Implementing TCFD Guidance
Recognizing the Impacts of Climate Change Risks
Climate change is driven by greenhouse gas emissions that exceed the natural balance, creating significant risks to the global economy and affecting all sectors. To advance its business while contributing to climate action, the Company applies a science-based approach under the Science Based Targets initiative (SBTi) to assess financial impacts and formulate strategies to effectively address climate-related risks. The Company has also established short-, medium-, and long-term targets to reduce its carbon footprint, aligned with scenario analysis aimed at limiting the rise in global temperature to no more than 1.5°C, while enhancing the disclosure of climate-related financial information.
To ensure systematic and effective climate risk management, the Company has established a dedicated working group responsible for monitoring, reviewing, and integrating climate-related issues into the organization’s strategic planning and operational processes. This approach focuses on strengthening business resilience, driving sustainable growth, and creating long-term value for both the Company and society.
1. Climate Governance Structure
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Board of Directors
Oversee, review, and monitor climate-related performance to ensure alignment with the Company’s policy at least once.
Corporate Governance and Sustainability Committee
Monitor climate-related issues that may affect the Company and report to the Board of Directors at least twice a year.
Risk Management Committee
Establish risk management approaches, policies, frameworks, and related measures, and provide risk-related guidance to relevant departments at least twice a year.
Executive Committee
Establish the sustainable development policy and develop appropriate action plans for the working group to ensure alignment with the policies and guidelines set by the Board of Directors.
Efficiency and Sustainability Department
Responsible for preparing reports and presenting them to management to provide updates on operational-level implementation progress at least twice a year.
Working Group
Collect and analyze data in alignment with the Company’s sustainability policy.
2. Risks and Opportunity Management
Climate change presents both risks and opportunities that may have a significant impact on the Company’s business operations and financial position over the short, medium, and long term. The Company has therefore integrated climate-related issues into its Enterprise Risk Management (ERM) system to ensure systematic assessment, alignment with corporate strategy, and consistency with IFRS S2 Climate-related Disclosures.
The scope of management covers physical risks arising directly from climate change, transition risks associated with the shift towards a low-carbon economy, and climate-related opportunities that may arise across the Company’s value chain.
3. Management Approach in Accordance with IFRS S2
Climate risk management is conducted using information from internationally recognized external sources, together with internal operational data, to support assessments of both physical and transition-related risks.
Data sources used for the assessment include :
- Climate data and climate change trend information from credible public sources.
- Geospatial data on operations, such as branch locations, auction centers, and key infrastructure.
- Legal, policy, and regulatory trends related to climate-related measures by government agencies and regulators.
- Market, technology, and consumer behavior trends related to the transition towards a low-carbon economy.
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The assessment scope covers the Company’s core operating activities, taking into account both current and future scenarios within clearly defined time horizons to reflect potential impacts under different climate-related contexts.
Processes of Climate-related Risk Consideration
- Risk Identification and Opportunities Every departments participate annually in identifying climate-related risks that may affect the Company’s operations. The Efficiency and Sustainability Department oversees the process, consolidates identified risks, and monitors implementation progress to ensure comprehensive coverage of the Company’s operational context across the value chain.
- Assessment and Prioritization In addition, all departments participate in the assessment of climate-related risks and opportunities. The assessment is conducted using criteria aligned with the Company’s existing ERM framework, taking into consideration:
- Likelihood
The likelihood of the event occurring within the defined time horizons (short term: 0–3 years, medium term: 3–10 years, long term: >10 years). - Impact
Impact on operations : Service continuity and branch operational efficiency.
Financial impact : Revenue, costs, cash flows, and asset values.
Strategic impact : Competitiveness, growth, and corporate reputation.
- Likelihood
- Management and Monitoring Management approaches for significant climate-related risks and opportunities are defined through risk mitigation measures, adaptation measures, and the utilization of opportunities. These are integrated into the Company’s planning, operations, and strategic decision-making processes. Risks and opportunities proposed by relevant departments are subject to approval by the Executive Committee and are subsequently used to develop systematic management and response plans for potential impacts.
In 2025, the Company advanced its business while strengthening resilience to climate change by integrating climate-related risks into strategic decision-making at all levels under the IFRS S2 framework. This approach aims to enhance risk management and capture opportunities through financial products and services that support the low-carbon economy, contributing to long-term business stability. The summary of the risk and opportunity analysis is as follows :
| Category | Risks | Impacts | Short term | Medium term | Long term | Risk Mitigation | KRI | ||||
| Impacts | Likelihood | Impacts | Likelihood | Impacts | Likelihood | ||||||
|
Physical Risks |
Acute Natural Disasters |
|
|
4 | 1 | 4 | 1 | 4 | 1 |
|
|
| Chronic Natural Disasters |
|
4
4
|
2
1
|
5
5
|
3
2
|
5
5
|
3
3
|
Value of damages not exceeding 1 million baht | |||
| Transition Risks | Legal and Policy-related Risk |
|
|
3 | 1 | 3 | 2 | 3 | 5 |
|
Increased expenses due to environmental regulatory compliance not exceeding 1 million baht |
| Technology-related Risk |
|
|
3 | 1 | 3 | 3 | 4 | 4 |
|
Expenditure on alternative energy use not exceeding 1 million baht | |
| The reduced ability to repay debts due to climate change |
|
|
4 | 1 | 4 | 1 | 5 | 2 |
|
NPL not exceeding 5% | |
| The risk of not achieving the Net Zero Company target |
|
|
3 | 1 | 3 | 3 | 4 | 4 |
|
Greenhouse gas emissions have decreased by 10% | |
| Category | Opportunities | Definitions of Opportunities | Benefits | Short term | Medium term | Long term | Respond to Opportunities(Present – 5 Years Ahead) | ||||
| Impacts | Likelihood | Impacts | Likelihood | Impacts | Likelihood | ||||||
| Opportunity |
Products / Services | Low-carbon Products | Issuing credit for low-carbon products and services to help mitigate the impact of climate change |
|
4 | 1 | 5 | 1 | 5 | 3 |
|
| Energy Source | Renewable energy | The increase in renewable energy sources which have minimal environmental impact such as solar energy, wind energy, hydroelectricity |
|
3 | 3 | 3 | 3 | 3 | 3 |
|
|
4. Climate-related Scenario Analysis
Operating in an environment of climate uncertainty may directly affect the Company’s operations. Climate-related scenario analysis is therefore essential to enable the business to plan and adapt effectively and in a timely manner, both qualitatively and quantitatively.
| Financial Impact (Million Baht) |
|||||||
| Category | Risks | Scenario | Assumption | 2030 | 2040 | 2050 | |
|
Physical Risks |
Acute | Flood | Achieving Net Zero Carbon Emissions by 2050 (SSP1-2.6) |
% Change in rain average largest
5-day cumulative precipitation =
% NPL impact due to disaster |
3,587 | 3,628 | 3,669 |
| Doubling Carbon Dioxide Emissions by 2050 (SSP5-8.5) |
% Change in rain average largest 5-day cumulative precipitation = % NPL impact due to disaster |
3,658 | 3,726 | 3,793 | |||
|
Transition Risks |
Legal and Policy | Carbon Tax | Stated Policies Scenario (STEPS) | Thai’s implementation of taxing carbon emission will be done in the next 17 year (by 2040) for all sectors in line with Singapore’s carbon tax structure | - | 198.7 | 445.1 |
| Net-Zero Emission Scenario (NZE) | Thai’s implementation of taxing carbon emission will be done in the next 7 year (by 2030) for all sectors in line with Singapore’s carbon tax structure | 78.9 | 238.5 | 498.5 | |||
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