SET at 50: Shaping the Future of Corporate Sustainability in Thailand

Introduction

In 2025, The Stock Exchange of Thailand (SET) celebrates its 50th anniversary—a milestone that comes amid global changes and growing environmental, social, and governance (ESG) challenges. To mark this occasion, SET is launching a new generation of strategic plans designed to support Thailand’s transition to a sustainable, inclusive capital market over the next 50 years.

At the center of this vision is a deep commitment to integrating ESG principles across the Thai capital market. As climate change and social and governance risks reshape the global economy, SET is laying the groundwork to help Thai businesses raise their ESG standards and support the nation’s shift to a low-carbon, socially responsible economy.

Thailand’s ESG Evolution

To understand how far Thailand has come, it’s important to look at the evolution of ESG practices in the capital market. Over the past three decades, SET has played a key role in shaping ESG development through a phased and strategic approach.

Phase 1 (Early 1990s): Foundation

SET began promoting good governance by requiring independent directors and audit committees. It also introduced corporate governance basics to improve board oversight and accountability. This foundational work created the structural and regulatory groundwork that enabled more rigorous governance reform in the following phase.

Phase 2 (1997–2006): Reform

After the Asian financial crisis, corporate governance became a priority. SET established the Corporate Governance Center and partnered with regulators to form the Thai Institute of Directors (IOD). This period also saw the introduction of CG (corporate governance) assessments for all listed companies. With governance mechanisms in place, the capital market was ready to broaden its focus beyond boardroom conduct to include social responsibility and broader stakeholder engagement.

Phase 3 (2007–2012): CSR

The focus expanded to corporate social responsibility (CSR). SET founded the Corporate Social Responsibility Institute (CSRi) and launched practical CSR guidelines for businesses. As companies embraced CSR principles, momentum grew for a more comprehensive ESG approach that addressed environmental and governance factors as well.

Phase 4 (2013–Present): ESG

ESG has gained greater attention from investors and stakeholders. SET’s 2014 membership in the UN Sustainable Stock Exchanges Initiative reinforced its sustainability commitment.
This phase builds on prior governance and CSR foundations, culminating in a full-fledged integration of ESG into Thailand’s capital market development strategy.

SET’s Four Pillars of ESG Framework

Building on its historical development, SET now structures its ESG efforts around four foundational pillars. These pillars not only support ongoing ESG integration but also serve as a framework for driving long-term market resilience and responsible growth.

1. Sustainable Business: Helping companies integrate ESG into governance, risk management, and leadership to support long-term growth.
2. Sustainable Investment: Guiding capital toward responsible companies using ESG ratings and indexes.
3. ESG Infrastructure: Providing digital tools like the ESG Data Platform and SET Carbon to enhance ESG reporting and data transparency.
4. Education and Promotion: Increasing ESG awareness and skills through campaigns, training, and learning programs.

Strengthening ESG Capacity and Infrastructure

With these pillars in place, SET is focused on helping businesses turn ESG ideas into action. By providing training, guidelines, and digital platforms, SET ensures that companies—regardless of size or maturity—can build the capability to meet rising ESG expectations.

• Training: Customized programs for companies at all stages of ESG development.
• Guidelines: Practical ESG handbooks to encourage meaningful, actionable improvements across business operations.

To improve ESG reporting, SET launched the ESG Data Platform and SET Carbon, to assist listed businesses in improving sustainability disclosure and tracking greenhouse gas emissions. These tools are integrated to improve reporting procedures and reduce duplication of work.

• ESG Data Platform: A centralized system with 122 indicators to help companies disclose ESG data efficiently. It supports better decision-making by investors and regulators.
• SET Carbon: A tool launched in 2025 to help especially small- and mid-cap firms calculate greenhouse gas emissions in line with national standards. Over 130 companies are already using it.

Aligning with Global Standards

To ensure Thailand’s ESG framework meets international expectations, SET is aligning its practices with globally recognized benchmarks. This alignment enhances investor trust and promotes the visibility of Thai companies in the global ESG landscape.

• ESG Ratings: SET is upgrading its ESG Ratings by adopting the FTSE Russell ESG model—a global benchmark covering 8,000+ companies in 47 countries. Full implementation is expected by 2026.
• SET ESG Index: Introduced in 2023, this index highlights firms that balance financial success with sustainability. It helps in guiding investors seeking responsible investment options.

Thailand’s ESG Progress

These efforts are already paying off, as reflected in the increasing number of Thai companies receiving ESG recognition both locally and internationally. The momentum is strong, and the data shows Thailand’s capital market is rapidly becoming more sustainable and investor-friendly.

• 224 listed companies now have SET ESG Ratings, covering 82% of market capitalization.
• Thai firms feature in global ESG indices such as DJSI, FTSE ESG, and MSCI ESG.
• 242 ESG and CG funds operate in Thailand, with over THB 93 billion in assets under management—and growing.

Accelerating Climate Action

Beyond governance and investment, climate action is emerging as a top priority. Thai companies are rising to meet international standards, driven by both regulatory pressures and global supply chain expectations.

• EU CBAM Compliance: With the EU’s Carbon Border Adjustment Mechanism targeting high-emission imports, Thai exporters must adapt to remain competitive.
• GHG Emissions Tracking: 41% of SET-listed firms now collect Scope 1 and 2 emissions data, and 18% track Scope 3 emissions as well.
• Net Zero Commitments: 19 Thai companies have set science-based Net Zero targets in line with global standards.

Looking Ahead

The journey toward corporate sustainability is far from over—but the direction is clear. With strong public-private cooperation and alignment with global ESG standards, Thailand’s capital market is well-positioned to lead in Asia’s sustainable finance movement.

These collective efforts not only enhance economic resilience but also contribute meaningfully to global sustainability goals. SET’s vision remains bold and inclusive: “To Make the Capital Market ‘Work’ for Everyone.”

By Dr. Soraphol Tulayasathien, Head of Corporate Strategy & Strategic Initiatives Division, Head of Sustainable Market Development Division, The Stock Exchange of Thailand