The Securities and Exchange Commission (SEC), in continued collaboration with CFA Institute and CFA Society Thailand, has recently organized a training seminar on the integration of ESG risks and opportunities into securities analysis and valuation. The training aimed to enhance knowledge and understanding of the link between ESG factors and the performance of listed companies, and the integration of ESG factors, especially climate-related risks, for securities analysts to put into practice (ESG in practice) to provide investors with information for making investment decisions.

The training seminar on the topic “Understanding the Impact of Sustainability on the Value and Performance of Companies; Integrating Climate-Related Risks and Opportunities into Equity Analysis and Valuation” took place on 28 June 2024, at Sheraton Grande Sukhumvit Hotel, Bangkok. This seminar aimed to empower capital market professionals, in particular securities analysts, with the practical application of skills and technical knowledge in analyzing ESG data, considering the current trends, especially climate change, and integrating ESG factors into equity analysis to provide investors with information for decision making. Mr. Richard McGillivray, guest speaker from CFA Institute, shared valuable knowledge on ESG through mini case studies with more than 100 Thai professionals from the securities industry including executives and securities analysts.

Mrs. Pornanong Budsaratragoon, SEC Secretary-General, said: “Driving sustainable growth in the Thai capital market is an important mechanism to lead the country towards the Sustainable Development Goals, which is one of the goals of the SEC Strategic Plan for the years 2024 – 2026. This event is another step forward to support and upskill our capital market professionals, especially securities analysts, to attain better knowledge and deeper learning of ESG data analysis and integrate this information into their research reports. In addition, the emphasis on ESG in securities analysis will be an important factor that motivates listed companies to prioritize ESG matters for the benefit of investors, the capital market and Thailand.” 

Mr. Richard McGillivray, Senior Director, Product Advocacy and Education, Asia Pacific CFA Institute, said: “The integration of ESG factors into investment analysis and decision-making has rapidly gained momentum around the world. CFA Institute is committed to raising ethical and professional standards across the investment industry, including empowering investment professionals to effectively incorporate material ESG factors into their analysis and investment decisions. In partnership with the Securities and Exchange Commission of Thailand, this collaborative forum provides a valuable opportunity to share insights, address challenges, and explore ways to improve the use of ESG disclosure and sustainability data in understanding the long-term value and performance of assets.”

Ms. Kingpai Koosakulnirund, Vice President, CFA Society Thailand, said: “Thailand’s capital market has been advancing on the ESG front with the promotion of ESG disclosure and reporting. Investment analysts are playing the next vital role by integrating ESG-related information to their analysis. Since the integration of ESG factors into investment analysis and valuation is relatively a new practice, having practical workshops would be a useful starting point for investment analysts.”

In this regard, the SEC and CFA Society Thailand have jointly introduced a Thai version of the “Guidelines for Integrating ESG Information into Equity Analysis and Research Reports,” created by CFA Institute. The Thai translation is available for download at https://www.sec.or.th/TH/Pages/LawandRegulations/HandbooksGuidelines-ESG.aspx