SET at 50: Shaping the Future of Corporate Sustainability in Thailand

The Stock Exchange of Thailand (SET) celebrates its 50th anniversary this year, marking this milestone amid global shifts and Environmental, Social and Governance (ESG) challenges.  To mark the occasion, SET is launching a new generation of strategic plans to guide Thailand’s transition to a sustainable and inclusive capital market over the next 50 years. 

At the centre of this vision is a commitment to integrating ESG principles across the Thai capital market. As climate change and social and governance risks reshape the global economy, SET is laying the groundwork to help Thai businesses improve their ESG standards and support the nation’s shift to a low-carbon, socially responsible economy. 

Thailand’s ESG Evolution 

To understand how far Thailand has come, it's important to look at the evolution of ESG practices in the capital market. Over the past three decades, SET has played a key role in shaping ESG development through a phased and strategic approach. 

Phase 1 (Early 1990s): Foundation 

In the early 1990s, SET started promoting good governance by making independent directors and audit committees a requirement. It introduced corporate governance basics to improve board oversight and accountability. This foundational work created the structural and regulatory groundwork that facilitated more rigorous governance reform in the following phase.  

Phase 2 (1997-2006): Reform 

After the Asian financial crisis, corporate governance became a priority. SET established the Corporate Governance Center and partnered with regulators to form the Thai Institute of Directors (IOD). This period saw the introduction of Corporate Governance assessments for all listed companies. With governance mechanisms in place, the capital market could broaden its focus beyond boardroom conduct to include social responsibility and broader stakeholder engagement. 

Phase 3 (2007-2012): Corporate Social Responsibility (CSR) 

SET founded the Corporate Social Responsibility Institute (CSRi) and launched CSR guidelines for businesses. As companies embraced CSR principles, demand for a comprehensive ESG approach that addressed environmental and governance factors grew.

Phase 4 (2013-Present): ESG 

SET’s 2014 membership of the UN Sustainable Stock Exchanges Initiative reinforced its sustainability commitment. This phase  built on governance and CSR foundations, culminating in the integration of ESG into Thailand’s capital market development strategy. 

SET’s Four Pillars of ESG Framework 

SET’s ESG efforts rest on four pillars that support ongoing ESG integration and serve as a framework for driving long-term market resilience and responsible growth. 

• Sustainable Business: Helping companies integrate ESG into governance, risk management and leadership to support long-term growth. 
• Sustainable Investment: Guiding capital toward responsible companies using ESG ratings and indexes. 
• ESG Infrastructure: Providing digital tools such as the ESG Data Platform and SET Carbon to enhance ESG reporting and data transparency. 
• Education and Promotion: Increasing ESG awareness and skills through campaigns, training and learning programs.

Strengthening ESG Capacity and Infrastructure 

SET is focused on helping businesses turn ESG ideas into action. By providing training, guidelines and digital platforms, SET ensures that companies, regardless of size or maturity, can build the capability to meet ESG expectations. 

Training: Customised programs for companies at all stages of ESG development. 

Guidelines: Practical ESG handbooks to encourage meaningful, actionable improvements across business operations. To improve ESG reporting, SET launched the ESG Data Platform and SET Carbon, to assist listed businesses in improving sustainability disclosure and tracking greenhouse gas emissions. These tools are integrated to improve reporting procedures and reduce duplication of work. 

ESG Data Platform: A centralised system with 122 indicators to help companies disclose ESG data efficiently. It supports better decision-making by investors and regulators. 

SET Carbon: A tool launched in 2025 to help small- and mid-cap firms calculate greenhouse gas emissions in line with national standards.  More than 130 companies are already using it. 

Aligning with Global Standards 

To ensure Thailand’s ESG framework meets international expectations, SET is aligning its practices with globally recognised benchmarks. This alignment enhances investor trust and promotes the visibility of Thai companies in the global ESG landscape. 

ESG Ratings: SET is upgrading its ESG Ratings by adopting the FTSE Russell ESG model, a global benchmark covering 8,000+ companies in 47 countries. Full implementation is expected by 2026. 

SET ESG Index: Introduced in 2023, this index highlights firms that balance financial success with sustainability. It helps  investors seeking responsible investment options. 

Thailand’s ESG Progress 

These efforts are already paying off, as reflected in the increasing number of Thai companies receiving ESG recognition locally and internationally. The momentum is strong and the data shows Thailand’s capital market is rapidly becoming more sustainable and investor-friendly: 

• 224 listed companies now have SET ESG Ratings, covering 82 percent of market capitalisation. 
• Thai firms feature in global ESG indices such as DJSI, FTSE ESG and MSCI ESG. 
• 242 ESG and CG funds operate in Thailand, with  more than THB 93 billion in assets under management. 

Accelerating Climate Action 

Thai companies are rising to meet international standards, driven by both regulatory pressures and global supply chain expectations. 

• EU CBAM Compliance: With the EU’s Carbon Border Adjustment Mechanism targeting high-emission imports, Thai exporters must adapt to remain competitive. 
• GHG Emissions Tracking: 41 percent of SET-listed firms now collect Scope 1 and 2 emissions data, and 18 percent track Scope 3 emissions as well. 
• Net Zero Commitments: 19 Thai companies have set science-based Net Zero targets in line with global standards.

Looking Ahead 

The journey toward corporate sustainability is far from over but the direction is clear. With strong public-private cooperation and alignment with global ESG standards, Thailand’s capital market is well-positioned to lead in Asia’s sustainable finance movement.  These collective efforts enhance economic resilience  and contribute to global sustainability goals. SET’s vision remains bold and inclusive: To Make the Capital Market "Work" for Everyone.