SET President Pakorn Peetathawatchai said that SET definitely encourages the business sector to operate responsibly with respect to stakeholders, taking into consideration the ESG aspects to create strong and sustainable growth. SET has continuously announced THSI list since 2015, with more and more listed companies voluntarily participating in the assessment, and having passed the assessment process every year. Remarkably, they realize and prioritize sustainable business operations. At the same time, the stakeholders in the capital market are increasingly searching for and using ESG information for the analysis and investment consideration, on top of financial information.
"Currently, such ESG factors as corporate governance, climate change risks, human rights issues in the organizations and in the supply chains, totally have an impact on business operations. Consequently, investors need useful and insightful information on how listed companies manage risks in these various areas. ESG information is therefore essential and is one of the elements that investors use to shape their investment decision making. The SET ESG Ratings will enable investors, investment analysts, and fund managers to have more insightful data available for use in analyzing and making high-quality investment decisions, while providing listed companies with a benchmark to enhance their ESG performance, attract investors and widen access to funding," added Pakorn.
In 2023, 193 companies have passed the criteria and have been announced their ratings. Of the total, 33 listed companies are at the AAA level (total score 90-100), 71 listed companies at the AA level (total score 80-89), 64 companies at level A (total score 65-79), and 25 listed companies at BBB level (total score 50-64). The market capitalization of these listed companies amounted to THB 13 trillion, representing 72 percent of the total market capitalization of SET and Market for Alternative Investment (mai) (as of November 1, 2023).
The results of the 2023 sustainability assessment showed that most of the listed companies have had better implementation and information disclosure, particularly in the areas of environmental policy, the reduction of electricity / energy usage and water usage, and efficient waste management, as well as the information disclosure on greenhouse gas emissions, safety, and occupational health. However, the listed companies still need to improve the information disclosure on risk management in the supply chain, the results of managing human rights issues
internally and externally in the supply chain, and outcome and impact of community and social development projects.
SET this year developed SET ESG Ratings' assessment criteria in accordance with the important ESG risks and prospects both nationally and internationally including climate change and human rights issues. The listed companies that score at least 50 percent in each dimension (Governance and economic, Environmental, and Social dimensions) will pass the criteria of SET ESG Ratings. They also must meet the following qualification criteria: having CGR assessment results of three stars or more, not having been accused or convicted of an offense by any government entity, and delivering net profits in three of the past five years.
SET will use the SET ESG Ratings as a criterion for selecting members of the SETESG Index to promote sustainable investment. Moreover, it will also be used in selecting nominations for the SET Awards, Sustainability Excellence category, in order to find listed companies with sustainability impact as role models for others.
Interested parties and individuals can access the SET ESG Ratings assessment process, methodology, and results via www.setsustainability.com/ESG-ratings.
Source: SET Corporate Communications