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SET Joins Thailand’s Biggest Pension Fund GPF To Promote Sustainable Investment

Date 13/07/2018

The Stock Exchange of Thailand (SET) has joined forces with Thailand’s Government Pension Fund (GPF) to promote companies listed on SET which focus on environmental, social and governance (ESG) practices. The two organizations also signed the memorandum of understanding to enhance financial and investment literacy covering over one million GPF members nationwide.

SET President Pakorn Peetathawatchai said that SET has continuously been promoting   sustainability practices among listed firms and all stakeholders in line with the SET vision ‘To Make the Capital Market ‘Work’ for Everyone’.  In addition, SET also encourages investors to take Environment, Social and governance (ESG) factors into consideration for their investment decisions. To support ESG investing, SET recently launched SET THSI Index, consisting of 45 liquid stocks with ESG track record, to serve as a benchmark for sustainability investment portfolio. This landmark cooperation between SET and GPF, the country's largest institutional investor, in supporting SET THSI index as a benchmark for GPF Thai ESG investment portfolio is a crucial step for the Thai capital market. Also, SET will cooperate with GPF in enhancing financial literacy, especially, savings and investment for GPF members’ retirement.

GPF Secretary General Vitai Ratanakorn said that GPF has incorporated ESG aspects into investment decisions as GPF believes that it will provide an opportunity to generate constant, long-term returns to minimize risks and promote sustainable growth for the society and businesses. This will underscore GPF’s goal to be a leading responsible investors adopting ESG practices. Significantly, in September, GPF will set up the "ESG-Focused Portfolio” fund, worth at least THB 1 billion (Approx. USD 30 million), to invest in Thai securities by benchmarking against the SET THSI Index, and will further invest in international equities next year.

SETTHSI has been designed to facilitate investment decisions in sustainable stocks, and to enable institutional investors to launch ESG-related financial products, and to use it as benchmarking tool on investment return. SETTHSI’s calculations are based on the listed companies in Thailand Sustainability Investment list, comprising listed companies with outstanding performance on ESG aspects from its annual sustainability assessment.

For more information about SETTHSI, please visit www.set.or.th/SETTHSI.