KBank Private Banking invites society to shift its perspective towards sustainable investment, collaborating with Lombard Odier and GC to host a discussion titled "Investment for Sustainability: 'The Only Way Forward'". The event emphasizes that global sustainability can foster stable growth for both businesses and long-term investments. It showcased a three-year return of climate change funds, averaging no less than 10% per year, and advised investors to adjust their portfolios to drive genuine change through three steps: rethinking investment towards Net Zero, reassessing investment portfolios, and enhancing portfolios with transformative funds.

Mr. Jirawat Suphanpaiboon, Executive Chairman of KBank's Private Banking Group, stated, "The rise in global temperatures has impacted ecosystems and created enormous risks for businesses and investments. As a leader in wealth management in Thailand and an investment expert, the bank believes that investment will be the key to unlocking solutions for this crisis while also generating stable returns by supporting businesses that adapt to a Net Zero economy. This will enhance operational efficiency and competitive capabilities in the future, ultimately leading to successful businesses. The performance of sustainable funds over the past 2-3 years shows that most have outperformed benchmarks, reflecting that world-changing investments are not sacrifices or 'choices' with higher costs, but rather a 'lifeline' for future investment portfolios."

Mr. Maxime Percheron, Head of Sustainable Investment at Lombard Odier Investment Managers, added, "Managing investment portfolios towards sustainability within the ESG framework may not be sufficient to identify winning businesses. ESG metrics consider a company's role as a corporate citizen, such as treatment of employees, stakeholders, and local communities. However, sustainable investment requires criteria that forecast future business growth trends in a low-carbon economy, such as a company's greenhouse gas reduction strategies compared to others in the same industry, cost management capabilities, responsiveness to changing consumer demands, and leveraging opportunities to create tangible and rapid changes in the business environment with available technologies. We must focus on the business models that will drive future growth alongside current business practices."

One of the key themes of sustainable investment that Lombard Odier emphasizes is Climate Transition, targeting businesses in three main groups:

1. Solution Providers – businesses offering solutions and products that help address carbon dioxide emissions, such as TSMC, the leading chip manufacturer, which is expanding its production capacity for EV/HEV chips and aims to use renewable energy for all its manufacturing bases by 2030.

2. Transition Candidates – businesses that are changing their production processes and/or business models to reduce carbon dioxide emissions and transition to Net Zero, such as Cummins, a designer, manufacturer, and distributor of power systems and engines, which is pioneering hydrogen-powered propulsion systems in trains, having successfully completed the first two in the world and plans to add another 40 globally.

3. Adaptation Opportunities – businesses benefiting from climate change and/or adapting their operations towards Net Zero, such as American Water, the largest water management and wastewater treatment company in the U.S., which benefits from pollution removal and water source restoration projects, as well as flood prevention systems.

KBank Private Banking has introduced investment opportunities in these businesses through the K-CLIMATE fund for the first time in 2020, which has generated an average annual return of no less than 10% with lower volatility than the benchmark index. Additionally, the main fund has been certified as an Article 9 Fund under the EU Sustainable Finance Disclosure Regulation (SFDR), which is the highest standard for sustainable funds that must have direct sustainability goals and metrics.

One of Thailand's leading companies seriously pushing for Net Zero is PTT Global Chemical Public Company Limited (GC). Dr. Chayan Jantavasu, Deputy CEO of Corporate Sustainability, stated, "As a leader in the global chemical industry, GC continues to apply the circular economy concept in its operations, aiming for a Net Zero greenhouse gas emission target by 2050. We focus on enhancing the efficiency of existing operations to reduce environmental impacts.

At the same time, we are restructuring our business by investing in new ventures that emphasize environmentally friendly innovations, improving quality of life, and meeting the demands of modern consumers, such as bioplastics, high-quality recycled plastics, and high-value chemicals from the acquisition of allnex, a global leader in coating resins and additives for various industrial applications."

GC expects to invest $5 billion to reduce greenhouse gas emissions and $22 billion to restructure its business towards a low-carbon economy to achieve the Net Zero goal while ensuring sustainable long-term business growth. Past performance indicates that the success of sustainability strategies can yield tangible business returns."

Mr. Jirawat further stated, "The world is transitioning from an economy characterized by harmful production and consumption patterns to a more sustainable economy, or CLIC Economy, which refers to an economy that utilizes circular resources efficiently without producing waste (Lean), promotes equity and inclusivity (Inclusive), and does not harm or destroy the environment (Clean). This transformation will not only benefit society and the environment but also presents significant opportunities for investors. They can start managing their investment portfolios through three steps:

- Shift investment thinking towards Net Zero and view sustainability as a source of stable long-term returns.

- Assess whether the investment portfolio has a clear proportion of sustainability investments or mechanisms, and how knowledgeable the investment advisor is in this area.

- Strengthen the portfolio by investing in transformative funds that directly support winning businesses.

"KBank Private Banking hopes that this discussion will inspire investors to reconsider sustainability from a new perspective aimed at Net Zero, as this is not merely a 'choice' but the 'only way forward' for investments, businesses, the economy, and our world," concluded Mr. Jirawat.