EGAT and Krungthai Bank join forces on green deposits to boost sustainable financial services in Thailand

Electricity Generating Authority of Thailand (EGAT) and Krungthai Bank Public Company Limited (KTB) have forged a pioneering partnership to enhance green deposits under the Green Financing Framework. This initiative marks the first instance in Thailand’s commercial banking sector where EGAT’s main operating account integrates into a green deposit project.

The collaboration aims to bolster financial support for environmental projects, emphasizing EGAT and KTB’s commitment to innovative Environmental, Social, and Governance (ESG) financial solutions. EGAT, led by Governor Mr. Thepparat Theppitak, reaffirmed its dedication to sustainable development, accelerating efforts to advance energy infrastructure as a comprehensive provider of green energy services in the region. The integration of EGAT’s main operating account into KTB’s Green Financing Framework will facilitate funding for eco-friendly initiatives such as renewable energy projects, energy efficiency improvements, and environmentally conscious construction.

KTB’s CEO, Mr. Payong Srivanich, highlighted the bank’s strategic focus on developing sustainable financial services aligned with the concept of “Value-added Innovations to Response Customer Demands for Sustainability.” This collaboration not only aims to expand business opportunities but also aims to achieve the Net Zero Emissions goals set forth by the Bank of Thailand. By leveraging EGAT’s pivotal role in ensuring national power security, KTB’s green deposit project will utilize US dollars in EGAT’s main operating account to support green loans, fostering the transition towards environmental sustainability within the energy sector and beyond.

The management of EGAT’s organizational main operating account as a green deposit by a Thai commercial bank represents a significant milestone. EGAT utilizes this account for various financial transactions, while KTB will utilize it to bolster green loans that contribute to direct (Scope 1) and indirect (Scope 2) reductions in greenhouse gas emissions. This collaborative effort underscores both organizations’ firm commitment to responsible business practices aligned with Environmental, Social, and Governance (ESG) principles and the United Nations’ Sustainable Development Goals (SDGs), driving positive change for Thailand’s environmental landscape.

KTB’s implementation of green deposits adheres rigorously to international environmental finance standards, including the Asia Pacific Loan Market Association and Loan Market Association’s Green Loan Principles and the International Capital Market Association’s Green Bond Principles. The bank’s Green Financing Framework is certified by ISS Corporate Solutions, ensuring alignment with Thailand’s Taxonomy and economic activity measures for environmental sustainability, reinforcing KTB’s role in promoting environmentally friendly products across the value chain.