ASEAN Exchanges jointly establish internationally aligned sustainability metrics during the 36th ASEAN Exchanges CEOs Meeting hosted by SET
Bangkok, September 12, 2023 – The Stock Exchange of Thailand (SET) hosted the 36th ASEAN Exchanges CEOs Meeting on September 8, 2023. Bursa Malaysia, Indonesia Stock Exchange, Philippine Stock Exchange, Singapore Exchange Group, Vietnam Exchange, and SET collaborated to develop a set of core sustainability metrics that are aligned to international standards and established practices. During the event, leaders from the six exchanges in ASEAN discussed initiatives to further enhance ESG collaboration within the region, aiming to level up the ASEAN stock markets and foster sustainable investments.
The CEOs recognised the complementarity of ASEAN Exchanges and the potential from market connectivity opportunities through depository receipts cooperation. The ASEAN Exchanges are working together to explore ways to further enhance products and regional promotion.
SET President Pakorn Peetathawatchai said that the six ASEAN Exchanges had been working together to create a framework for collaboration in diverse areas to elevate the ASEAN capital markets, including driving sustainability and sustainable investment, and developing interconnected products to expand investment opportunities.
“As the region grows, the ASEAN Exchanges are committed to entrench the ASEAN market as an investment opportunity. The CEOs of ASEAN Exchanges extensively discussed how to further promote cross-border products and build on the complementarity of our markets, and enhance ASEAN Exchanges visibility to international investors. ESG issues have also gained prominence at the global level and serve as key factors for investors when making investment decisions. The ASEAN Exchanges common ESG metrics therefore provide a guidepost for our companies in reaching international investors and facilitating capital flows into the region” said Pakorn.
The ASEAN Exchanges agreed on 10 Governance (G) metrics at this meeting, which complement the previously announced metrics related to Environment (E) and Social (S) issues. Together, the core metrics will serve as a common basis for member stock exchanges to build upon in order to drive sustainability among their listed companies. This initiative is intended to encourage the disclosure of consistent ESG information on material topics. Significantly, the core metrics also aid in bolstering sustainable investment across the region, aligning with the growing global trend.
The 10 Governance metrics are as follows:
| No. | Key Governance Topics | Metrics |
| 1 | Board Diversity | Percentage of board seats occupied by men and women |
| 2 | Board Independence | Percentage of board seats occupied by independent directors/commissioners |
| 3 | Board Independence | Separation of the Chairman of the board and CEO |
| 4 | Board Appointment and Re-Election | Criteria used in the selection of new directors/commissioners |
| 5 | Board Meeting Attendance | Percentage of board meeting attendance by each director/commissioner during the year |
| 6 | Board Appraisal | Annual performance assessment of the board of directors/commissioners and disclosure of the criteria and process followed for the assessment |
| 7 | Board Training and Development | Company policy regarding ongoing or continuous professional education programs for directors/commissioners |
| 8 | Business Ethics | Disclosure of the details of the code of ethics or conduct |
| 9 | Equitable Treatment of Shareholders | Company policy prohibiting directors/commissioners and employees to benefit from knowledge which is not generally available to the market |
| 10 | Equitable Treatment of Shareholders | Company policy requiring directors/commissioners to disclose their interest in transactions and any other conflicts of interest |
Apart from top executives from the six exchanges, representatives from Cambodia Stock Exchange and Lao Securities Exchange also attended the meeting.
Please visit the ASEAN Exchanges website at www.aseanexchanges.org for information on trading, listed companies, and activities.
