Thaipat launches Rating Unit to provide ESG data of Thai companies
30 September 2014 – Thaipat Institute launches ESG Rating Unit to provide corporate sustainability data research and analysis based on the guiding principles, developed by the Global Initiative for Sustainability Ratings (GISR), to encourage the environmental, social and governance (ESG) disclosure of Thai companies to the investment community, both locally and globally.
The Thaipat’s ESG Rating Unit launched after the Stock Exchange of Thailand (SET) signed the voluntary commitment with the UN Sustainable Stock Exchanges Initiative in July with its aim to working with investors, companies and regulators to promote long-term sustainability through enhancing corporate transparency and performance on ESG issues among the listed companies, and encouraging responsible long-term approaches to investment among investors.
As the first Global Reporting Initiative’s organizational stakeholder in Thailand since 2010 and the GRI-certified training partner to provide certified training programs in Thailand, Indonesia, Malaysia, Philippines, Vietnam, and Singapore; Thaipat also recently becomes a participating organization, among global leading organizations, in the GISR’s standard development process. It is an opportunity to the Institute in adding corporate sustainability data services to support the responsible investment community by setting up the ESG Rating Unit using the GISR’s standard component as guiding principles to develop our ESG rating methodology.
Dr.Pipat Yodprudtikan, Director of Thaipat Institute, in July also joined the GISR's Expert Advisors Council (EAC). The EA role provides specialized expertise to the Secretariat and the Technical Review Committee (TRC) on various topics related to the standard development such as materiality, sustainability context, and indicator development.
Prior to setting up the rating unit, Thaipat Institute developed criteria for the Sustainability Report Awards program of the Thai listed companies association in 2013, and provided the first CSR and Anti-corruption progress indicator sets to the Securities and Exchange Commission (SEC) based on its sustainability development roadmap for Thai listed companies. The initiatives encourage the uptake of ESG disclosure that places performance in the broader context of sustainability challenges, risks and opportunities. It also benefits all listed companies to apply such information to formulate their business strategies.
“With the setting up of ESG Rating Unit, it does not only contribute to advancing the ESG disclosure of Thai companies, but also help disseminate the ESG data to the investment community, both locally and globally, increasing investment opportunities in the companies that obtain their financial return by strategically managing their environmental, social and governance performance”, says Dr.Pipat.
According to US SIF 2012 report on sustainable and responsible investing trends in the United States, the overall investing assets with ESG incorporation and shareholder resolutions on ESG issues is $3.74 trillion, or 11.3 percent of the $33.3 trillion in total assets under management tracked by Thomson Reuters Nelson. It represents one out of every nine investing dollars that incorporate ESG factors into the investment decisions.
Global data providers, such as FTSE, MSCI, S&P and Dow Jones, develop sustainability indices using ESG data in their index methodologies. The better ESG disclosure of Thai listed companies in term of quality and quantity, the more they are likely to be included in those indices. For example, Thai listed companies that are included in Dow Jones Sustainability Index (DJSI) in 2014 increase to ten companies, those companies are BANPU, CPN, IRPC, MINT, PTT, PTTEP, PTTGC, SCC, TOP, TUF.
Thai companies interested in advancing their ESG disclosure or providing ESG data to the investment community are welcome to get more information at www.esgrating.com
For more information, please contact:
Tel: 662 930 5227 Fax: 662 930 5228
1 An initiative co-convened by the UN-supported Principles for Responsible Investment, the United Nations Conference on Trade and Development, the United Nations Environment Programme Finance Initiative, and the UN Global Compact.