Sustainability Index
In an era where the importance of Sustainability and Climate Change is a global focus, we can see efforts to promote and push various policies and guidelines related to sustainability and reducing global warming. This includes goals like Carbon Neutrality, Net Zero Emission, trade measures, and ESG guidelines. Previously, most companies concentrated solely on financial performance, but now many companies, especially leading firms, are also prioritizing other areas, such as those related to ESG (Environment, Social, Governance).
Environment (E) refers to attention to environmental issues, whether in production, office buildings, or energy use, which must be environmentally friendly and support sustainability. Social (S) involves caring for social aspects, such as supporting and developing communities and ensuring good employee welfare, including health and working conditions. Governance (G) pertains to transparent organizational management and good corporate governance. These three components are reflected in ESG reports, which influence investor decisions and also impact the organization's image.
On an international level, ESG indices have been developed to provide information for companies, investors, and consumers, allowing them to understand the approaches and results related to ESG initiatives undertaken by each company. This increases the awareness and information available for decision-making among investors and consumers. Major international index providers include S&P Dow Jones, MSCI, and FTSE Russell. Currently, several leading companies in Thailand have participated in the Dow Jones Sustainability Indices (DJSI) assessment, both as World Members and Emerging Markets Members, with a growing trend. The indicators vary by industry, and in 2023, there are 62 industry categories with over 3,500 companies worldwide participating in the assessment. In 2023, 28 companies from Thailand are members of DJSI, the highest number in the ASEAN region, with 12 companies scoring in the Top 1% of the S&P Global CSA Score across various industries, including:
True Corporation Public Company Limited from the Telecommunication Services sector.
Berli Jucker Public Company Limited from the Food and Staples Retailing sector.
Thai Beverage Public Company Limited from the Beverages sector.
The Siam Cement Public Company Limited from the Construction Materials sector.
PTT Global Chemical Public Company Limited from the Chemicals sector.
SCG Packaging Public Company Limited from the Containers and Packaging sector.
Mitr Phol Sugar Co., Ltd. from the Food Products sector.
BTS Group Holdings Public Company Limited from the Transportation and Transportation Infrastructure sector.
Central Pattana Public Company Limited from the Real Estate Management and Development sector.
Thai Oil Public Company Limited from the Oil and Gas Refining and Marketing sector.
VGI Public Company Limited from the Media, Movies, and Entertainment sector.
PTT Oil and Retail Business Public Company Limited from the Retailing sector.
Asset World Corp Public Company Limited from the Hotels, Resorts, and Cruise Lines sector.
Bangkok Dusit Medical Services Public Company Limited from the Health Care Providers and Services sector.
Source: https://www.spglobal.com/esg/csa/yearbook/2024/ranking/index#
The main attraction for many companies to participate in the sustainability index assessment is to gain interest from sustainability-focused investors. Companies also learn about their own sustainability performance through the assessment results, benchmark against other companies, and build confidence among various stakeholders, enhancing their organizational image.