Sustainability Development

Sustainability Development: SD

Under the Company’s vision “To be a membership company through creating solid foundation for a sustainable growth and becoming the Default of Retail Lending Platform and Payment Platform”, KTC introduced sustainability concept of economic, social, and environmental aspects as part of organizational development to be Agile Entity through strategic planning, organizational structuring, facilitating systems and information technology, as well as work processing. By doing so allows personnel to create quality work and deliver value through products, services and platforms, making KTC the default brand of members. Agile Entity also strengthens the Company amidst rising challenges in order to grow with and reward stakeholders sustainably.

The Company’s board of directors plays a crucial role in making decisions for the best interest of the Company and the stakeholders. Audit Environmental Social and Governance Committee was assigned to oversee sustainability operations by approving visions, missions, and operational framework. 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 maintain sustainable operations. Everyone in the organization is involved in pushing and driving sustainable development to best benefit all interested parties.

1. Sustainability Key Issues and Operating Framework

In 2019, the Company considered relevant sustainability issues at the industrial, national, and international levels by inquiring opinions from executives and CEO, as well as surveying from all 10 groups of stakeholder-shareholders, customers, creditors, business partners, alliances, competitors, society and environment, Board of Directors, employees, and government sector. Such opinions were applied to prioritize sustainability issues important for business operation and stakeholders. Materiality Matrix comprised of 16 topics was conducted to specify 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 focuses on conducting business with transparency, fairness, good corporate governance, and appropriate risk management by working jointly with partners to develop and deliver products, services, and platforms that are unique and versatile. KTC also develops digital technology that is safe, fast, and reliable. In order to remain the default brand of customers, KTC never ceased to impress by continuously providing customers and members with special privileges, satisfied services, and memorable experiences. In 2019, total receivables portfolio and credit card spending increased. The growth rate of credit card business receivables soared the highest in the past 3 years. The Company made a net profit of Baht 5,524 million, also a record high for the 7th consecutive year.

1.2 Social Dimension

KTC gives importance to personnel development through “continuous learning with consistency and attention” as a foundation for quality personnel to create values that truly meet the needs of interested parties. In addition, KTC honors and respects diversity and equality on the basis of human rights. This year, the Company received licenses from the Bank of Thailand to expand the service market, covering personal loans under supervision with car title loan. KTC jointly with Krung Thai Bank established subsidiaries under KTB’s financial business group to conduct provincial retail loans under supervision (Pico Finance) and small business loans under supervision (Nano Finance), which aimed to expand the retail loan market for individuals who desire access to financial services, including those who have never had access to the formal ones before. This resulted in more opportunities for customers to use approved loans to better their quality of life and to alleviate problems from informal loans. In addition to enhancing financial accessibility, customers also receive financial advices to promote discipline and planning so as to not cause unnecessary household debts, which in turn create sustainable financial and social immunity.

1.3 Environmental Dimension

KTC encourages employees to be aware and be involved in caring for the environment by starting with the changes in their daily activities such as reducing plastic usage and energy consumption. In addition, KTC has campaigned and invited employees and stakeholders to help replace paper usage with electronic communication such as E-mail, social media, QR code, and E-Statement. The Company also participated in the Care the Bear: Change the Climate Change by Eco Event, organized by the Stock Exchange of Thailand, to help fight global warming by reducing greenhouse gas emission from hosting activities or events.

2. Awards and Prizes

From the aforementioned sustainability operations in 2019, KTC received various prestigious awards and prizes as follows:

• Best CEO Awards, Outstanding Company Performance Awards, and first time on the list of Thailand Sustainability Investment (THSI) at the SET Awards
• KTC is the first and only financial institution in Thailand to receive the Information Security Management System (ISO/IEC 27001:2013) Certificate for its overall organization.
• Received 5-star in the Corporate Governance Report of Thai Listed Companies 2019 survey for 4 consecutive years.
• KTC was one of the registered companies selected for ESG 100 (since 2016).
• Renewed membership for Thailand’s Private Sector Collective Action Coalition Against Corruption to 2022.
• Received 100% rating from the Annual General Meeting Quality survey.

Please find further details on important sustainability issues and practices from the Sustainability Report 2019, which is a separate document on the Company’s website