KASIKORNTHAI Regulatory Capital and Financial Performance Update slide image

KASIKORNTHAI Regulatory Capital and Financial Performance Update

K KASIKORNTHAI Environmental Aspect (1/2) GOAL Ensuring environmental stewardship towards a net zero society ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Commitment We are committed to preserving the environment and reducing the impact of climate change Green operations Material Areas and Targets Target: Transition to Net Zero in Our Own Operations (Scope 1&2) by 2030 Target -4.2% -8.4% -12.6% -16.8% -21% Net Zero (Ton CO2e) 2020 2021 2022 2023 Note: Baseline year 2020; Align with 1.5 degrees scenario. 2024 2025 2030 KBank Decarbonization Pathway in Our Own Operations (Scope 1&2) 97,785 90,172.91 (-7.79%) 77,251 (-21.00%) 81,402.17 (-16.75%) This target is considered to align with SBTi. 2030 2025 Net Zero in our own operations (Scope 1&2) 21% reduction of GHG Emissions (Cumulative from base year 2020) *4.2% emission reduction per year *Baseline year 2020 Scope 1 Net Zero (Scope 1 and 2) 2020 2021 2022 2025 2030 Scope 2 (Base year) • Actual Target *2020-2022: KBank Actual Emission Note: 2023 onwards is forecasted based on minimum guideline align with 1.5 degrees scenario Emission from fossil fuel burned from KBank own car fleet EV Fleet Conversion Adopt lower emission factor fuel (E85, B20) Emission incurred from electricity consumption Consumed more renewable energy (Solar rooftop installation) Energy Conservation Measures (Building Retrofit, BMIS, A/C) Space Optimization Renewable Energy Certificates (REC) Residual emission Carbon Removal Reforestation Carbon Capture Utilization Storage (CCUS) Sample of Performance Own operations (Scope 1& 2): GHG Emission Reduction (Baseline year 2020) > 2021 Target: -4.2% > 2021 Performance: -7.79% > 2022 Target: -8.4% > 2022 Performance: -16.75% Enhance Environmental Management: - Environment and energy conservation policy - Environmental management system development Green building designing Green process designing Green mobility Green facility management: > Lighting system management > Clean energy management > Water use management > Green waste management Raise employees' awareness on energy and environmental conservation and adopt green behavior บริการทุกระดับประทับใจ 115 K KASIKORNTHAI Environmental Aspect (2/2) GOAL ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Ensuring environmental stewardship towards a net zero-carbon society Commitment We are committed to preserving the environment and reducing the impact of climate change Material Areas and Targets Sustainable Finance Targets: Transition to Net Zero in our finance portfolio (Scope 3) in line with Thailand's Aspiration*, accelerating this journey where possible • ➤ Decarbonization Pathway in our Financed Portfolio (Scope 3) Minimize lending to projects with high GHG emissions Increase financial support to environmentally friendly projects or projects with no or low GHG emissions Sample of Performance Sector Prioritization for Glidepath MATERIALITY ASSESSMENT 1 Calculating the greenhouse gas emissions of each industry in the Bank's portfolio as a proportion of loans to different industries to rank those industries with significant greenhouse gas emissions. FEASIBILITY ASSESSMENT 2 Studying the assessment methodology of each industry, which depends on the availability of data used in the calculation and various reference scenarios (Availability of Methodology) and Availability of Counterparty Data. ABILITY TO DELIVER ASSESSMENT 3 Consider the ability to change each industry (Decarbonization Trend), Complexity to Execute, and Local Context to be used as factors in ranking the industry. Targets: Allocate at Least Bt100-200bn in Sustainable Financing and Investment by 2030 * Thailand's ambition at COP26: . 2050 carbon neutrality and 2065 Net Zero GHG Emission Sector Prioritization for Portfolio decarbonization management The Bank assessed and formulated a Sector Decarbonization Strategy ➤ Y2022 - 3 sectors: Power Generations, Oil and gas, and Coal ➤ Y2023-4 sectors: Power Generations, Oil and gas, Coal, and Cement Sustainable Financing and Investment: ► 2022 Performance: Bt26n ➤ 2023 Targets: Bt25bn ➤1H23 Performance: Bt19bn บริการทุกระดับประทับใจ 116
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