Thaioil and Krungthai Forge Partnership for ESG
Thaioil, being on its path to becoming a sustainable 100-year organization, has joined hands with Krungthai Bank in an ESG and decarbonization-linked cross-currency swap agreement. This partnership is part of Thaioil’s effort to achieve its net-zero ambitions.
Bandhit Thamprajamchit, Chief Executive Officer and President of Thai Oil Public Company Limited, emphasized the crucial role of financial and risk management in the company’s sustainability journey. Underpinned by the motto “TOP for the Great Future,” Thaioil focuses on a holistic transformation aimed at sustainable growth and achieving new goals. The company is striving to attain carbon neutrality by 2050 by employing the 3C strategy: cutting down existing emission from its manufacturing process (C-1), compensating residual emission by forestation and forest conservation to enable nature-based carbon capture solutions and carbon credit offsetting (C-2), and controlling future emission by investing in low-carbon industries (C-3). The ESG and decarbonization-linked cross-currency swap aligns with Thaioil’s commitment to operate within an ESG framework and reduce carbon emissions to mitigate climate change, resonating with Thaioil’s vision of “Empowering Human Life through Sustainable Energy and Chemicals.”
Rawin Boonyanusasna, Head of Global Markets Group at Krungthai Bank, stated that, as a leading Thai commercial bank, Krungthai Bank is committed to developing advanced financial innovations and solutions that cater to diverse customer needs. The bank prioritizes sustainable development with a keen focus on environmental, social, and governance aspects, especially decarbonization, to support the achievement of net zero targets and the United Nations’ sustainable development goals. Krungthai’s recent collaboration with Thaioil on the ESG and decarbonization-linked swap agreement exemplifies this commitment. Under this agreement, the bank will lower Thaioil’s hedging costs if the company meets both sustainability and decarbonization goals.
“This joint effort is a testament to our vision and commitment to sustainable operations. It also demonstrates how Krungthai contributes to both organizational and national net-zero targets with our financial service offerings. Our approach, guided by the principle of ‘Reshaping Client Value Proposition,’ is about harnessing innovation to create greater value for customers while addressing sustainability issues,” Rawin said.
