Banks in Thailand Embrace Sustainable Practices, Leading the Way to a Greener Future

Strategic Insights -

Thailand's major banks, including Kasikornbank (KBank), United Overseas Bank (UOB) Thailand, and Kiatnakin Phatra Financial Group (KKP), are taking strides in adopting sustainable practices, shifting their operations to align with green banking principles and reducing their environmental footprint. These banks are not only offering green financial services to clients but also prioritizing energy efficiency, reducing waste, and promoting biodiversity in their own operations.

Key Takeaways:

  • KBank has six buildings certified by the US-based Leadership in Energy and Environmental Design (LEED) programme, including the Kasikorn Business Technology Group Building, Chaeng Wattana Building, and Phahon Yothin Building, which are recognized for their environmentally responsible design.
  • UOB Thailand has implemented 13 rooftop solar projects across the country, with 12 installed at its branch offices and one at UOB's Phetkasem site, and has achieved an energy use intensity of less than 145 kilowatt-hour per square meter, outperforming the global average.
  • KKP Tower, the group's headquarters, received LEED Gold certification in May 2023, meeting a range of environmental criteria, including the use of energy-efficient electrical systems and water-saving technologies.
  • KBank aims to achieve net-zero emissions in its operations by 2030, while UOB Thailand has reported operational carbon neutrality since 2021, and KKP aims to achieve net-zero emissions from its operations by 2035.
  • KBank and UOB are supporting clients in their sustainability efforts through green financial solutions, such as financing for solar photovoltaic systems and energy efficiency upgrades, while KKP is exploring additional renewable energy solutions.

Statistics:

  • The real estate sector is a significant contributor to global CO2 emissions, accounting for about 40% of total emissions.
  • New buildings in the European Union must achieve zero emissions by 2028.
  • UOB's energy use intensity is less than 145 kilowatt-hour per square meter, outperforming the global average of 160-170 kWh/sq m.
  • KBank's operations aim to achieve net-zero emissions by 2030.
  • UOB Thailand reported operational carbon neutrality across Scope 1, Scope 2, and Scope 3 emissions since 2021.
  • KKP aims to reduce the fuel consumption of its vehicle fleet by increasing the use of renewable and clean energy, lower overall electricity usage, and transition to electricity generated from renewable or clean energy sources.

Sources:

  • Kasikornbank,
  • United Overseas Bank Thailand,
  • Kiatnakin Phatra Financial Group,
  • Thailand's Securities and Exchange Commission,
  • Leadership in Energy and Environmental Design (LEED) programme