Sustainability Definition

At KTC, sustainability is deeply embedded in the Company’s business operations and integrated across every stage of the value chain. KTC is committed to aligning strategic initiatives with stakeholders’ interests while adhering to global sustainability standards, including the United Nations Sustainable Development Goals (UN SDGs). This commitment underscores the Company’s dedication to fostering long-term value creation, addressing key environmental, social, and governance challenges, and driving sustainable growth that benefits all stakeholders.

Sustainable Development Goals (SDGs)

1

NO POVERTY

Target 1.4

Provide equal rights to economic resources and access financial services

KTC P Berm
Providing services through online channels such as KTC Mobile, P BERM Mobile and QR PAY

3

GOOD HEALTHAND WELL-BEING

Target 3.d, 3.8, 3.9

Reduce health risk provide access to healthcare

Health-promoting campaigns
Employee welfare
Occupational health and safety

4

QUALITY EDUCATION

Target 4.3, 4.4, 4.5, 4.7

Provide inclusive and equitable quality education and learning opportunities

Education loan
Financial Literacy
Human capital development

5

GENDER EQUALITY

Target 5.1, 5.5, 5.a

Promote gender equality without discrimination

KTC's human rights

7

AFFORDABLE AND CLEAN ENERGY

Target 7.1

Ensure access to affordable, reliable, sustainable and clean energy

Solar Rooftop Installment 0%
Privileges for reserving electric cars and Wallbox

8

DECENT WORK AND ECONOMIC GROWTH

Target 8.3, 8.5, 8.7, 8.8

Support productive activities, decent job creation and promote safe and secure working environments

Human Resource Management
Occupational health and safety
Supply chain management

9

INDUSTRY, INNOVATION AND INFRASTRUCTURE

Target 9.3

Support the development of innovative financial products to facilitate access to financial services.

KTC P Berm
Providing services through online channels such as KTC Mobile, KTC Mobile and QR PAY

10

REDUCED INEQUALITIES

Target 10.2, 10.

Empower equal opportunities and inclusion

KTC's human rights
KTC P Berm
Providing services through online channels such as KTC Mobile, KTC Mobile and QR PAY

12

RESPONSIBLE CONSUMPTION AND PRODUCTION

Target 12.5

Ensure sustainable consumption and production, reduce waste generation

ESG product and services
Environmental management

13

CLIMATE ACTION

Target 13.3

Take action to mitigate climate change and impacts

Environmental management

16

PEACE, JUSTICE AND STRONG INSTITUTIONS

Target 16.5, 16.6, 16.7

Develop effective, accountable and transparent institutions at all levels

Corporate Governance
Internal Control
Risk Management

Sustainability Governance

The Company places great importance on conducting its business sustainably by adhering to the principles of good corporate governance while creating balanced economic, social, and environmental value. To ensure that sustainability efforts are driven effectively, transparent, and in a verifiable manner, the Company has established a clear governance structure. The Board of Directors has delegated oversight responsibilities to the Audit, Corporate Governance and Sustainability Committee to supervise and provide recommendations on the Company’s sustainability development. The Committee is responsible for setting directions and frameworks, monitoring performance, and reviewing and endorsing sustainability disclosures in the Sustainability Report. This ensures that the Company’s operations are aligned with its vision, stakeholder expectations, and relevant international standards.

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Stakeholder Engagement

The Company places importance on the perspectives, insights, and expectations of all stakeholder groups, recognizing that sustainable business operations require collaboration, trust, and active engagement from stakeholders throughout the value chain.

Accordingly, the Company has established a systematic stakeholder engagement process by identifying 10 key stakeholder groups, namely shareholders, customers, the Board of Directors and management, employees, creditors, suppliers, business partners, competitors, government sectors and regulators, as well as society and the environment. The Company analyzes material issues and determines appropriate communication and engagement approaches tailored to each stakeholder group through various channels, including meetings, surveys, in-depth interviews, grievance and complaint mechanisms, as well as relationship-building activities in various forms.

Information and feedback obtained from stakeholders are analyzed, assessed, and integrated into the Company’s strategic planning, operational plans, and business processes. This ensures that material issues are duly considered, addressed, and responded to in an appropriate and transparent manner, aligned with the expectations of each group, thereby fostering sustainable long-term shared value creation.

THE DETAILS OF STAKEHOLDER ENGAGEMENT DETAILS ARE AS FOLLOWS:

Identification of Sustainability Materiality Topics

The Company places strong emphasis on conducting business sustainably while creating long-term value for all stakeholder groups. It recognizes both the risks and opportunities arising from its operations, which may generate impacts on the environment and society (Impact Materiality), as well as sustainability issues that may affect the Company’s performance, financial position, and value creation capacity (Financial Materiality). The Company conducted a Sustainability Materiality Assessment based on the principle in alignment with the Corporate Sustainability Reporting Directive (CSRD) of the European Union and the European Sustainability Reporting Standards (ESRS) and the Global Reporting Initiative (GRI) Standards. The Company reviews and reassesses its material sustainability topics annually to ensure that the reported issues remain comprehensive, aligned with the business context, and reflective of the Company’s actual impact on its operations, as well as on the environment and society.

Materiality Assessment Process

1. Analysis of Organizational Context and Sustainability Issues

Review the overall organizational context across the entire business value chain, aligning it with the Company’s vision, mission, and strategies, as well as the expectations and relationships with all stakeholder groups.
Conduct peer reviews by studying and benchmarking the Company’s performance against others in the same industry, along with analyzing sustainability standards and trends at both national and international levels, in order to identify the Company’s material sustainability issues.

2. Identification of Impacts

Identify actual and potential impacts, both positive and negative on the business, environment, and society. This analysis is based on feedback gathered through surveys of both internal and external stakeholders.

3. Assessment and Prioritization

Apply the Company’s enterprise risk management framework to assess the likelihood of occurrence and the severity of impact for each material issue. Develop a Materiality Matrix to prioritize material issues according to the level of impact on the business, environment, and society.

4. Validation of Assessment Results

The materiality assessment results are reviewed and endorsed by the Audit, Corporate Governance and Sustainability Committee before being presented to the Board of Directors for acknowledgement and disclosure in the Sustainability Report and on the Company website.
The materiality assessment process is verified by a third-party assurance provider.

Sustainability Materiality Issues 2025

The Company has identified and prioritized 14 sustainability materiality issues, categorized into three levels of importance:

High Material Topics

Issues with a high level of impact on both Impact Materiality and Financial Materiality. The Company prioritizes these issues at a strategic level by establishing clear targets, action plans, and management measures, along with comprehensive and continuous performance monitoring and reporting.

Moderate Material Topics

Issues with a moderate level of impact. The Company has defined appropriate targets and management approaches aligned with its business context, and monitors and reports performance as appropriate.

Monitoring Topics

Issues that are continuously monitored to ensure that operations and practices remain aligned with relevant standards, laws, and regulations, and to enable the Company to adapt effectively to future changes.

Sustainability Materiality Issues

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Sustainability Strategy

The Company has integrated sustainability principles across economic, social, and environmental dimensions into its business operations, driving responsible, fair, and transparent practices. The Company focuses on developing digital innovation and technology to create products and services that fulfill stakeholders’ needs and to create long-term value.

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