Business Sustainability Development

Sustainability policy and goal

With the vision of “KTC is a membership company in payment and retail lending business with sustainability as key element”, and the determination to “Provide better financial products and services to enhance quality of life for all Thais”. KTC adopted the concept of sustainability or the concept of integrating environmental, social and governance (ESG) into its responsible business operation while pursuing continuous organizational development under the concept of Sustainable Development by Spirit. The aim is to satisfy the needs of stakeholders and play a role in strengthening financial businesses and propelling sustainable growth of Thai economy in line with the 10 UN Sustainable Development Goals (SDGs) as follows:

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:

Sustainable Development Management Structure

11.3 Stakeholder Impact Management in Business Value Chain

In 2021, the Company conducted management review of business value chain and stakeholder groups and undertook a joint review on key sustainability issues with 10 stakeholder groups. Subsequently, review results were used as inputs in the formulation of sustainable development by spirit framework and 5-year sustainability strategy (2022-2026). The aim is to enhance sustainability implementation to continually support corporate vision and UN Sustainable Development Goals (SDGs).

Materiality topics

Sustainable Development by Spirit Framework

Sustainability Management

Economic dimension: Better product and service
Key flagship initiative: Digital transition for customers and employees

KTC conducted business operation in a transparent and fair manner in accordance with the principles of good corporate governance, respect for human rights, appropriate risk, and cost management by applying digital technologies and innovations in product and service development, establishment of security and privacy, and presentation of various kinds of privileges in order to create great customer satisfaction and experience. Moreover, KTC also consistently helped debtors affected by COVID-19 situation through the relief measures as mandated by the Bank of Thailand based on responsible lending while maintaining a balanced credit portfolio with decent quality.

Social dimension: Better quality of life
Key flagship initiative: Financial access and education for all Thais

KTC developed various financial products and services for customers with alternatives to choose only products and services suited to their needs, such as KTC P BERM, vehicle title loan, education loan, and loan with the purpose of undertaking business with full and equitable opportunities to access financial services via onsite and online channels. Moreover, KTC played a role in promoting financial literacy to support and improve the quality of life of Thai people through various programs and activities while developing and equipping the organization’s personnel with the ability to describe product features and convey relevant messages distinctly, clearly completely and accurately. The aim is to enable service users to make a decision to choose the right financial product and to equip KTC staff with crucial knowledge and skills to cope with ongoing changes.

Environmental dimension: Better Climate

KTC conducted business operation while caring for environment and acting in environmentally friendly ways by enhancing its products and services and supporting its operation with digital technologies and innovations and efficient resource management. In addition, KTC also encouraged employees and customers to use electronic channels more frequently instead of using paper, adopted environmentally friendly practices, created environmental awareness and programs, and participated in the Stock Exchange of Thailand’s Care the Bear: Change the Climate Change by Eco Event program in order to reduce environmental impacts and mitigate global warming by reducing greenhouse gases.

Honourable Awards

• Upgraded rating of AA from A in the MSCI ESG Ratings
• Member of the FTSE4Good Index Series since 2021
• Member of the S&P Global’s Sustainability Yearbook 2022
• The following certificates for its overall organization: The Information Security Management System ISO/IEC 27001:2013, and the Privacy Information Management System ISO/IEC 27701:2019
• Member of the list of Thailand Sustainability Investment (THSI) for 3 consecutive years since 2019 and the SETTHSI Index for 2 consecutive years since 2020
• Received “5-star” in the Corporate Governance Report of Thai Listed Companies 2021 survey since 2016
• Member of ESG100 with outstanding Environmental, Social and Governance Performance since 2016
• Member of Thai Private Sector Collective Action Against Corruption since 2016
• From the Annual General Meeting Quality survey (AGM), the Company scored 100 points.

Please find further details on important sustainability issues and practices from the Sustainability Report 2021, which is a separate document on the Company’s website