Through the partnership, SET will adopt a new scoring framework for environmental, social and governance (ESG) standards using FTSE Russell’s ESG Data Model, which will replace the current SET ESG Ratings from 2026.
According to a July 30 announcement, SET will adopt a pilot phase in 2024-2025, which includes a series of capacity-building workshops and seminars. SET and FTSE Russell will also commit to creating a knowledge base of guidelines on FTSE Russell’s ESG Data Model scoring methodology, in both Thai and English.
The current SET ESG Ratings are currently voluntary for listed companies, and they must meet rating criteria evaluated through questionnaire responses and the qualification requirements.
Through FTSE Russell's ESG Data Model, eligible companies will have their sustainability efforts assessed through publicly available data. This methodology is used to evaluate more than 8,000 companies in 47 countries.
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Investors can also benchmark their results against both domestic and international peers using the same standards.
According to FTSE Russell, the FTSE ESG Data Model is overseen by an independent advisory committee with representatives from the corporate sector, investors, non-governmental organisations, academia and others.
SET president Pakorn Peetathawatchai says the bourse has prioritised developing the Thai capital market “to excel in sustainability and gain international recognition”.
Peetathawatchai says the partnership will encourage Thai listed companies to “raise their sustainability practices to international levels” and “support investors in integrating ESG into their investment decisions”. “The SET has planned and established a roadmap with relevant agencies to ensure a smooth transition to international ESG assessment standards, benefitting all parties.”
Helena Fung, head of sustainable finance and investment APAC, LSEG, says the partnership will “significantly elevate” the profile of Thai companies in the international ESG discourse, “making them more relevant to discerning global investors”.
