Thailand’s KASIKORNBANK Sustainability Report 2025: Turning ESG Strategy into Sustainable Finance, Risk Management and Measurable Performance

KASIKORNBANK Public Company Limited (KBank) is one of Thailand’s domestic systemically important banks and a major financial-services institution serving retail, SME, corporate and wealth-management customers. Established in 1945, the Bank operates commercial banking and related financial businesses through a network that includes 732 domestic branches, 16 overseas offices across eight countries and 66 subsidiaries, supported by approximately 29,000 employees. Beyond traditional banking, its activities span fund management, securities, financial advisory, research, leasing and digital financial services. Sustainability is positioned within KBank’s broader “Bank of Sustainability” strategy, linking responsible finance, risk management and long-term stakeholder value creation.

Reporting scope

KBank’s 2025 Sustainability Report covers 1 January to 31 December 2025 and is published alongside its Annual Report and Form 56-1 One Report, reinforcing the connection between sustainability reporting and mainstream corporate disclosure. The report has been prepared with reference to GRI Standards 2021, TCFD recommendations and other international sustainability frameworks.

The reporting perimeter differs across sustainability dimensions. Economic information follows the consolidated financial-reporting boundary, while social information primarily covers KBank and environmental information covers operations representing 90.27% of financial-conglomerate income. This transparency helps investors and regulators understand what is—and is not—captured when comparing sustainability performance with the wider financial group.

Governance and oversight mechanisms

KBank operates a two-tier sustainability governance structure. The Corporate Governance and Sustainability Committee oversees sustainability performance quarterly and reports to the Board, while the Sustainable Development Sub-Committee, chaired by the CEO, drives implementation of strategies and action plans.

In 2025, the Board approved an issue-based sustainability strategy that moves beyond a conventional environmental, social and governance categorization. Sustainability objectives and key results are also assigned to the CEO, senior executives and employees and incorporated into annual performance appraisal metrics. This indicates that ESG accountability is increasingly connected to management performance rather than remaining primarily within a sustainability function.

Material topics and risk lens

KBank applied a qualitative double-materiality assessment in 2025, considering both financial materiality and impact materiality. The process references GRI Standards and ESRS and includes input from risk management, sustainability teams and a broad range of internal and external stakeholders.

High-materiality issues include cybersecurity and data privacy, business continuity and resilience, business ethics and responsible lending, financial innovation, corporate governance, climate action, customer protection and sustainable finance. Importantly, materiality results are submitted through management and governance structures and used to shape sustainability initiatives, KPIs and OKRs. This gives the assessment a practical connection to business planning rather than positioning it simply as a reporting exercise.

Metrics, targets, and performance signals

KBank reports several measurable indicators demonstrating how sustainability priorities are being translated into performance targets. Operational greenhouse-gas emissions decreased by 21.48% from the 2020 baseline against a 2025 target of 21%. The Bank also reported Baht 76.748 billion in sustainable financing and investment during 2025 and Baht 198.645 billion cumulatively from 2022 to 2025, against a longer-term ambition of Baht 400–500 billion by 2030.

ESG screening is applied to 100% of project-finance and commercial-loan applications from medium-sized enterprises and above. KBank has also developed decarbonization strategies for seven carbon-intensive sectors, while social indicators include 65,610 beneficiaries of financial-literacy initiatives, 54.03% female representation in leadership and a 78% employee engagement score.

Credibility, assurance, and transparency

External assurance provides an additional layer of credibility. LRQA conducted a Type 2 engagement under AA1000AS v3, applying moderate assurance to the report and high assurance, with 5% materiality, to direct and indirect GHG emissions data.

Selected indicators covering energy, water, Scope 1 and Scope 2 emissions, specified Scope 3 categories, waste, absenteeism and financial inclusion were included in the assurance scope. The assurance statement also identifies areas for further improvement, including emissions associated with energy imported from lessors and more quantitative measurement of sustainability impacts. Such observations strengthen transparency by showing where reporting capabilities can continue to mature.

Strategic positioning and ESG maturity

KBank’s sustainability framework increasingly reflects the distinctive ESG role of a financial institution: influencing economic activity through lending, investment, customer engagement and capital allocation. Sustainable finance, responsible lending, portfolio decarbonization and climate-risk analysis are therefore more strategically significant than the Bank’s operational footprint alone.

Its seven-sector decarbonization approach focuses on power generation, oil and gas, coal, cement, aluminium, automotive and commercial real estate, using emissions exposure, outstanding loans, methodology readiness and transition potential to prioritize action. This suggests an evolving approach in which climate considerations are increasingly integrated into portfolio management and customer transition strategies.

Pacifica ESG View

KASIKORNBANK’s 2025 disclosure demonstrates an increasingly integrated sustainability model connecting board oversight, materiality, management accountability, lending practices and measurable performance. Particularly notable is the movement from ESG reporting toward portfolio-level sustainability management through credit screening, sustainable finance and sector decarbonization. External assurance and transparent disclosure of data limitations further support credibility. The next stage of maturity will likely depend on expanding quantified impact measurement and strengthening the consistency of sustainability data across the wider financial group.

Forward-looking signals

KBank appears to be building capabilities that could support deeper integration of sustainability information into credit, product development and risk management. Further improvements in financed-emissions data, climate scenario analysis, customer transition information and physical-risk assessment could strengthen this trajectory. The assurance findings also indicate potential areas of development around leased assets, broader emissions boundaries and quantitative impact measurement. As these systems mature, sustainability information could become increasingly relevant not only for disclosure but also for financing decisions, customer advisory and long-term portfolio resilience.

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