The Stock Exchange of Thailand (SET) today announces the 65 companies on the Thailand Sustainability Investment (THSI) for 2017, an increase of 14 companies compared to 2016, reflecting that listed companies have not only generated good economic returns, but also have been focusing more on operating in accordance with the environmental, social and governance (ESG) aspects to contribute to sustainable growth.
THSI is a list of listed companies with outstanding performance on environmental, social and governance (ESG) aspects, which have been used as quality investment information and decision-making tool for investors.
SET Senior Executive Vice President Krisada Sektrakul said that SET has an ongoing commitment to promote the quality of listed companies. This year, the third annual THSI list has been announced to provide alternatives for investors who are interested in sustainable investment to invest in listed companies that create social impact, while encouraging listed companies to run business by adopting sustainability development practices. For the 2017 list, 65 companies passed the set assessment criteria consisting of 58 listed companies on SET and seven on Market for Alternative Investment (mai), with the total market capitalization of THB 9.10 trillion (Approx. USD 267.65 billion), or 52.85 percent of the combined SET and mai market capitalization of THB 17.22 trillion. Average dividend yield for stocks in THSI list is 3.63 percent which outperforms SET overall average dividend yield of 3.44 percent, as of October 10, 2017.
Companies assessed as THSI operated with systematic and efficient risk management, and supply chain processes, as well as promoting business and social innovation within the organization. In the 2017 list, the industry groups with highest number of firms in THSI are: 13 firms in Resources, 12 firms in Industrials and eight firms in Property & Construction industry groups. This year's sustainability assessment showed that most companies scored high in the environmental dimension, with outstanding stewardship of and minimal negative impact on the environment and ecology. For the economic dimension, most companies had strong focus on business ethics, anti-corruption, good corporate governance, including risk and crisis management. As for the social dimension, companies primarily focused on employee health care issues and safe working environment, while taking responsibility for the impact of business operations on the community and society, and enhancing or addressing social issues through sustainable business processes.
In compiling the THSI 2017, SET selected from 90 listed companies that voluntarily participated in the sustainability assessment questionnaires consisting of 19 categories, 42 main questions, and 182 detailed questions. These questions covered social, economic, and environmental dimensions, as well as corporate governance. SET reviews the assessment questions each year to ensure they accurately reflect the currently context for building sustainability, which might change at the global level. This year, three important question areas were added regarding emerging risk assessment, materiality (identification of key business issues), and the disclosure of greenhouse gas emissions.
Companies selected for THSI list must score at least 50 percent on sustainability assessments in each dimension of environment, society, and corporate governance and meet the other qualification criteria including quality corporate governance report assessment, net profit and shareholders' equity, having no significant negative impact on environment, society, and corporate governance. Companies can also earn a place on THSI if they have been selected as a member of the Dow Jones Sustainability Index (DJSI) and meet qualification criteria. The assessment was carried out by the sustainable investment working group consisting of experts in corporate governance and social responsibility, and from the capital market organizations, using transparent and reliable process of international standards.
