Bangkok: The Stock Exchange of Thailand (SET) is taking significant steps to support green businesses as global interest in Environmental, Social, and Governance (ESG) stocks continues to rise. Yuanta analysts have observed that these stocks are gaining traction, with investors worldwide increasingly embracing them.
According to Thai News Agency, Mr. Soraphol Tulayasathien, Deputy Managing Director of the SET, highlighted during the seminar titled 'Green Business Creates a Clean World for All of Us' that the exchange has been proactive in promoting sustainability and environmental care among listed companies. ESG, often perceived as an abstract concept, has gained prominence due to the concerted efforts of the SET, government bodies, investors, and international organizations. Initiatives like Sabina's campaign to repurpose donated underwear exemplify the SET's commitment to fostering ESG practices. To further this cause, the SET has introduced an ESG rating system to motivate listed companies to prioritize these values.
Ms. Duangdao Mahanawanon, CEO of Sabina Public Company Limited, emphasized the importance of sustainability in modern business, stating that it extends beyond profits. Sabina encourages its customers and employees to participate in environmental conservation efforts, such as tree planting and recycling campaigns. Moreover, the company is committed to maintaining ESG standards in its OEM production processes, reflecting a broader trend among investors who are increasingly favoring companies with strong ESG credentials.
Mr. Nattapol Khamthakruea, Senior Director of Investment Analysis at Yuanta Securities (Thailand) Co., Ltd., noted that Sabina has achieved an AAA ESG rating, underscoring its dedication to environmental stewardship. He pointed out that ESG stocks, like those listed on the US S and P stock market, often yield higher returns than conventional stocks. As the global emphasis on sustainability grows, companies with strong ESG practices are attracting more interest from investors and various sectors.
Analysts are placing greater emphasis on transparency and risk reduction concerning ESG practices. This shift is expected to enhance general investors' awareness of risks associated with non-ESG compliant companies. With global markets and funds, such as the Vayuphak Fund, heavily promoting ESG stocks, these investments are seen as more stable and less susceptible to rapid sell-offs during market volatility, owing to governmental support for sustainability initiatives.