Kasikornbank and the Capital Market Development Fund (CMDF) are supporting a team of researchers led by Singapore Management University (SMU) to study strategic planning for sustainability management under a carbon pricing mechanism from the perspective of executives in large businesses in Thailand. The study highlights that measures for disclosing companies' environmental impact are crucial factors that encourage businesses to transition to low-carbon operations, enhancing their image as environmentally friendly organizations, alongside the implementation of carbon tax measures that directly affect business costs. Additionally, support from the government, green loans, and knowledge sharing are all factors that promote executives to shift towards more sustainable businesses, which will enhance the competitiveness of Thai businesses on the global stage.

Dr. Krin Boonleawwanich, Deputy Managing Director of Kasikornbank, stated that environmental issues are a global agenda that the world is urgently addressing. Thailand has policy tools that the government is using to manage greenhouse gas emissions, including the Climate Change Act, which is expected to be enforced in 2026. The Kasikorn Research Center estimates that the enforcement of this law could impact 14 industries with high carbon dioxide emissions, amounting to 6.5 trillion baht or 37% of GDP. The law's section on carbon tax will make Thailand's goal of achieving Net Zero more tangible, as it will drive businesses to invest in transitioning to low-carbon operations. If this law is enforced as planned in 2026, Thailand will be the second country after Singapore to implement such measures in ASEAN.

Therefore, the bank is pushing for the business sector to transition by supporting all dimensions, including funding, knowledge, and comprehensive environmental solution services. This leads to the support of researchers from leading universities in Asia to conduct research on strategic planning for sustainability management under a carbon pricing mechanism, funded by the Capital Market Development Fund (CMDF). The bank will utilize the research findings to develop products and services and find ways to enhance the competitiveness of Thai businesses on the global stage.

Mr. Jakkrit Boonyawat, Manager of the Capital Market Development Fund (CMDF), added that CMDF has a policy of continuously supporting sustainability research through the Capital Market Research Institute (CMRI) to develop and enhance research capabilities by providing research funding and promoting various initiatives to achieve overall capital market development objectives. These include pilot projects to support and promote ESG Bond investments, projects to improve sustainability data quality for listed companies, and funding for international sustainability courses to enhance the capabilities of personnel in the capital market from 2021 to 2026. Recently, CMDF has supported a team of researchers from leading Asian universities to study strategic planning for sustainability management under a carbon pricing mechanism, aiming to provide insights and find applicable methods for companies or organizations regarding sustainable strategic planning under carbon pricing mechanisms for stakeholders in both the public and private capital markets. This research will serve as a guideline for policy planning and help drive Thai businesses to adapt towards achieving Net Zero as per the country's goals.

Associate Professor Dr. Jirapol Jiyachant from the Lee Kong Chian School of Business, Singapore Management University (SMU), added that currently, over 70 countries worldwide have begun implementing carbon pricing to reduce greenhouse gas emissions, amounting to over 400 billion baht. For Thailand, there is a draft Climate Change Act under consideration for carbon pricing, but it has been found that knowledge about strategic planning for sustainability under the carbon pricing system and the disclosure of environmental sustainability information is still limited.

The research team includes Professor Hantong Tan from Nanyang Technological University, Dr. Patrawan Pasanpanit from the Sasin School of Management, Chulalongkorn University, Dr. Ekaphat Manitchakrit from Kasetsart University, and Kasikornbank, supported by research funding from the Capital Market Development Fund (CMDF). They conducted behavioral research with 117 senior executives from large businesses in the country, asking them to choose between investing in environmentally friendly projects that incur short-term losses and projects that are profitable but not environmentally friendly, under simulated scenarios with carbon tax measures and sustainability disclosure measures.

The research findings revealed that most executives were more likely to invest in environmentally unfriendly projects if only carbon tax measures were implemented, as they viewed it as a cost already incurred for carbon emissions, thus feeling no need to invest in environmentally friendly projects. Conversely, executives were more inclined to invest in environmentally friendly projects when required to disclose environmental impact information, as it enhances business transparency and reduces social pressure. Additionally, it was found that this group of executives is already aware of the issues and values achieving climate goals. Therefore, if both measures are enforced alongside knowledge support, the business sector will be more willing to transition to low-carbon operations. Furthermore, the research indicated that over 60% of executives who decided to invest in environmentally friendly projects seek additional incentives for continued investment, such as green loans or government support.

This research highlights the crucial role of both the public and private sectors in collaborating to address climate issues, including carbon tax collection and the disclosure of environmental sustainability information, which will serve as a guideline to drive the business sector towards genuine sustainability. Those interested in studying the full research findings can download the document at https://www.cmri.or.th/uploads/images/CMRI_Publication/1722504272Final Report_CMDF 0085-2566 _Thai_V17.pdf.