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SEC releases Thai version of TCFD recommendations for local businesses



Tuesday 24 October 2023 | No. 194 / 2023


Bangkok, 24 October 2023 – The Securities and Exchange Commission, Thailand (SEC) has presented to the Task Force on Climate-related Financial Disclosures (TCFD) Secretariat with the translated Thai version of the TCFD Recommendations to enhance the understanding of climate-related financial disclosures among business sectors in the capital market.

SEC Secretary-General Pornanong Budsaratragoon said: “The Thai capital market has developed in line with the global emphasis on climate change initiatives. The Thai version of the TCFD Recommendations, prepared by the SEC with support from the TCFD, is a vital tool for listed companies, investment analysts and asset managers to gain a better understanding of climate-related financial disclosures that involve risks and opportunities concerning climate change, enabling them to analyze securities, give investment advice, and make investment decisions efficiently. This is also a major step that facilitates market participants as they make a smooth transition towards adopting sustainability disclosure standards, e.g., ISSB, IFRS S1 and IFRS S2,    in the coming years to support sustainable growth. The SEC is also committed to expediting Thailand’s shift towards a low-carbon economy with the goals of achieving carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065.”

The TCFD Recommendations assist companies worldwide in recognizing climate-related risks and opportunities and providing comprehensive climate-related financial information. They also allow companies to develop strategies to manage those risks so that they are climate resilient and able to cultivate opportunities arising from the transition to a low-carbon economy. This enables investors, investment analysts and asset managers to assess the prices and values of assets accurately as well as allocating capital more efficiently.

Since the introduction of the TCFD Recommendations in 2017, the demand for climate-related disclosure has increased significantly as corporates worldwide share a common goal of reducing fragmented climate-related risk disclosure. As Thailand’s first governmental agency to have become an official supporter of the TCFD since 30 December 2020, the SEC has encouraged listed companies to adopt the TCFD Recommendations and promoted the incorporation of climate-related risks and opportunities into securities analysis and asset management to enable favorable long-term returns for investors. 

The Thai version of the TCFD recommendations is now available for download at: 
TCFD-Recommendations-Thai.pdf (bbhub.io) or Thai HandbooksGuidelines (sec.or.th)                                                                                   

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Remarks:

1. About the Task Force on Climate-related Financial Disclosures On 4 December 2015, the Financial Stability Board (FSB) established the industry-led Task Force on Climate-related Financial Disclosures (TCFD) with Michael R. Bloomberg as Chair. The Task Force currently has four Vice Chairs and 31 members in total. The TCFD was asked to develop voluntary, consistent climate-related financial disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders, which were published in the TCFD Recommendations Report on 29 June 2017. More information about the TCFD is available at www.fsb-tcfd.org

2. In 2021, the SEC issued the requirement for listed companies to disclose information on their environmental, social and governance actions, including climate-related risk information in accordance with the TCFD recommendations, to investors and stakeholders via the 56-1 One Report.

3. In 2022, the SEC launched the Guidelines on Management and Disclosure of Climate-related Risk by Asset Managers, which are based on TCFD recommendations.






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