KASIKORNBANK Strategic Acquisition

K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Example of Economic Aspect: ESG Risk Management (Con't) ■KBank has integrated ESG considerations into the risk management framework, with particular attention given to risks related to lending, investment, products, and services Exclusion List Offences relating to gambling Offences relating to Human trafficking At the transaction level The Bank ensures that lending transactions violate neither the law nor social ethics, for example Offences relating to embezzlement Offences relating to exploitation of natural resources Offences relating to narcotics Offences relating to terrorism CO₂ 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. o 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, unless there is a strategy to add or change to other low- carbon energy sources 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 о 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. ESG Lending: о 100% of Project Finance and medium enterprises (and above) requests must be processed through the Environmental, Social and Governance (ESG) assessment procedure Credit requests approved with ESG Assessment*: Baht 420 billion Project Finance: Baht 13 billion о Commercial credits for medium enterprises and above: Baht 407 billion Note: KBank's Performance as of December 2021 บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Examples of Economic Aspect: CG and Anti-Corruption Corporate Governance ■ Reviewing KBank practices under Thai IOD, ASEAN CG Scorecard, and Dow Jones Sustainability Indices (DJSI) criteria ■ Implementing a strategic plan for CG activities to enhance compliance by directors, executives, and staff with CG principles, Code of Conduct, and Anti-Corruption Policy through ➤ Organizing training courses and continually communicating via e-Learning system ➤ Communicating with companies within KASIKORNBANK FINANCIAL CONGLOMERATE to ensure consistency of operations ■ Reviewing the Statement of Business Conduct, the Code of Conduct, the Statement of CG Principles, CG Policy, and related Charters; keeping them up-to-date in accordance with Ongoing business operations and Bank Sustainability Compliance with laws, international practices, and best practices as prescribed by regulatory agencies and competent agencies ■ Revising the means of acknowledgment of compliance with the Code via an e-Learning system Note: Thai IOD = Thai Institute of Directors; CG = Corporate Governance Anti-Corruption KBank, KAsset, and KSecurities co-signed a declaration of the "Thai Private Sector Collective Action Against Corruption (CAC)" project and have been recognized as CAC certified companies since 2013 ⚫ BOD approval of the revised Anti-Corruption Policy in compliance with the assessment and certification criteria for anti-corruption measures of the Thai Private Sector Collective Action Against Corruption. • Internal Communication on Anti-Corruption Policy to ensure proper practices within the organization by Organizing training courses for executives and employees Communicating with all directors, executives and employees via KBank electronic networks and website • Communicating with suppliers on operational guidelines, including Communication of supplier manual on the Code of Conduct related to business ethics, human rights and labor, anti-corruption, safety and occupational health, and environment for acknowledgment and compliance. Communication of the No Gift Policy for all occasions and festive seasons. Communication of the Bank's procurement procedures and policies, as well as sustainable business operations under good corporate governance, procurement with responsibility and operations in accordance with the ESG principles. Communication of the Code of Conduct and Anti-Corruption Policy. Provision of various channels to receive information, complaints and whistle-blowing. บริการทุกระดับประทับใจ 123 124

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