THAIPAT Institute has opened up a new dimension of sustainability development by rating Thailand-based companies on their environmental, social and governance, or ESG, initiatives for the first time.
To promote sustainable investment, the institute also releases the ESG100 list of outstanding companies.
The ESG Rating Unit of Thaipat Institute, a pioneer of business-sustainability database development, evaluated the sustainability of 567 companies listed on the Stock Exchange of Thailand, excluding those undergoing rehabilitation, based on their publicly released reports or information from their Form 56-1 declaration, which identifies sources and periods during which the information has been gathered.
The 56-1 is required by the Capital Market Supervisory Board’s announcement on guidelines, criteria and procedures on the disclosure of listed companies’ financial information and operating results.
The evaluation is also based on annual reports, sustainability reports and information on the companies’ sustainability-development results as compiled by authorities.
The ESG100 is the first such ranking in Thailand. It also marks the first time Thailand’s listed companies are ranked on the basis of business-sustainability development.
The list serves as a source of business-sustainability information on listed companies, answering to the needs of investors keen on supporting socially and environmentally responsible firms.
The release of the ESG100 aims to encourage both the disclosure of listed companies’ sustainability information and responsible investment.
As a participating organisation of the Global Initiative for Sustainability Ratings, Thaipat Institute has applied the initiative’s criteria to the development of its own rating methodology in terms of procedures and content.
Taken into account are stakeholders’ opinions, listed companies’ sustainability information that may affect stakeholders’ decisions, material parts of their comprehensive operations in a value chain and their long-term goals.
Long-term goals provide guidance that shapes both short-term and medium-term results.
Company director Pipat Yodprutikarn said the ESG100 provides baseline data for investors looking for listed companies with outstanding ESG achievements.
“Of all those in the universe, our list includes just 100 listed companies. These firms offer sustainable investments. Returns from such investments are also no less than those from general investments.”
Thaipat Institute has already laid down assessment criteria for the Thai Listed Companies Association’s Sustainability Report Award project.