SET announces the list of 98 sustainable stocks in 2019, 'Resource Industry’ dominates with up to 19 companies

Mr. Pakorn Peetathawatchai, President The Stock Exchange of Thailand (SET), revealed that SET prioritizes the mission to develop the capital market for the benefit of all stakeholders in line with the vision 'To Make the Capital Market 'Work' for Everyone' This includes establishing a sustainable investment environment, promoting companies' operations considering the Environment, Social, Governance (ESG) factors and introducing the Thailand Sustainability Investment (THSI) list as an alternative for investors interested in ESG-focused businesses.

'SET has continuously compiled the sustainable stock list since 2015. This year, 98 companies made it to the list, up from 51 in 2015, showcasing Thailand's increased emphasis and stringent efforts on ESG aspects in business operations. This year has witnessed significant developments in vision setting, policies fostering innovation within organizations and active participation in addressing Climate Change by enhancing energy efficiency in business processes and disclosing social and environmental policies to stakeholders' Pakorn stated.

The 98 sustainable stocks selected this year predominantly belong to the Resource Industry, totaling 19 companies. Following are Real Estate and Construction, Industrial Products and Services groups, each with 15 companies. Additionally, new entrants to the sustainable stocks list this year come from the Agriculture and Food Industry and the Services group, making them the groups with the highest increase in representation. Collectively, the market capitalization of the 98 listed companies stood at THB 11,314.328 billion as of October 15, 2019, representing 65.26% of the total market capitalization.

These sustainable stock selections are based on companies participating in the sustainability assessment questionnaire, covering 19 categories encompassing economic (including governance), social and environmental dimensions. The focus is on measuring sustainability practices, comprising policy formulation, target setting, performance measurement and company disclosure. Companies require a minimum score of 50% in all dimensions to qualify for the sustainable stock list or to be part of the Dow Jones Sustainability Indices (DJSI), meeting SET's criteria and passing assessments like Corporate Governance Rating (CGR), net profit and shareholder equity. Moreover, companies must demonstrate efforts in avoiding adverse impacts on the environment, society and governance. A dedicated task force ensures transparency throughout this process.

Additionally, the sustainable stock list serves as a criterion for calculating the SETTHSI index, promoting investments in sustainable stocks considering environmental, social, and governance aspects, reviewed biannually.

The Thailand Sustainability Investment list for the year 2019