In a significant step towards aligning with global sustainability standards, the Stock Exchange of Thailand (SET) has announced that starting in 2026, it will transition from its current SET ESG Ratings system to the internationally recognised FTSE Russell ESG Scores. This transition aims to enhance transparency, reduce reporting complexity, and position Thai companies within a globally recognised framework.
Thailand’s shift to FTSE Russell ESG Scores is a response to investors’ increasing demands for transparency and comparability. Through the adoption of FTSE Russell’s comprehensive framework, Thailand’s financial market would be better positioned on the global platform.
FTSE Russell ESG Scores provide an internationally recognised, transparent, and standardised approach to assessing companies’ ESG performance. Developed by a leading global provider of ESG data and indices, FTSE Russell uses detailed data sources and advanced analytics to evaluate companies on a wide range of sustainability factors, from climate risk to corporate governance.
FTSE Russell’s methodology is continuously updated to reflect emerging trends in ESG reporting, ensuring companies are well-prepared for evolving global expectations and opportunities.
In contrast, The Stock Exchange of Thailand (SET) introduced its own ESG Ratings in 2015, designed to promote sustainable business practices within Thailand’s market.
However, while effective in raising awareness and fostering local sustainability initiatives, the SET ESG Ratings had limitations in terms of global comparability and integration compatibility with international ESG frameworks. This restricted meeting the growing demands of global investors and provided less comprehensive insights compared to global standards.
The sound move to adopt FTSE Russell ESG Scores exhibits how Thai businesses are embracing a more rigorous and globally accepted system that will elevate them in the international ESG space.
What Companies Can Expect in the Shift
The shift from SET ESG Ratings to FTSE Russell ESG Scores will be implemented over a well-defined two-year period, allowing Thai companies ample time to adjust to the new global standards. This transition will involve a phased process designed to ensure smooth implementation and provide businesses with the necessary support to meet the new requirements.
Eligibility
The transition will primarily involve companies that have previously participated in the SET ESG Ratings program and those that are constituents of the SET100 Index.
However, the transition is also open to other companies that have not yet been assessed under the SET ESG Ratings program. These organisations can voluntarily opt-in to participate in the FTSE Russell ESG assessment, broadening the scope of the transition to include a wider range of Thai businesses.
Support for Companies
To facilitate a smooth transition, SET and FTSE Russell will offer continuous support to Thai companies throughout the process.
This support will include training, seminars, and resources such as the “Guideline to FTSE Russell ESG Scores,” available in both Thai and English.
In addition, specialised workshops designed for listed companies, fund managers, and analysts will provide a comprehensive understanding of FTSE Russell’s assessment methodology and scoring criteria. These resources will empower companies to navigate the transition and align with global best practices in ESG reporting.
The Assessment Cycle
FTSE Russell’s ESG Score assessment cycle is structured to provide a transparent, thorough, and collaborative process for all participating companies:
- Initial Company Assessment
The process begins with an initial evaluation of each company by an FTSE Russell analyst, following the standardised ESG methodology. This evaluation is based solely on publicly available disclosures, ensuring that the assessment reflects verifiable, transparent data. - Company Review
Once the initial assessment is complete, companies will be invited to review their ESG assessments via the FTSE4GOOD platform. Companies will have a four-week window to access the platform using their login credentials and review their results. Detailed instructions will be provided on the platform for each section of the assessment. Companies can submit feedback for any indicators that lack sufficient data or require clarification. - Incorporation of Company Feedback
After the company review period, FTSE Russell analysts will incorporate relevant feedback into the assessment. If the evidence provided is pertinent, public, and verifiable, the company’s ESG scores may be adjusted accordingly. However, if the feedback is irrelevant, ambiguous, or based on private data, no changes will be made. After the review and adjustment process, companies will be able to view the final analyst feedback, and the updated ESG scores will be made available on the platform. - ESG Score Calculation
The final ESG scores will be calculated based on the updated assessment results and any relevant feedback provided by the companies. These scores will reflect the company’s performance across key ESG themes, such as environmental impact, governance practices, and social responsibility. Once the scores are finalised, they will be published, offering a transparent, benchmarked view of each company’s ESG performance.
Turn ESG Efforts into Measurable Success with Convene ESG
To effectively transition to global ESG standards, sustainability software like Convene ESG can be instrumental in capturing, managing, and reporting your company’s ESG efforts with accuracy and transparency.
Convene ESG simplifies the ESG reporting process by automating data collection, ensuring that the information provided is accurate and in line with international standards. The platform’s alignment with widely recognised frameworks, such as TCFD, GRI, and SASB, ensures that companies can track and report their ESG data while meeting global standards. By seamlessly organising and analysing ESG data, Convene ESG helps companies clearly communicate their environmental, social, and governance performance, ultimately driving positive scores in assessments like FTSE Russell’s.
As Thailand shifts toward adopting global ESG benchmarks, automated reporting solutions become a key asset in ensuring companies not only meet the necessary criteria but also excel in presenting their ESG efforts.
Learn more about how Convene ESG can support your sustainability journey at conveneesg.com.
