KEY POINTS
- SET signals that climate claims must be substantiated by high-quality data and measurable climate actions to establish credibility and drive financial consequences.
- The forum discussed a financial, fiscal, insurance, and capital markets framework to support the private sector's transition to a low-carbon economy, urging businesses to leverage new regulations as a strategic opportunity.
- Global and Thai capital market experts confirmed that sustainability data and credible Corporate Transition Plans are now critical, non-negotiable inputs in real-world capital allocation and business valuation decisions.
The Stock Exchange of Thailand (SET) today convened the SET Sustainability Forum 2/2025 under the theme “Claims, Consequences, and Credibility: Capital Market for Climate Action.” The event sent a decisive signal to the market is now transitioning to a new paradigm where verifiable “credibility” and measurable climate actions will directly determine financial “consequences,” fundamentally impacting corporate competitiveness and access to long-term capital.
NXPO Board Member, and Independent Director, Chairman of the Technology Committee, Member of the Executive Committee of SCBX Dr. Pailin Chuchottaworn asserted in his keynote address, “Proof Your Climate Pledges as Grounded Governance,” that Net Zero targets are unattainable without robust corporate governance. A Net Zero pledge, without being embedded in the core strategy and rigorously overseen by the board, risks being perceived as mere corporate branding. True credibility is forged through transparent accountability mechanisms that link climate targets to business plans, capital allocation, and executive accountability, ensuring pledges are translated into organizational policies and practices, thereby mitigating greenwashing risks that erode investor trust.
SET Senior Executive Vice President Dr. Soraphol Tulayasathien unveiled a three-year strategic plan to build a credible capital market ecosystem and support Thailand’s Net Zero transition. “Amid heightened global investor expectations, SET is accelerating the enhancement of our data infrastructure via the ESG Data Platform and GHG data management systems, while preparing for the development of a national carbon market infrastructure. Our objective is to ensure climate-related disclosures from Thai listed companies meet global standards, enabling effective investment analysis and reinforcing confidence in the Thai capital market.”
The forum’s first panel, “Multi-Regulatory Approach: Enabling Thailand's Climate Transition,” demonstrated a cohesive regulatory front, outlining how financial, fiscal, insurance and capital market policies are being aligned to support the private sector’s transition and provide clear pathways for businesses to adapt and access transition finance.
The second panel, “Investment Consequences: Allocating Capital for Credible Transition,” provided a forensic examination of how data is now being used by capital allocators. The panelists unanimously confirmed that credible sustainability data and transition plans are now actively used to make capital allocation decisions, from adjusting corporate valuations and structuring the terms of sustainability-linked finance to issuing sustainable funds and assessing systemic risks to the broader economy.
The forum also featured a global perspective from a representative of the London Stock Exchange Group (LSEG) on "Tracking Transition: The Science of Climate Credibility," offering insights into international best practices for monitoring and assessing the credibility of corporate climate transitions.
For further details on SET’s sustainability forums and initiatives, please visit www.SETSustainability.com.
