Bangkok Bank Advances Sustainability Initiatives under Central Bank's Taxonomy
Bangkok Bank prepares to support local businesses transitioning towards sustainable practices as part of the Bank of Thailand's taxonomy initiative.
Bangkok Bank (BBL) is poised to align with the second phase of the Bank of Thailand's taxonomy initiative, aimed at assisting local businesses in their journey towards sustainability.
BBL president Chartsiri Sophonpanich indicated that the bank has been actively monitoring the progression of Thailand Taxonomy Phase 2, which focuses on four key sectors: agriculture, manufacturing, buildings and real estate, and waste management.
According to Mr. Sophonpanich, BBL is ready to offer financial support to these industries in accordance with the central bank's framework.
The taxonomy initiative is built on a classification system that identifies and categorizes economic activities based on their environmental sustainability, serving as a reference tool for guiding investments, financial decisions, and policy measures to assist Thailand in achieving its climate goals, particularly regarding the reduction of greenhouse gas emissions and alignment with the Paris Agreement and the UN's Sustainable Development Goals.
Following the completion of public hearings for Phase 2, the Taxonomy Working Group is in the process of reviewing feedback to refine the framework, which is anticipated to be finalized and published by the end of May. The central bank expects the implementation of Phase 2 to occur in the latter half of the year.
In alignment with these initiatives, BBL has launched multiple programs aimed at supporting Thai businesses in their transition to sustainable practices.
Notably, the bank has extended its green financing initiative known as the Bualuang Transformation Loan into next year after its initial expiration in January.
Launched under Phase 1, the program has a total allocation of 20 billion baht and is designed specifically to assist small and medium-sized enterprises (SMEs) in adopting green business practices, offering a fixed interest rate of 5% annually.
Additionally, BBL offers Financing the Transition loans in collaboration with the central bank and eight other commercial banks, allocating 10 billion baht for this loan program.
Mr. Sophonpanich reported sustained growth in loans under both initiatives.
Moreover, BBL is dedicated to supporting startups by promoting sustainability awareness through various educational and training programs.
In terms of overall loan growth, the bank continues to expand its loan portfolio to meet customer demand.
While corporate clients are taking a cautious approach in awaiting clearer economic conditions before making investment decisions, there is a notable positive trend in outbound investments by large local corporations, particularly in Southeast Asia.
BBL has set a loan growth target of 3-4% for this year and is reportedly on track to achieve this goal.
BBL president Chartsiri Sophonpanich indicated that the bank has been actively monitoring the progression of Thailand Taxonomy Phase 2, which focuses on four key sectors: agriculture, manufacturing, buildings and real estate, and waste management.
According to Mr. Sophonpanich, BBL is ready to offer financial support to these industries in accordance with the central bank's framework.
The taxonomy initiative is built on a classification system that identifies and categorizes economic activities based on their environmental sustainability, serving as a reference tool for guiding investments, financial decisions, and policy measures to assist Thailand in achieving its climate goals, particularly regarding the reduction of greenhouse gas emissions and alignment with the Paris Agreement and the UN's Sustainable Development Goals.
Following the completion of public hearings for Phase 2, the Taxonomy Working Group is in the process of reviewing feedback to refine the framework, which is anticipated to be finalized and published by the end of May. The central bank expects the implementation of Phase 2 to occur in the latter half of the year.
In alignment with these initiatives, BBL has launched multiple programs aimed at supporting Thai businesses in their transition to sustainable practices.
Notably, the bank has extended its green financing initiative known as the Bualuang Transformation Loan into next year after its initial expiration in January.
Launched under Phase 1, the program has a total allocation of 20 billion baht and is designed specifically to assist small and medium-sized enterprises (SMEs) in adopting green business practices, offering a fixed interest rate of 5% annually.
Additionally, BBL offers Financing the Transition loans in collaboration with the central bank and eight other commercial banks, allocating 10 billion baht for this loan program.
Mr. Sophonpanich reported sustained growth in loans under both initiatives.
Moreover, BBL is dedicated to supporting startups by promoting sustainability awareness through various educational and training programs.
In terms of overall loan growth, the bank continues to expand its loan portfolio to meet customer demand.
While corporate clients are taking a cautious approach in awaiting clearer economic conditions before making investment decisions, there is a notable positive trend in outbound investments by large local corporations, particularly in Southeast Asia.
BBL has set a loan growth target of 3-4% for this year and is reportedly on track to achieve this goal.
