‘Krungsri-MUFG’ participate in ESG seminar to support sustainable business growth


June 21, 2024

Bank of Ayudhya Public Company Limited has partnered with Mitsubishi UFJ Financial Group (MUFG), the largest financial institution in Japan and the world’s leading financial institution group to host the Krungsri-MUFG ESG Symposium. The seminar was held on May 29, 2024 at the Siam Kempinski Hotel, Bangkok.

Mr. Pavit Kesawawong, Deputy Director-General of the Department of Climate Change and Environment, The Ministry of Natural Resources and Environment said on the topic “Driving Thailand towards the Net Zero Goal” that the current events in the world are not as expected. Global temperature rises every year. Krungsri has commented.

It is considered an upstream that helps Thailand’s decarbonization transition from the COP28 stage. Currently, there is no solution to reduce fossil consumption, but what can be done is to increase the use of alternative renewable energy. 3 times to reach the 2030 target of increasing 30@30 clean energy from 30% renewable energy.

As for finance, each country has proposed to provide financial support to developing countries for the energy transition because each country has different energy transition capabilities. Thailand’s policy is considered to be clear in line with the carbon neutrality goal. 2050 and Net zero by 2065 with a carbon emission target of 222 million tons. By reducing domestic emissions by an average of 30% and receiving foreign aid. This includes international carbon exchanges, which are under consideration for exchange standards.

Mr. Sutthiket Tadpitakkul, Deputy Secretary General, the Board of Investment, Office of the Board of Investment (BOI) spoke on the topic “The Progress of Thai Industries in Accordance with the Strategy and Promotion of Carbon Neutrality”. that various problems arise around the world, including political, economic, financial, and environmental, and the BOI has adapted the context and tools to promote investment to the context in which it occurs.

For environmental issues, each country has measures to support it. Over the past 10 years, from 2009 to 2021, environmental finance has increased from $1.4 billion to $7 billion, with market growth from 7% to 10%. Both in terms of green, industry, energy, manufacturing, transportation and society.

Energy support will accelerate the issuance of the Green Electricity Service Fee (UGT) criteria, which will be implemented at the end of this year or early next year through two channels to have an effect on investment by promoting the power plan business that focuses on buying green energy.  The industrial sector is considered to be diverse, both agricultural and biomass. Biologicals under the BCG context.

In the past, When the government announced the BCG policy as a national agenda for 2020, there were 356 projects invested in 2023 that focused on re-producing waste. The transportation sector is considered an electric vehicle (EV) production ecosystem compared to the original ICE vehicles. Under the conditions of supply, the supply chain will be pushed to occur in Thailand.

In addition, it is related to digital, data center, AI, and machine support, with more than 77,000 support requests in 2023. Compared to 2022, the number of people in the social sector has increased by 7 times. If entrepreneurs are interested in supporting the community, they can apply for benefits from BOI in various businesses for the community. Currently, there is support for agriculture, tourism, Reduce global warming and PM2.5.

“All of this is in the context of environmental global change. BOI adjusts the green side This year and the following years will have many benefits in various fields to meet more global needs.”

Mr. Siriwit Preechasuth, General Manager of Corporate Planning Department, Toyota Motor Thailand Co., Ltd. Speaking on the topic “The Future of the Automotive Industry, Opportunities and Challenges”, he said that the automotive industry has undergone many changes. Toyota follows the framework to aim for mobility, CASE is divided into 1. Connectivity by connecting over the past 20 years, it has developed from 2G to 5G, and within 5 years, it will enter 6G. Because nowadays, unmanned vehicles are real and have been used in practice. 3. Sharing the trend of the new generation. Consumers will focus on renting because it has a modern design and is a desired facility and 4. Electrification: It can be seen that the use of electric batteries is now replacing the use of oil . In line with the vision of Carbon Neutrality and Expanding the value of mobility, Toyota believes that the Powertrain is not an enemy, which is not an enemy of the environment, but a carbon that destroys. Toyota operates its business to meet consumer demand. Therefore, Toyota is producing more vehicles in various forms, especially hybrids, which Toyota is currently producing. Set a target of 50% carbon reduction by 2035 and aim for Net Zero by 2050.

“Toyota will expand the value of new businesses in innovation and become an organization that drives mobility to save the world. The country’s logistics will change. With new logistics, with various smart solutions to drive. Strengthening Thai society” Mr. Siriwit said.

For the topic “Green Finance: An Important Step Towards Sustainable Business”, it was honored by 4 Big Corp executives. Executive Vice President – Finance & Investment Thai Cement Public Company Limited (SCG) said that the company announced a Net Zero target by 2050, which will be reduced by 25% from the base year of 2020 under the concept of Inclusive Green Growth.

For this idea, 4 things will be pushed: 1. The organization is agile, flexible, and adaptable quickly. 2. SCG places great importance on green innovation, so it has released various products such as low-carbon mortar. Smart solutions and eco-friendly plastics, etc. 3. Opportunity Organization SCG strives to empower employees to innovate new ways of working. Born as a startup What is more is upskilling and putting in business ownership, and 4. Leaving no one behind, such as the Saraburi Low Carbon City Project, which is considered a model city for low-carbon agriculture. Farmers can alternate wet rice farming. In order for SCG to achieve the Net Zero goal, it will require a lot of investment and knowledge, but there will always be opportunities for every challenge. As for the production process, carbon emissions are gradually reduced, along with a policy of installing solar power at factories towards green energy.

“For an organization to grow sustainably, it must be trusted by stakeholders. Once the action plan is announced, it will take action and report the results every quarter. We believe in the value of people born from instilling the ideology of fairness in accordance with the four ideals of business operations.

Mr. Worapong Nakchatri, Executive Vice President of Sustainability Management, PTT Public Company Limited, said that PTT operates its business starting with more than 100,000 fossil fuels. It was established to ensure energy security for the country. In the early stages of running a business, it is important to look at other aspects of security as the organization grows. Therefore, we have adopted a sustainability strategy in our business more than 12 years ago and continue to do.

In the matter of Beyond, PTT has changed its business a lot, focusing on a low-carbon society. In order to make Thai society more sustainable, but business operations to achieve that goal. Businesses must grow by conventional energy, for example, the gas business will increase its proportion. Renewable energy, hydrogen and electric vehicles (EVs) must generate at least 30% of revenue to achieve carbon neutrality by 2040 and Net Zero by 2050, with a target of reducing carbon emissions by 15% by 2030.

“PTT Group has set up the G-NET Team, a working group towards Net Zero by using various aptitudes in its subsidiaries, including renewable energy, CCS technology, and CCUS. Social and Community Activities” Mr. Worapong said.

PTT will have the following strategies: 1. Accelerate adjustment, which is to adjust the production process, 2. For example, the EV value chain, AI & Robotics will supplement and compensate for the decline, especially fossil fuels such as the coal business. Therefore, to make the business sustainable, it is necessary to have an ESG dimension to create a balance of stable growth and moderate profits by taking care of society and the community.

Ms. Naparat Sriwanwit, Executive Vice President, Finance, Accounting and Risk Division, Central Pattana Public Company Limited, said that the company provides shopping centers and hotels. Currently, there are more than 100 projects and more are in the process of being added. Throughout the past period, it has been through hot and cold for a long time and has a serious environmental policy for more than 10 years.

The company has set a Net Zero target by 2050, along the way, it will adjust the process by installing solar panels in shopping centers and aims to install all projects this year. As for the waste generated from construction, we will work with various organizations to make the most of it so that at least every construction has the lowest carbon emissions.

Mr. Akram Pircharoen, Chief of Staff for Large Business and Investment Banking, Bank of Ayudhya Public Company Limited, said that Krungsri has a green port that has been in place for a long time. Everything that transitions is so that everyone can move together. Our banks are intermediaries to help make a difference. The people who actually do it must be customers who must have a clear plan because the bank can approve it from various branches, but the important scope is the portfolio that leaves customers because there are many customers, so it is not easy. However, Krungsri is considered to be side by side with society. Therefore, we must help everyone to overcome it. We want customers to aim for Net Zero.

In addition, some issues are pressured by shareholders, and the need for ESG is different. Rapid change Therefore, it is a challenge because it is more difficult for banks to survive because in the past, they only looked at cash flow, but nowadays, lending has new and strange terms, both about climate change and EBITDA.

“We have knowledge about ESG, so we have set up an agency to work together with multinational customers, so we can use knowledge from foreign and Thai customers to manage it more systematically. The first step was to talk to customers and know the world trends, so no matter how much we adapt, we will have to do a lot more and do it together with many people.” Mr. Akram said.

Source: The Nation