The Stock Exchange of Thailand (SET) announces 98 listed companies with outstanding performance on Environmental, Social and Governance (ESG) aspects on the Thailand Sustainability Investment (THSI) list for 2019, up from 51 firms when it was first launched in 2015. The consistently increasing, reflecting Thai listed companies’ outstanding progress in pursuing sustainable development into business practices.
SET President Pakorn Peetathawatchai said SET is committed to providing sustainable ecosystem for sustainable investment. From end-to-end, SET has encouraged listed companies to integrate ESG aspects in their business operation. In addition, SET has initiated the THSI list as an alternative for investors who consider investing in businesses that embrace ESG. This mission is in line with SET’s ‘To Make the Capital Market Work for Everyone’ vision.
“THSI has increasingly gained momentum since its establishment. For this year, the criteria that qualified firms scored well include aligning vision and policy to promote internal innovation creation; solving climate change problem by enhancing energy efficiency; and disclosing social and environmental policy and performance to stakeholders. SET has encouraged listed companies to participate in the SET Sustainability Assessment so that they can track their ESG progress. The assessment will also suggest room for improvement that could pave way to sustainable development practice. Furthermore, listed firms are also encouraged to increasingly disclose information relevant to their sustainability approach to investors as a viable way for them to make investment decision based on responsible investment,” added Pakorn.
The industry groups with highest number of firms in THSI are: 19 firms in Resources, as well as 15 firms each in Property & Construction, Industrials and Services. Companies from Agro & Food and Services were recorded as industry groups with highest number of increasing firms in the selection. As of October 15, 2019, these 98 listed firms had market value of THB 11.31 trillion (approx. USD 365 billion), accounting for 65.26 percent of the combined SET and mai market capitalization.
THSI list is based on sustainability assessment questionnaires in 19 categories, covering economic (including governance), social and environmental dimensions. Companies selected for THSI list must score at least 50 percent on the assessments in each dimension, or those which are components of the Dow Jones Sustainability Index (DJSI) and meet qualifications criteria.The criteria cover assessment of corporate governance report quality, net profit and shareholders' equity, passing SET/ mai listed companies' qualifications, and having no significant negative impact on ESG. The assessment is carried out by the Sustainable Investment Committee consisting of experts in corporate governance and social responsibility, including representatives from the capital market organizations, strictly adhering to transparent and reliable process.
The THSI list will also be used for selecting constituents of SETTHSI Index, a benchmark that promotes investment in sustainable stocks that embrace ESG aspects in their operations. The list will be reviewed on a bi-annual (six-month) basis. For more information, please visit www.setsustainability.com
