Tuesday, December 10, 2019

Joint push for ESG practice among listed companies

Jul 18. 2019
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By The Nation

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The Federation of Thai capital market organisation, together with its members and other public and private institutes, have jointly declared that they will not be investing in companies that disregard ESG principle, in a move to foster good governance in the capital market.

Paiboon Nalinthrangkurn, board director of the organisation, revealed  that many companies in the Thai capital market will campaign for environmental, social and governance practice (ESG) among  listed firms for a better society and environment.

   Institutes joining the campaign include the seven members of the organisation:  The Stock Exchange of Thailand, ATI-ASCO Training Institute, Thai Listed Companies Association, Association of Investment Management Companies , Investment Analysis Association, and The Alternative Investment Management Association. Others are the Government Pension Fund institute, Securities and Exchange commission, Association Of Provident fund, and Thai Institute of Directors.

  The asset management organisation has a market capitalisation of Bt5 trillion, while other funds have a combined Bt8-9 trillions.

  The campaign is to honour the coronation of His majesty the King. 

  They believe that a listed company should follow ESG practice by performimng good deeds for the society and the environment. For example, a company which uses a high volume of packaging materials should reduce non-environmental friendly content in its production process, whereas a financial company, such as Tisco, should share financial knowledge with the  public. 

  There are 700 listed companies engaged in environmental, social and governance practice (ESG). 

  Big organisations, such as the  PTT Public Company Limited (PTT) which is listed in the high finance enterprise group,  should invest more in  enterprises involved in  social issues, while listed institutes should  give advice on  ESG practice to small and medium-sized companies, they added.

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