to 2022 
• KTC received the 2019 “ASEAN CG Scorecard” award under ASEAN Asset Class PLCs category, with an average score of 98. 
• From the Annual General Meeting Quality survey (AGM), the Company scored 98 points. 
•  KTC received a rating of A in the MSCI ESG Ratings assessment 

Please find further details on important sustainability issues and practices from the Sustainability Report 2020, which is a separate document on the Company’s website