About ESG

Why are Thailand and the rest of the world becoming aware of the importance of “ESG”
and mobilizing to take care of the environment and society ?
Climate Crisis
Severe Climate variability
Loss of Nature
Scarcity of natural resources
Social Inequality
Widening social inequality
The 2021 Global Risks Report 16th Edition, conducted by the World Economic Forum (WEF), states that extreme weather and failures in climate management, environmental problems caused by humans, the problem of digital inequality due to disparity in access and usage, as well as cyber security are risks which have the greatest likelihood of occurring in the next ten years and which will result in a crisis for life on earth.
Climate variability: The daily activities of humans which continuously release greenhouse gases into the atmosphere have exacerbated climate change. Moreover, deforestation and wildfires have resulted in a spike in CO2 levels. The International Union for Conservation of Nature predicts that rising global temperatures will result in the extinction of 1 in every 4 species, and currently, according to the Intergovernmental Panel on Climate Change (IPCC), more than 420 million people are facing intense heatwaves. Meanwhile, Thailand is suffering from its worst drought in 40 years, while one-third of the region of Thailand has experienced severe flash floods since the end of 2020. It is clear that the world has reached the point where climate change has escalated into a “Climate Crisis.”

In addition, the wasteful consumption of a population which is likely to reach 9.6 billion people in 2050, according to the Bank of Thailand’s reports, has led to a shortage of natural resources around the world


In addition, the wasteful consumption of a population which is likely to reach 9.6 billion people in 2050, according to the Bank of Thailand’s reports, has led to a shortage of natural resources around the world

due to the loss of ecological balance. It is estimated that to have enough resources, we would need to have three Earths. Also relevant is the fact that today’s new normal lifestyle has contributed to the global accumulation of up to 2 billion tons of waste, which is projected to increase to 3.4 billion tons by the beginning of 2050, according to reports by the World Economic Forum. A study conducted by Jambeck et al. in 2015, which was cited in an article by SDG MOVE, found that ASEAN countries like Indonesia, the Philippines, Vietnam, and Thailand are among the top 10 countries that release the most plastic waste into the sea.


Although the world has progressed in many aspects, these advancements have led to the problem of social inequality, and the Covid-19 pandemic has further exacerbated this issue. The International Labor Organization (ILO) reports that the number of unemployed people worldwide will rise to 205 million, which is in line with the Bank of Thailand’s forecast that by 2022, more than 4.74 million Thai workers will be at risk of layoffs and severely reduced income against the background of inflation and high cost of living. Furthermore, an important cornerstone like education also lacks stability, especially for the 1.9 million Thai youth who are at risk of falling through the gaps in the education system, according to Ministry of Education’s assessment.

Because we only have one Earth, which is currently facing compounded crises, urgent cooperation in turning things around and caring for the Earth is “no longer just an option but the only way out” for humanity,
and we must begin today.

Because we only have one Earth, which is currently facing compounded crises, urgent cooperation in turning things around and caring for the Earth is “no longer just an option but the only way out” for humanity,
and we must begin today.

What is ESG?

Under the support of the UN, institutional investors all over the world have formed a network called the UN Principles for Responsible Investment (UN PRI) to implement “ESG” —on the basis thatbusiness growth should occur in conjunction with consideration for three key factors, the environment, society, and governance, which are all interrelated and play a role in the growth of the business—in analyzing and making decisions regarding investments, as well as to encourage the business sector to disclose ESG data in a concrete way in order to assure stakeholders and investors that they are supporting companies that operate responsibly and are truly committed to sustainability.

“ESG” is the sustainability framework to drive the sustainable business’ growth.





management emphasizes the efficient use of resources and conservation of the natural environment affected by the company's business operations.

Environmental factors in line with SDGs

  • Clean water and sanitation, which encompasses access to drinking water that is sufficient and up to standard for all;
  • Affordable and clean energy which people can access and purchase more easily in order to be ready for an electrically powered future;
  • Responsible consumption and production by promoting efficient use of natural resources and adjusting production processes as well as consumer behavior to be consistent with the natural environment in order to create sustainable consumption;
  • Climate action to limit the increase of the global average temperature and expand the capacity to cope with the impacts of climate change;
  • Life on land with biodiversity, which requires sustainable resource management;
  • Life below water, which requires effective conservation of biodiversity and the marine ecosystem in order to create sustainability in the sea.


management refers to the fair and equitable management of human resources, including the occupational health and safety of the company’s employees all the way to consumers, communities, and workers throughout the supply chain, such as fair compensation, safe working conditions, workers’ health and well-being, diversity, equality, and anti-corruption measures, as well as the establishing of good relationships with surrounding communities through proactive support in the form of initiatives and activities.

Social factors in line with SDGs

  • No poverty, especially among vulnerable populations, who must be provided access to basic resources and services as well as the means to cope with disasters and severe economic and social changes;
  • Good health and well-being through a modern, accessible, and quality healthcare system, which is essential for the improvement of people’s quality of life and the country’s development;
  • Quality education which is comprehensive and equal for all in order to provide an opportunity for lifelong learning;
  • Gender equality and expanded roles for all women and girls in order to promote respect for human rights;
  • Reduced inequalities to provide more opportunities for an equal life and improve the quality of life of target populations who need special assistance.


means establishing good corporate policies, operating with transparency, complying with regulations, fighting against corruption, and instituting operational procedures with management methods for various risks, as well as taking care of the interests of stakeholders.

Governance factors in line with SDGs

  • Responsible consumption and production by promoting efficient use of natural resources and adjusting production processes as well as consumer behavior to be consistent with the natural environment in order to create sustainable consumption;
  • Peace, justice, and strong institutionsto promote a peaceful society;
  • Partnerships for the goals to be achieved in every country economically, socially, and environmentally.
Nowadays, the “Sustainable Business Model” under the “ESG” framework is gaining widespread attention from both listed companies and investors around the world who place importance on investing in companies with business practices that take into account the sustainability of the business and society as a whole. Companies’ performance in “ESG,” assessed based on these three indicators, are now used as a criterion in evaluating the sustainability, long-term competitiveness, and ability of a business to generate value for all stakeholders in order to inform investment decisions. This reflects the fact that investors wish to invest responsibly and are seeking returns not in the form of profit alone. Rather, they also would like to see more emphasis placed on the environment, society, and corporate governance.

“ESG” The business sector’s sustainability goals,

which are in line with the world’s Sustainable Development Goals (SDGs)


The Sustainable Development Goals (SDGs)

are a post-2015 global development framework established by the United Nations (UN), comprising 17 goals aimed at helping to solve the problems faced by the world.


Thailand’s Bio-Circular-Green Economic Model (BCG Economy)

seeks to simultaneously develop three economic dimensions—bio economy, circular economy, and green economy—and promote exponential economic growth, along with social development and the maintenance of a balanced environment, thus paving the way to Thailand 4.0.


(Environmental, Social, Governance)

are indicators of an organization’s performance in the aspects of the environment, society, and governance, which have an impact on the investment decisions of shareholders.

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Sustainable development has thus become a solution for addressing the world’s problems and crises as a developmental approach that meets the needs of the present generation without sacrificing the ability to meet the needs of the next generation (Brundtland Report, 1987). It comprises three key components: Economic Growth, Social Inclusion, and Environmental Protection.
The United Nations member states have co-signed the 2030 Agenda for Sustainable Development as a global development framework for jointly achieving sustainable social, economic, and environmental development, and established Sustainable Development Goals (SDGs) as guidelines for each country to implement as part of this joint effort, with interconnected factors across 5 dimensions (5Ps): 1. People, 2. Planet, 3. Prosperity, 4. Peace, and 5. Partnership, which arose from the cooperation of all sectors in driving the environmental agenda for sustainable development.
Currently, the “ESG” concept serves as economic, social, and governance indicators that are in line with the guidelines for sustainable development, with concrete implementation and evaluation, and is increasingly becoming a standard for every business.
For the public sector, support for the “ESG” concept will play an important role in driving Bio-Circular-Green Economy (BCG Model) towards yielding tangible outcomes and establishing strategies, processes, and indicators which are linked across all sectors, which will help develop Thailand’s economy and society as well as protect the environment, thus leading to sustainable stability.

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"A better world"

is not the duty of one person but “the duty of all.”

Although the concept of ESG was originally intended for mobilization by the business sector, successfully solving problems and crises which pose a global challenge will require cooperation from all sectors, including the government, the public, and the private sector, to create a sustainable world for us all.


Goals according to “ESG” guidelines for the government

  • Improving the well-being of the people, with emphasis on health, education, and environmental protection;
  • Promoting unity and reducing disparity and inequality in society;
  • Protecting the country, the people, and the economy from the impact of external factors such as climate change and the global economy.

Goals according to “ESG” guidelines for businesses

  • Identifying the efficiency of the costs and resources used in business operations to conserve the environment;
  • Creating sustainable value for stakeholders and attracting investments;
  • Identifying and managing risks associated with ESG factors to ensure organizational resilience;
  • Prioritizing issues related to ESG factors in order to prepare for current and future challenges;
  • Limiting regulatory risks that will affect business operations;
  • Building trust among consumers, investors, and regulators to maintain the company’s reputation, expand the business into new markets, and increase income.

Goals according to “ESG” guidelines for the public

  • Adjusting one’s own social and environmental values and making the government and business organizations aware of the shift;
  • Choosing to buy products that are friendly to the environment and society;
  • Refraining from causing a negative impact on the environment;
  • Reducing disparity and inequality;
  • Contributing to building an equitable society and creating a better future;
  • Society is driving ESG forward through "the power of the people." A shift in public opinion is essential to enable lasting change.
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How is ESG measured?

ESG performance is evaluated according to the information disclosed by a company demonstrating business operations and risk management which encompass environmental, social and governance issues in order to provide investors with sufficient information to make investment decisions. Transparent, accurate, and complete disclosure of information allows a business to build trust with stakeholders and attract investors.

PMG’s report on “Impact of ESG Disclosure” explains that leading global investors such as BlackRock and Vanguard often use ESG data in analyzing a company’s long-term performance, such as energy consumption data which reflects the costs and risks of a company’s dependence on energy. ESG factors are also included as part of the conditions for issuing investment products such as funds and ETFs, with the belief that businesses which take into account ESG principles constitute reduced investment risks and are able to generate consistent returns as well as benefit society and the environment. (

At present, the United Nations, which supports the union of global investors under the name UN PRI (Principles for Responsible Investment) to promote responsible investment principles, is emphasizing the application of ESG factors in analyzing and making decisions regarding investments, as well as encouraging the business sector to disclose data on "ESG" in a concrete way in order to enable stakeholders and investors to feel confident that they are involved in supporting companies that operate responsibly and are truly committed to sustainability.

Consequently, global sustainability reports are being made according to international reporting frameworks with a variety of standards, such as GRI Standards, Integrated Report Framework, Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), for example, with an ESG Rating Agency, such as Dow Jones Sustainability Indices (DJSI) , Sustainalytics, Morgan Stanley Capital International (MSCI), and Carbon Disclosure Project (CDP), evaluating the securities index used to assess the effectiveness of business operations according to the company's sustainable development guidelines.

The Stock Exchange of Thailand has compiled a list of “Sustainable Stocks” from among listed companies to promote investment in ESG-conscious businesses. Although this list still consists mainly of large companies, nowadays, many listed companies are beginning to use ESG data to generate sustainability reports for disclosure to shareholders, investors, and the public along with financial reports in order to meet the needs of Thai investors for sustainable investment

When the world we live in is facing problems and challenges all around, SCG believes that ESG is no longer just a tool to create long-term business growth. Rather, it can be a tool to help all sectors, including the government, the private sector, and the public, as "good citizens," to come together and solve the crises that have arisen in these three dimensions. Therefore, it is our duty to find ways to participate in solving the problems to the best of our ability in order to bring our world towards sustainability and build a better world for the next generation. ...

Together, we must mobilize to take care of this world with urgency.

“ESG, Start For a Better World.”