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The Stock Exchange of Thailand (SET) today announced the list of Thailand Sustainability Investment (THSI) 2022, comprising 170 listed companies – an increase from 144 in the previous year.
The higher number of companies in the sustainable stock list underscores Thai listed companies’ commitment to a continuous growth which takes into account risk management with readiness to deal with social and environmental changing factors, sharpening competitive edge and prioritizing stakeholders across all sectors.
The Thailand Sustainability Investment (THSI) list
The Stock Exchange of Thailand created the Thailand Sustainability Investment (THSI) list in 2015, which comprises of the listed companies that conduct sustainable business operations. The listed companies on the THSI continuously create long-term returns by valuing their responsibility to society (Social) and the environment (Environmental), and by managing their business with transparency, in line with corporate governance principles (Governance). THSI serves as another choice for investors who desire to adopt a responsible investment approach.
Institutional investors particularly the Government Pension Fund (GPF) has used the list of THSI to make informed decisions. Furthermore, investment analysts use ESG factors as well as the THSI list as tools to analyze and advise investors via their stock analysis reports.
“This year, a total of 170 companies on the THSI list has demonstrated a significant development in the disclosure of environmental and social information such as policies and targets of environmental management; performance and efficiency in the management of resources related to energy efficiency, water and waste management, and in terms of employees, communities and society through business processes”.SET President Pakorn Peetathawatchai
“Listed companies have also assessed climate change risks by firmly establishing policies and measures to reduce greenhouse gas emissions. Furthermore, there is still room for improvement by adding human rights due diligence process to ensure no human rights violation throughout the supply chain.”
The 2022 THSI list consists of 157 SET-listed companies and 13 mai-listed companies. The top three industry groups in the sustainable stock list by number of companies are Services at 33 companies, Resources at 28 companies, and Property & Construction at 27 companies.
Market capitalization of THB 14 trillion
Notably, listed companies in the THSI list has a total market capitalization of THB 14 trillion (approx. USD 375.88 billion), representing 72 percent of the total market capitalization of SET and mai (as of October 3, 2022).
The THSI list has been selected from listed companies that voluntarily responded to the sustainability assessment form, consisting of 19 general sets of indicators for all companies, as well as indicators according to the nature of business in eight industries, such as Agro & Food industry group having additional indicators to assess the responsible sourcing of raw materials and the risks of water usage.
The Financials industry group having indicators on data security and IT systems, responsible financial or insurance business operations, and financial inclusion, in accordance with the key issues for investors’ consideration and for the company’s long term competitive capabilities, etc.
The listed companies with a score passing the 50 percent-threshold in each dimension (economic, environmental and social dimensions) and meeting the set qualifications requirements, for example, a company with a CGR rating of three stars or more, not being a company that has been accused or convicted of an offense by a government entity, with net profit in three out of the past five years, etc. will be selected to be included in the THSI list. The sustainable investment working group consisting of experts in the capital market sector will ensure transparency in the whole process of screening and selection.
The THSI list will be used as constituents for selecting members of the SETTHSI Index to promote sustainable investment. The review of the constituents of the SETTHSI Index is conducted semi-annually on a regular basis.
Please find details of the list of sustainable stocks atwww.setsustainability.com.