Siam Commercial Bank (First Year Implementation)
| Signing Date | 31 Jan 2022 |
| Region of Headquarters: | Asia-Oceania |
| Current EPFI Reporting Year/Period: | First Year Implementation |
| Institutional Reporting: | No Report Available |
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Further information on this EPFI may be obtained through the Institutional Reporting hyperlink.
Implementation of the Equator Principles
Siam Commercial Bank (SCB) is the first Thai bank to adopt Equator Principles (EPs). SCB worked with an external environmental and social advisory firm with experience working with other EP banks to develop SCB´s EP Process and Tools.
SCB has incorporated EP requirements into the bank’s Credit Policy Guide to ensure the implementation in the credit process. All project related financing case will be subjected to EPs screening checklist to determine whether the deal will trigger EPs process. If the process is triggered, the second checklist has to be completed to categorize environmental and social risks into high, medium-high, medium and low, i.e. A, B+, B and C accordingly. The checklists are completed by business units and will need endorsement from sustainability specialist.
Environmental and social due diligence will be conducted in accordance with the environmental and social risk of the project. For category A and category B+ projects, independent environmental and social advisor is required to assess compliance with applicable requirements and also recommend environmental and social action plan (ESAP) to be in compliance with the EPs. For category B project, the internal environmental and social due diligence will be conducted in accordance with the protocol of the EP Process to identify ESAP (if any). The customer will be required to be in compliance with the identified ESAP through loan agreement. If a customer decided not to adhere to EPs conditions, the bank will not be able to provide financial support as stated in Credit Policy Guide.
To ensure the implementation of EPs, SCB internal audit also consider EP Process under the scope of auditing. SCB also provided EP training to over 300 relevant business units and personnel. The two sessions sought to provide knowledge, understanding, and uplift their capabilities in adopting the Equator Principles including the EP Process and also IFC Performance Standards and Guidelines. The training is recorded and incorporate into SCB Academy intranet.