The Stock Exchange of Thailand (SET) reported a significant achievement with its ESG Ratings 2024, as 228 listed companies have been recognised, marking a new milestone in sustainable investments both locally and globally.
This year’s ratings awarded AAA status to 56 companies, AA to 80, A to 71, and BBB to 21. These firms together account for 82% of the total market capitalisation of the SET and the Market for Alternative Investment as of December 12, according to Soraphol Tulayasathien, the senior executive vice president of the bourse.
Soraphol highlighted that the SET ESG Ratings provide an important tool for investors, analysts, and fund managers to assess the risk profiles and growth prospects of businesses, supplementing other data.
“With ESG performance now crucial to business competitiveness and growth potential, funds in certain categories have adopted SET ESG Ratings as one of their investment policies.”
The rising popularity of ESG-focused funds is expected as sustainability becomes more prominent among investors and companies. Notably, Thailand ESG Funds (TESG) and Vayupak Fund 1 (Class A) manage assets worth 14.6 billion and 150 billion baht (US$4 and 4.38 billion), respectively.
A remarkable development this year is the inclusion of 106 small and medium-sized companies, each with a market capitalisation under 10 billion baht (US$292 million), that met the SET ESG Ratings criteria. This figure represents a 43% increase from the previous year, showcasing their dedication to sustainable practices.
“This showed remarkable progress as the number surged by 43% from the previous year, underlining their strong commitment to sustainability practices,” Soraphol said.
Improvements were noted in average scores across all ESG dimensions, particularly in customer-centric product and service offerings, climate risk management, GHG emissions disclosure, and setting goals for carbon neutrality and net zero emissions, reported Bangkok Post.
Participation in the SET ESG Ratings is voluntary, requiring companies to achieve at least 50% in each ESG pillar. Looking ahead, SET ESG Ratings will integrate into the FTSE Russell ESG Scores, a globally recognised sustainability assessment favoured by institutional investors, with public disclosure of results beginning in 2026.
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