Supporting high quality environmental disclosure in Thailand

• The SEC is urging Thai Financial Institutions (FIs) and corporates to report their climate-related risk following the disclosure guidelines
• However, capacity gaps remain among Thai corporates around global ESG standards, TCFD disclosure and reporting, and best practices to promote a low-carbon economy in Thailand
• Climate risk awareness, management, target setting, and transition plans need to be strengthened to ensure long-term financial growth
• Regulators and policymakers are only starting to familiarise with evolving practices in environmental disclosure regulations. They need support to better evaluate international best practice and regulatory options for developing and implementing a mandatory environmental disclosure regime In Thailand in alignment with the TCFD recommendations

The project worked closely with SEC to support Thai stakeholders (FIs, corporates, policymakers, and regulators) to improve their capacity, knowledge, and skills in TCFD-aligned disclosures and beyond:

• In the first project phase, three sets of workshops were held: beginner TCFD and ESG workshops, advanced TCFD and ESG workshops, and capital markets workshops. These aimed to enhance TCFD reporting and ESG metrics knowledge at all levels. The project also followed up with stakeholders in a further round of workshops as part of the CDP disclosure cycle
• During the second implementation year, three workshops were held for Thai-listed companies, FIs, corporates, policymakers, and regulators. These workshops built on the lessons from the first project phase and from the CDP reporting
• The project also produced three reports: 1.) An initial report on the readiness and capacity needs of corporates and Fis in Thailand; 2.) a TCFD roadmap to help corporates better understand the current regulatory trend of sustainability disclosure, key concepts, core elements of TCFD recommendations and key actions to advance their TCFD disclosure journey; 3.) a policy brief to support regulators and policymakers in building better knowledge and understanding of the relevance of TCFD-aligned data throughout the policymaking process
• A 2022 analysis of Thai companies’ CDP responses was prepared for SEC's internal use. It provided an overview and high-level analysis of the companies' performance against the TCFD recommendations, compared to global peers
• A record-high disclosure growth rate of Thai companies on climate change was 53%. An increase from 64% in 2021 to 98% in 2022 was gained. Manufacturing, materials & food, and beverage & agriculture were the top three disclosing sectors

The project sought to integrate GESI considerations throughout the project implementation and initiated specific actions internally and externally to better embed GESI values and principles:

• The first workshop explored Thailand's GESI context and reporting requirements, followed by exemplary GESI implementation and common challenges in GESI practice. The session also covered the future of GESI and encouraged more companies to translate GESI from theory into practice
• Desk-based research was conducted to identify GESI-frontrunners amongst CDP Thai disclosers and results were summarised in an internal report "GESI Performance Amongst Thai CDP Reporters 2022". The report aimed to present GESI actions and pathways that selected Thai companies followed
• CDP also held internal GESI training to support GESI integration across the organisation beyond the scope of this project. CDP worked closely with the SEC to understand internal policies and its ambitions regarding women’s leadership and the promotion/adoption of GESI principles

The project enhanced TCFD knowledge and increased transparency and high-quality disclosure for all stakeholders to drive Thailand's transition towards a low-carbon economy. However, a systematic and ongoing engagement with key players is crucial in achieving a broader consensus on environmental disclosure.

GESI topics were addressed and efforts to incorporate them into all aspects of the project were made during the project implementation. The project aimed to raise awareness of GESI components and achieve engagement with the project stakeholders. Learnings from this work will be shared with CDP leadership to encourage further thinking on embedding GESI in programming work. CDP is currently recruiting for a GESI/DEI specialist, and are in the process of establishing a core working group that will direct, champion, and disseminate the work of this specialist.

More work is needed to strengthen and deepen stakeholders' understanding, knowledge and skills on the agreed project outcomes and themes, including GESI.