By Sarika Khera
In today's changing world, people are realizing that investing should not only be about making money but also about benefiting our planet and communities. Sustainable growth means minimizing harm to the environment and local societies. To achieve this, it is important to follow ESG principles. ESG stands for environmental, social, and governance. It is a framework that assesses how companies impact the environment, their relationships with society, and their governance practices. ESG considers factors such as a company's environmental risks, sustainability efforts, treatment of employees and communities, and the effectiveness of its leadership and controls.
More and more people, including employees, customers, and investors, are aligning their decisions with ESG values. Companies that prioritize ESG standards and address related risks are gaining favor and higher value. Thailand is making impressive progress in pursuing carbon neutrality and achieving net-zero emissions earlier than expected. The country has set new targets to become carbon neutral by 2050 and achieve net-zero emissions by 2065. This demonstrates Thailand's strong commitment to addressing climate change.
Thailand aims to become an environmentally friendly and sustainable economy, as outlined in its 13th National Economic and Social Development Plan. The country plans to reduce greenhouse gas emissions by 20% to 25% by 2030 and is developing an action plan to achieve this goal. In response to the growing importance of sustainable investing, the Securities and Exchange Commission (SEC) has introduced the Thailand ESG Data Framework and is working on principles to regulate sustainable and responsible investment funds. The SEC wants to ensure transparency and prevent misleading information (greenwashing) by requesting sufficient disclosure to investors. They also plan to make ESG training mandatory for capital market personnel. The SEC is also focused on promoting job opportunities for people with disabilities to positively impact society.
At RSM, ESG is a fundamental part of our 2030 Global Strategy. We prioritize our commitment to our People, Clients, and Communities, recognizing our responsibility to the world. Our goal is to incorporate sustainability and responsible practices in all aspects of our operations. As a leading audit, tax, and consulting organization, we value driving change and promoting inclusivity, equality, transparency, purposeful growth, and collective responsibility. Sustainable leadership is crucial for a brighter future, while businesses solely focused on self-interest risk their own success.
Should you require any advise with respect to this article or any of our Audit, Accounting, Payroll, Taxation, Legal or Recruitment and Outplacement Service, please do not hesitate to contact us on [email protected]