The Stock Exchange of Thailand (SET) has prepared three mechanisms to help listed firms achieve their Environmental, Social, and Governance (ESG) goals.
Speaking at the Bangkok Post conference on "The Rise of ESG: The Megatrend and Sustainability Challenges" at Centara Grand at CentralWorld on Friday, SET President Pakorn Peetathawatchai said the SET is holding to its commitment to promote good governance and zero carbon emissions among listed companies by preparing the aforementioned mechanisms.
"This year, there are 170 [out of 799] listed companies on the Thailand Sustainability Investment [TSI] list and Thailand is ranked [first] in the Southeast Asian region on the Sustainable Development Report 2022 of the UN," he said. "Although it looks encouraging, we still need to do much more. The SET is now working in full force to facilitate ESG implementation [among listed enterprises] in three main areas."
First, this provides a practical ESG advisory and capacity building for listed firms, their suppliers, and customers in the value chain of their business.
Mr Pakorn said this would be the first time the calculation of a carbon footprint is mandatory while the bio-circular model and digital transformation would serve as the means to decarbonise their operations.
The SET set up its "SET ESG Academy" in May to disseminate the necessary knowledge, tools, standards, and learning packages to help listed enterprises implement their ESG goals.
"Academics have joined the education programme and organised workshops for practical ESG," he said.
Furthermore, last year the SET organised a "Live Platform" e-learning platform to help SMEs and start-ups improve both their business quality and competitiveness. This year, it launched a curriculum for local universities to use in hope of producing the next generation of ESG-savvy professionals.
"As we all need greater market forces to drive ESG in practice, growing interest in sustainability among the younger generation needs to be backed up by real action," Mr Pakorn said.
Second, the SET has encouraged listed enterprises to disclose their data more effectively, which would help firms improve their operations and communicate their value and performance with stakeholders more effectively.
Last month, the SET released its ESG data platform to serve as a better link between business operators and investors and ensure all the information sent and received is standardised, he said.
The exchange will use the data from this platform to select companies to add to the TSI list and develop sustainable investment products.
"Hopefully, this will provide critical infrastructure for further ESG development. This year, we've also introduced our Live Exchange as a trading platform for SMEs and startups," Mr Pakorn added.
Third, the SET initiated a Climate Care Programme to encourage listed companies to embark on their first step toward good environmental practices.
