According to Deloitte’s latest report, organisations in Thailand should strengthen ESG data collection and reporting systems, as well as expand partnerships across their value chains, given that sustainable finance is fast becoming a critical lever for market development.
Deloitte’s report, “Driving Sustainable Success: ESG Reporting and Policy Developments in Thailand” provides an in-depth analysis into the progress towards the adoption of ESG principles in Thailand, and the role of the capital markets in supporting the country’s green transition.
“We have entered an era where sustainability is not just a ‘should’ but a ‘must’ for competitiveness in the global marketplace. Beyond compliance, organisations that effectively integrate ESG principles into their operations will be better placed for long-term growth. Effective regulation, innovation, and credible reporting are critical to building trust and unlocking sustainable growth across Southeast Asia,” said Thawatchai Kiatkwankul, Regulatory and Public Policy Leader, Deloitte Southeast Asia.
A key observation from the report is that Thailand is setting a strong example in advancing sustainability reporting and sustainable finance. Its regulators have been instrumental in shaping a resilient ecosystem through policy frameworks and market incentives, including guidelines for sustainable bond issuance, ESG disclosure standards, the Thailand Taxonomy for green economic activities, and tax incentives for sustainable investments. These measures showcase Thailand’s commitment to embedding sustainability into its economic growth.
Kasiti Ketsuriyonk, Audit & Assurance Partner, Deloitte Thailand, said: “Sustainable investments are crucial in directing private sector resources for the benefit of society and the environment. For such investments to succeed in this objective, they must be accompanied by sound policies and regulations. Organisations that proactively align themselves to ESG requirements and principles will be better placed to access capital and deliver long-term value.”
Additionally, the report recommends how organisations and investors can maximise the impact of ESG by acting on the latest developments, for instance to embed ESG principles across their operations, strengthen stakeholder engagement and due diligence, exercise shareholder rights, and leverage opportunities in green bonds and social funds.
Josette Soh, Sustainability & Emerging Assurance Partner, Deloitte Singapore, noted: “Regulatory momentum, along with stakeholder expectations, continues to shape the ESG landscape across Southeast Asia, including in Thailand. As policymakers introduce new taxonomies, disclosure standards, and incentives, organisations must be agile in adapting to these changes. Those who proactively align with evolving regulations and invest in credible ESG reporting will be best positioned to attract sustainable finance and maintain stakeholder trust.”
Thailand’s leadership in ESG policy and regulation
The report notes that regulatory bodies such as the Stock Exchange of Thailand (SET), Securities Exchange Commission (SEC), and Bank of Thailand (BOT) are leading policy development in sustainable finance, carbon tax, emission trading schemes, as well as taxes and incentives to reduce greenhouse gas emissions.
In addition, the Sustainability Reporting Guide for Listed Companies, issued by the SET, provides a clear reporting framework and sustainability performance indicators that respond to the needs of investors and stakeholders in the Thai context.
These measures reinforce Thailand’s commitment to carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065 .
Innovations in sustainable finance
Deloitte’s report details the rise of green bonds, sustainability-linked bonds, and digital sustainability tokens, which are unlocking new avenues for private sector investment in environmental and social initiatives. Investors increasingly seek high-quality ESG assurance to improve risk management, ensure compliance, and guide investment decisions. Towards this end, Thailand’s SET Carbon Platform is one example of a novel digital solution that enables easier ESG data collection and reporting, particularly for small-and-medium enterprises.
Sector-specific ESG risks
The report analyses key ESG risks across sectors, highlighting the impact of evolving regulations on their reporting and operational practices.
In the consumer and industrial goods sector, companies often function within a value chain ecosystem that includes thousands of suppliers. The complexity of reporting on Scope 3 emissions, those generated outside of a company’s own operations but within its value chain, poses significant challenges for data standardisation and collection.
In the energy sector, ESG regulations introduce further complexities to a field that already has extensive regulations and reporting requirements. The need for accurate and reliable data presents unique challenges for companies with assets such as pipelines, transmission lines, drilling rigs, or offshore wind turbines.
The financial services sector includes a wide range of businesses that manage financial transactions, investments, and risk. Financial services firms face increasing scrutiny under global disclosure regulations, with measuring financed emissions as a particular challenge. In addition, financial players are expected to adopt global initiatives and standards to accelerate the green transition in Thailand.
Next, in the technology sector, many firms have committed to climate action and are subject to SEC climate disclosures and other ESG regulations. At the same time, technology providers play a critical role in the climate transition, offering solutions for carbon accounting and smarter, more sustainable operations across industries. Global regulatory requirements present an opportunity for these companies to develop technologies that support ESG reporting requirements.
Recommendations to maximise the impact of ESG
The report urges stakeholders, including organisations and investors, to better understand and take action based on the latest ESG developments and insights.
Key recommendations include:
• Practise ESG meaningfully: Organisations need to provide ESG-related training, guidance and incentives. They should also apply ESG considerations to all investments, rather than limited to certain funds and bonds.
• Engage meaningfully with stakeholders: When engaging with other organisations, leaders should be equipped with knowledge and awareness of ESG due diligence, in order to mitigate risks.
• Exercise shareholder rights: Investors should understand the relevant laws and regulations in different countries, and if necessary, take shareholder action to establish precedence in ESG stewardship.
• Focus on the credibility and increased opportunity created by bonds and social funds: Asia’s rapid wealth creation and high savings rates have created a pool of capital that could help support sustainable investments. Pension funds, sovereign wealth funds and institutional investors can consider integrating ESG strategies into their overall portfolio.
