The Stock Exchange of Thailand (SET) has partnered with FTSE Russell to introduce a sustainability scoring framework for listed companies in Thailand, concluding a search that began in 2022.
FTSE Russell, a subsidiary of the London Stock Exchange Group (LSEG), will assist SET in aligning the Thai capital market with international best practices for sustainability reporting and investment.
The collaboration will see SET adopt FTSE Russell’s ESG Data Model to replace the current SET ESG Ratings starting in 2026. A pilot phase, scheduled for 2024-2025, will include workshops and seminars to build capacity and develop guidelines in both Thai and English.
Currently, SET ESG Ratings are voluntary for listed companies and are based on responses to a questionnaire. Under the new framework, companies will be assessed on their sustainability efforts using publicly available data, a method already applied to over 8,000 companies across 47 countries.
The new model will enable investors to benchmark their results against both domestic and international standards. FTSE Russell’s ESG Data Model is managed by an independent advisory committee representing various sectors, including corporate, investor, NGO, and academic.
SET president Pakorn Peetathawatchai said the bourse has prioritised developing the Thai capital market “to excel in sustainability and gain international recognition”.
Peetathawatchai said that the partnership will encourage Thai listed companies to “raise their sustainability practices to international levels” and “support investors in integrating ESG into their investment decisions”. He said, “The SET has planned and established a roadmap with relevant agencies to ensure a smooth transition to international ESG assessment standards, benefitting all parties.”
Helena Fung, head of sustainable finance and investment APAC, LSEG, said the partnership will “significantly elevate” the profile of Thai companies in the international ESG discourse, “making them more relevant to discerning global investors”.