SCB to support Mitr Phol Group’s climate change initiatives
Siam Commercial Bank introduces Sustainability-Linked FX Option to support Mitr Phol Group’s climate change initiatives
Siam Commercial Bank (SCB) continues its commitment to fostering sustainable growth by championing sustainable banking practices, focusing on the environmental, social, and governance. To further meet those goals, the bank has unveiled a groundbreaking financial innovation by entering into a Sustainability-Linked FX Option agreement with the Mitr Phol Group. This agreement serves as a financial derivative contract to hedge exchange rate risks while also aligning Mitr Phol Group’s environmental performance with exchange rate determination. The Sustainability-Linked FX Option represents a versatile financial tool designed to enhance risk management capabilities while generating sustainable returns. Moreover, it empowers businesses to actively mitigate the impact of climate change. The collaboration was announced by Mr. Verajet Vongkusolkit, Chief Executive Officer of the Thai Sugar, Energy and New Business Group at the Mitr Phol Group; Mr. Patrick Poulier, Executive Vice President & Head of the Financial Markets Function and Mr. Rungsi Vongkitbuncha, Executive Vice President of Corporate Banking 2 at Siam Commercial Bank
This strategic partnership underscores Mitr Phol Group’s commitment as both Thailand’s leading sugar producer and the world’s third-largest producer toward fostering sustainability across all sectors. The initiative aims to strike a harmonious balance between environmental conservation and sustainable growth, positioning Mitr Phol Group as a global leader in sustainability. This is further evidenced by the S&P Global Corporate Sustainability Assessment (CSA) 2023 highest score in food products industry, which recognizes Mitr Phol Group’s efforts and readiness to achieve net-zero greenhouse gas emissions by 2050. Meanwhile, Siam Commercial Bank has set ambitious targets to achieve net-zero emissions from its internal operations by 2030 and from lending and investment activities by 2050. The bank remains focused on driving its customers, businesses, and society toward creating sustainable economic growth while safeguarding the environment.
