The Stock Exchange of Thailand (SET) announces 124 listed companies with outstanding performance on Environmental, Social and Governance (ESG) aspects on the Thailand Sustainability Investment (THSI) list for 2020, up from 51 companies since its inauguration in 2015. The increasing number reflects Thai listed companies’ remarkable progress in embracing more sustainable development practices into their business process.
SET President Pakorn Peetathawatchai said that even though Thai listed companies this year encounter major unprecedented challenges of COVID-19 outbreak and economic uncertainty, they continue to prioritize sustainability. It can be clearly seen that the number of listed firms entering sustainability assessment and being qualified for THSI list has been increasing every year. This year, there are 124 listed companies on THSI list, rising from 98 firms a year ago, and 51 firms in 2015 when it was started.
“SET aims to develop the capital market to benefit all related parties under the vision ‘To Make the Capital Market ‘Work’ for Everyone’. We believe the country, business and communities can grow and prosper together. SET has continuously equipped listed companies with sustainability knowledge and understanding, and enhanced investors towards responsible investment to open opportunity for long-term returns. Demand for ESG investing is in an upward trend. Currently, there are 29 ESG funds in Thailand with the assets under management (AUM) totaling THB 26 billion while globally ESG funds have a total AUM value of nearly USD 30 trillion. This is a key driver for Thai listed firms to accelerate their business operations towards sustainability to attract flow of investments,” said Pakorn.
The 2020 assessment result indicated that listed companies have put more focus on risk management in ESG aspect and emerging risk. The assessment also found out that these listed firms have prepared business continuity plan (BCP) to ensure continuous operations in the midst of crisis, developed innovation and deployed resources in an eco-friendly manner to serve consumer needs, efficiently utilized resources to help them manage costs, and enhanced human resources capability
The 2020 THSI list consists of 114 firms in SET and 10 firms in mai. The industry groups with the highest number of firms in THSI are Resources, and Property & Construction (21 firms), followed by Services (20 firms), Industrials (17 firms) and Agro & Food Industry (16 firms). As of November 9, 2020, these listed firms had the market value of THB 9.63 trillion, representing 67 percent of the combined SET and mai market capitalization worth THB 14.39 trillion.
THSI list is based on the selection among the listed companies that responded to the sustainability assessment questionnaires in 19 categories, covering economic (including governance), social and environmental dimensions. They are required to meet sustainability practices consisting of four levels : 1. policymaking; 2. goal setting & policy implementation; 3. performance measurement; and 4. sustainability data disclosure. Companies in THSI list must score at least 50 percent on the assessment in each dimension, and meet qualifications criteria specified by SET, such as the quality assessment of corporate governance report (CGR), net profit and shareholders’ equity performance, surveillance of listed companies’ qualifications, and no significant impact on ESG, among others.. The assessment is conducted by the Sustainable Investment Committee, strictly adhering to transparent and reliable process across the board.
In addition, the THSI list is also used as calculation criteria for the constituents of SETTHSI Index, a benchmark that promotes investment in sustainable stocks that embrace ESG aspects in their operations. The index will be reviewed on a bi-annual basis.
For more information about sustainable stocks, please visit www.setsustainability.com.
