The Government Savings Bank (GSB) has started to use environmental, social and governance (ESG) scoring in the process of considering loans to large businesses with a credit limit of 500 million baht or more, said president and chief executive Vitai Ratanakorn. He said GSB will be the first bank to apply ESG scores when considering lending to large corporate customers. This initiative aims to support businesses which create positive effects on the economy, society and the environment. Large businesses will be questioned on how their operations contribute to environmental, social and governance standards as well as issues regarding negative news, if any. The full score is 10 points, while a score of less than 2 points means a loan rejection. However, a score of 8 points or more will get loan approval together with loan rates reduced by 0.10-0.20%. "Even though businesses scoring less than 2 points will not be entitled to loan approval, the bank is ready to engage those businesses to help them improve their operations for higher ESG scores," Mr Vitai said.
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