SCB first Thai bank to embrace Equator Principles, vows ‘sustainable finance’
SCB is the first Thai commercial bank among 129 financial institutions around the world to join the EP association.
Siam Commercial Bank (SCB) has joined the Equator Principles (EP) Association to promote environmental and social risk management for project finance, supporting Sustainable Development Goals (SDGs) and the Paris Agreement on Climate Change.
The move reflects the bank’s commitment in promoting the transition of every sector into a sustainable future, SCB said.
SCB is the first Thai commercial bank among 129 financial institutions around the world to join the EP association.
SCB CEO and chairman of the executive committee Arthid Nanthawithaya said the decision to join the association is another significant step in the bank's commitment to promoting “sustainable finance” rather than just "responsible lending".
To promote SDGs and the Paris Agreement on Climate Change, the bank undertakes to embrace the internationally recognised EPs in its policy formulation and to incorporate environmental and social factors into risk management processes for credit approval of project financing, he said.
“Implementing the Equator Principles will assist the bank in managing business risks in a more inclusive manner, allowing the bank and its clients to collaborate on assessing and formulating guidelines for mitigating environmental and social risks, all while adhering to world-class standards and procedures.
“This is a collaborative effort to improve the standard of Thai banking while also pushing Thailand towards becoming a significant player in the Asean green business market. SCB is ready to act as a link between all sectors of growth and sustainable development, resulting in shared values and beneficial change for society and the planet,” added Arthid.
Since deciding to incorporate the EP in April 2021, SCB has made adjustment and improvement of credit policies and processes in line with the EPs. Executives and relevant personnel have received working guidelines, tools, and training to ensure that they have the necessary knowledge and capabilities necessary to incorporate the EPs into their work, Arthid said.
