As institutional investors managing large investment funds, AMCs have potential to create ripple effects and help drive Thailand towards achieving Sustainable Development Goals (SDGs) and Net Zero. They can do this by becoming responsible investors who allocate capital to businesses with good governance and sustainable operations, and by encouraging these businesses – especially those in high greenhouse gas emissions industries – to implement timely and effective climate risk measures, reflecting the urgency of this critical agenda. Such movement will also help reduce risks in the funds managed by AMCs, ultimately provide investors and asset owners with positive returns in the long run.

Previously, the SEC issued guidelines to support the establishment and management of Sustainable and Responsible Investing Fund and Thailand ESG Fund, along with a handbook on good practices for managing and disclosing climate-related risks for AMCs. Additionally, training has been provided to AMCs and capital market participants to continuously enhance knowledge and understanding on this issue. The intended outcomes are to encourage investments in businesses that operate sustainably, ensure transparent disclosure of investment information to investors, and effectively drive Thailand’s transition towards low-carbon economy, aligning with the Government’s goals.

Ms. Pornanong Budsaratragoon, Secretary-General of the SEC, said: “ AMCs, as institutional investors, play a crucial role in responsible investing by incorporating ESG factors and related risks, especially climate-related risks, into fund management to create tangible positive impacts. The SEC believes that a strong “Tone from the Top” from the Board of Directors and senior management of AMCs will be key to advancing this agenda. By sending a clear message to the fund managers and AMCs’ staff about the importance of socially and environmentally responsible investments, and by encouraging the integration of ESG factors into investment process, risk management, and other operations, we can help drive Thailand towards achieving the SDGs and Net Zero, as well as positioning the country as a leader in sustainable investment in the region.”
 

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Remark: 

Sustainable and Responsible Investment Fund (SRI Fund) is a type of fund that focuses on investing in businesses, which places importance on sustainability according to international principles such as SDGs, UN Global Compact, etc. The criteria require that AMCs, which manage SRI Funds, disclose all relevant information under the same disclosure standards so that investors can conveniently compare information between SRI funds and have adequate information to make informed investment decisions. As well, this requirement also helps to reduce greenwashing risks. For more information and the list of SRI Funds as well as Thailand ESG Funds, please visit: https://sustainablefinance.sec.or.th/Fund.  

** Handbook and appendix of examples on good practices in managing climate-related risks by foreign investment management operators can be accessed via the SEC website as follows:

https://www.sec.or.th/TH/Documents/CompanyHandbooksandGuidelines/Climate_Risk_Management_Guidelines.pdf and
https://www.sec.or.th/TH/Documents/CompanyHandbooksandGuidelines/Appendix_Climate_Risk_Management_Guidelines.pdf