ESG Products and Services

ผลิตภัณฑ์และบริการที่คำนึงถึง
ด้านสิ่งแวดล้อม สังคม และธรรมาภิบาล

Long-Term Target 2028
The number of Environmental, Social, and Governance (ESG) products, services, and privileges is 16.
Target 2023
The number of Environmental, Social, and Governance (ESG) products, services, and privileges is 13.
Performance 2023
The number of Environmental, Social, and Governance (ESG) products, services, and privileges is 18.
Risk

If the Company fails to integrate environmental, social, and governance factors into consideration when developing or launching its products and services, it may lead to failure to meet expectations and missing opportunities to instill confidence among stakeholders. Moreover, it could also result in decreased competitiveness of the company.

Opportunity

When the Company develops products and services that consider the environment, society, and governance, aligning with the current emphasis on ESG from the public and private sectors, it presents an opportunity to increased public access to ESG products and services. Additionally, it entails expanding customer base, enabling continuous business growth.

The Company is committed to being a part of supporting and advancing the country towards sustainable development goals by integrating environmental, social, and governance factors into its business operations. This is achieved by creating opportunities and value through credit policies, product, services, and platforms development that are socially responsible, environmentally friendly, and promote governance. Moreover, KTC aims to deliver products and services that fully meet expectations and build trust among stakeholders, providing comprehensive solutions and fostering confidence among those impacted. Additionally, it supports and motivates various sectors to collaborate in promoting sustainability across economic, social, and environmental dimensions.

Responsible Business Operations
Risk assessment and consideration against fraud, corruption, and bribery, as well as environment management and human rights issues management
Analysis of risks and opportunities in the product program
ESG Products and Services
1
1.Responsible Business Operations
• Internal Audit Business Unit

is an independent business unit that reports directly to the Audit, Environmental, Social Responsibilities, and corporate Governance Committee, assesses the adequacy and efficiency of the internal control system, risk management, and corporate governance of the Company. Internal Audit Business Unit regularly reports internal control system audit results and provides opinions beneficial to the Company to the management team and the Audit, Environmental, Social Responsibilities, and Corporate Governance Committee, to have proper operations, good internal control system, reduce costs and risks, as well as promoting effective audit as the cornerstone of sustainable growth.

• Compliance Business Unit

is responsible for providing consultation and conducting reviews of important work processes to ensure that the Company complies with the regulations and directives of regulatory authorities such as the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), the Anti-Money Laundering Office (AMLO), the National Credit Bureau (NCB), and criteria related to corporate governance supervision. This business unit also monitors and analyzes the impacts of laws or announcements relevant to the Company, disseminates key information, or holds meetings to enhance understanding among various departments within the Company.

Integration of ESG criteria in lending business

In conducting its business, the Company emphasizes and prioritizes corporate governance in line with good corporate governance principles. It ensures that operations comply with laws, announcements, criteria, and regulations set by regulatory bodies such as criteria for primary and supplementary determination credit cardholders and personal loans, as well as credit limit approval, interest rates and fees. The Company also ensures clear and fair credit card and personal loan contracts, notifies customers of any changes that may affect their rights, and handles credit data owner information according to established criteria. It adheres to principles of fairmarket conduct and responsible lending, prioritizing quality product development and advertisement, credit card issuance, and provision of new loans based on borrowers’ repayment capabilities. Additionally, it provides support to address debt problems, complies with laws, and promotes behavior through information provision (nudge) to customers. Furthermore, the Company incorporates environmental, social, and governance (ESG) considerations into its lending decisions.

Consideration of applications of the ESG products and services

The Company takes into consideration ESG factors related to its products and services as follows:

Topic The Company’s Operating Guidelines
The supervision of the service provided by employees and sales agents. Regular training sessions are conducted for employees and sale agents to ensure a consistent level of knowledge regarding financial products, related regulations, sales techniques, and adherence to compliance guidelines. This training is an integral part of conducting business responsibly to provide customers with accurate, comprehensive information to make informed decisions that align with their needs. It also aims to uphold the quality standards of the Company’s services. Additionally, regular quality assessments are carried out on sales and service practices to ensure consistency and compliance with company standards.
Governance or Economy
To ensure that applicants receive accurate and comprehensive information for decision-making and to prevent the Company from being used as a channel for money laundering.
  • Specify and evaluate the qualifications of applicants, interest rates, fees, and various important information of the products that adhere to the criteria set forth by the Bank of Thailand, clearly outlined in the credit card and personal loan product application form and product disclosure statement (Factsheet).
  • Ensure that agreement terms for using the products are fair to consumers, in line with the standards set by the supervisory bodies.
  • Establish guidelines for the assessment or rejection of credit card, loan, or merchant applicants according to risk management principles, or criteria where applicants or customers must not be individuals designated by AML/CFT & WMD Law.
Society
To mitigate the issue of excessive debt burdens among the population and facilitate widespread access to financial products.
  • Consider and approve credit limits that align with the applicant’s ability to repay debts, based on financial status (salary) and existing debt burden, to prevent excessive debt burdens that could become societal issues.
  • Evaluate according to other criteria such as credit information checks in compliance with NCB laws.
  • Implement non-discriminatory practices, treating product users or service recipients with equality irrespective of their gender, sexual orientation, or religion.
  • Ensure the establishment of diverse channels for accessing products, enabling service users to reach products through multiple platforms.
Environment
To promote the conservation of existing limited natural resources.
  • Evaluate opportunities for developing or issuing products or services that contribute to mitigating environmental issues.
  • Expand access to products and services that reduce environmental impacts through the utilization of digital technology and innovation in presenting the Company’s products or services to society.
  • Promote responsible business practices among partners, comply with relevant environmental laws
  • Donate or properly dispose of waste generated from operations to maximize resource utilization and reduce greenhouse gas emissions.
2
2.Risk assessment and consideration against fraud, corruption, and bribery, as well as environment management and human rights issues management
The Company
  • Being certified as a member of the Thai Private Sector Collective Action Coalition Against Corruption (Thai CAC), which certifies that the Company does not engage in corruption within the organization.
  • Conducting an annual risk assessment on corruption and human rights violations in the operational processes.
  • Establishing channels for whistleblowing/complaints and implementing measures to protect whistleblowers/complainants.
  • Encouraging suppliers to become members of Thai CAC.
  • Ensuring no human rights violations occur throughout the supply chain.
  • Creating awareness and promoting knowledge among employees regarding the optimal utilization of natural resources.
  • Developing a Business Continuity Plan (BCP) to ensure that the Company's services can continue in the event of impacts from situations/disasters.
Suppliers
  • Mandating suppliers to conduct self-assessments, including evaluations of their compliance with supplier code of conduct, covering issues such as human rights, efficient use of natural resources, non-engagement in bribery or corruption, and adherence to legal regulations.
  • Incorporating as part of the service agreement between the Company and outsources the requirement for outsources to adhere to corporate governance principles, combat corruption, and prevent money laundering.
Customers
  • Assessing customer risks through Know Your Customer (KYC) and Customer Due Diligence processes.
  • Conducting business in accordance with market conduct guidelines and code of conduct.
  • Supporting customers in reducing their use of natural resources, such as paper consumption or commuting, through the company's digital technology and innovation initiatives etc.
3
3.Analysis of risks and opportunities in the product program

The Company establishes regulations for issuing/changing/canceling financial product and/or service or product programs to serve as guidelines for product or service development in the financial sector. The departments responsible for issuing or modifying products or services consider feasibility, competitor and data analysis, competitive strategies, and business model development. They also engage with relevant departments to analyze the impacts or requirements related to the Company, from upstream to downstream. This includes considering business scope, legal requirements, risk and information technology system analysis, budget approval, marketing communication, and procurement etc. These steps ensure that products or services are presented to the Board or relevant regulatory bodies with due consideration for environmental, social, and governance (ESG) issues throughout the design and supply chain processes.

4
4.ESG Products and Services

The Company integrates ESG aspects into its operations and products and services development as follows:

สังคม KTC U SHOP และ พี่เบิ้ม KTC Mobile , KTC Online Mobile
 สิ่งแวดล้อม สินเชื่อเพื่อการศึกษา บัตรเครดิต KTC-THAI RED CROSS NATIONAL BLOOD CENTRE การแบ่งเบาค่ารักษาพยาบาลในโรงพยาบาลรัฐบาล การเป็นตัวกลางในการใช้คะแนนแทนเงินบริจาค สิทธิพิเศษเมื่อฉีดวัคซีนพื้นฐาน ณ โรงพยาบาลชั้นนำ KTC ONLINE TRAVEL FAIR (การท่องเที่ยว) การสนับสนุนคนไทยรักการอ่าน โครงการเคลียร์หนี้เกลี้ยง ปี 65 สำหรับสมาชิกบัตรกดเงินสด KTC PROUD โครงการ “เที่ยว... อยู่ได้” (การท่องเที่ยว) Culinary Arts & Stay (อาหารท้องถิ่น) มาตรการการให้ความช่วยเหลือลูกหนี้ที่ได้รับ
 ผลกระทบจากสถานการณ์ COVID-19 การผ่อนชำระ Solar Roof Top 0% สิทธิพิเศษการจองรถพลังงานไฟฟ้าและ WALLBOX

Education Loan

KTC realizes the importance of education and desires to provide equal education opportunities to the public who aspire for further education but lack the funds to do so. To enhance the quality of life of Thai people and enable Thai people to receive an appropriate education for the purposes of career advancement and financial stability, KTC has collaborated with business partners, such as language schools to offer education loan products to applicants. The loan with appropriate interest rates and fees plus installments option eases the burden of customers. The Company’s business operations are not exposed to increased risks. KTC expects to increase the number of customers obtaining education loans. In this respect, KTC has set a goal to increase the number of partnerships with a wide range of educational institutions to be able to cater to the diverse educational needs of each customer group. At the same time, KTC is focusing on developing education loans to create the highest customer satisfaction level.

Personal Loans In 2022
Number of customers who got loan approval
1,018 persons
Total credit lines amounted
81 Million Baht
Credit Cards In 2022
Number of credits
card members who
used the card
74,355 persons
Total spending at
schools and educational
institutions
1,304 Baht
Total spending
via special interest
rate installment payment
7 Million Baht

3KTC-THAI RED CROSS NATIONAL BLOOD CENTRE Credit Card

KTC’ in collaboration with the Thai Red Cross Society National Blood Center issues KTC-THAI RED CROSS NATIONAL BLOOD CENTRE Credit card, as an alternative for members to support the Thai Red Cross Society National Blood Centre. Each purchase via KTC-THAI RED CROSS SOCIETY NATIONAL BLOOD CENTRE credit card amounting to Baht 1,000 equates to a donation of Baht 5 and KTC contributes an additional Baht 5 on top to the Thai Red Cross Society National Blood Centre. This is joint support between the Company and members in helping patients all over the country through using KTC credit card.

The donation proceed
303,083 Baht
Number of KTC-THAI RED CROSS NATIONAL BLOOD CENTRE credit cardmembers 1,352 Persons.

Alleviating the Burden of Medical Expenses in Public Hospitals

KTC believes that being healthy is an essential element for living as well as a development of quality of life. Public hospitals play a particularly significant role in assisting a considerable number of patients to get equal treatment opportunities. To assist patients to stay healthy and alleviate the burden of unpredictable medical expenses, the Company allows its credit card members who are treated at public hospitals to pay in installments up to 10 months with a special interest rate of 0.69% per month from a standard rate of 0.74% per month. This campaign receives positive responses from credit cardmembers.

In 2022
Total spending at public hospitals
4,066 Million Baht
Number of credits cardmembers
who used public hospital services
208,035 Persons
Number of credits cardmembers
who convert medical expenses
into installment payment at public hospitals
6,511 Persons
Total spending at public hospitals
and using special interest rates
123 Million Baht
The budget spent to support special interest rate
6 Million Baht

Use of Points in Lieu of Cash Donations

KTC promotes equality in society by initiating the Point-for-Donation program since 2009, with the aim of improving the community. Furthermore, given the widespread impact of the COVID-19 pandemic, KTC recognizes the importance of ongoing efforts. This includes offering its members the opportunity to support and assist those in need, in collaboration with various charities. These efforts include providing aid to those who are ill with the virus or to hospitals facing shortages of medical equipment and supplies. The limitations of social distancing and travel restrictions to reduce the spread of COVID-19 have resulted in a decrease in support from the community for charities and humanitarian organizations. KTC has played a role as a mediator in promoting and supporting various projects and activities between non-profit organizations and its members. It also provides a platform for members to make donations via credit card, with the points redemption as monetary donations. The exchange rate is 1,000 points for Baht 100 . The donation platform is available both online and through the KTC Mobile Application, with the online platform equipped with QR Pay and QR Point features. By using the KTC Mobile Application, members can easily convert their points into donations to the 64 non-profit organizations. This allows members to actively contribute to society through the donation platform. For example

ยอดบริจาครวมปี (ผ่านบัตรเครดิตและคะแนน) 2022 ยอดบริจาครวมปี 2022 มูลนิธิที่รับบริจาค 91 มูลนิธิ มูลนิธิที่รับบริจาค 64 มูลนิธิ ส่งมอบเงินบริจาคให้กับมูลนิธิได้ทั้งสิ้น 351 ล้านบาท ส่งมอบเงินบริจาคให้กับมูลนิธิได้ทั้งสิ้น 3.8 ล้านบาท จำนวนสมาชิกที่ร่วมบริจาค 50,626 คน จำนวนสมาชิกที่ร่วมใช้คะแนน แทนเงินบริจาค 11,725 คน

Special Privileges for Standard Vaccinations at Leading Hospitals

KTC acknowledges the importance of health care and the prevention of diseases through standard vaccinations that are suitable for all age groups. KTC offers members special privileges for payments of vaccines with KTC credit card at participating hospitals, they will get THB 300 credit cash back when members spend on vaccines with KTC credit card and redeem 1,999 KTC FOREVER points. Standard vaccines include 4-strain flu vaccine, diphtheria, tetanus toxoids, whole-cell pertussis and hepatitis B (DTP-HepB) vaccine, rabies vaccine, dengue vaccine, and cervical cancer vaccine leading participating hospitals include Bangkok Hospital (Soonvijai, Hua Hin and Pattaya Branch), Samitivej Hospital (Sukhumvit, srinakarin, and Chinatown branch), Phayathai Hospital, Paolo Hospital, Vichaiyut Hospital, Navavej International Hospital, among others.

KTC ONLINE TRAVEL FAIR (Supported by the Tourism Authority of Thailand)

KTC continuously organizes tourism events online to support hotel businesses that have been impacted by the COVID-19 crisis. The event provides additional sales and marketing channels with no additional costs, as well as stimulates spending by offering a 15% cashback credit and KTC FOREVER reward points or hotel room voucher for every spending during the event totaling over THB 400,000. The participating hotels can participate without incurring any booth rental, media production, or operational costs, and they will receive free publicity through KTC, the Tourism Authority of Thailand as well as exclusive media coverage, social media and Sneak Out’s live streaming platforms. A total of 156 hotels, including Centara,Dusit, Intercontinental, Meliá, Veranda, Cross, Serenata,and Mövenpick, are participating in the event

มีโรงแรม และ รีสอร์ท เข้าร่วมทั้งสิ้น โรงแรม 156
Totaling
2 Million Baht
Attended the online event
26,423 Persons
Redemption
288,376 Reward points

Support Thais Reading

KTC realizes the importance of reading as a key to unlocking the world of learning in all subject matters and promotes continuous learning, which paves the way towards the sustainable development of individuals and society. KTC wants to support the Thai government’s policy to elevate reading as a national agenda, to support publishers to publish and develop quality books, to stimulate Thais to realize the importance of reading, and to respond to the tax stimulus campaign - “Shop Dee Mee Kuen”; KTC has collaborated with leading bookstores and publishers in Thailand organizing promotional campaigns or activities with its partners over 35 projects. KTC also integrated technology for use in 2022 campaigns, such as granting discounts at partner bookstores up to 15%, and online distribution channels, using KTC points in exchange for cash-back credit up to 18% from the standard rate of 10%. For customers who purchase copious quantities of books, KTC grants certain privileges to ease the burden of payment, particularly in the form of installment payment with KTC card with an interest rate of 0.69% per month from the standard rate of 0.80% per month for up to 3 months.

Number of cardmembers
who participated
in this campaign
8,996 Persons
Total spending
at publishers
and bookstores
323 Million Baht
Total spending
via special interest rate
installment payment
226,287 Baht
Total budget spent
to support the special
cash-back rate
2.7 Million Baht

KTC U SHOP

KTC U SHOP has established since 2016 Quality products are selected for members to choose from online and offline channels, as well as organizing events and exhibitions, to promote natural, organic and health product categories, supporting Thai SMEs and community businesses to expand their businesses and reach more customers. The products are divided into several categories as follows:

Natural Extraction cleaning products
Natural Hair and skincare products
Essential Oil/Aromatic Hydrocarbon Products for Healing
World Conservation Products under the “Ecotopia” Project by Siam Piwat
Products from “Doi Tung” (Social Enterprise)
Organic Farming Group

Currently, KTC has over 50 partner stores in this group, with KTC U SHOP helping to expand distribution channels in order to increase revenue for small businesses and communities. This also increases the value of KTC credit card spending, as members can choose natural products that are beneficial for their health, environment, and overall quality of life. Additionally, this spending supports the growth of communities, small businesses, and KTC itself. Customers can shop or use KTC FOREVER points to redeem cash at KTC U SHOP, with the option of home delivery through the website www.ktc.co.th/ushop and Line@ KTCUSHOP.

Over
700 items sold
Shops participated
50 Shops
The total sales were
496,062 Baht

“Debt-Clearing” Campaign for KTC PROUD Cash Cardmembers

KTC has organized “Debt-Clearing” campaign for the 13 consecutive years to to alleviate debts burden of “KTC PROUD” cash cardmembers with good debt payment records and on time repayment on their credit card. Only one registration is required to earn chances for rounds of debt amelioration throughout 2022 via SMS, the Company’s website www.ktc.co.th/cleardebt2022, or at any KTC TOUCH service points with a total of 600 prizes as follows:

รางวัลที่ 1

100% existing KTC PROUD debt clearance with no restrictions on maximum debt value (lucky draws for one winner each time)

รางวัลที่ 2

10% KTC PROUD debt clearance (12 lucky draws for 49 winners each time)

Number of people who get debt amelioration
600 Persons
Total debt amelioration amount equaled to
7.14 Million

KTC organizes the “Tiew… Yuu Dai” project to help tourism business operators nationwide

KTC contributes to helping and supporting tourism business operators who have been continuously affected by the COVID-19 crisis by organizing the “Tiew… Yuu Dai” project by inviting tourism business operators, including tourist attractions, car rentals, and travel agencies to participate with no charge. Businesses participating in the project will gain exposure from media design and production for public relations purposes visible to over 2.6 million members via 7 KTC channels, such as KTC monthly letter for cardmembers,Facebook: KTC Real Privileges, KTC website, KTC Line Official, KTC e-Newsletter, IG: KTC Card and the KTC Mobile application. Moreover, this project executed via KTC World Travel Service will serve as another option for business owners to have more sales channels or dealers without having to invest. Simultaneously, KTC also supports by offering KTC credit cardmembers special 10% cashback promotion. Cardmembers enjoy the privilege of making payment at participating merchant with the usage of KTC FOREVER points in the amount equivalent to the transaction.

Number of participating
partners
102 Partners
Number of locations
250 Locations
Total points redeemed
8,330,162 Points

Solar Roof Top 0% Installment Payment Plan

KTC is committed to promoting members’ access to and participation in clean energy options, which are environmentally friendly and reduce electricity costs. By offering Solar Rooftop installations, KTC reduces the burden of energy costs and provides a 0% interest installment option through credit cards. This not only enhances customers’ convenience in accessing these services but also expands the market reach for Solar Rooftop providers.

In 2022, there were three business partners who offered a 0% installment plan for Solar roof top:
- Gunkul Engineering Public Company Limited
- Alt Telecom Company Limited (the Company)
- SCG Distribution

Special Priviledges for booking electric vehicles and WALLBOX

At present, the use of vehicles is one of the causes of increasing air pollution. This has led to a growing role for electric cars as a replacement for vehicles powered by fossil fuels, which produce various pollutants that harm both humans and the environment. KTC recognizes the importance of this situation and is part of the effort to reduce environmental impacts. Additionally, KTC offers customers access to high-priced electric vehicles and WALLBOX products. As a special benefit, KTC provides exclusive privileges of the NETA electric car, within the V Group Cars network, for its customers.

1. 2 Special privileges when paying for the reservation of an electric vehicle worth Baht 5,000 THB through KTC credit card.
  • Special Privilege 1: Instantly exchange points for a 13% discount on the reservation.
  • Special Privilege 2: 0% percent financing for 6 months on the reservation.
2. Pay through KTC credit card for the NETA WALLBOX installation with a deposit of Baht 40,000.

Choose to receive 1 special benefit when paying a Baht 40,000 THB deposit for installing the electric vehicle battery charger (NETA WALLBOX) through KTC credit card.

  • Special Privilege 1: 0% installment for 6 months
  • Special Privilege 2: Receive 10,000 KTC FOREVER/KTC ROP bonus points
  • Risk and Crisis Management
  • Digital Innovation
  • Brand and Customer Trust
  • ESG Products and Services
  • Supply Chain Management
  • Contact SD
  • FAQ

    • ESG Products and Services

    ผลิตภัณฑ์และบริการที่คำนึงถึง
    ด้านสิ่งแวดล้อม สังคม และธรรมาภิบาล

    Long-Term Target 2028
    The number of Environmental, Social, and Governance (ESG) products, services, and privileges is 16.
    Target 2023
    The number of Environmental, Social, and Governance (ESG) products, services, and privileges is 13.
    Performance 2023
    The number of Environmental, Social, and Governance (ESG) products, services, and privileges is 18.
    Risk

    If the Company fails to integrate environmental, social, and governance factors into consideration when developing or launching its products and services, it may lead to failure to meet expectations and missing opportunities to instill confidence among stakeholders. Moreover, it could also result in decreased competitiveness of the company.

    Opportunity

    When the Company develops products and services that consider the environment, society, and governance, aligning with the current emphasis on ESG from the public and private sectors, it presents an opportunity to increased public access to ESG products and services. Additionally, it entails expanding customer base, enabling continuous business growth.

    The Company is committed to being a part of supporting and advancing the country towards sustainable development goals by integrating environmental, social, and governance factors into its business operations. This is achieved by creating opportunities and value through credit policies, product, services, and platforms development that are socially responsible, environmentally friendly, and promote governance. Moreover, KTC aims to deliver products and services that fully meet expectations and build trust among stakeholders, providing comprehensive solutions and fostering confidence among those impacted. Additionally, it supports and motivates various sectors to collaborate in promoting sustainability across economic, social, and environmental dimensions.

    Responsible Business Operations
    Risk assessment and consideration against fraud, corruption, and bribery, as well as environment management and human rights issues management
    Analysis of risks and opportunities in the product program
    ESG Products and Services
    1
    1.Responsible Business Operations
    • Internal Audit Business Unit

    is an independent business unit that reports directly to the Audit, Environmental, Social Responsibilities, and corporate Governance Committee, assesses the adequacy and efficiency of the internal control system, risk management, and corporate governance of the Company. Internal Audit Business Unit regularly reports internal control system audit results and provides opinions beneficial to the Company to the management team and the Audit, Environmental, Social Responsibilities, and Corporate Governance Committee, to have proper operations, good internal control system, reduce costs and risks, as well as promoting effective audit as the cornerstone of sustainable growth.

    • Compliance Business Unit

    is responsible for providing consultation and conducting reviews of important work processes to ensure that the Company complies with the regulations and directives of regulatory authorities such as the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), the Anti-Money Laundering Office (AMLO), the National Credit Bureau (NCB), and criteria related to corporate governance supervision. This business unit also monitors and analyzes the impacts of laws or announcements relevant to the Company, disseminates key information, or holds meetings to enhance understanding among various departments within the Company.

    Integration of ESG criteria in lending business

    In conducting its business, the Company emphasizes and prioritizes corporate governance in line with good corporate governance principles. It ensures that operations comply with laws, announcements, criteria, and regulations set by regulatory bodies such as criteria for primary and supplementary determination credit cardholders and personal loans, as well as credit limit approval, interest rates and fees. The Company also ensures clear and fair credit card and personal loan contracts, notifies customers of any changes that may affect their rights, and handles credit data owner information according to established criteria. It adheres to principles of fairmarket conduct and responsible lending, prioritizing quality product development and advertisement, credit card issuance, and provision of new loans based on borrowers’ repayment capabilities. Additionally, it provides support to address debt problems, complies with laws, and promotes behavior through information provision (nudge) to customers. Furthermore, the Company incorporates environmental, social, and governance (ESG) considerations into its lending decisions.

    Consideration of applications of the ESG products and services

    The Company takes into consideration ESG factors related to its products and services as follows:

    Topic The Company’s Operating Guidelines
    The supervision of the service provided by employees and sales agents. Regular training sessions are conducted for employees and sale agents to ensure a consistent level of knowledge regarding financial products, related regulations, sales techniques, and adherence to compliance guidelines. This training is an integral part of conducting business responsibly to provide customers with accurate, comprehensive information to make informed decisions that align with their needs. It also aims to uphold the quality standards of the Company’s services. Additionally, regular quality assessments are carried out on sales and service practices to ensure consistency and compliance with company standards.
    Governance or Economy
    To ensure that applicants receive accurate and comprehensive information for decision-making and to prevent the Company from being used as a channel for money laundering.
    • Specify and evaluate the qualifications of applicants, interest rates, fees, and various important information of the products that adhere to the criteria set forth by the Bank of Thailand, clearly outlined in the credit card and personal loan product application form and product disclosure statement (Factsheet).
    • Ensure that agreement terms for using the products are fair to consumers, in line with the standards set by the supervisory bodies.
    • Establish guidelines for the assessment or rejection of credit card, loan, or merchant applicants according to risk management principles, or criteria where applicants or customers must not be individuals designated by AML/CFT & WMD Law.
    Society
    To mitigate the issue of excessive debt burdens among the population and facilitate widespread access to financial products.
    • Consider and approve credit limits that align with the applicant’s ability to repay debts, based on financial status (salary) and existing debt burden, to prevent excessive debt burdens that could become societal issues.
    • Evaluate according to other criteria such as credit information checks in compliance with NCB laws.
    • Implement non-discriminatory practices, treating product users or service recipients with equality irrespective of their gender, sexual orientation, or religion.
    • Ensure the establishment of diverse channels for accessing products, enabling service users to reach products through multiple platforms.
    Environment
    To promote the conservation of existing limited natural resources.
    • Evaluate opportunities for developing or issuing products or services that contribute to mitigating environmental issues.
    • Expand access to products and services that reduce environmental impacts through the utilization of digital technology and innovation in presenting the Company’s products or services to society.
    • Promote responsible business practices among partners, comply with relevant environmental laws
    • Donate or properly dispose of waste generated from operations to maximize resource utilization and reduce greenhouse gas emissions.
    2
    2.Risk assessment and consideration against fraud, corruption, and bribery, as well as environment management and human rights issues management
    The Company
    • Being certified as a member of the Thai Private Sector Collective Action Coalition Against Corruption (Thai CAC), which certifies that the Company does not engage in corruption within the organization.
    • Conducting an annual risk assessment on corruption and human rights violations in the operational processes.
    • Establishing channels for whistleblowing/complaints and implementing measures to protect whistleblowers/complainants.
    • Encouraging suppliers to become members of Thai CAC.
    • Ensuring no human rights violations occur throughout the supply chain.
    • Creating awareness and promoting knowledge among employees regarding the optimal utilization of natural resources.
    • Developing a Business Continuity Plan (BCP) to ensure that the Company's services can continue in the event of impacts from situations/disasters.
    Suppliers
    • Mandating suppliers to conduct self-assessments, including evaluations of their compliance with supplier code of conduct, covering issues such as human rights, efficient use of natural resources, non-engagement in bribery or corruption, and adherence to legal regulations.
    • Incorporating as part of the service agreement between the Company and outsources the requirement for outsources to adhere to corporate governance principles, combat corruption, and prevent money laundering.
    Customers
    • Assessing customer risks through Know Your Customer (KYC) and Customer Due Diligence processes.
    • Conducting business in accordance with market conduct guidelines and code of conduct.
    • Supporting customers in reducing their use of natural resources, such as paper consumption or commuting, through the company's digital technology and innovation initiatives etc.
    3
    3.Analysis of risks and opportunities in the product program

    The Company establishes regulations for issuing/changing/canceling financial product and/or service or product programs to serve as guidelines for product or service development in the financial sector. The departments responsible for issuing or modifying products or services consider feasibility, competitor and data analysis, competitive strategies, and business model development. They also engage with relevant departments to analyze the impacts or requirements related to the Company, from upstream to downstream. This includes considering business scope, legal requirements, risk and information technology system analysis, budget approval, marketing communication, and procurement etc. These steps ensure that products or services are presented to the Board or relevant regulatory bodies with due consideration for environmental, social, and governance (ESG) issues throughout the design and supply chain processes.

    4
    4.ESG Products and Services

    The Company integrates ESG aspects into its operations and products and services development as follows:

    สังคม KTC U SHOP และ พี่เบิ้ม KTC Mobile , KTC Online Mobile
 สิ่งแวดล้อม สินเชื่อเพื่อการศึกษา บัตรเครดิต KTC-THAI RED CROSS NATIONAL BLOOD CENTRE การแบ่งเบาค่ารักษาพยาบาลในโรงพยาบาลรัฐบาล การเป็นตัวกลางในการใช้คะแนนแทนเงินบริจาค สิทธิพิเศษเมื่อฉีดวัคซีนพื้นฐาน ณ โรงพยาบาลชั้นนำ KTC ONLINE TRAVEL FAIR (การท่องเที่ยว) การสนับสนุนคนไทยรักการอ่าน โครงการเคลียร์หนี้เกลี้ยง ปี 65 สำหรับสมาชิกบัตรกดเงินสด KTC PROUD โครงการ “เที่ยว... อยู่ได้” (การท่องเที่ยว) Culinary Arts & Stay (อาหารท้องถิ่น) มาตรการการให้ความช่วยเหลือลูกหนี้ที่ได้รับ
 ผลกระทบจากสถานการณ์ COVID-19 การผ่อนชำระ Solar Roof Top 0% สิทธิพิเศษการจองรถพลังงานไฟฟ้าและ WALLBOX

    Education Loan

    KTC realizes the importance of education and desires to provide equal education opportunities to the public who aspire for further education but lack the funds to do so. To enhance the quality of life of Thai people and enable Thai people to receive an appropriate education for the purposes of career advancement and financial stability, KTC has collaborated with business partners, such as language schools to offer education loan products to applicants. The loan with appropriate interest rates and fees plus installments option eases the burden of customers. The Company’s business operations are not exposed to increased risks. KTC expects to increase the number of customers obtaining education loans. In this respect, KTC has set a goal to increase the number of partnerships with a wide range of educational institutions to be able to cater to the diverse educational needs of each customer group. At the same time, KTC is focusing on developing education loans to create the highest customer satisfaction level.

    Personal Loans In 2022
    Number of customers who got loan approval
    1,018 persons
    Total credit lines amounted
    81 Million Baht
    Credit Cards In 2022
    Number of credits
    card members who
    used the card
    74,355 persons
    Total spending at
    schools and educational
    institutions
    1,304 Baht
    Total spending
    via special interest
    rate installment payment
    7 Million Baht

    3KTC-THAI RED CROSS NATIONAL BLOOD CENTRE Credit Card

    KTC’ in collaboration with the Thai Red Cross Society National Blood Center issues KTC-THAI RED CROSS NATIONAL BLOOD CENTRE Credit card, as an alternative for members to support the Thai Red Cross Society National Blood Centre. Each purchase via KTC-THAI RED CROSS SOCIETY NATIONAL BLOOD CENTRE credit card amounting to Baht 1,000 equates to a donation of Baht 5 and KTC contributes an additional Baht 5 on top to the Thai Red Cross Society National Blood Centre. This is joint support between the Company and members in helping patients all over the country through using KTC credit card.

    The donation proceed
    303,083 Baht
    Number of KTC-THAI RED CROSS NATIONAL BLOOD CENTRE credit cardmembers 1,352 Persons.

    Alleviating the Burden of Medical Expenses in Public Hospitals

    KTC believes that being healthy is an essential element for living as well as a development of quality of life. Public hospitals play a particularly significant role in assisting a considerable number of patients to get equal treatment opportunities. To assist patients to stay healthy and alleviate the burden of unpredictable medical expenses, the Company allows its credit card members who are treated at public hospitals to pay in installments up to 10 months with a special interest rate of 0.69% per month from a standard rate of 0.74% per month. This campaign receives positive responses from credit cardmembers.

    In 2022
    Total spending at public hospitals
    4,066 Million Baht
    Number of credits cardmembers
    who used public hospital services
    208,035 Persons
    Number of credits cardmembers
    who convert medical expenses
    into installment payment at public hospitals
    6,511 Persons
    Total spending at public hospitals
    and using special interest rates
    123 Million Baht
    The budget spent to support special interest rate
    6 Million Baht

    Use of Points in Lieu of Cash Donations

    KTC promotes equality in society by initiating the Point-for-Donation program since 2009, with the aim of improving the community. Furthermore, given the widespread impact of the COVID-19 pandemic, KTC recognizes the importance of ongoing efforts. This includes offering its members the opportunity to support and assist those in need, in collaboration with various charities. These efforts include providing aid to those who are ill with the virus or to hospitals facing shortages of medical equipment and supplies. The limitations of social distancing and travel restrictions to reduce the spread of COVID-19 have resulted in a decrease in support from the community for charities and humanitarian organizations. KTC has played a role as a mediator in promoting and supporting various projects and activities between non-profit organizations and its members. It also provides a platform for members to make donations via credit card, with the points redemption as monetary donations. The exchange rate is 1,000 points for Baht 100 . The donation platform is available both online and through the KTC Mobile Application, with the online platform equipped with QR Pay and QR Point features. By using the KTC Mobile Application, members can easily convert their points into donations to the 64 non-profit organizations. This allows members to actively contribute to society through the donation platform. For example

    ยอดบริจาครวมปี (ผ่านบัตรเครดิตและคะแนน) 2022 ยอดบริจาครวมปี 2022 มูลนิธิที่รับบริจาค 91 มูลนิธิ มูลนิธิที่รับบริจาค 64 มูลนิธิ ส่งมอบเงินบริจาคให้กับมูลนิธิได้ทั้งสิ้น 351 ล้านบาท ส่งมอบเงินบริจาคให้กับมูลนิธิได้ทั้งสิ้น 3.8 ล้านบาท จำนวนสมาชิกที่ร่วมบริจาค 50,626 คน จำนวนสมาชิกที่ร่วมใช้คะแนน แทนเงินบริจาค 11,725 คน

    Special Privileges for Standard Vaccinations at Leading Hospitals

    KTC acknowledges the importance of health care and the prevention of diseases through standard vaccinations that are suitable for all age groups. KTC offers members special privileges for payments of vaccines with KTC credit card at participating hospitals, they will get THB 300 credit cash back when members spend on vaccines with KTC credit card and redeem 1,999 KTC FOREVER points. Standard vaccines include 4-strain flu vaccine, diphtheria, tetanus toxoids, whole-cell pertussis and hepatitis B (DTP-HepB) vaccine, rabies vaccine, dengue vaccine, and cervical cancer vaccine leading participating hospitals include Bangkok Hospital (Soonvijai, Hua Hin and Pattaya Branch), Samitivej Hospital (Sukhumvit, srinakarin, and Chinatown branch), Phayathai Hospital, Paolo Hospital, Vichaiyut Hospital, Navavej International Hospital, among others.

    KTC ONLINE TRAVEL FAIR (Supported by the Tourism Authority of Thailand)

    KTC continuously organizes tourism events online to support hotel businesses that have been impacted by the COVID-19 crisis. The event provides additional sales and marketing channels with no additional costs, as well as stimulates spending by offering a 15% cashback credit and KTC FOREVER reward points or hotel room voucher for every spending during the event totaling over THB 400,000. The participating hotels can participate without incurring any booth rental, media production, or operational costs, and they will receive free publicity through KTC, the Tourism Authority of Thailand as well as exclusive media coverage, social media and Sneak Out’s live streaming platforms. A total of 156 hotels, including Centara,Dusit, Intercontinental, Meliá, Veranda, Cross, Serenata,and Mövenpick, are participating in the event

    มีโรงแรม และ รีสอร์ท เข้าร่วมทั้งสิ้น โรงแรม 156
    Totaling
    2 Million Baht
    Attended the online event
    26,423 Persons
    Redemption
    288,376 Reward points

    Support Thais Reading

    KTC realizes the importance of reading as a key to unlocking the world of learning in all subject matters and promotes continuous learning, which paves the way towards the sustainable development of individuals and society. KTC wants to support the Thai government’s policy to elevate reading as a national agenda, to support publishers to publish and develop quality books, to stimulate Thais to realize the importance of reading, and to respond to the tax stimulus campaign - “Shop Dee Mee Kuen”; KTC has collaborated with leading bookstores and publishers in Thailand organizing promotional campaigns or activities with its partners over 35 projects. KTC also integrated technology for use in 2022 campaigns, such as granting discounts at partner bookstores up to 15%, and online distribution channels, using KTC points in exchange for cash-back credit up to 18% from the standard rate of 10%. For customers who purchase copious quantities of books, KTC grants certain privileges to ease the burden of payment, particularly in the form of installment payment with KTC card with an interest rate of 0.69% per month from the standard rate of 0.80% per month for up to 3 months.

    Number of cardmembers
    who participated
    in this campaign
    8,996 Persons
    Total spending
    at publishers
    and bookstores
    323 Million Baht
    Total spending
    via special interest rate
    installment payment
    226,287 Baht
    Total budget spent
    to support the special
    cash-back rate
    2.7 Million Baht

    KTC U SHOP

    KTC U SHOP has established since 2016 Quality products are selected for members to choose from online and offline channels, as well as organizing events and exhibitions, to promote natural, organic and health product categories, supporting Thai SMEs and community businesses to expand their businesses and reach more customers. The products are divided into several categories as follows:

    Natural Extraction cleaning products
    Natural Hair and skincare products
    Essential Oil/Aromatic Hydrocarbon Products for Healing
    World Conservation Products under the “Ecotopia” Project by Siam Piwat
    Products from “Doi Tung” (Social Enterprise)
    Organic Farming Group

    Currently, KTC has over 50 partner stores in this group, with KTC U SHOP helping to expand distribution channels in order to increase revenue for small businesses and communities. This also increases the value of KTC credit card spending, as members can choose natural products that are beneficial for their health, environment, and overall quality of life. Additionally, this spending supports the growth of communities, small businesses, and KTC itself. Customers can shop or use KTC FOREVER points to redeem cash at KTC U SHOP, with the option of home delivery through the website www.ktc.co.th/ushop and Line@ KTCUSHOP.

    Over
    700 items sold
    Shops participated
    50 Shops
    The total sales were
    496,062 Baht

    “Debt-Clearing” Campaign for KTC PROUD Cash Cardmembers

    KTC has organized “Debt-Clearing” campaign for the 13 consecutive years to to alleviate debts burden of “KTC PROUD” cash cardmembers with good debt payment records and on time repayment on their credit card. Only one registration is required to earn chances for rounds of debt amelioration throughout 2022 via SMS, the Company’s website www.ktc.co.th/cleardebt2022, or at any KTC TOUCH service points with a total of 600 prizes as follows:

    รางวัลที่ 1

    100% existing KTC PROUD debt clearance with no restrictions on maximum debt value (lucky draws for one winner each time)

    รางวัลที่ 2

    10% KTC PROUD debt clearance (12 lucky draws for 49 winners each time)

    Number of people who get debt amelioration
    600 Persons
    Total debt amelioration amount equaled to
    7.14 Million

    KTC organizes the “Tiew… Yuu Dai” project to help tourism business operators nationwide

    KTC contributes to helping and supporting tourism business operators who have been continuously affected by the COVID-19 crisis by organizing the “Tiew… Yuu Dai” project by inviting tourism business operators, including tourist attractions, car rentals, and travel agencies to participate with no charge. Businesses participating in the project will gain exposure from media design and production for public relations purposes visible to over 2.6 million members via 7 KTC channels, such as KTC monthly letter for cardmembers,Facebook: KTC Real Privileges, KTC website, KTC Line Official, KTC e-Newsletter, IG: KTC Card and the KTC Mobile application. Moreover, this project executed via KTC World Travel Service will serve as another option for business owners to have more sales channels or dealers without having to invest. Simultaneously, KTC also supports by offering KTC credit cardmembers special 10% cashback promotion. Cardmembers enjoy the privilege of making payment at participating merchant with the usage of KTC FOREVER points in the amount equivalent to the transaction.

    Number of participating
    partners
    102 Partners
    Number of locations
    250 Locations
    Total points redeemed
    8,330,162 Points

    Solar Roof Top 0% Installment Payment Plan

    KTC is committed to promoting members’ access to and participation in clean energy options, which are environmentally friendly and reduce electricity costs. By offering Solar Rooftop installations, KTC reduces the burden of energy costs and provides a 0% interest installment option through credit cards. This not only enhances customers’ convenience in accessing these services but also expands the market reach for Solar Rooftop providers.

    In 2022, there were three business partners who offered a 0% installment plan for Solar roof top:
    - Gunkul Engineering Public Company Limited
    - Alt Telecom Company Limited (the Company)
    - SCG Distribution

    Special Priviledges for booking electric vehicles and WALLBOX

    At present, the use of vehicles is one of the causes of increasing air pollution. This has led to a growing role for electric cars as a replacement for vehicles powered by fossil fuels, which produce various pollutants that harm both humans and the environment. KTC recognizes the importance of this situation and is part of the effort to reduce environmental impacts. Additionally, KTC offers customers access to high-priced electric vehicles and WALLBOX products. As a special benefit, KTC provides exclusive privileges of the NETA electric car, within the V Group Cars network, for its customers.

    1. 2 Special privileges when paying for the reservation of an electric vehicle worth Baht 5,000 THB through KTC credit card.
    • Special Privilege 1: Instantly exchange points for a 13% discount on the reservation.
    • Special Privilege 2: 0% percent financing for 6 months on the reservation.
    2. Pay through KTC credit card for the NETA WALLBOX installation with a deposit of Baht 40,000.

    Choose to receive 1 special benefit when paying a Baht 40,000 THB deposit for installing the electric vehicle battery charger (NETA WALLBOX) through KTC credit card.

    • Special Privilege 1: 0% installment for 6 months
    • Special Privilege 2: Receive 10,000 KTC FOREVER/KTC ROP bonus points