Collaboration of Thai corporate citizens to achieve sustainability goal

Businesses have to consider the cost and benefits of “green projects” to achieve Environment, Social and Governance (ESG) goal, according to top executives’ panel discussion at ASEAN’s largest SX Sustainability Expo 2022 at Queen Sirikit National Convention Center. 

The topic was ‘Leading Sustainable Business and Green Finance’.

Roongrote Rangsiyopash, CEO Siam Cement Group (SCG) said at the seminar that SCG has to be selective by choosing high-impact projects with innovative and tech-driven features to minimize cost and provide social benefits.   SCG also cultivated a shared vision among its employees and stakeholders.  

SCG’s metrics include targets to reduce use of fossil fuels while increasing use of alternative energy within specific timeframe and responsible parties.

Thapana Sirivadhanabhakdi, CEO Thai Bev Group said that collaboration of cross industries to create ‘Good Balance, Better World’ and the individuals’ awareness to reduce carbon emission in daily lives are key driving factors to go sustainability.

Key considerations for corporates to achieve sustainability are setting up goals and measurable indicators to run businesses, engaging and empowering stakeholders in supply chain to take actions, and being innovative and use of technologies, said Supachai Chearavanont, CEO CP Group.

Supachai said Thai educational system should be reformed and developed to encourage young generation to learn digital technologies and problem solving skill.

Investment in sustainability is a must in today’s business environment and public expectation, said Thiraphong Chansiri, CEO Thai Union Group.   Thai Union’s  processed seafood-related business in international markets were restricted because of labor,  illegal fishing, and plastic packaging issues.  

After several years of working in sustainable ways eg implementing labor protection and safety, compliance with international fishery market standards, and use of biodegradable plastic packaging, he encouraged all businesses to join this long term journey to save our planet and remain competitive and viable.  

Kongkrapan Intarajang, CEO PTT Global Chemicals’s strategies focus on competitiveness, growth, and sustainability.  ‘Chemistry for Better Living’ vision has been developed and biochem plastic campaign is one of the flagship projects to promote circular economy.   Businesses with sustainability and profitability start with good understanding and finding right balance by joining forces at corporate levels, communities, and families.

Meanwhile SET, Ministry of Finance, Bank of Thailand, Securities Exchange Commission, and Insurance Commission have promoted a sustainable financial landscape for ESG. 

Manpong Senanarong, senior executive vice president of Issuer & Listing Division at SET said risk assessment framework in connection with environment has been in place and required all financial institutions to promote green finance. 

There are 5 areas for sustainable finance framework – Green Taxonomy (classification of what green activities/projects to be included), Disclosure (improving trusted, structured, and meaningful data for ESG rating and decision making), Internalisation of environmental risks (implementing adequate risk assessment on environments), Incentives (accessibility to capitals with reduced financial cost for environmental projects), and Capacity building (setting up ESG data platform and knowledge enhancement of financial personnels).

Krit Jitjang, president of Kasikorn Bank said green finance through debt and bond in Thai markets shows significant growth in the past years but it needs concrete actions promoted by the government to incentivize corporates in doing sustainable projects.  A 5-year plan with goals, incentives, activities, and timeline should be set up as guidelines during transition period.

Giorgio Gamba, CEO HSBC Thailand said the bank has supported sustainable supply chain finance and see promising opportunity in Thailand and ASEAN region.  

Its latest initiatives include the launch of new debt financing platform focused on the development of sustainable infrastructure in Asia, HSBC and Singapore-based Temasek.  A JV called HSBC Pollination Climate Asset Management is aimed to be the first large scale venture to mainstream natural capital as an asset class.  Setting energy transition funding targets to align emissions with the global net zero target by 2050 and to reduce its exposure of thermal coal financing.

Nopadej Kannasood, senior executive vice president of Investment, Innovation, and Sustainability, B.Grimm Power said sustainability is long term commitment for corporates and community and all needs to prepare and raise the bar to cope with challenges.