The TCFD has been established by the Financial Stability Board under the initiative of private sectors around the world and public and private sectors in the global market are welcomed to become TCFD supporters. The TCFD recommendations support more effective climate-related disclosures that enable investors and stakeholders to analyze and compare climate-related risk management of businesses within the sectors. The TCFD recommendations can become a market mechanism for promoting investment in low carbon businesses.
SEC Secretary-General Ruenvadee Suwanmongkol said: “SEC is the first public organization in Thailand to have become an official TCFD supporter* since 30 December 2020, which marks another important step to address the global trend of climate change management in the Thai capital market. Starting from better disclosure of environmental, social and governance (ESG) information via 56-1 One Report, especially information related to greenhouse gas emission, such efforts are fundamental for strengthening business sectors’ capability to manage material risks and business opportunities arising from climate change, for example, flood, drought and future governmental policies that may affect fossil fuel consumption.”
In addition, the TCFD recommendations can serve the Thai capital market in moving towards the goals of the National 20-Year Strategy, support Thailand, having ratified the Paris Agreement, in its mission to reduce greenhouse gas emission by 20-25 percent within 2030, and contribute to the national drive towards the United Nations SDGs..
“By implementing the TCFD** recommendations, companies will be able to analyze and lay out strategies to address climate change challenges while providing information for investors’ investment decision-making. These efforts can contribute to the sustainable growth of companies, capital market, economy and the country at large. SEC plans to give continuous support to companies interested in disclosure according to the TCFD recommendations. In the first quarter of 2021, SEC, in cooperation with the UK Prosperity Fund under the ASEAN Low Carbon Energy Programme (ALCEP) and EY Corporate Services (Singapore) Co., Ltd., will organize the second online seminar on the topic, “Deep Dive into Climate Risk Disclosure,” aiming to help interested listed companies prepare for information disclosure in line with the TCFD recommendations,” said SEC Secretary-General.
* Currently, the number of TCFD supporters exceeds 1,600 organizations, both public and private sectors, from more than 70 jurisdictions around the world. The list of TCFD supporters in Thailand is available at https://www.fsb-tcfd.org/supporters/ .
** The TCFD recommendations are structured around four thematic areas, namely:
(1) Governance: Disclose the governance structure and roles of boards and management.
(2) Strategy: Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning, as well as strategies for handling such impacts.
(3) Risk Management: Disclose how the organization identifies, assesses, and manages climate-related risks as part of the organization’s risk management.
(4) Metrics and Targets: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
For more information on disclosure in accordance with the TCFD recommendations, please visit: https://www.fsb-tcfd.org/ .