Recognising the crucial role sustainable economic growth plays in bringing about better living standards and inclusive economic development for all, in 2015 Thailand has adopted the United Nations' 2030 Agenda for Sustainable Development (consisting of the 17 Sustainable Development Goals: SDGs), and, in 2016, committed to the Paris Agreement to advance its Greenhouse Gas Emissions (GHG) reduction by 20 to 25 percent from the business-as-usual level by 2030.
The financial sector plays a crucial role in mobilising funds to promote sustainability practices in the country. Most recently, financial sector has begun to comprehensively incorporate Environment, Social, and Governance (ESG) considerations in its business processes.
With regard to acceleration of the sustainable development, the Working Group on Sustainable Finance, consisting of the Fiscal Policy Office, the Bank of Thailand, the Securities and Exchange Commission, the Office of Insurance Commission, and the Stock Exchange of Thailand, has joined forces to steer and align the direction of Thailand's sustainable finance policies.
On 18 August 2021, Working Group on Sustainable Finance has jointly published Sustainable Finance Initiatives for Thailand (the Initiatives), one of our key work plans, to set the direction and framework for driving sustainable finance across the financial sector. The Initiatives recommend 5 Key Strategic Initiatives (KSIs) as follows:
These 5 KSIs are crucial foundation upon which a fertile sustainable finance ecosystem can flourish, facilitating the allocation of economic resources to fulfil the country's sustainability agenda and enhance benefit to all parties.
Despite the critical urgency of the COVID-19 pandemic, ESG considerations should not be neglected as they are the key driving forces for future sustainable economic growth. When a financial sector is well-equipped with the necessary capacity and capabilities to innovate products and services in a cost-effective manner to tackle ESG issues, particularly climate change, it facilitates private sector to further advance their fundraising activities and investment on sustainable projects and economic activities. Altogether, these pave the way for a thriving economy, society, and environment.
Further details on Sustainable Finance Initiatives for Thailand can be accessed via: https://www.sec.or.th/TH/Documents/KnowledgeBase/SustainableFinanceInitiativesforThailand.pdf