Bangkok, Stock Exchange Change the name of sustainable stocks THSI (Thailand Sustainability Investment) to SET ESG Ratings and raise the level of announcement of results in the form of ratings, divided into 4 levels: AAA, AA, A and BBB to provide more information to investors. In 2023, there were 193 listed companies that passed the selection criteria and had their sustainable stock assessment results announced by SET ESG Ratings, an increase from 166 companies last year. It reflects the increasing importance of listed companies to conducting business that takes into account ESG factors.
Mr. Phakorn Peetathawatchai, Director and Manager The Stock Exchange of Thailand revealed that the Stock Exchange encourages the business sector to operate responsibly with stakeholders. Taking into account the environment, society and corporate governance (Environmental, Social and Governance: ESG) to create strength and sustainable growth. by the Stock Exchange THSI Sustainable Stock Results have been announced since 2015, and more and more listed companies voluntarily participate in the assessment and pass the assessment every year. This reflects the importance of sustainable business operations of listed companies. At the same time, stakeholders in the capital market are increasingly paying attention to and using ESG information for analysis and investment consideration. along with financial information
“Currently, ESG factors such as corporate governance Climate change risks,
human rights issues in organizations and supply chains All of them have an impact on business operations. Investors need information to know how the listed companies manage risks in these various areas. ESG information is therefore important and is one of the factors that investors consider investing in. Upgrading the announcement of sustainable stock assessment results, SET ESG Ratings, in the form of ratings will help investors. investment analyst and fund managers have more quality data to analyze and make investment decisions,
as well as being able to use it as basic information for further development of investment products, while listed companies can use it as a benchmark for developing performance results. It carries out the company's ESG work and also helps create interest for investors and increases the opportunity to access more capital sources,” Mr. Phakorn said.
There are 193 companies that passed the criteria and were announced the results of the SET ESG Ratings sustainable stock assessment in 2023, divided into 34 listed companies at the AAA level (total score 90-100) and 34 companies at the AA level (total score 80-89). A total of 70 companies, 64 companies at level A (total score 65-79), and 25 companies at level BBB (total score 50-64), with a total market capitalization of 13 trillion baht, or 72% compared to the market capitalization of All market prices of SET and mai (as of 1 November 2023)
From the results of the 2023 sustainability assessment, it was found that most of the listed companies had better operations and were able to disclose information. especially environmental policy Operations to reduce electricity/energy use, water use, and efficient waste management. Disclosure of greenhouse gas emissions information and information related to various occupational safety and health management, etc. However, the company still needs to improve the disclosure of risk management information in the supply chain. Results of managing human rights issues in organizations and supply chains and measurement of success obtained from community and social development projects.
Sustainable stock assessment SET ESG Ratings this year has developed a sustainability assessment model to be in line with important ESG risks and trends both internationally and nationally, such as climate change issues, human rights, etc. in selecting SET ESG. Ratings are selected from companies whose scores from responding to the sustainability assessment pass 50% in each dimension (corporate governance, economy, environment, and society) and meet the qualification criteria set by the Stock Exchange, such as being a company with CGR assessment results. 3 stars or more, not a company that has been accused or convicted of an offense by an official agency Had a net profit in 3 of the past 5 years, etc. The Stock Exchange of Thailand The results of the SET ESG Ratings sustainable stock assessment are used as criteria for selecting members of the SETESG index to promote sustainable investment. They are also used in selecting the SET Awards, Sustainability Excellence group, to find exemplary companies in sustainability. Those interested can follow the evaluation process and methods. Including the results of sustainable stock assessments, SET ESG Ratings, at www.setsustainability.com/
Source: Thai News Agency