KBank's Strategic Acquisition in Muang Thai Group Holding

K KASIKORNTHAI Governance GOAL Commitment Being an accountable bank to create sustainable profitability ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK We are committed to strong ESG principles to be a responsible and accountable bank Material Area and Targets ESG Risk Management and Compliance ESG credit: 100% of Project Finance requests and medium enterprises (and above) must be processed through the ESG credit assessment Sample of Performance In 2022, 100% of project finance and above medium- sized entrepreneurs passed ESG risk assessment worth Bt514,652mn Corporate Governance and Anti-Corruption Corporate Governance Reviewing KBank practices under Thai IOD, Sustainability Indices (DJSI) criteria ASEAN CG Scorecard, and Dow Jones • ASEAN CORPORATE GOVERNANCE 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 • . 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 approved 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 and labor rights, occupational safety and health, and environment, as well as the Anti-Corruption Policy and the Conflicts of Interest Prevention Policy for their acknowledgment and compliance. The Bank also encouraged suppliers to participate in the anti-corruption network. Communication of the No Gift Policy regardless of 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. Additionally, suppliers are encouraged to comply with Anti- Corruption Policy and practices. Provision of various channels to receive information, complaints and whistle-blowing บริการทุกระดับประทับใจ 117 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 Directions At the management level Lending activities are structured so as to demonstrate environmental and social responsibility as follows Corporate Governance Committee ➤ 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, monitoring, and undertaking sustainable development 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 Credit Risk Management Sub-committee Sustainable Development Sub-committee ➤ Credit Risk Management Sub-committee Considering sustainable development communications both within and outside KBank, and information disclosure in compliance with domestic and global sustainability frameworks and standards Determining ESG credit policy and processes, and updating such policy and processes Business Units 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 Function ➤ Monitoring and Controlling Functions • Determining environmental and social management as agreed Reporting to Corporate Governance Committee บริการทุกระดับประทับใจ 118

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