TMB Thanachart Bank to phase out loans for unsustainable projects

To assist Thailand in honouring its pledge to achieve carbon neutrality by 2050, and net-zero emissions by 2065, the bank has decided to expand its green asset portfolio and offer sustainable finance solutions to support customers in reducing their carbon footprint.

The bank's CEO Piti Tantakasem said on Wednesday that ttb is implementing sustainable banking guidelines to create sustainability among the bank's stakeholders and is already offering green bonds and sustainable loans to support customers who work on solar power, bioenergy and waste management projects.

At the same time, ttb is reducing the granting of loans for projects related to oil sand, coal mining and exploration, and coal power plants, Piti said, adding that the bank aims to stop granting such loans by 2028, and is choosing instead to focus on climate finance, green and blue loans. It has so far granted green loans worth more than 9 billion baht this year and last year, the bank granted green loans worth more than 13.11 billion baht last year compared to the target of 4.5 billion baht.

He added that loans for coal mining and exploration dropped by 31% last year compared to 2021 while those for coal power plants dropped by 38% compared to 2020. ttb will also limit loans to oil and gas-related businesses to no more than 10% of the bank's loan portfolio and stop granting loans to the tobacco industry this year, starting with tobacco producers.

The bank has so far granted US$100 million (3.44 billion baht) in loans to support the electric vehicle industry and issued $50 million (1.72 billion baht) of blue bonds for marine conservation.

The bank will launch various projects to create awareness of the environment and promote employees to reduce energy consumption, he said, adding that the bank aims to reduce greenhouse gas emissions by 15% compared to 2019 within 2026.

He also pointed out that businesses would lose their competitiveness due to many rules related to greenhouse gas reduction if they do not adapt themselves.

"Emerging global rules mean large organisations must adapt. Medium and small companies will also be unable to export their goods if they do not adapt. It is our duty as a bank to enable entrepreneurs to achieve their sustainable development goals and preserve the environment.”