SEC working on regulation to make listed companies accountable for ESG

Robert Penaloza, the country head of Abrdn, called for more policies like ESG funds and tax benefits from the government so that sustainability becomes the new “social norm”.

He made the remarks during the “Rules of Financial Sector Towards a Sustainable Economy” forum at the UK-Thailand Financial Conference 2024 organised by the UK embassy in Bangkok.

The business leader said Thailand “cannot wait any longer” to take steps in tackling environmental issues, citing current challenges like global warming, and, in particular the air pollution in Thailand.

“Trying to get the capital in the right places is a bit of a challenge because, at the end of the day, investors cannot just think about returns. You [investors] need to think about impact and social returns. Once that becomes the norm of society, then you will see corporates and investors collaborating [to promote ESG effort],” he added.

He urged Thailand to take a leading role in pushing for environmentally friendly industries, saying that the kingdom had a lot of potential.

Robert Penaloza

Meanwhile, another speaker Areewan Aimdilokwong, an assistant secretary-general of the Securities and Exchange Commission (SEC), said that in the near future, all companies listed in the stock market would be required to present their ESG status to help promote sustainability in the country.

Areewan assured that the new regulation would not be too stringent and would be beneficial for companies.

She said that there would be a public consultation amongst affected stakeholders to ensure that the new rule would not make their “life more difficult.”

The conference also included a signing ceremony of a memorandum of understanding between the Export-Import Bank of Thailand and UK Export Finance.

Thai PM Srettha Thavisin also gave a speech during the event, promising to work closely with the UK government to ensure Thailand’s economic development remains resilient and robust.

Areewan Aimdilokwong