The Stock Exchange of Thailand (SET), has joined forces with its alliances consisting of the Securities and Exchange Commission, the Association of Investment Management Companies, Association of Thai Securities Companies, The Thai Institute of Directors Association, Thai Listed Companies Association and Khon Thai Foundation, to enhance Thailand’s sustainable investment. As such, this year SET will announce a list of Thai companies with prime performance on environmental, social and governance (ESG) aspects, making known to investors in the region and worldwide.
SET Chairman Sathit Limpongpan stated, “Today global capital markets are moving on the road to sustainability. SET has pledged commitment to the promotion of sustainability within the Thai capital market as we are the first capital market in ASEAN joining the UN Sustainable Stock Exchange (SSE). SET has continuously been committed to supporting listed companies to realize the importance of sustainable development, not only focusing on business perspective, but also on ESG and stakeholders. These factors are vital to the companies’ operation and performance on competitiveness and sustainability, resulting in better returns for long-term investors. Therefore, this year SET, in collaboration with the six key capital market organizations, will announce and publicize the companies among regional and international investors, to be used as investment decision-making tools. The next steps will be the development towards creating Thailand’s sustainability index.”
This year the Thailand’s sustainable investment development will be implemented via the selection of companies based on the evaluation of environmental, social and corporate governance (as part of economic) performances. The working committee is comprised of executives from SET and the six alliances. The list will be reviewed on an annual basis.
“The evaluation has been designed in line with the guidelines of the Dow Jones Sustainability Index (DJSI) which is one of the most recognized sustainability indices. It will be adjusted to suit the Thai context of economic, culture and society. At this initial stage, all the companies will be evaluated in one group, not categorizing into each industry. Later on when the listed companies get familiarized with the mechanism and better prepared, it will be more advanced, matching the international standard. Thai listed firms will be encouraged, not forced, to follow the procedures step by step. We do not intend to burden listed companies. However, our long-term goal is to internationalize Thai listed companies to go global together,” added Sathit.