Kasikornbank (KBank) has raised its sustainable finance and investment target to between THB400 billion and THB500 billion by 2030, doubling its previous goal amid rising global pressure on Thai industries to decarbonize. 

The move aligns with Thailand’s response to the European Union’s Carbon Border Adjustment Mechanism (CBAM), which will start taxing high-carbon imports in 2026 and could impact up to THB28 billion (US$858 million) worth of Thai exports by the end of the decade.In unveiling its new approach, KBank announced a shift from traditional ESG (environmental, social, and governance) frameworks to an “issue-based strategy” that integrates sustainability goals directly into the bank’s operations, lending policies, and advisory services. This evolution, the bank says, will help Thai businesses transition toward low-carbon operations while boosting competitiveness in a rapidly greening global economy.

From ESG to issue-based action

The bank has already delivered THB173 billion in sustainable financing and investment, translating to a reduction of 2.74 million tonnes of CO2 equivalent. This includes over 39,000 electric vehicle loans, green building financing covering more than one million square meters, and over 500 sustainability-focused projects.

Beyond funding, KBank is positioning itself as “The Most Comprehensive Climate Solution Provider,” offering clients not just capital but also tools for emissions management and transition readiness. 

Initiatives such as the KClimate1.5 greenhouse gas inventory tool, the Creative Climate Research Center, and platforms like Watt’s Up (for electric bikes) and Green Pass (for renewable energy certificates) illustrate the bank’s ecosystem-wide approach.

Building resilience through collaboration

KBank’s strategy also extends to industry partnerships and knowledge-sharing. Its role in founding the Thailand Climate Business Network, now counting over 34 member organizations, has led to the creation of resources like an E-Handbook for Greener SMEs and a white paper on climate ecosystem collaboration submitted to the government.

Internally, KBank has cut its own greenhouse gas emissions by 17% since 2020, installed solar systems at 161 branches, and maintained carbon neutrality certification for eight consecutive years. Its power sector portfolio has also achieved a 26% reduction in emissions intensity per gigawatt hour since 2020.“Businesses that adapt early will gain a competitive advantage,” President Chongrak Rattanapian noted. With structural challenges from high household debt to global trade tensions mounting, KBank’s sustainability-driven recalibration serves as both strategic shield and an engine of growth. This, in turn, helps ensure that Thai enterprises can meet global standards while building long-term resilience.

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