Bangkok, 10 January 2023 – The Securities and Exchange Commission (SEC) has launched the Guidelines on Management and Disclosure of Climate-related Risk by Asset Managers. The Guidelines aim to help asset managers assess climate-related risk when managing investment portfolios and address climate-related issues through capital market mechanism in accordance with the UN Sustainable Development Goals (SDGs).
As a capital market regulator, the SEC is Thailand’s first governmental agency to have become an official supporter of the Task Force on Climate-related Financial Disclosure (TCFD) since 30th December 2020. In the following year, the SEC revised the disclosure rules by requiring listed companies to disclose information on their environmental, social and governance actions, including climate-related risk information, to investors and stakeholders via the 56-1 One Report.
The SEC has published the Guidelines as a manual that asset managers who manage mutual funds, private funds and provident funds could use voluntarily when considering the risks and opportunities that accompany climate change and the financial impacts on the investee companies. The Guidelines also include how asset managers could disclose such information to stakeholders in accordance with the TCFD recommendations to enhance transparency and mitigate greenwashing risk as well as introduce a market mechanism towards a low carbon economy. The SEC plans to organize webinars and capacity building sessions for asset managers throughout 2023. For starters, an introductory meeting with asset managers will be held on 25th January 2023 to introduce and clarify the scope and expectations of the Guidelines. On 30th January 2023, the SEC in collaboration with the UK Government and CDP will host a webinar on the topic, “Improved Capacity and Skills in TCFD Knowledge and Reporting.”
SEC Secretary-General Ruenvadee Suwanmongkol said: “By encouraging asset managers to consider climate-related risk when managing their clients’ investment portfolios, we are contributing to building a complete ecosystem and increasing the roles of institutional investors in managing investments responsibly while taking into consideration both climate-related opportunities and risks that may affect investment portfolios. This will not only bring about optimal benefits to the asset owners but also help to develop the Thai capital market in line with the 20-Year National Strategy, the Paris Agreement on Greenhouse Gas Emission Reduction by 20-25 percent by 2030, and the SDGs on Climate Action in due course.”
The Guidelines and the Appendix: Sample of Best Practices in Managing Climate-related Risk by Global Asset Managers are available on the SEC website via:
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
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