BCPG has delivered I-RECs to Krungthai Bank. These certificates will be used to offset the bank's indirect greenhouse gas emissions from electricity consumption (Scope 2), in alignment with its carbon neutrality and net zero emissions targets. Leveraging its expertise in derivatives, Krungthai supports BCPG in hedging interest rate risks, thereby enhancing the company's ability to optimize its financial costs effectively.
"This collaboration on REC-linked Interest Rate Swap not only helps manage financial risk but also sets a new benchmark for collaboration between the financial and business sectors in promoting robust and sustainable growth. It aligns with the United Nations' Sustainable Development Goals (SDGs) and echoes our Growing Together for Sustainability vision," Rawin added.
Saowapap Sumeksri, Senior Executive Vice President, Finance and Accounting of BCPG Public Company Limited, said BCPG is not only a producer and distributor of renewable and clean energy from diverse technologies but also one that is determined to leverage innovation to enhance its products and services, meeting consumer energy demands while minimizing environmental impact. This latest collaboration with Krungthai Bank enables BCPG to manage its interest rate exposure while transferring I-RECs from its wind and solar power plants to the bank. Krungthai can then utilize these certificates to offset its Scope 2 emissions.
"This partnership reflects BCPG's dedication to delivering innovative solutions to stakeholders while strengthening our financial risk management. It reaffirms our leadership role in global efforts toward decarbonization," Saowapap added.
Source: Krungthai Bank