TOWARDS ESG SCHEME OF THE REAL ESTATE AND CONSTRUCTION INDUSTRY IN THAILAND

Abstract

ESG (Environmental, Social, and Governance) is a crucial factor in the real estate business in Thailand, as it helps businesses develop sustainably in the long term. This focus on ESG contributes to the sustainability of the organization, as it involves the efficient use of resources, reducing greenhouse gas emissions, using renewable energy, and promoting the quality of life for residents and the community. The Stock Exchange of Thailand (SET) encourages businesses to operate responsibly for stakeholders by taking into account ESG factors. The SET ESG Ratings, a government agency, has assessed 106 companies, with twenty-Eight passing the assessment. Companies that comply with good governance principles and take care of stakeholders' interests build trust from investors and customers.

The ESG Index, also known as the Sustainability Index, is an investment index that takes into account sustainability criteria to motivate organizations to focus on issues. The SET ESG Ratings evaluate companies' practices in environmental management, energy management, water management, waste management, and pollution management. In Thailand, the Stock Exchange of Thailand has prepared the "THIS Sustainable Stocks List" since 2015, with 32 companies under property and construction under the ESG policy, then later become 28 companies. The Group of Property Development and Construction has four categories: CONMAT (Construction Material), PROP (Property Development), PF&REIT (Real Estate Funds and Real Estate Investment Trusts), and CONS (Contractors). By incorporating ESG practices into business operations, companies can increase competitiveness and focus on all stakeholders, contributing more sustainably for the future.