SET and FTSE Russell announce partnership to enhance ESG standards in Thailand

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The Stock Exchange of Thailand (SET) has partnered with FTSE Russell to adopt a new ESG scoring framework using FTSE Russell’s ESG Data Model, effective from 2026, with a pilot phase in 2024-2025. This partnership aims to align Thai capital market practices with international sustainability standards, enhancing transparency and reducing the burden of repetitive questionnaires for companies. SET and FTSE Russell will conduct capacity-building workshops and provide guidelines to ensure a smooth transition for all stakeholders involved.

The Stock Exchange of Thailand (SET) has announced a strategic partnership with FTSE Russell, a renowned global provider of benchmarks and index solutions. This collaboration aims to establish a comprehensive sustainability scoring framework to elevate the environmental, social, and governance (ESG) standards among listed companies in Thailand. FTSE Russell operates as a subsidiary of the London Stock Exchange Group (LSEG), a prominent global financial markets infrastructure and data provider.

SET will integrate FTSE Russell’s ESG Data Model into its framework Under this partnership, SET will integrate FTSE Russell’s ESG Data Model into its framework, transitioning from the current SET ESG Ratings. This transition is set to take full effect in 2026, with an initial pilot phase scheduled for 2024-2025 to ensure stakeholders are adequately prepared. The objective is to align Thailand’s capital market with international best practices in sustainability disclosure and investment.

Presently, the SET ESG Ratings system is voluntary for listed companies, which are evaluated based on questionnaire responses and qualification requirements approved by SET’s Sustainable Investment Committee. The new framework will assess companies using publicly available data, a method already employed to evaluate over 8,000 companies across 47 countries. This approach not only enhances transparency but also mitigates the burden of repetitive sustainability questionnaires for companies. Additionally, it allows investors to benchmark results against both domestic and international peers.

This partnership between SET and FTSE Russell marks a significant milestone for the Thai capital market. It will encourage Thai listed companies to raise their sustainability practices to international levels and support investors in integrating ESG into their investment decisions, in line with sustainable investment trends. The SET has planned and established a roadmap with relevant agencies to ensure a smooth transition to international ESG assessment standards, benefiting all parties. Dr. Pakorn Peetathawatchai, President of SET Dr.

Pakorn Peetathawatchai, President of SET, emphasised the significance of this partnership, stating, “This partnership between SET and FTSE Russell marks a significant milestone for the Thai capital market. It will encourage Thai listed companies to raise their sustainability practices to international levels and support investors in integrating ESG into their investment decisions, in line with sustainable investment trends.

The SET has planned and established a roadmap with relevant agencies to ensure a smooth transition to international ESG assessment standards, benefiting all parties.” Helena Fung, Head of Sustainable Finance and Investment APAC at LSEG, expressed her enthusiasm for the collaboration, saying, “We are proud to partner with the Stock Exchange of Thailand in strengthening local capital markets ecosystems and helping stakeholders to operate more sustainably. This partnership underscores our ongoing commitment to transforming markets and creating value for stakeholders globally.

Through this collaboration, Thai listed companies will be empowered to benchmark their ESG practices against international standards. It will also significantly elevate the profile of Thai companies in the international ESG discourse, making them more relevant to discerning global investors.” SET and FTSE Russell will host a series of capacity-building workshops To facilitate a smooth transition, SET and FTSE Russell will host a series of capacity-building workshops aimed at educating market entities about the new ESG Data Model.

These initiatives will include seminars and the development of guidelines on the scoring methodology in both Thai and English. The partnership with FTSE Russell represents SET’s commitment to advancing sustainability in the Thai capital market, aligning with global standards, and supporting the growth of sustainable investment practices. About SET The Stock Exchange of Thailand (SET) is the primary securities trading platform in Thailand, established with the mission to foster economic growth and stability.

It provides a comprehensive range of services for listed companies, investors, and other market entities, ensuring a transparent, efficient, and secure trading environment. SET is committed to promoting sustainability and aligning with international standards, thereby enhancing the credibility and attractiveness of Thailand’s capital markets on a global scale.