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)

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

GOOD HRALTH AND WELL-BRING

Target 3.d, 3.8, 3.9

Reduce health risk; provide access to healthcare

Health-promoting campaigns
Employee welfare
Occupational health and safety

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

GENDER EQUALITY

Target 5.1, 5.5, 5.a

Promote gender equality without discrimination

KTC's human rights

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

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

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

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

RESPONSIBLE CONSUMPTION AND PRODUCTION

Target 12.5

Ensure sustainable consumption and production, reduce waste generation

ESG product and services
Environmental management

CLIMATE ACTION

Target 13.3

Take action to mitigate climate change and impacts

Environmental management

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

Sustainable Development Structure

Board of Directors

Making decisions for the best interests of the Company and the stakeholders by approving the operating framework, policies, missions, and vision
Delegating, overseeing, and monitoring corporate sustainability performances
Appointing the Audit, Environmental, Social Responsibilities, and Corporate Governance Committee to oversee sustainability development implementation

Audit, Corporate Governance, and Sustainability Committee

Supervising and offering recommendations on corporate sustainability development, acknowledging sustainability performances on a bi-annual basis, and endorsing the sustainability report

President & Chief Executive Officer

Steering the organization towards sustainable growth by integrating sustainability commitments into strategic directions and business operations
Overseeing and ensuring that sustainability metrics are achieved

Management & Sustainability Committee

Establishes sustainability policies and operational guidelines that cover Environmental, Social, and Governance (ESG) aspects and integrates them into the core business strategy
Reviews and approves new products and strategies, taking into consideration various risks and ESG impacts
Appoints working groups or sub-committees to study sustainability issues and drive concrete implementation

Management

Embedding sustainability development principles throughout the organization
Guiding the Sustainability Working Group, and ensuring integration of efforts to manage sustainability-related impacts and achieve sustainability metrics that were set forth by the Company

Sustainability Working Group

The Sustainability Working Group comprises representatives from all departments to foster collaborative efforts in driving sustainability initiatives
Ensuring effective implementation, operation, and monitoring of sustainability metrics
Responsible for studying national and international sustainability-related frameworks, facilitating cross-department discussions, and enhancing internal communications to raise awareness and understanding of sustainability

Employees

Perform their duties in accordance with the company’s sustainability policies and guidelines
Participate in sustainability-related activities, projects, or training organized by the company
Promote and support an organizational culture that values Environmental, Social, and Governance (ESG) principles

Sustainability
performance
reporting

Oversee the sustainability direction and framework

Board of
Directors

Audit, Corporate
Governance, and
Sustainability Committee

President & Chief Executive Officer

Management & Sustainability Committee

Management

Sustainability Working Group

Employees

Board of Directors

Making decisions for the best interests of the Company and the stakeholders by approving the operating framework, policies, missions, and vision
Delegating, overseeing, and monitoring corporate sustainability performances
Appointing the Audit, Environmental, Social Responsibilities, and Corporate Governance Committee to oversee sustainability development implementation

Audit, Corporate Governance, and Sustainability Committee

Supervising and offering recommendations on corporate sustainability development, acknowledging sustainability performances on a bi-annual basis, and endorsing the sustainability report

President & Chief Executive Officer

Steering the organization towards sustainable growth by integrating sustainability commitments into strategic directions and business operations
Overseeing and ensuring that sustainability metrics are achieved

Management & Sustainability Committee

Establishes sustainability policies and operational guidelines that cover Environmental, Social, and Governance (ESG) aspects and integrates them into the core business strategy
Reviews and approves new products and strategies, taking into consideration various risks and ESG impacts
Appoints working groups or sub-committees to study sustainability issues and drive concrete implementation

Management

Embedding sustainability development principles throughout the organization
Guiding the Sustainability Working Group, and ensuring integration of efforts to manage sustainability-related impacts and achieve sustainability metrics that were set forth by the Company

Sustainability Working Group

The Sustainability Working Group comprises representatives from all departments to foster collaborative efforts in driving sustainability initiatives
Ensuring effective implementation, operation, and monitoring of sustainability metrics
Responsible for studying national and international sustainability-related frameworks, facilitating cross-department discussions, and enhancing internal communications to raise awareness and understanding of sustainability

Employees

Perform their duties in accordance with the company’s sustainability policies and guidelines
Participate in sustainability-related activities, projects, or training organized by the company
Promote and support an organizational culture that values Environmental, Social, and Governance (ESG) principles

Stakeholder Analysis and Engagement in the Business Value Chain

Stakeholder Analysis and Revi

The Company divides stakeholders into 10 groups according to their relevance to the Company’s business value chain. In 2022, the Company has considered and reviewed groups of stakeholders, which have not been changed from the original grouping and details are as follows:

Stakeholder Engagement

The guidelines for the treatment of stakeholders are clearly written in the Company’s Corporate Governance Policy and Code of Conduct, which are published on the intranet and the Company’s website. (https://www.ktc.co.th/sustainability-development/corporate-governance) The Company also encourages all employees to pay attention to and empathize with stakeholders to be able to understand and engage their needs, expectations, and areas that stakeholders value via different channels and activities. Such information will be used for analyzing, defining, and developing guidelines for appropriate response or engagement between the Company and the stakeholders through the entire value chain throughout the year to reduce risks, while creating business opportunities that meet customers’ needs. Furthermore, the Company also provides various measures to take care of stakeholders during the COVID-19 outbreak.

The details of stakeholder engagement details are as follows:

Methods of Communication	Interests and Expectations	Responding Guidelines
Annual General Meeting of shareholders. Extraordinary General Meeting of Shareholders (upon the occurrence of an event) Disclosure of Financial Statements, MD&A (Management Discussion and Analysis) on both quarterly and annual basis (pre and post review/audit). Hosting Opportunity Day and Analyst Briefing quarterly both via online channel and to participate in person at the venue. Opportunity to have Company Visit at any time, including meeting at the Company and communication via online channel. Other IRKTC responding channels, including telephone and E-mail: irktc@ktc.co.th Organizing Roadshow for information disclosure domestically and internationally. Roadshow is hosted online during the severe COVID-19 outbreak and travel is not allowed.	The Company grows steadily and sustainably, ready to accept risks from competition, rules or trade barriers that may occur in business operations.	The Company manages business firmly and grows continuously with a risk management plan that reflects prudent business operations.
	The Company has good corporate governance and appropriate risk management.	The Company operates business with transparency and good operating results under proper corporate governance and risk management.
	Treat all shareholders fairly and equitably whereby shareholders receive correct information through a transparent, clear, complete, equal and timely disclosure.	The Company discloses correct and complete information in a timely manner and provides equal and easy access to information via various channels.
	Shareholders receive positive returns, such as dividends or capital gain.	The company manages its business under strict and prudent risk management measures. As a result, dividends can be paid to shareholders continuously.
	The Company is resilient to unexpected events, with sustainability linked to business processes and strategies.	The company constantly adjusts and develops itself; some are reflected in the Business Continuity plan in response to unusual events.
	Provide good communication channels between the Company and shareholders so shareholders have an opportunity to ask questions either in the Annual General Shareholders’ Meeting, Opportunity Day, or other meetings that facilitates shareholders to communication and gives them equal access to disclosed company information	Arrange the Annual General Shareholders’ Meeting by inviting shareholders to attend the meeting and express their opinions and organize Opportunity Day. Due to COVID-19 outbreak, the majority of appointments and meetings were held online in 2022.
	Shareholders receive clear and up to date answers to new questions posed.	Provide answers in a straightforward manner. The executives communicate in a timely manner and answer questions clearly and completely.
Meeting for group policy and guideline updates, prepare and submit reports, cooperate with audits undertaken by internal audit function of Krungthai Bank.	Krungthai Bank receives correct and complete information within the specified deadline.	The Company submits its report with correct and complete information in a timely manner for the Bank to use its information in group supervision.

(Please refer additional detail under the “Corporate Governance”, “Anti-corruption and Bribery” and “Risk & Crisis management” topics)

Methods of Communication	Interests and Expectations	Responding Guidelines
A survey on KTC’s effectiveness and Brand Health Monitoring was conducted through customer interviews. A survey on Net Promoter Score. Satisfaction Surveys through various channels. Meeting with customers to present financial products and services across all channels to foster good relationships.	Financial products and services including benefits that meet customer needs and resolve the problem.	Develop products, services, and privileges to meet all groups of customers’ needs.
	To present correct information on financial products and services, including providing appropriate suggestions and effective services that do not lead to misunderstanding.	Have service mind and respond quickly in every channel. Listen and take customers issues to improve and develop along with offering assistance and giving suggestions for customers’ benefits and highest satisfaction.
Customer satisfaction telephone surveys to gauge the correctness of sales by sales agents (Mystery shopping). Setting Consumer Feedback Center (CFC) for receiving suggestions, issues, and complaints throughout the year	To elevate sales and services to be accepted, appreciated and admired by customers according to Market Conduct principle, including resolving issues, compensating, and listening to suggestions with willingness, fairness, and swiftness.	Create opportunities for customers to evaluate KTC TOUCH service points and sale agents, using telephone surveys to ask for opinions toward the service and gather feedback for further improvements. Evaluate Contact Center’s services performance for each service provided and scrutinize results to assist customers, to solve problems and to provide preventative measures.
	To improve the quality of sales and services of sale agents in accordance with Market Conduct principle.	Provide training and product knowledge development skills and related guidelines on product offerings to sale agents regularly in accordance with the Market Conduct principle When suggestions, problems and complaints were received, the Company will investigate and take action to resolve issues within the specified Service Level Agreement (SLA) timeframe

(Please refer additional detail under the “Brand and Customer trust” and “Digital Innovation” topics)

Methods of Communication	Interests and Expectations	Responding Guidelines
Providing information, answering questions, receiving suggestions via telephone, E-mail, and meetings throughout the year. Disclosure of Financial Statements, MD&A (Management Discussion and Analysis) post review/audit, including the Company’s other important information and notifying the debt-to-equity ratio on both quarterly and annually basis. Organizing activities to strengthen relationships on a regular basis by preparing quarterly reports to communicate with debentureholders about various activities.	To comply with contract or terms and conditions. To receive interest and principal in full and on schedule. To receive accurate and complete information.	Comply with relevant contracts or terms and conditions honestly, transparently, and auditable. Interest and principal are paid in full and on schedule. Engage in constant communication to ensure the information, news, and knowledge is correct and complete.
	To be informed of operating results, other important information, and terms and conditions compliance.	Present accurate, proper, and fair reports of financial information, operating performance, capital management information, as well as disclosed information in compliance with the Securities and Exchange Commission’s requirements on a timely basis.
	Debentureholders are informed of interesting activities and participated in interesting activities. Debentureholders are able to communicate their needs and expectations related to their activities	Notify activities information before the start of each quarter in order to allow debentureholders time to consider participating in such activities. Develop activities that capture debentureholders’ interests to foster long-term relationships.

(Please refer to additional detail under the “Corporate Governance” topic)

Methods of Communication	Interests and Expectations	Responding Guidelines
Selection and performance evaluation processes. Informing the Company’s sustainability expectations to suppliers through the Supplier Code of Conduct. Channels for suggestions, concerns, and complaints. Organizing meetings, trainings, and visits in order to exchange knowledge, information, and suggestion with suppliers Meeting with personnel of Krungthai Bank and its financial business group to present and provide relevant information regarding sales and services to staff of Krungthai Bank and its business financial group, as well as expanding new market opportunities together in various aspects.	Transparent, auditable, and fair procurement in compliance with procurement guidelines or Business Partners guidelines.	Suppliers/Business Partners acknowledge the compliance with corporate governance policy, anti-money laundering policy, anti-corruption measures, and the Supplier Code of Conduct.
	Provide knowledge sharing and development to suppliers for sustainable growth together.	Constantly develop and educate suppliers to achieve mutually sustainable development goals.
	• Fair competition or contracts.	Constantly build good relationships with suppliers Follow and comply with service contracts.

(Please refer to additional detail under the “Supply chain management” topic)

Methods of Communication	Interests and Expectations	Responding Guidelines
Meetings to stimulate cooperation in numerous marketing activities, including launching new products and organizing marketing activities. Constant communication for inquiries, discussions, and exchange ideas on market overview and target customers’ behaviors.	Business cooperation in accordance with corporate governance principle.	Make a joint agreement in defining a framework for cooperation with business partners.
	To stimulate sales and jointly expand market opportunities.	Organize meetings and create promotional marketing activities to stimulate sales and to expand on sustainable joint marketing opportunities.

(Please refer to additional detail under the “Collaboration with Partners for Sustainability” topic)

Methods of Communication	Interests and Expectations	Responding Guidelines
Meeting to discuss, exchange ideas and cooperate on various agendas through clubs or associations.	To conduct business and compete with transparency, fairness, and honesty-without slanders, accusations, distortions of truth, and follow good competitive framework with honesty	Create a fair competition condition without slanders, accusations, or distortions of truth.
	Exchange information for mutual benefits	Attend club or associations meetings to exchange ideas about business operations.

(Please refer to additional detail under the “Corporate Governance” topic)

Methods of Communication	Interests and Expectations	Responding Guidelines
Provide opportunities to listen to society through social events, social network, or various electronic channels. Other communication channels and accepting complaints throughout the year. Organize knowledge training on various topics.	To receive financial advice or knowledge that enables appropriate financial planning and saving for future. To thoroughly access financial services that matches their needs.	Offer products and services, including financial literacy, via social network and electronic channels such as facebook pages of KTC P BERM car for cash or KTC Journey, etc.
	Able to help the community when in need.	Provide support to community as appropriate
	Mitigation management on social and environmental aspects that may arise from the Company’s operations.	Manage resources efficiently. Encourage employees to have a service mind and support community services, and activities beneficial to the society and environment.
	Always provide channels for community and society’s complaints and suggestions.	Provide channels for complaints, opinions and suggestions in accordance with Corporate Governance Policy.
	To conduct environmentally friendly business.	Create good awareness among employees to preserve the Company’s resources efficiently, as well as enable customers to use products and services that promote environmental stewardship.

(Please refer to additional detail under the “Financial Inclusion and Financial Literacy” and “Environmental and Climate Change Management” topics)

Methods of Communication	Interests and Expectations	Responding Guidelines
Board of Directors’ meeting on a monthly basis. Urgent Board of Directors’ meeting upon the occurrence of an event. Organizing orientations for newly appointed directors. Knowledge development related to directors’ performance, both in the form of printed materials and seminars organized throughout the year. The diversity of the Board of Directors nomination. Annual evaluation of the Board of Directors’ performance. Determine compensation that is suitable with roles and responsibilities.	To define the Company’s vision, missions, or strategies, including discussing or considering policies or operations, to ensure that the Company operates according to the guidelines set by the Board of Directors.	Follow up and acknowledge the Company's operating results regularly. Operate transparently in compliance with corporate governance principle. Good operating performance with steady growth. Provide sufficient, complete information in a timely manner. Treat every stakeholder equally with fairness.
	To understand the scope of business, policies or related laws, including the Company’s business plans.	Invite to attend an orientation presenting KTC Story, legal duties of the directors, and various company policies such as scope of business, corporate governance, risk management, etc.
	To improve knowledge and competency related to regulations, Including the duties of directors and management and to implement them properly.	Support seminars on courses related to duties of Board of Directors and Management
	To organize the Board of Directors and Management structure to be diversified in term of skills and experiences.	Prepare Board Skill Matrix to specify qualifications and use as a tool for the selection of skilled or experienced Board of Directors who will manage the Company.
	To be informed of the directo’'s performance results for further improvement.	Communicate performance evaluation results to the Board of valuations for further improvement of director’s and the Company’s Performance.
	To determine the appropriate compensation rate in accordance with roles, duties and responsibilities.	Receive remuneration approved by shareholders or the Board of Directors appropriately and fairly on a case-by-case basis.

(Please refer to additional detail under the “Corporate Governance” topic)

Methods of Communication	Interests and Expectations	Responding Guidelines
Organizing orientations for new employees. Creating whistleblowing or complaints channels for employees via E-mail or the Compliance or Human Resources business unit executives. Organizing meeting and communicating information to employees via E-mail or KTC UNITE throughout the year. Annual Employee Engagement and Satisfaction Survey Performance appraisal based on Key Performance Indicator (“KPI”). Set human resource development guidelines for employees at all levels throughout the year. Encourage employees to set development goals and career advancement (Career Planning).	Employees want to know the Company, Board of Directors, management and important operating procedures for internal operations	Communicate the Company’s history, the nature of business, an introduction of the Board of Directors and executives, notifying rules and regulations, as well as the Company’s important guidelines.
	Be able to communicate needs, views, whistleblowing, or complaints via various channels	Provide variety and safe communication channels for employees. Human Resources Business Unit performs its duties in accordance with the human rights and diversity management guidelines with non-discriminatory principles regardless of sex, gender, religion, or race. Every action is conducted within the bounds of the labor law. Has measures in place to protect whistleblowers.
	Be informed of policies and information regarding the Company’s operations.	Organize Town Hall meetings between top and middle management. Organize meetings within departments and between departments.
	Employees are able to communicate their needs to the Company.	Perform Employee Engagement Survey conducted by a third party to improve and strengthen effective employee engagement Organize Employee Engagement Activities by Human Resources Business Unit and representatives from different departments (People Champion). Organize CEO Live Talk to give employees an opportunity to hear ideas, visions, and discuss directly with the CEO, which is another communication channel between employees and the Company.
	Employees acknowledge their assessment results in order to develop and improve their capabilities	Conduct Performance Appraisal consists of 2 parts: KPI divided into Corporate KPI and Individual KPI and behavior assessment of Core Values and Competency, the appraisal applies a 360-degree assessment to give Feedback.
	To develop required knowledge, skills, or competency (Competency Development) which facilitate operations in achieving objectives and standards of the specified work, as well as being in line and up to date with the constant changes of the digital age.	Give employees an opportunity to choose combined learning method suitable for each individual. Provide learning culture that allows employees to choose according to one’s interest freely
	Be able to plan career path and career advancement.	Educate employees to set a Career Path in order to promote their career advancement. Conduct an Individual Development Plan.
Conduct an Occupational Health and Safety Committee meeting continuously.	Provide suitable and safe working environment. Provide activities that promote health, both physically and mentally.	Provide suitable working environment by evaluating working environment to meet the standards. Organize sports club to promote health according to employee preferences. Organize various internal activities to promote work stress reduction.

(Please refer to additional detail under the “Human resource management and development” and “Occupational Health and Safety” topics)

Methods of Communication	Interests and Expectations	Responding Guidelines
Meetings to listen to policies and regulatory guidelines, including compliance training. Cooperating with audit undertaken by various regulators. Submitting reports to regulators	The Company’s business operations are within the bounds of the law and with transparency for both the organization and the work system.	Adhere to laws, rules and regulations and improve operations to be in line with observations from inspections (if any).

(Please refer to additional detail under the “Corporate Governance” and “Anti-Corruption and Bribery” topics)

Identification of Sustainability Materiality Topics

KTC conducts an annual materiality assessment to evaluate sustainability issues related to the Company’s business, covering environmental, social, and governance dimensions. The materiality assessment is performed based on the principle of Double Materiality of the European Union’s Corporate Sustainability Reporting Directive (CSRD) in accordance with the European Sustainability Reporting Standards and the Global Reporting Initiative (GRI) Standards 2021.

Materiality Assessment Process

Materiality Issues

Remark

(1) Issues increased by one materiality level compared to the materiality assessment 2023
(2) Issues decreased by one materiality level compared to the materiality assessment 2023
(3) Previously included under Human Resource Management and Development in the Materiality Assessment 2023, this issue has been designated as a standalone issue in the Materiality Assessment 2024.

Material Issues Prioritization

Sustainable Development Framework

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Sustainability Definition

Sustainable Development Goals (SDGs)