ESG, a new trend for investors around the world

ESG, a new trend for investors around the world

       Today’s overexploitation of natural resources has resulted in a serious disturbance in the biological balance of the world. This is the origin of the conceptual framework used to drive the business sector toward sustainable growth by taking into account three important dimensions, which are Environmental (E), Social (S), and Governance (G), also known as “ESG.”

       Currently, ESG is a popular investment trend among investors around the world. This investment trend focuses on making investment decisions by taking into account the  Environmental, Social, and Governance dimensions, the principles used to measure the efficiency, transparency, and auditability of the company’s management. 

       The ESG concept also contributes to the credibility of businesses by reflecting the business’s roles and responsibilities towards stakeholders and presenting performance results for sustainable business growth.

           However, individual investors and institutional investors are increasingly focusing on sustainable investments or investing in securities of the companies operated under ESG sustainability frameworks.

          In addition, the studies and research of the Stock Exchange of Thailand indicates that sustainable investment can bring greater returns. Sustainable investment is becoming more and more influential in the investment market, and many organizations operate in accordance with the ESG concept, such as the Dow Jones Sustainability Indices (DJSI), the FTSE4Good Index, and the MSCI ESG Index. In Thailand, the Stock Exchange of Thailand has set up the Thailand Sustainability Investment (THSI) category, in which the limited companies that have passed all three dimensions of assessment criteria will be categorized as THSI, which can attract more investment among investors.