KASIKORNTHAI Regulatory Capital and Financial Performance Update

K KASIKORNTHAI ESG Risk Management ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank has established credit policies and operations that manifest ESG responsibility with an operational structure divided into management and transaction levels, as follows: Risk Oversight Committee Board of Directors At the management level Lending activities are structured so as to demonstrate environmental and social responsibility as follows Corporate Governance Committee Credit Risk Management Sub-committee Sustainable Development Sub-committee Business Units Monitoring and Controlling Function ➤Board of Directors Approving risk management policy, frameworks, risk limits and risk appetites Risk Oversight Committee Overseeing and ensuring compliance with consolidated risk management policies and strategies and acceptable risk appetite Assessing risk management policies and strategies to cover all risks including emerging risks ➤ Corporate Governance Committee Overseeing and monitoring sustainable development operations Sustainable Development Sub-committee . . Considering and approving sustainable development frameworks and action plans Considering and endorsing policies, goals, strategies, and targets related to sustainable development performance Overseeing and monitoring sustainable development operations Considering sustainable development communications both within and outside KBank, and information disclosure in compliance with domestic and global sustainability frameworks and standards ➤ Credit Risk Management Sub-committee Determining ESG credit policy and processes, and updating such policy and processes Business units . Screening environmental and social risks of project financing and commercial credits to be supported Ensuring and monitoring projects' compliance with regulations/ environmental and social management plan ➤ Monitoring and Controlling Functions • Determining environmental and social management as agreed Reporting to Corporate Governance Committee บริการทุกระดับประทับใจ K KASIKORNTHAI ESG Risk Management ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KBank has established credit policies and operations that manifest ESG responsibility with an operational structure divided into management and transaction levels, as follows: Exclusion List Offences relating to gambling At the transaction level The Bank ensures that lending transactions violate neither the law nor social ethics Offences relating to human tracfficking Offences relating to narcotics Offences relating to embezzlement Offences relating to exploitation of Offences relating to terrorism natural resources Examples of Exclusion List: 。 Offences related to illegal activities or activities that risk violation of laws including domestic environmental laws and international agreements, for example: ■ Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) ■ Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal or related rules and regulations, etc. 。 Credits related to destroying or encroaching upon important ecosystems, such as mangrove forests and conservation areas, for example: ■ Natural parks, conservation areas and animal sanctuaries per related public notifications UNESCO World Heritage Sites, etc. " 。 Credits for hydropower generation from dams that generate significant impacts on the environment and society, without management measures and work plans in accordance with the Equator Principles and without support from international financial institutions for development or foreign financial institutions that have accepted the Equator Principles 。 Stop financing project of new coal-fired power generation (100% discharge existing loans on coal-fired power plants by 2030) Sector - Specific Guidelines KBank has developed the loan consideration guidelines for specific industrial sectors in accordance with environmental and social impacts by including ESG factors in credit consideration for each industry in addition to other factors, to ensure that risk management at the credit portfolio and transaction levels comply with the target to achieve a low-carbon economy, especially for the industries with risks of environmental and social impacts, for example: 。 Agricultural Industry: No support for business operators that encroach upon or destroy forest areas, or conduct slash-and-burn farming practices 。 Fishery: No support businesses conducting unlawful operations, or Unregulated Fishing (IUU Fishing), or catching restricted animals or animals included in CITES 。 Electricity Generation: Support renewable energy plants, e.g. solar and wind, power plants using other fuels, e.g. biomass and waste etc. บริการทุกระดับประทับใจ 119 120

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