The Stock Exchange of Thailand (SET) announced its support for the Task Force on Climate-related Financial Disclosures (TCFD), as a TCFD Supporter, demonstrating a commitment to building a more resilient financial system and safeguarding against climate risk through better disclosures covering four core elements of governance, strategy, risk management, and metrics and targets. SET will encourage all sectors in the capital market to step up in tackling the climate crisis and minimizing environmental impact, encourage listed companies to manage resources efficiently, promote investors and financial and investment institutions to take into consideration the environment-related performance of businesses in loan offerings and investment decisions. In addition, SET will reinforce its proactive role in leveling up the importance of climate risk management to solve climate-related issues which require urgent actions locally and globally in accordance with UN Climate Change Conference of the Parties (COP26).
SET Senior Executive Vice President Krisada Sektrakul said that SET has continuously advocated the Thai capital market toward sustainable development by embracing sustainability, or the environmental, social and governance or ESG aspects, for a balanced growth. SET is joining more than 2,500 organizations worldwide to become a TCFD Supporter to clearly state its stance and intention to tackle environmental problems which are urgent agenda locally and globally. This will reinforce SET's proactive role in encouraging listed companies, investors, financial and investment institutions, as well as regulators and partners in all sectors to develop their business and investment in a sustainable manner in line with the SET's vision "To Make the Capital Market 'Work' for Everyone".
"The capital market sector plays a major role in driving the economy forward and supporting a transition to a low-carbon economy?a significant global trend. Thailand has announced in the recent COP26 climate conference in Glasgow its aim to achieve carbon neutrality by 2050 and net-zero emissions within 2065. Correspondingly, SET is ready to lead the Thai capital market to support these goals by providing knowledge about the impact of climate risks on business competitive edge, efficient use of energy, water and waste, and greenhouse gas emission reduction. Moreover, SET will support information disclosure on greenhouse gas emissions in an accurate and transparent manner to public and encourage Thai investors and financial and investment institutions to consider environmental issues simultaneously with financial performance of the businesses when granting loans, and financial and investment services."
"As part of our efforts to combat climate change, SET together with local and international partners has provided knowledge about the impact of climate change on business for listed firms, and financial and investment institutions by conducting a series of TCFD & SDGs workshops. These workshops aim to promote a better understanding of how to address the economic risks and opportunities resulting from climate change and raise the bar in line with the TCFD international best practice of climate disclosures. SET has also prepared the translated version and published TCFD Good Practice Handbook which demonstrates the good practice from existing climate-related financial disclosures from across the G20 countries," added Krisada.
SET will host a webinar titled 'TCFD & SDGs Workshop: TCFD in Finance' on Thursday November 18, 2021 to continue to promote knowledge about climate-related financial disclosures in compliance with the TCFD recommendations and exchange financial and investment institutions' views in taking such information into consideration for providing loans and financial services to business. More information on SET's e-Learning, training courses, seminars and related articles are available at www.setsustainability.com.
About the Task Force on Climate-related Financial Disclosures
On December 4, 2015, the Financial Stability Board (FSB) established the industry-led Task Force on Climate-related Financial Disclosures (TCFD) with Michael R. Bloomberg as Chair. The Task Force currently has four Vice Chairs and 32 members in total. The TCFD was asked to develop voluntary, consistent climate-related financial disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders, which were published in the TCFD Recommendations Report on June 29, 2017. More information about the TCFD can be found at www.fsb-tcfd.org.