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SET works towards sustainability in capital market

Aug 30. 2019
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By The Nation

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The Stock Exchange of Thailand (SET) on Thursday signed a Memorandum of Understanding (MoU) with the International Finance Corporation (IFC), a member of the World Bank Group, to jointly push the Thai capital market towards sustainability.

The cooperation centres on raising awareness of the benefits of sustainable investment products, disclosing information related to sustainability, educating the capital market’s human resources and investors on sustainability and building ecosystem for sustainability to make the Thai capital market more attractive to investors worldwide.

SET President Pakorn Peetathawatchai said that markets around the world prioritise sustainable development, with the business sector playing an ever-increasing role in solving social and environment problems. Investment in businesses concerned with such issues is experiencing increased attention and offers an alternative to investors worldwide. The SET encourages the capital market and the business sector to continuously and concretely develop sustainability. The Thai stock exchange has shown prominent development with proven success as Thailand has the highest number of firms added to Dow Jones Sustainability Indices (DJSI) in Asean for five consecutive years. Moreover, SET has been granted the “United Nations Sustainable Stock Exchanges Market Transparency Award” and was the top-ranked emerging stock exchange and the only Asian exchange to reach the top 10, demonstrating the exceptional sustainability disclosure practices of Thai listed companies.

“This MoU with IFC will push the Thai capital market further towards sustainability by focusing on developing sustainable investment products namely the Green Bond, which is a debt instrument for environmental protection, educating workforce and investors in the capital market about sustainability and upgrading the Thai capital market in terms of sustainability to catch eyes of investors globally, in tandem with SET vision ‘To Make the Capital Market Work for Everyone’,” Pakorn added.

Vikram Kumar, IFC Country Manager for Thailand, said “We are excited to build this sustainable development partnership with the Stock Exchange of Thailand. Building environmental, social and governance capabilities can contribute to SET becoming one of the region’s premier exchanges. IFC is also committed to working with SET to build its sustainable credentials and promote the blossoming sustainable bond market. With its deepening financial markets and dynamic banking sector, Thailand is well placed to become a regional leader in promoting ESG standards, especially as it shares its capital and expertise with less advanced neighboring markets”.

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