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Thailand regulator launches climate risk guidelines for asset managers

The Guidelines also include how asset managers could disclose such information to stakeholders in accordance with the TCFD recommendations to enhance transparency and mitigate greenwashing risk
By Goh Thean Eu   
January 17, 2023

Thailand’s securities regulator has launched guidelines for asset managers to assess climate-related risk when managing investment portfolios.

The move comes just days after Thailand won top marks in Southeast Asia for achieving the United Nations’ Sustainable Development Goals or SDGs.

Securities and Exchange Commission, Thailand (SEC) says its new guidelines also aim to help asset managers to address climate-related issues through capital market mechanisms in accordance with the SDGs.

“The guidelines also include how asset managers could disclose such information to stakeholders in accordance with the Task Force on Climate-related Financial Disclosure recommendations to enhance transparency and mitigate greenwashing risk as well as introduce a market mechanism towards a low carbon economy,” the regulator says in a statement recently.

According to Secretary-General Ruenvadee Suwanmongkol, the SEC is “contributing to building a complete ecosystem and increasing the roles of institutional investors in managing investments responsibly while taking into consideration both climate-related opportunities and risks that may affect investment portfolios”.

“This will not only bring about optimal benefits to the asset owners but also help to develop the Thai capital market,” she says in the statement.

The UN Sustainable Development Solutions Network’s latest Sustainable Development Report published on January 9 says Thailand has achieved 74.13% of the SDGs, ahead of Vietnam with 72.76%, Singapore, 71.72%, Malaysia, 70.38%, and Indonesia, 69.16%.

Globally, Finland ranked first with 86.51%.