SCB Achieves Sustainable Finance Milestone, Surpassing 5 Billion USD Mark
Siam Commercial Bank (SCB), a pioneer in sustainable finance in Thailand, has successfully exceeded its sustainable finance goal ahead of schedule. The bank's achievements are attributed to a strategic "Live Sustainably" initiative and a focused approach on environmental, social, and governance (ESG) dimensions.
At the heart of SCB's success lies a comprehensive sustainability strategy designed to support the low-carbon transition of Thailand’s economy. This strategy emphasizes ESG dimensions as a core business approach, setting the bank apart as a catalyst for systemic ESG transformation across corporations, customers, and society towards a resilient and climate-aligned economy.
One of the key factors contributing to SCB's success is the development of sector-specific decarbonization plans. These plans target pivotal industries such as commercial real estate, renewable energy, electric vehicles, petroleum, and chemical sectors, which have a significant impact on Thailand’s net-zero goals. These sectors form the majority of SCB’s sustainable finance portfolio.
To further incentivize clients to improve ESG outcomes in their operations, SCB has introduced innovative financial products, including loans and bonds with interest rates linked to borrowers’ sustainability performance. This approach encourages businesses to adopt more sustainable practices, aligning their operations with Net Zero goals.
SCB has also taken an active role as a sustainability partner, engaging closely with clients across industries by sharing expertise, offering consultations, and providing technical advice to enable effective sustainability transitions.
In addition to these efforts, SCB has set ambitious long-term environmental targets. The bank aims to achieve Net Zero emissions in its own operations by 2030 and across its entire loan and investment portfolio by 2050. Beyond the immediate finance goals, SCB has also committed to supporting clients' sustainability transitions via a 150-billion-baht green finance framework (2023-2025).
Notably, SCBX, the bank's group, is the first Thai financial group certified by the globally recognized Science-Based Targets initiative (SBTi). This certification demonstrates adherence to trustworthy, transparent, and science-driven climate commitments, reinforcing SCB’s leadership role in climate-aligned finance.
Kris Chantanotoke, Chief Executive Officer of SCB, stated that the strategy supports the sustainable growth of organizations and the Thai economy through ESG dimensions. He further added that SCB is committed to leading the transformation of Thailand's financial sector to help customers adapt, mitigate risks, and unlock growth in a low-carbon society.
To lead sustainable credit transformation, SCB has focused on three strategic pillars: real estate, electric vehicles, and energy. The bank's efforts align with SCBX Group's broader climate strategy, positioning SCB as a trailblazer in sustainable finance in Thailand. As a result, SCB has disbursed over 180 billion baht in sustainable finance, surpassing its 150 billion baht target set for 2023-2025.
The Science-Based Targets initiative (SBTi) is a global standard backed by more than 8,000 organizations for science-based climate action. SCB's commitment to this standard underscores its dedication to tackling climate change and promoting a sustainable future for Thailand and beyond.
- The Science-Based Targets initiative (SBTi) certification attests to SCB's commitment to science-driven climate commitments, reinforcing its leadership role in climate-aligned finance.
- SCB has successfully exceeded its sustainable finance goal ahead of schedule, demonstrating the effectiveness of its strategic approach that focuses on environmental, social, and governance (ESG) dimensions and its "Live Sustainably" initiative.
- To promote a sustainable future, SCB has developed sector-specific decarbonization plans for key industries like commercial real estate, renewable energy, electric vehicles, petroleum, and chemical sectors, and has disbursed over 180 billion baht in sustainable finance, surpassing its target.
