SET mulls sustainable development index

The index will be used to encourage listed firms to embrace the principle of social responsibility, which in turn would attract more investors,
To create a useful index, it may take some time to gather data and find good indicators – it cannot be done right away, Chaiyawat said at the CEO Forum hosted by the SET.
He said there should not only be indices to gauge companies’ financial performance but also another kind of index that calibrates their responsibility to the community and environmental protection.
The CSRI, which is sponsored by both the public and private sectors, has an agenda to promote social responsibility and sustainable development.
He said he was convinced that listed firms would greatly benefit from the new index because investors are now more concerned about CSR and environment issues.
Kan Trakulhoon, Siam Cement Group’s president and chief executive officer, also urged fellow executives to adopt a sustainable-development agenda.
He said corporate chiefs had to set an example for their staff on how to do business while at the same time contributing to the well-being of people in local communities and preserving clean air and water while using natural resources responsibly.
Kan said SCG’s vision was to create value for customers, employees and other stakeholders and contribute to the sustainable progress of Asean and the communities where the firm operates.
He said SCG had been recognised by Dow Jones Sustainability Indices since 2004 and had been ranked in the gold class from 2008 to 2011.
The company last year also was recognised as a global leader in the building-materials and fixtures sector, he said.
The award made it easier for him to draw investment from long-term fund managers who are looking for companies with a good record in social responsibility and environmental protection, he said.
Kan said investment in new technology that converts waste to renewal energy had proved to be profitable for the company because of cost savings. Meanwhile sales of products made with environmentally sound techniques are rising, as more and more people are willing to pay a green price premium.
Finance Minister Kittiratt Na-Ranong said those who knew about the good things others were doing should help them by spreading the word.
“Thais do not believe those who say that they themselves do good things, but Thai people will be convinced by a third party’s word,” he said.