ESG Management

KB PRASAC has strong shareholder from Korea: KB Kookmin Bank.   KB PRASAC Bank Plc. has a commercial bank license from the National Bank of Cambodia (NBC), a certificate of incorporation from the Ministry of Commerce (MoC), and others.   KB PRASAC is a private company.   KB PRASAC’s staff are not allowed to use KB PRASAC’s logo or any parts of its operation in joining political activity.   KB PRASAC follows lending guideline and client protection principles.   KB PRASAC implements all its policies and has zero-tolerance towards predatory lending practices.   KB PRASAC doesn’t take the original identity card, residential book, and family book as the pledged collateral.   KB PRASAC is a pure private company and all KB PRASAC’s borrowers have obligation to repay their loan according to loan agreement and schedule.   All customers have full rights to make any complaints or feedback to KB PRASAC Bank via 023 999 911 or 086 999 911 or 0969 999 911 and other official channels of the bank.   

ESG POLICY

KB PRASAC adopts comprehensive environmental and social performance requirements for critical areas of environmental and social sustainability that all business activities are required to meet to minimize the negative environmental and social impacts. KB PRASAC uses its best efforts to ensure that the business, clients, and partners follow and comply with the standards​ of environmental and social performance requirements of the bank. The critical areas of environmental and social performance requirements are as follow:
  • Labor and Working Conditions
  • Health, Safety, and Security
  • Resource Efficiency and Pollution Prevention and Control
  • Natural Resources and Biodiversity Conservation
  • Land Acquisition, Restrictions on Land Use, Displacement and Involuntary Resettlement
  • Indigenous Peoples
  • Cultural Heritage

ESG PERFORMANCE

INDICATORS 20182019*2020*2021*2022*
Governance  
Number of Board Members77967
Loan Product
Total Loan Portfolio (USD)1,962,009,5682,494,458,5033,028,193,4273,748,358,4254,350,085,163
Group Loan Portfolio (USD)284,317643,968377,042178,644101,891
Educational Loan Portfolio (USD))494,055682,024581,335472,5551,028,170
Home Improvement Portfolio (USD)279,418,003258,272,787346,941,003453,670,525580,109,380
MSME Loan Portfolio (USD)1,960,924,2392,493,901,3683,027,671,8503,747,777,9894,343,929,301
Deposit Product
Deposit Balance (USD)1,291,279,1851,835,752,5812,111,913,7602,615,212,4332,777,244,980
Total Number of Borrowers395,166417,044442,833465,149502,094
Number of Borrowers In Rural Area353,799374,218397,547419,339455,099
Number of Borrowers as Women317,175332,372348,435362,630389,769
Number of Individual Borrowers394,212415,793441,836464,681501,846
Number of Borrowers as MSME394,778409,021442,714465,111501,993
Number of New Borrowers81,60788,48192,46080,58994,252
Portfolio Outreach by Lending Methodology
Percentage of Group Lending0.24%0.30%0.23%0.10%0.05%
Percentage of Individual Lending99.76%99.70%99.77%99.90%99.95%
Percentage of MSMEs Lending99.90%98.08%99.97%99.98%99.97%
Human Resources Management
Total Staff7,6009,0919,0429,3309,573
Number of Women Staff1,6061,6741,8421,9482,037
Number of Management274291315327320
Number of Management as Women1816222624
Number of Credit Officers4,4095,6685,3335,5065,594
Number of Staff Trained7,44258,1519,9926,24218,463
BenefitsMedical Program, Health and Accident Insurance, Maternity Benefit, NSSF, etc.
Social Responsibility to Clients
Customer CentricComply with Universal Standard for Social Performance Management & Client Protection Standards
Social Responsibility to Environment and Communities
Environmental PolicyEnvironmental and Social Protection Policy is in place
Library Project (Building)3040414244
Number of Library Users as Students78,266109,151141,005141,265170,787
Client Satisfaction and Loyalty
Client Retention Rate83.71%86.23%86.91%87.79%89.76%
Network
Number of Branch Offices177180182182182
Number of ATMs Available for Services126135141141163
* Figures were updated in accordance with the CIFRS.

BUSINESS EXCLUSION LIST

  • Production or activities involving harmful or exploitative forms of forced labor/child labor
  • Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements
  • Production or trade in weapons and munitions
  • Production or trade in alcoholic beverages (excluding beer and wine)
  • Production or trade in tobacco
  • Trans boundary trade in waste or waste products
  • Gambling, casinos and equivalent enterprises
  • Trade in wildlife or wildlife products regulated under CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora)
  • Production or trade in radioactive materials
  • Production or trade in or use of unbounded asbestos fibers
  • Purchase of logging equipment for use in primary tropical moist forest
  • Commercial logging operations for use in primary tropical moist forest
  • Production or trade in wood or other forestry products from unmanaged forests
  • Production or trade in products containing PCBs
  • Production or trade in pharmaceuticals subject to international phase outs or bans
  • Production or trade in pesticides/herbicides subject to international phase outs or bans
  • Production or trade in ozone depleting substances subject to international phase out
  • Production, trade, storage, or transport of significant volumes of hazardous chemicals, polychlorinated biphenyls, or commercial scale usage of hazardous chemicals
  • Drift net fishing in the marine environment using nets in excess of 2.5 Km in length
  • Production or activities that impinge on the lands owned or land acquisition or other property or claimed under adjudication, by indigenous peoples, without full documented consent of such peoples
  • Businesses involved in the production, processing or distribution of illegal drugs
  • Pornography or the provision of products or services of a substantially similar nature
  • New coal mining projects or expansion of existing coal mining business
  • Building of new coal power plants or expansion of existing coal power plants

ENVIRONMENTAL CHECKLIST

No.Screening Questions(If answer to any of the questions is Yes, exclude from ADB financing)Yes No If Yes, please brief proactive
prevention or solution of borrower/KB PRASAC recommendations
1Business/activity area adjacent to or within any of the following environmentally sensitive areas:Cultural heritage siteLegally protected area (core zone or buffer zone) WetlandMangrove   EstuarineSpecial area for protecting biodiversity
2Businesses located in an existing compound which has been previously classified as contaminated land and has not conducted any remediation actions 
3Businesses located in an existing compound but is known to be susceptible to climate-risks such as floodplain
4Business/activity that can result in a change of land use
5Business/activity that could result in conversion or degradation of modified habitat
6Business/activity requiring removal of vegetation including grasses, shrubs or trees
7Business/activity involving works adjacent to, within, or over a surface water body
8Business/activity that could result to reduction of community water resource (e.g., water competition between irrigation and communities existing requirements)
9Business/activity related to mining and gas industries
10Business which involves large construction activities (e.g., those that require more than six months of continuous daytime work except residential structures)
11Business/activity producing more than minimal pollution or health and safety risks:
– Equipment producing air emissions (i.e., requiring continuous emissions monitoring systems or other similar monitoring systems)
– Equipment producing wastewater discharge (i.e., requiring discharge permits)
– Equipment requiring hazardous substances/chemical inputs
12Business/activity requiring the installation of a thermal power generator

INDIGENOUS PEOPLES AND INVOLUNTARY RESETTLEMENT CHECKLIST

No.List of Screening Questionnaires(If answer to any of the questions with * is Yes, exclude from ADB financing)YesNoN.AIf Yes, please brief proactive prevention or solution of borrower/KB PRASAC recommendations
I.Indigenous Peoples (1)
1Are there indigenous people present in or use the business area?
2Will the borrower’s business benefit indigenous peoples? (eg: job creation, infrastructure development, skill training…) 
3Will the borrower’s business negatively affect the livelihood system of indigenous peoples? (eg: traditional agriculture farming, animal husbandry, fishing, hunting…) *
4Will the borrower’s business indirectly or directly affect the belief, cultural and traditional practices of indigenous peoples? *
5Will the borrower’s business cause physical displacement from traditional residential or occupied land (collective land, residential land, shifting cultivated land, sacred ancestral land, cemetery land, traditional consuming forest land…) of indigenous peoples? *
6Will the borrower’s business include commercial development of natural resources (minerals, forests, water…) within residential, occupied, or customary lands of indigenous peoples? *
7Will the borrower’s business include commercial development of cultural resources (handicraft, architecture, art…) and knowledge of indigenous peoples that will affect cultural integrity, identity and community of indigenous peoples? *
II.Involuntary Resettlement (2)
1Will there be land acquisition using eminent domain law? *
2Will there be permanent or temporary loss of shelter and residential land due to land acquisition? *
3Will there be permanent or temporary loss of agricultural and other productive assets due to land acquisition? *
4Will there be losses of crops, trees, and fixed assets due to land acquisition? *
5Will there be permanent or temporary loss of businesses or enterprises due to land acquisition? *
6Will there be permanent or temporary loss of income sources and means of livelihoods due to land acquisition? *
7If land or private property is purchased through negotiated settlement or willing buyer-willing seller, will it result in the permanent or temporary removal or displacement of renters, or leaseholders? *
8If land or private property is purchased through negotiated settlement or willing buyer-willing seller, will it result in the permanent or temporary removal or displacement of informal land-users (people without legal rights on the land) or squatters? *
9Will there be permanent or temporary restrictions in land use or access to legally designated parks or protected areas and cause people or any community to lose access to natural resources, communal land, and communal facilities and services? *
10Will there be utilization of government land or any public land or property, which will require the permanent or temporary removal of informal occupants or users (residential or economic)? *
11Any estimate of the likely number of persons that will be displaced by the business?