Country
Thailand

Local Project Partner
Bank for Agriculture and Agricultural Cooperatives (BAAC), state-owned bank with a focus on agriculture

German Project Partner
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Donor
GIZ

Duration
01.06.2024 - 31.07.2025
 

Financial institutions face risks arising from climate change. If companies' income decreases or, in extreme cases, does not materialize at all, this has a negative effect on the quality of the loan portfolio. This is all the more true if the majority of the portfolio is in the agricultural sector. Agricultural yields suffer greatly from the consequences of climate change; on the other hand, agriculture is one of the biggest polluters. The ESG Risk Radar allows the creation of a "heat map", which enables the creation of individual risk profiles, on the basis of which an adjusted loan can be granted.

The aim of the project ist the Implementation of DSIK's standard product – the ESG Risk Radar – at a major Thai state-owned bank. In addition consulting at BAAC's management level in the field of risk management follows.

The implementation of the ESG Risk Radar is intended to support the Bank for Agriculture and Agricultural Cooperatives (BAAC) in identifying ESG risks and thus enable it to develop new products, services and technologies that meet the environmental and social challenges of the future. In the long term, this should lead to sustainable agricultural production for customers, but also to higher profitability for the financial institution.