Business Sustainability Development

Sustainability Policy and Goal

With the vision of “KTC is a membership company in payment and retail lending business with emphasis on being a trusted organization with sustainable growth.”, 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. 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 UN Sustainable Development Goals (SDGs) as follows:

Sustainable Development Management Structure

Stakeholder Impact Management in Business Value Chain

In 2021, The Company reviewed the key sustainability issues in industrial, national, and international levels (issue universe). The survey with 10 stakeholder groups, accounted for 111 persons, was conducted to conclude the Sustainability Materiality Matrix and 5-year sustainability strategy (2022-2026). This process has been subject to annual review since then to determine the reporting framework. In 2023, the Company reviewed all 16 Materiality Topics in conjunction with analyzing the positive and negative impacts at both the Outside-in and Inside-out levels. Additionally, preliminary information regarding the opportunities and risks of each key Materiality Topic was disclosed under each respective category, following the principles of Double Materiality. Upon review, significant changes were not identified. Furthermore, the Company considered extending the long-term sustainability strategy by 5 years, from ending in 2026 to ending in the year 2028, in line with the Sustainable Development Framework.

Key Sustainability Issues

Sustainable Development by Spirit Framework

Sustainable development goals and performance

Remark:
(1) The target of absenteeism as a result of work-related and non work-related injuries
(2) The reduction of electricity energy consumption, water consumption and greenhouse gas emissions were compared to the base year 2022.
(3) Recycling waste is considered only underqualified plastic credit card caused by the production process and expiry
(4) Greenhouse gas emissions included the scope 1-3 of greenhouse gas protocol.

Sustainability Management

Economic Dimension
Economic strategy: 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 technologies and digital innovations. This includes opportunities to integrate sustainability into the development of products and services that consider societal and environmental factors, alongside maintaining safety and privacy as well as the presentation of various kinds of privileges in order to create great customer satisfaction and experience. Moreover, KTC also consistently helped debtors in accordance with the relief measures as mandated by the Bank of Thailand on the basis of responsible lending while maintaining a balanced credit portfolio with decent quality.

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

KTC has developed a diverse range of financial products and services to create opportunities for widespread and equitable access to financial services for people in society. Consequently, It provides customers with options to choose suitable products and services from the Company that meet their needs, such as KTC P BERM Car for Cash, education loan with full equitable opportunities to access financial services via onsite and online channels. Furthermore, KTC has actively participated in promoting financial literacy to support the development of financial discipline. This includes enhancing the knowledge and skills of employees within the organization to adapt to various changes effectively. This enables them to develop high-quality products with clear, comprehensive, and accurate communication, empowering customers to make informed decisions and elevate the quality of life for Thai people.

Environmental Dimension
Environmental strategy: 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 technologies and digital 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; for instance, encouraging employees to collectively conserve electricity, participating 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

• Member of the S&P Global’s Sustainability Yearbook 2024
• Member of the FTSE4Good Index Series since 2021
• The MSCI ESG Ratings of BBB
• The “Champion Security Award 2023, Best in Class in Risk Management” from Visa International
• The Technical Solution Joint Innovation Awards at the Huawei Connect 2023 event
• The SET ESG Ratings of AAA and the SETESG index for 4 consecutive years since 2020 – 2023
• The Outstanding CEO and Outstanding Company Performance Awards in the Business Excellence category for the year 2023 with market capitalization exceeding Baht 100 billion
• 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
• The “Thailand’s Top Corporate Brand Value 2023” in the category of capital and securities business for the year 2023
• “Excellent” rating in Corporate Governance Report of Thai Listed Companies for 8 consecutive years since 2016
• The member of ESG100 for 8 consecutive years since 2016 by Thaipat Institute
• Member of the Thai Private Sector Collective Action against Corruption (CAC) since 2016
• 100% rating from the 2023 Annual General Shareholders’ Meeting Quality survey

Please find further details on important sustainability issues and practices from the Sustainability Report 2023, which is a separate document on the Company’s website

Sustainability Reporting Boundaries

The reporting boundary covers the sustainable operating results of the reporting company and subsidiary entities that the company can exert control. Thus, the reporting boundary as the percentage of revenues is approximately 98.7%.

(Please refer the Report and Consoidated Financial Statement as of 31 December 2023 at https://www.ktc.co.th/pub/media/sites/cs/assets/ir/financialinformation/document/02-KTC-EN-YE2023-Audited.pdf)

Sustainability Reporting Assurance

As a subsidiary within Krungthai Bank Public Company Limited's financial business group, the environmental and social dimensions of Krungthai Card Public Company Limited (“KTC”)'s 2023 sustainability report received independent assurance as part of the bank's assessment, in accordance with AAA1000AS v3 (2018) standards.

(Please refer to the additional information in the Sustainability Report 2023 of Krungthai Bank Public Company Limited under the topics 'Sustainability Performance' and 'Assurance Statement' on the website https://krungthai.com/en/about-ktb/sustainability/sustainability-reports)