Strategic initiatives include the development of a sustainable finance taxonomy, the ESG data environment and sustainable finance products.
The Thailand Sustainable Finance Task Force has identified five key strategic initiatives to promote sustainable finance across the financial sector.
The working group includes the Office of Tax Policy, BOT (Bank of Thailand), SEC (Securities and Exchange Commission), OIC (Office of Insurance Commission) and SET (Stock Exchange of Thailand ).
The five strategic initiatives include:
- Develop a taxonomy to provide a common definition and classification system for economic activities considered environmentally sustainable, in order to align the sustainable financing policies of regulators, to encourage innovative financial products and services and to attract funding towards Thailand’s sustainability goals
- Improve the ESG data environment and the quality of disclosures to facilitate financial decisions, promote the development of financial products and policies to better serve companies, and improve investment analysis, effective ESG risk measurement and transparency of business conduct
- Implement effective incentives to encourage fundraisers and investors to invest in sustainable financial products in order to further develop the market
- Create an environment that generates growth in the underlying real demand for sustainable financial products by minimizing regulatory barriers for new products and services
- Develop human capital by equipping the financial sector workforce with the necessary sustainable finance skills, competencies and values to accelerate sustainable financial sector transformation
The initiatives are meant to serve as the foundation on which a “sustainable and fertile financial ecosystem can thrive,” thereby facilitating the allocation of economic resources to achieve Thailand’s sustainable development agenda, task force members said in a statement. joint.
The statement says ESG considerations should not be overlooked, even in light of the critical urgency of the Covid-19 pandemic.
“When a financial sector is well equipped with the capacities and capabilities to innovate products and services cost-effectively to tackle ESG issues, particularly climate change, it enables the private sector to further advance its fundraising activities and its investments in sustainable projects and economic activities.