The importance of ESG in an uncertain global context.

Have we ever wondered why conflicts or crises occurring on the other side of the world can have such profound effects on our daily lives? Whether it's international conflicts, military action, greenhouse gas emissions, or climate change—all these issues, linked to the world's ecosystems and natural resources, create a ripple effect, impacting economic stability and sustainability across the globe.

These factors will create a ripple effect, stimulating all sectors to seriously prioritize environmental, social, and governance (ESG) factors in order to build resilience and prepare for an uncertain future.

Amidst the challenges facing the business sector, the concept of good governance, with responsibility towards society and the environment, is widely believed to help companies manage risk and grow sustainably in volatile circumstances. Global capital markets have therefore continuously strengthened their ESG (Environmental, Social, and Governance) standards through enhanced strategies.

This includes transparent, complete, and timely disclosure of ESG information so that investors can access the necessary information to make effective investment decisions. According to a 2025 Morgan Stanley survey, over 88% of retail investors worldwide are increasingly prioritizing sustainable investments, and over 86% of institutional investors managing assets for owners plan to expand their investment allocation in sustainability within the next two years.

Thai listed companies are no different. Over the past three years, there has been a remarkable improvement in their ESG disclosures. Approximately 60% of Thai listed companies disclose Scope 1 and Scope 2 greenhouse gas emissions data, and around 45% disclose all three scopes. Furthermore, some Thai listed companies have received internationally recognized assessments. For example, in 2024, 16 Thai listed companies were ranked among the ASEAN Top 50 in the ASEAN Corporate Governance Scorecard. Most recently, 48 Thai listed companies were included in S&P Global's Sustainability Yearbook, ranking sixth globally.

Following the development of the ISSB standard into a global baseline for sustainability disclosure recognized by regulators worldwide at the end of 2567, the SEC (Securities and Exchange Commission of Thailand) has proceeded with the issuance of the ISSB Roadmap. This will upgrade the sustainability disclosure requirements under the 56-1 One Report form, requiring Thai listed companies to disclose sustainability information according to the ISSB standard, starting with the SET50 group, and including transitional measures.

The significance of the ISSB standard lies in its ability to truly link "sustainability" with "financial performance," making it easier for investors to understand and compare data.

These international standards will help increase opportunities for companies to access funding to support transitions, or Transition Finance, and help reduce long-term financing costs and enhance the competitiveness of Thai businesses on the global stage.

In a world full of uncertainty, publicly listed companies should prepare for all situations by adhering to principles of good governance, transparency, and concretely applying ESG (Environmental, Social, and Governance) in their organizational management. This is not merely for compliance, but to build the ability of businesses to adapt, recover, and grow confidently from new challenges—what is universally known as building resilience in a rapidly changing world.

Furthermore, the SEC (Securities and Exchange Commission of Thailand) encourages investors to prioritize ESG information when making investment decisions, as environmental, social, and governance factors are key indicators of a company's ability to conduct business sustainably in the long term.

Statistics from the past three years clearly reflect the development and importance of ESG. The current global challenges will have a ripple effect, driving the future direction of ESG, depending on the cooperation of all of us. Let's be a part of it and follow the development of ESG in the world together.