As sustainable finance accelerates and becomes a critical lever for market development, organisations in Thailand are deemed to do more to strengthen ESG data collection and reporting systems.
This is the findings of the latest report of Deloitte, highlighting how expanding partnerships across value chains amid rising regulatory expectations and disclosure standards is becoming crucial.
In the “Driving Sustainable Success: ESG Reporting and Policy Developments in Thailand” report, it was revealed that rapid regulatory progress in the adoption of ESG principles positions Thailand as an influential player in the region’s green transition. However, Deloitte notes that companies need to invest more in systems, governance, and supply chain visibility to meet ESG demands, and tap on sustainable finance.
To maximise the impact of ESG, Deloitte urges stakeholders, including organisations and investors, to better understand and take action based on the latest ESG developments and insights.
Key recommendations include:
- Practise ESG meaningfully: Organisations need to provide ESG-related training, guidance and incentives. They should also apply ESG considerations to all investments, rather than limited to certain funds and bonds.
- Engage meaningfully with stakeholders: When engaging with other organisations, leaders should be equipped with knowledge and awareness of ESG due diligence, in order to mitigate risks.
- Exercise shareholder rights: Investors should understand the relevant laws and regulations in different countries, and if necessary, take shareholder action to establish precedence in ESG stewardship.
- Focus on the credibility and increased opportunity created by bonds and social funds: Asia’s rapid wealth creation and high savings rates have created a pool of capital that could help support sustainable investments. Pension funds, sovereign wealth funds and institutional investors can consider integrating ESG strategies into their overall portfolio.
